Which of the following strategies can support achieving better profits?

Enhance your BSG test readiness with strategic insights and multiple-choice quizzes. Focus on key business concepts and gain confidence for the Business Strategy Game Exam.

Optimizing production capabilities is a comprehensive strategy that enhances efficiency, quality, and responsiveness within a company. By maximizing production capabilities, a business can reduce waste, improve output quality, and respond more adeptly to market demands, ultimately leading to greater profitability. Effective optimization can involve upgrading technology, refining processes, and better resource allocation, all of which can lower costs and increase output without sacrificing quality.

In contrast, solely focusing on cost-cutting may lead to short-term savings but can compromise product quality or employee morale, impacting long-term profitability. Limiting marketing efforts to current customers restricts market growth potential and leaves the company vulnerable to competition. Reducing workforce size might save money in the short run but can also reduce the organization's capacity, impair productivity, and damage employee morale, leading to potential declines in performance and profitability over time. Thus, optimizing production capabilities stands out as a sustainable approach to achieving better profits.

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