Question

Mighty Green, a residential lawn chemical manufacturer, is committed to gaining market share in its industry. Mighty Green

a. is likely to raise the level of competitive rivalry in the industry.
b. probably has top management who are affected by emotional barriers to exit.
c. has decided that long-run above-average returns are not important.
d. will probably embark on an acquisition strategy.

Answer 1

Mighty Green is likely to raise the level of competitive rivalry in the industry and strives for long-run above-average returns.

Step-by-step explanation:

Mighty Green, a residential lawn chemical manufacturer, is committed to gaining market share in its industry. This indicates that Mighty Green is likely to raise the level of competitive rivalry in the industry and strive to attract customers away from its competitors. By focusing on gaining market share, Mighty Green demonstrates that long-run above-average returns are important to the company, contradicting option c. Moreover, there is no information provided to suggest that emotional barriers to exit affect the top management of Mighty Green, making option b unlikely. While option d is possible, it cannot be definitively concluded from the given information.