When the management frame of reference gets out of touch with the realities of the actual business situation,what can happen to the firm?
A) Management perceptual acuity improves.
B) Management gets across-the-board raises.
C) The company business strategy no longer works.
D) It becomes easier to maintain competitive advantage.

Question

Quizplus · Accepted Answer

A company strategy may be good at one point in time, but it may go astray when the management frame of reference gets out of touch with the realities of the actual business situation. This situation results when management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid.

When the Management Frame of Reference Gets Out of Touch