Chapter 4: 4. Strategy and Competitive Management

1. Introduction

Organisations operate in environments characterised by competition, technological change, changing customer expectations, economic uncertainty and regulatory pressures. Sound management therefore requires more than the efficient supervision of daily activities. Managers must also decide where the organisation should compete, how it will create value, what resources it requires and how it will respond to changes in its environment. These concerns form the subject of strategic and competitive management.

Strategic management is the systematic process through which an organisation establishes its direction, analyses its environment, formulates strategies, implements decisions and evaluates results. Competitive management focuses particularly on how an organisation can achieve and maintain an advantageous position relative to rivals. Although strategy is often associated with large corporations, its principles are equally relevant to small businesses, non-profit organisations, public institutions and entrepreneurial ventures.

This chapter explains the main levels, principles, models and processes of strategic management. It also demonstrates how tools such as mission and vision statements, SWOT analysis, competitive analysis and performance evaluation can be applied to practical business situations.

2. Learning Objectives

By the end of this chapter, students should be able to:

1. Define strategic management and explain its relationship with competitive management.

2. Distinguish among corporate-level, business-level and functional-level strategies.

3. Explain the purposes of mission, vision, objectives and organisational values.

4. Analyse internal and external business environments using appropriate frameworks.

5. Apply SWOT analysis and Porter’s Five Forces to basic business cases.

6. Describe the stages of strategy formulation, implementation and evaluation.

7. Explain the role of leadership, structure, resources and organisational culture in implementation.

8. Evaluate strategic alternatives using practical managerial criteria.

9. Identify ethical, governance and sustainability issues in strategic decisions.

10. Recommend an appropriate strategy for a small or medium-sized enterprise.

3. Meaning and Concept

Strategy is a long-term direction or pattern of decisions intended to achieve organisational objectives and create value. It involves choices about markets, customers, products, services, resources and methods of competing. Strategy is not simply a plan written in a document. It is also a set of priorities that guides decisions when resources are limited and circumstances change.

Strategic management is the continuing process of analysing the organisation and its environment, making strategic choices, putting those choices into action and learning from the results. It connects an organisation’s purpose with its operations. For example, a food retailer whose purpose is to provide affordable healthy meals may choose local sourcing, efficient distribution, a limited product range and digital ordering as mutually reinforcing strategic decisions.

Competitive management concerns the achievement of superior performance in comparison with competitors. Competitive advantage exists when an organisation creates greater value for customers than rivals do, or creates comparable value at a lower cost. Advantage may arise from low prices, superior quality, innovation, convenience, strong relationships, reputation, specialist knowledge or a combination of these factors.

Strategic management should be distinguished from operational management. Operational management concentrates on the effective performance of current activities, such as scheduling employees or controlling inventory. Strategic management considers broader questions, such as whether the organisation should enter a new market or change its business model. Both are necessary: a good strategy poorly executed will fail, while efficient operations without a suitable strategy may merely improve an organisation’s ability to move in the wrong direction.

4. Fundamental Principles

Several principles provide a foundation for effective strategic management.

Direction and purpose: Decisions should be connected to a clear purpose and desired future state. Without direction, departments may pursue conflicting priorities.

Environmental fit: A strategy must reflect external conditions and the organisation’s internal capabilities. A technically attractive opportunity may be unsuitable if the organisation lacks finance, skills or distribution capacity.

Value creation: Strategy should explain how value will be created for customers and other stakeholders while producing sustainable returns for the organisation.

Choice and trade-offs: Resources are scarce. A strategy requires decisions about what the organisation will do and, equally importantly, what it will not do. Attempting to serve every customer and meet every need can produce an unclear market position.

Consistency: Activities should reinforce one another. A low-cost strategy, for example, is weakened by unnecessary product variety and expensive service features unless these are carefully controlled.

Flexibility and learning: Plans are based on assumptions. Managers must monitor evidence, revise assumptions and adapt when conditions change.

Stakeholder responsibility: Strategic decisions affect employees, customers, suppliers, communities, owners and the natural environment. Long-term success requires attention to legitimate stakeholder interests.

Implementation orientation: A strategy has little value unless it is translated into responsibilities, budgets, processes, incentives and measurable objectives.

5. Major Components / Elements

Mission, vision and values

A mission statement explains the organisation’s fundamental purpose, principal activities and intended beneficiaries. It answers questions such as: Why do we exist? Whom do we serve? What value do we provide? A mission should be sufficiently broad to allow development but sufficiently specific to guide decisions.

