📚 Learning Guide
Strategic Decision-Making
easy

A 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?

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Learning Path
Learning Path

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

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