Question

* Match the Following:

1. Individuals and groups who can affect the strategic outcomes achieved by and who have enforceable claims on a firm’s performance

2. Steering and managing a company to be successful over time, and not just for one year, but also year after year

3. Strategic options from which a company can choose the best one

1. Strategic management
2. Stake holders
3. Strategic alternatives

- Which of the following is an advantage of being a micropreneur?

a. It involves less stress

b. It provides a regular paycheck

c. It involves no risk factor

d. It is glamorous

Answer 1

* 1.B. Stakeholders

Explanation:

Stakeholders include the individuals and groups who can affect the strategic outcomes achieved by and who have enforceable claims on a firm’s performance. These individuals can be either from inside or outside the organization like employees, suppliers, government and customers.

2.A. Strategic management

Explanation: Strategic management involves steering and managing a company to be successful over time, and not just for one year, but also year after year. It is aimed to achieve the long term goals of the organization which requires more time.

3.C; strategic alternatives

Explanation:

Strategic alternatives are developed as part of the strategic management. The firm will have to choose the best one from these alternatives to achieve competitive advantage.

- Answer: d. it is glamorous

Explanation:

Though micropreneurs manage small businesses, it is not risk free and also involves stress as they start the business from their personal funds or loans. They do not have regular paycheck and the payment depends upon the profit. But the advantage is that it is a glamorous profession being the boss of own business.