Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability.
A) mechanistic
B) imitation
C) organic
D) cost-cutting
E) innovation

Question

Quizplus · Accepted Answer

The description fits that of an imitation strategy, where organizations wait for others to take the risk before imitating their successful products or market entry. This minimizes the risk and maximizes the opportunity for profit. The other options don't fit this description as well. Mechanistic and organic strategies refer to different types of organizational structures. Cost-cutting is a goal, not a strategy. Innovation would imply taking risks and being a first-mover, which is the opposite of the described strategy.

Organizations Following A(n) ________ Strategy Try to Both Minimize Risk