Asked by Monica Mitchell on Sep 28, 2024

verifed

Verified

A firm trying to close a profitability gap is concentrating on its most profitable products and abandoning markets that it cannot win.Which strategy is the firm most likely using?

A) capacity utilization
B) forward integration
C) rationalization
D) segmentation

Rationalization

The process of reorganizing a company or system to make it more efficient and effective, often involving reductions in staff.

Capacity Utilization

The extent to which a firm or economy is using its installed productive capacity.

Abandoning Markets

The strategic decision to exit a market segment or stop marketing efforts in a particular geographic or product area.

  • Comprehend the tactics a firm can employ to bridge sales and profitability discrepancies.
  • Comprehend the consequences of selecting particular strategies to tackle profitability concerns.
verifed

Verified Answer

SM
Sharnay Mooreabout 6 hours ago
Final Answer :
C
Explanation :
The strategy being used here is rationalization, which involves focusing on the most profitable products and abandoning markets that do not generate enough profits. Capacity utilization refers to using existing resources more efficiently, forward integration involves expanding into downstream operations, and segmentation involves dividing a market into smaller groups with different needs and preferences. None of these strategies are directly related to closing profitability gaps.