When management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid, the strategy of the firm needs to be updated.

Question

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The strategy of a firm may be good at one point in time, but it may go astray when the management frame of reference gets out of touch with the realities of the actual business situation. This results when management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render invalid the overall theory of the business.

When Management Assumptions, Premises, or Beliefs Are Incorrect or When