📚 Learning Guide
Strategic Decision-Making
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In the context of strategic decision-making, how should a company prioritize its resource allocation when entering a new market based on strategic analysis?

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Learning Path

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Choose the Best Answer

A

Allocate resources equally across all departments to ensure uniform growth.

B

Focus resources on departments that align with the strategic goals identified in the analysis.

C

Invest heavily in marketing regardless of the analysis results.

D

Distribute resources based on past performance of each department.

Understanding the Answer

Let's break down why this is correct

Answer

When a company decides to enter a new market, it first uses strategic analysis—such as SWOT and market‑needs mapping—to spot the biggest opportunities and threats. With that picture, it focuses resources on the areas that will create the most competitive advantage, like tailoring products, building local partnerships, and investing in targeted marketing. The budget is then staged: a small portion goes to market research and pilot testing, a larger chunk to launch activities, and the remainder to scaling once early results confirm the strategy. Throughout the rollout, the firm tracks key performance indicators and shifts spend toward the initiatives that show the highest return on investment. For example, a software company might put 30 % of its initial capital into local user‑experience research, 40 % into a localized marketing campaign, and 30 % into building a distribution partnership, adjusting the mix as data comes in.

Detailed Explanation

Align resources with the strategic goals you found in your analysis. Other options are incorrect because Giving every department the same amount of money assumes all parts need the same help; Buying a lot of marketing without checking the analysis assumes marketing alone wins.

Key Concepts

strategic analysis
resource allocation
Topic

Strategic Decision-Making

Difficulty

medium level question

Cognitive Level

understand

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