Which of the following is NOT a reason why strategy matters to businesses? Review Later Understanding a company's strategies allows financial analysts to make reasonable assumptions in performing forecasting Tying financial models to strategies of a business helps generate more insightful analyses Having a strategic plan helps reduce uncertainty about the future and prepare to explore new opportunities Strategy defines a company's current and future goals and objectives Book Co. is an online book store which sells both fiction and non-fiction books. After analyzing the online book retail industry and assessing its current and predicted sales, Book Co. decides to move away from non-fictions and target only the fiction market which is expected to have a 20% growth in sales. This is an example of strategy. Functional-level Corporate-level Business-level 5 The threat of potential entrants is high when Switching costs are low Customers have high brand loyalty Investment in specialist equipment is required to enter the industry Government regulation in the industry is strict 6 The bargaining power of suppliers is low when Switching costs are high Few substitute inputs are available There are many alternative suppliers Suppliers are large or concentrated According to what is taught in this course, company is most likely to start earning positive profits at the __stage of an industry life-cycle. Growth Maturity Start-up Shakeout