Question

Acme Valves, Inc., has been a successful player in the oil field supply industry in the last 15 years. Acme maintained its traditional strategy and product characteristics over this time period. But, Acme has experienced declines in sales and profits over the last four quarters. The CEO of Acme should:_________.
a. continue with the proven strategy because its returns over the long run are important.
b. focus on improving efficiency of production and cost control.
c. conduct an analysis of the external environment.
d. immediately begin making incremental adjustments to the traditional business strategy in an effort to improve sales.

Answer 1

Answer:

Conduct an analysis of the external environment.

Explanation:

• Acme may be old in the market, but environment changes new powers comes in. So it is quite necessary to analyze the external environment in order to find factors or reasons which hinders the sales and profits of Acme.