Altair Inc.,the largest firm in the electronics market,is facing stiff competition from a relatively smaller firm,the Cygnus Group.Which of the following is an advantage that Cygnus has over Altair due its size?
A) Large fixed-asset bases
B) Multiple layers of administration
C) Flexibility and an entrepreneurial culture
D) Greater bureaucratic inertia due to well-developed policies and procedures

Question

Quizplus · Accepted Answer

Smaller firms are generally more flexible and have an entrepreneurial culture, which enables them to respond quickly to market changes and adapt to customer needs. Altair's larger size may make it more bureaucratic and slow to respond to changes, giving Cygnus an advantage in agility and adaptability. Having large fixed-asset bases (A) and multiple layers of administration (B) can actually be disadvantages for a firm in a highly competitive market. Greater bureaucratic inertia due to well-developed policies and procedures (D) would also be a disadvantage for Cygnus, so this is not an advantage over Altair.