Answer:
The transition between launching a new product or strategy and discontinuing the current product is a crucial business decision because it involves financial risk, customer relation and overall brand of the organization.
Step-by-step explanation:
I would choose to announce the new business strategy with a risk of short-term financial loss because of the following reasons:-
Competitive Business Environment:- In a competitive world, an organization must update the current line of products or introduce a new one to meet the growing demand and expectations of its customers. Even though a new strategy or product may incur additional cost or a loss, product development is key to having an edge over its competitors.
Long-Term Goal:- Organizations that develop strategies keeping the long-term vision of the company in mind tend to survive and sustain profits in the long run. Business is an on-going process so it’s important to stay relevant to customer demands in the future as well. Loyal customers always expect the company to deliver new products and services which can outperform the existing products and creates brand loyalty.
Business Integrity:- An organization must exercise effective stakeholder’s relationship management not just with customers but with other stakeholders like suppliers and shareholders. Announcing a new business strategy in advance built trusts and opportunities for your stakeholders to engage with you in a B2B partnership in future. This strengthens the existing partnerships and relations, where others would want to continue doing business with you in future and beyond.
