Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Analyze market trends and customer feedback to understand the need for a pivot
B
Immediately increase their marketing budget without further analysis
C
Follow what competitors are doing without evaluating their own strengths
D
Stick to the original product line because it has been successful in the past
Understanding the Answer
Let's break down why this is correct
Answer
They should prioritize a data‑driven hypothesis‑testing approach, treating each option as an experiment that can be measured before committing large resources. By launching a small marketing test or a prototype of a pivoted product, they can collect real sales data and customer feedback. This lets them see which action actually improves revenue, keeping costs low while learning. For example, a 10‑percent ad spend on a niche segment could reveal whether marketing alone lifts sales; if not, they can pivot instead. Thus, iterative, evidence‑based decision making ensures the startup chooses the best course.
Detailed Explanation
When a company sees sales drop, it must look at what customers want and how the market is changing. Other options are incorrect because Thinking marketing alone will fix everything overlooks why sales fell; Copying competitors assumes their success will happen here too.
Key Concepts
Strategic Decision-Making
Market Analysis
SWOT Analysis
Topic
Strategic Decision-Making
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1A company is deciding whether to enter a new market or focus on improving its existing product line. Which category of strategic decision-making does this situation best represent?
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2
Question 2A small tech startup is facing declining sales and is considering whether to pivot their product line or invest in marketing their current offerings. Which strategic decision-making principle should they prioritize to ensure they choose the best course of action?
easyBusiness
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3
Question 3A company is deciding whether to enter a new market or focus on improving its existing product line. Which category of strategic decision-making does this situation best represent?
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4
Question 4A company is deciding whether to enter a new market or focus on improving its existing product line. Which category of strategic decision-making does this situation best represent?
mediumBusiness
Practice
5
Question 5A small tech startup is facing declining sales and is considering whether to pivot their product line or invest in marketing their current offerings. Which strategic decision-making principle should they prioritize to ensure they choose the best course of action?
easyBusiness
Practice
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