Question

Cirrus Aircraft, a leading manufacturer of small airplanes, sees a market opportunity and has decided to double its plant capacity over the next two years. What type of competitive action does this represent?
A. A tactical action because the move is an attempt to fill a gap in service.
B. A strategic action because such a large plant expansion will require a major commitment of resources.
C. A strategic action because the firm can easily reverse the action at any time, thus giving Cirrus more strategic flexibility.
D. A guerilla offensive because it is fast and will surprise its rivals.

Answer 1

Answer:

B. A strategic action because such a large plant expansion will require a major commitment of resources.

Explanation:

There are two major forms of action in business decision making: strategic and tactical. Strategic action deals with decision that require major planning and investment of resource. Strategic actions have long term implementation and effect and are difficult to reverse.

Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.

On this note, Circus Aircraft`s  decision to double its plant capacity over the next two years is a strategic action because such a large plant expansion will require a major commitment of resources. And the action will not easily reversible.

Other options in the question are not totally right.