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Why would a manager take advantage of strategic investments at the functional level? to use valuable resources to attain superior efficiency to create competitive advantage to create valuable and rare resources to improve its business-level strategy

Ask by Bond Gordon. in the United States
Feb 03,2025

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Answer

A manager takes strategic investments at the functional level to create competitive advantage.

Solution

To determine why a manager would take advantage of strategic investments at the functional level, let's analyze each option provided: 1. **To use valuable resources to attain superior efficiency**: This option suggests that strategic investments can help optimize resource use, leading to better operational efficiency. This is a valid reason, as efficient use of resources can reduce costs and improve productivity. 2. **To create competitive advantage**: This option indicates that strategic investments can help a company differentiate itself from competitors, leading to a competitive edge in the market. This is a strong reason for making strategic investments, as competitive advantage is crucial for long-term success. 3. **To create valuable and rare resources**: This option implies that strategic investments can lead to the development of unique resources that are difficult for competitors to replicate. This is also a valid reason, as having rare resources can significantly enhance a company's market position. 4. **To improve its business-level strategy**: This option suggests that strategic investments can enhance the overall business strategy, aligning functional activities with broader organizational goals. This is important for ensuring that all parts of the organization work towards common objectives. In summary, all four options present valid reasons for a manager to take advantage of strategic investments at the functional level. However, the most comprehensive reason would likely be **to create competitive advantage**, as this encompasses the benefits of efficiency, resource creation, and alignment with business strategy. Thus, the best answer is **to create competitive advantage**.

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The Deep Dive

Managers often tap into strategic investments at the functional level to optimize resource allocation, making processes more efficient while keeping costs in check. This approach can lead to improved operational performance and greater responsiveness to market demands, which all translate to a superior edge over competitors. Additionally, these investments can help nurture unique capabilities that differentiate a company from others in the industry. By leveraging valuable and rare resources, such as specialized skills or cutting-edge technologies at the functional level, managers can reinforce their business's competitive advantage and enhance overall strategic positioning.

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