📚 Learning Guide
Business Strategy
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Business strategy : Competitive advantage :: Resource allocation : ?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Operational efficiency

B

Market segmentation

C

Organizational flexibility

D

Strategic positioning

Understanding the Answer

Let's break down why this is correct

Answer

Business strategy is the plan that positions a company to outperform competitors, creating competitive advantage. Resource allocation is the act of deciding where to put money, people, and time; it produces operational efficiency and value. In the analogy, the role of resource allocation is analogous to competitive advantage: it yields the benefit of efficient use of resources. For example, a tech firm allocates budget to R&D and marketing, which leads to faster product launches and higher sales.

Detailed Explanation

Resource allocation is how an organization decides where to put its money, people, and time. Other options are incorrect because People often think making things run smoothly inside a company is the same as positioning the company in the market; Some learners believe targeting specific groups automatically positions a company.

Key Concepts

Business Strategy
Resource Allocation
Competitive Advantage
Topic

Business Strategy

Difficulty

medium level question

Cognitive Level

understand

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