Multiple Choice
When a company sets financial and strategic objectives, which of the following is the primary purpose of this process?
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1. Introduction to Accounting
Business Organization
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A company employing a _______ strategy would create a new product targeted to its current customers.
A
market penetration
B
product development
C
diversification
D
market development
Verified step by step guidance1
Understand the four growth strategies in the Ansoff Matrix: market penetration, product development, market development, and diversification.
Market penetration focuses on increasing sales of existing products to current customers. This strategy does not involve creating new products.
Product development involves creating new products targeted at the company's current customer base. This strategy is suitable when the company wants to innovate and offer something new to its existing market.
Market development involves selling existing products to new markets or customer segments. This strategy does not involve creating new products.
Diversification involves creating new products and targeting new markets. It is the most risky strategy as it requires entering unfamiliar territory.
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