Which of the statements below relates to the suitability criterion for evaluating strategic option evaluation?
A) Entering into a price war with a cash rich rival will be very expensive.
B) Embarking on a strategy that will depress profits for the next three years may provoke shareholders criticism.
C) Investing in an expensive new design system requiring risky sources of funding
D) Investing in new production capacity is not a good idea with a recession forecast.

Question

Quizplus · Accepted Answer

Suitability assesses whether a strategy addresses the key issues and opportunities faced by an organization. Investing in new production capacity during a forecasted recession may not be suitable as it does not align with the economic environment.

Which of the Statements Below Relates to the Suitability Criterion