A vision describes the desired future position of the organisation. It provides aspiration and direction. For example, a small logistics company might state a vision of becoming the most trusted same-day delivery provider for regional businesses.

Values are principles that guide behaviour and decision-making. Examples include integrity, customer focus, innovation, inclusion and environmental responsibility. Values become meaningful when they are reflected in recruitment, performance management and managerial conduct.

Objectives and targets

Objectives convert direction into results that can be pursued and assessed. Effective objectives are specific, measurable, achievable, relevant and time-bound. A strategic objective might be to increase online sales from 20 per cent to 35 per cent of total sales within two years. Targets should be challenging but realistic and should identify responsibility and measurement methods.

Levels of strategy

Corporate-level strategy concerns the overall scope and direction of a diversified organisation. It includes decisions about entering or leaving industries, acquisitions, diversification and allocation of resources among business units.

Business-level strategy concerns how a particular business competes in a specific industry or market. It may involve cost leadership, differentiation or focus.

Functional-level strategy translates business strategy into departmental actions. Marketing, finance, human resources, operations and information systems each develop supporting policies and plans.

A fourth level is sometimes identified: operational strategy, which concerns short-term processes and procedures used to carry out functional plans.

Resources and capabilities

Resources include financial capital, equipment, technology, facilities, brands, data and human talent. Capabilities refer to the organisation’s ability to coordinate and use resources effectively. A computer system is a resource; the capability to use customer data to personalise services is a capability. Sustainable advantage is more likely when capabilities are valuable, uncommon, difficult to imitate and properly supported by the organisation.

Stakeholders

Stakeholders are individuals or groups affected by, or able to affect, organisational activities. Internal stakeholders include employees and managers; external stakeholders include customers, suppliers, regulators, communities, lenders and shareholders. Strategic analysis should recognise that stakeholders may have different and sometimes conflicting expectations.

6. Process / Framework / Methodology

Strategic management is commonly presented as a cycle rather than a once-only sequence.

Step 1: Establish strategic direction

Managers clarify the mission, vision, values and broad objectives. They should communicate these ideas in practical language and check whether they are understood throughout the organisation.

Step 2: Conduct environmental analysis

External analysis considers the general environment, industry conditions, competitors, customers and other stakeholders. Internal analysis examines resources, capabilities, processes, culture, financial position and performance. Analysis should be evidence-based rather than based solely on managerial opinion.

Step 3: Generate strategic alternatives

Alternatives may include market penetration, product development, market development, diversification, alliances, outsourcing, digital transformation or withdrawal from an unattractive activity. Managers should generate several realistic alternatives before selecting one.

Step 4: Evaluate alternatives

Alternatives may be assessed using the suitability, feasibility and acceptability criteria. Suitability asks whether the strategy addresses the organisation’s situation and opportunities. Feasibility asks whether the organisation has, or can obtain, the required resources and capabilities. Acceptability considers expected returns, risks and stakeholder reactions.

Step 5: Select a strategy

Selection involves making choices and allocating resources. The selected strategy should be expressed in clear priorities, assumptions, milestones and responsibilities. Contingency plans may be prepared for major risks.

Step 6: Implement the strategy

Implementation requires appropriate organisational structure, leadership, budgets, systems, skills, culture and communication. Managers must convert broad choices into programmes and actions. Employees are more likely to support change when they understand its rationale and have opportunities to contribute.

Step 7: Evaluate and control

Managers compare actual performance with objectives, investigate significant deviations and take corrective action. Evaluation should consider both financial and non-financial measures, such as customer retention, employee engagement, quality, innovation and social or environmental impact. Strategy evaluation is not merely a final inspection; it is an ongoing learning process.

7. Important Theories and Models

SWOT analysis

SWOT identifies internal strengths and weaknesses and external opportunities and threats. Strengths and weaknesses relate to factors within the organisation, while opportunities and threats arise from the environment. The purpose is not to produce a long list but to identify important strategic relationships. A strength such as a trusted brand may help exploit an opportunity such as growing online demand. A weakness such as limited delivery capacity may increase exposure to a threat such as aggressive competitors.

PESTEL analysis

PESTEL examines Political, Economic, Social, Technological, Environmental and Legal influences. For example, a rise in environmental regulation may increase costs for a manufacturer but also create opportunities for firms offering low-emission products. PESTEL helps managers avoid focusing only on immediate competitors.

