Because economic and competitive environments frequently change, organizations should:

• A. avoid making any changes to their operations
• B. regularly adapt their strategies to remain competitive
• C. focus solely on short-term profits
• D. ignore external market trends

Answer: (B)

Verified step by step guidance

1. Understand the context: Organizations operate in dynamic economic and competitive environments, which means conditions such as consumer preferences, technology, and competitor actions can change frequently.
2. Recognize the importance of adaptability: To remain competitive, organizations need to respond to these changes effectively rather than sticking rigidly to old strategies.
3. Evaluate the options: Avoiding changes can lead to stagnation, focusing only on short-term profits may ignore long-term sustainability, and ignoring external market trends can cause a business to fall behind competitors.
4. Conclude that the best approach is to regularly adapt strategies, which involves continuously analyzing the market and adjusting operations to meet new challenges and opportunities.
5. This approach aligns with microeconomic principles of firms maximizing profits by responding to market signals and maintaining competitiveness.