When the external environment is unstable and in a state of flux:
A)The firm itself, composed of resources and capabilities, may be a more stable basis for defining its identity and mission
B)A market-focused strategy may provide enough stability and consistency of direction for the firm to establish its strategy
C)The analysis of customers' needs takes too long.
D)Efforts must be devoted to stabilize this external environment or to understand it enough to predict its future states

Question

Quizplus · Accepted Answer

When the external environment is unstable and in a state of flux, it becomes difficult to predict the future and plan accordingly. In such a scenario, the firm's internal resources and capabilities may provide a more stable basis for defining its identity and mission. This approach is known as the resource-based view of the firm and emphasizes leveraging the firm's strengths to gain a competitive advantage. By focusing on its core competencies, the firm can navigate through a changing external environment and stay competitive.

When the External Environment Is Unstable and in a State