Because firms need to respond quickly to environmental opportunities and threats,the implementation of the differentiation strategy is positively affected when the firm is centralized and formalized.

Question

Quizplus · Accepted Answer

The statement is false because the implementation of the differentiation strategy is actually negatively affected when the firm is centralized and formalized. This is because a centralized and formalized structure can hinder creativity and innovation, which are key components of successfully implementing a differentiation strategy. A more decentralized and flexible structure is often better suited for implementing a differentiation strategy.

Because Firms Need to Respond Quickly to Environmental Opportunities and Threats,the