Porter’s Five Forces

Michael Porter’s model assesses industry attractiveness through five forces:

1. Competitive rivalry: the intensity of competition among existing firms.

2. Threat of new entrants: the ease with which new competitors can enter.

3. Bargaining power of suppliers: the ability of suppliers to raise prices or reduce quality.

4. Bargaining power of buyers: the ability of customers to demand lower prices or better terms.

5. Threat of substitutes: the availability of alternative products or services satisfying a similar need.

Strong forces generally reduce the potential profitability of an industry. The model supports industry analysis, although managers should also consider cooperation, regulation, innovation and rapidly changing business models.

Generic competitive strategies

Porter identified cost leadership, differentiation and focus as broad competitive approaches. Cost leadership seeks to achieve a lower cost structure while offering acceptable value. Differentiation seeks to provide distinctive value for which customers may pay a premium. Focus concentrates on a particular segment, using either cost or differentiation within that segment. A strategy becomes vulnerable when an organisation lacks a clear basis of advantage or attempts incompatible approaches without the required capabilities.

Ansoff’s product-market matrix

The Ansoff matrix identifies four growth directions: market penetration involves existing products in existing markets; market development involves existing products in new markets; product development involves new products for existing customers; and diversification involves new products in new markets. Risk generally increases as the organisation moves further from its existing products and markets.

Value chain analysis

Value chain analysis divides activities into primary activities, such as inbound logistics, operations, marketing, sales and service, and support activities, such as procurement, technology, human resources and infrastructure. Managers examine where value is added and where costs or weaknesses arise. Competitive advantage may result from improving one activity or coordinating several activities more effectively than rivals.

Balanced Scorecard

The Balanced Scorecard translates strategy into measures across four commonly used perspectives: financial performance, customer outcomes, internal processes, and learning and growth. It reduces dependence on short-term financial indicators and helps managers connect employee capabilities and process improvements with customer and financial results.

8. Practical Applications

A small business can apply strategic management without producing a complex corporate plan. The owner may begin by identifying the target customer, analysing competitors, listing distinctive capabilities, setting two or three measurable objectives and selecting a limited number of initiatives. For example, a neighbourhood pharmacy might choose a differentiation strategy based on personalised advice, home delivery and medication reminders rather than attempting to compete solely on price with large chains.

Managers should distinguish symptoms from strategic problems. Falling sales may be caused by weak promotion, an outdated product, poor service, an unsuitable location or a declining market. Strategic analysis investigates the underlying cause before selecting a response.

When comparing alternatives, managers can use a simple decision table. Each option may be scored against customer value, cost, risk, capability requirements, legal compliance and strategic fit. Although such scoring involves judgement, it makes assumptions visible and encourages structured discussion.

9. Examples

A local clothing retailer faces declining foot traffic. Its options include opening another store, improving e-commerce, specialising in sustainable clothing or reducing prices. SWOT may reveal a strong local reputation, weak online capability, growing interest in sustainable products and intense price competition. A focused differentiation strategy based on ethically sourced clothing, online content and community partnerships may fit its resources better than a price war.

A small business-to-business software provider has technically skilled employees but limited sales capacity. Its strategy could involve focusing on one industry, developing a specialised solution and partnering with established distributors. This illustrates how focus, capability development and strategic alliances can help a smaller firm compete against larger providers.

10. Technology and Digital Applications

Digital technology supports strategic management when it improves information, coordination or customer value. Business intelligence dashboards can combine sales, customer and operational data to monitor strategic indicators. Customer relationship management systems help organisations identify customer needs, retention patterns and sales opportunities. Enterprise systems can connect finance, procurement, inventory and operations.

Digital channels may alter the basis of competition by reducing distribution costs, enabling personalisation or allowing new entrants to reach customers quickly. Cloud services can give small firms access to scalable computing and collaboration tools without major capital investment. Artificial intelligence may support forecasting, customer service and process automation, but its use requires reliable data, human oversight, privacy protection and awareness of bias.

Technology is not a strategy by itself. Purchasing a digital platform without redesigning processes, training employees or defining a customer benefit may increase costs without improving performance. Digital investments should therefore be evaluated according to their contribution to strategic objectives.

11. Strategic / Managerial Importance

Strategic management gives managers a framework for dealing with uncertainty and complexity. It improves coordination by providing common priorities for departments. It supports resource allocation by directing funds and people toward activities with strategic value. It helps organisations anticipate threats rather than merely react to crises.

