Bachelor of General Studies (BGS) Degree Practice Exam

Corporate strategy must address expectations of which group?

1. Only shareholders

2. All stakeholders

3. Only customers

4. Only employees

The correct answer is: All stakeholders

The correct answer is that corporate strategy must address the expectations of all stakeholders. Stakeholders include not only shareholders but also a variety of other groups such as employees, customers, suppliers, the community, and regulators. Each of these groups has different interests and expectations that can significantly influence a company's strategy and operations. By considering the perspectives and needs of all stakeholders, a company can create a more comprehensive and sustainable strategy. This approach fosters positive relationships and can lead to enhanced reputation, customer loyalty, and employee satisfaction, all of which contribute to long-term success. Focusing solely on shareholders ignores other critical influences on the business. While shareholders are concerned primarily with financial returns, customers are focused on value and quality, employees look for job security and career growth, and communities and suppliers often have broader social and economic concerns. Thus, a well-rounded corporate strategy must integrate the diverse needs of all stakeholders to thrive and sustain success in a competitive environment.