Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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