Competitive management also encourages managers to understand customers and rivals more deeply. It can stimulate innovation, strengthen organisational capabilities and improve long-term resilience. For employees, a clear strategy explains how individual work contributes to broader outcomes. For stakeholders, responsible strategy can build trust and protect organisational legitimacy.

12. Detailed Case Study

The following is a fictional case provided for educational illustration.

Background

HarbourFresh is a small food company producing ready-to-eat meals for office workers in a medium-sized city. It sells through three retail outlets and a basic website. The company has a reputation for fresh ingredients and employs 28 people. Its founder has historically made most decisions personally.

Problem

Revenue has remained stable for two years, but profit margins are declining. Two national delivery platforms have entered the market, offering extensive menus and heavy promotional discounts. HarbourFresh has limited delivery capacity, inconsistent social media activity and no systematic customer database. Some employees believe the company should compete on lower prices, while others favour premium healthy meals.

Analysis

The mission is to provide convenient, fresh meals for busy local customers. A possible vision is to become the city’s most trusted provider of healthy workplace meals. Strengths include product quality, local supplier relationships and customer trust. Weaknesses include limited digital capability, dependence on the founder and small production capacity. Opportunities include growing demand for convenient healthy food, corporate meal subscriptions and online ordering. Threats include national platforms, substitute options such as supermarket meals and rising ingredient costs.

Porter’s analysis indicates strong rivalry and high buyer choice. Supplier power is moderate because some specialist ingredients have few sources. The threat of new entrants is moderate, while substitutes are readily available. HarbourFresh is unlikely to win a sustained price war against large platforms.

Strategy / Solution

The management team selects a focused differentiation strategy. Instead of serving every customer, HarbourFresh targets small and medium-sized offices seeking reliable healthy lunches. The strategy includes:

• introducing weekly corporate meal subscriptions;
• creating a simple mobile-friendly ordering system;
• using customer data, with appropriate consent, to identify preferences;
• standardising a limited menu to improve production efficiency;
• communicating local sourcing and nutritional information;
• training staff in service quality and digital order processing;
• appointing managers responsible for operations, marketing and technology; and
• establishing targets for subscription customers, repeat orders, delivery accuracy and gross margin.

The company funds the programme by reducing low-selling menu items and negotiating annual agreements with selected suppliers. It retains a small retail presence but does not expand physical outlets during the first year.

Outcome

After twelve months, corporate subscriptions represent 30 per cent of sales, delivery errors have declined and repeat orders have increased. The company’s margin improves because production is more predictable and promotional discounting is reduced. Results are not entirely risk-free: one major customer leaves when its office relocates, demonstrating the importance of customer diversification. Management responds by setting a limit on revenue concentration and developing a second customer segment.

Learning Points

The case illustrates that strategy requires a clear choice of target market and basis of advantage. Internal strengths become valuable only when supported by appropriate systems and processes. Implementation requires role clarification, technology, measurement and employee training. Finally, evaluation may reveal new risks and lead to strategic adjustment rather than confirming that the original plan was perfect.

13. Advantages / Benefits

Strategic management provides a clear sense of direction, improves coordination and supports disciplined resource allocation. It helps organisations recognise opportunities, prepare for threats and build capabilities. It can improve competitive position by clarifying customer value and strengthening activities that rivals cannot easily copy. It also provides a basis for performance measurement and organisational learning. When stakeholders are included appropriately, strategic planning can improve communication, commitment and trust.

14. Limitations / Challenges

Strategic analysis cannot eliminate uncertainty. Forecasts may be wrong, competitors may respond unexpectedly and external shocks may invalidate assumptions. Planning can become bureaucratic if managers produce lengthy documents without making choices. Excessive reliance on models may create false precision, because frameworks simplify complex realities. Strategy may also fail through poor implementation, inadequate resources, resistance to change or inconsistent leadership.

Other challenges include short-term pressure from owners or lenders, conflicts among stakeholders, limited information in small firms and the difficulty of measuring intangible assets such as reputation and knowledge. Managers should therefore combine structured analysis with judgement, experimentation and regular review.

15. Ethical and Governance Considerations

Strategic decisions must comply with law and reflect ethical responsibility. Managers should avoid misleading advertising, exploitative labour practices, anti-competitive conduct and misuse of customer data. Corporate governance requires appropriate oversight, accountability, transparency and control of conflicts of interest.

Data-driven strategies raise questions about consent, privacy, security, discrimination and algorithmic bias. Supply-chain decisions should consider labour standards, safety and environmental effects. Sustainability should not be treated merely as promotional language; claims should be supported by evidence. Ethical strategy also requires managers to consider how restructuring, automation or outsourcing affects employees and communities. Responsible decision-making balances organisational performance with legitimate stakeholder interests.

16. Current and Emerging Trends

Important trends include platform-based competition, remote and hybrid work, artificial intelligence, automation, cybersecurity risks, sustainability requirements and the growth of subscription and service-based business models. Customers increasingly expect personalisation, speed and transparency. Supply-chain disruption has encouraged organisations to examine resilience rather than relying exclusively on lowest-cost sourcing.

Small businesses are gaining access to digital tools once available mainly to large corporations, but the competitive gap may still widen for organisations lacking skills and data governance. Circular-economy practices, including repair, reuse and recycling, are influencing product and operations strategies. Strategic managers must monitor these trends without adopting fashionable technologies that lack a clear business purpose.

17. Best Practices

Effective strategic management is supported by the following practices:

1. Begin with a clear purpose and a small number of priorities.

2. Base analysis on reliable evidence and distinguish facts from assumptions.

3. Involve relevant employees and stakeholders in developing practical solutions.

4. Link corporate, business, functional and operational decisions.

5. Select a clear basis of competitive advantage.

6. Match strategy with available resources and capabilities.

7. Translate intentions into named responsibilities, budgets and milestones.

8. Use both financial and non-financial performance indicators.

9. Review assumptions regularly and adapt when evidence changes.

10. Build ethical, legal, environmental and risk considerations into decisions from the beginning.

18. Future Scope

The future of strategic management will involve greater integration of data, sustainability, resilience and stakeholder expectations. Managers will need to interpret real-time information while avoiding excessive dependence on automated recommendations. Competitive advantage may increasingly arise from organisational learning, trusted ecosystems, responsible data use and the ability to combine human judgement with digital capability.

Business education and management practice will also place greater emphasis on scenario planning. Rather than preparing one fixed forecast, organisations may develop several plausible futures and identify actions that remain useful across them. This approach can improve preparedness in uncertain markets.

19. Chapter Summary

Strategic management is the continuous process of establishing direction, analysing the environment, formulating strategy, implementing decisions and evaluating results. Competitive management focuses on creating value and achieving an advantage over rivals. Mission, vision, values and objectives provide direction, while resources and capabilities determine what an organisation can realistically do. SWOT, PESTEL, Porter’s Five Forces, generic strategies, the Ansoff matrix, value chain analysis and the Balanced Scorecard provide useful but simplified perspectives.

Effective strategy requires choices, trade-offs, stakeholder awareness and alignment among activities. Implementation depends on leadership, structure, resources, culture, technology and communication. Evaluation should use appropriate indicators and should encourage learning and adaptation. Ethical conduct, governance, sustainability and responsible technology use are essential to long-term strategic success.

20. Key Terms

1. Strategy: A long-term pattern of choices designed to achieve objectives and create value.

2. Strategic management: The process of analysing, formulating, implementing and evaluating strategy.

3. Competitive advantage: An ability to create greater value or operate at lower cost than competitors.

4. Mission: The organisation’s fundamental purpose and activities.

5. Vision: A desired future position or state.

6. Values: Principles guiding organisational behaviour and decisions.

7. Objective: A specific result the organisation intends to achieve.

8. Corporate-level strategy: Strategy concerning the overall scope of a diversified organisation.

9. Business-level strategy: The way a business competes in a particular market.

10. Functional-level strategy: Departmental actions supporting business strategy.

11. Capability: The ability to use resources effectively to perform an activity.

12. Stakeholder: A person or group affected by, or able to affect, an organisation.

13. SWOT analysis: Analysis of strengths, weaknesses, opportunities and threats.

14. PESTEL analysis: Analysis of political, economic, social, technological, environmental and legal influences.

15. Differentiation: Competing by offering distinctive value.

16. Cost leadership: Competing through a relatively lower cost structure.

17. Value chain: The linked activities through which an organisation creates value.

18. Implementation: Converting strategic choices into coordinated action.

19. Strategic control: Monitoring results and taking corrective action.

20. Balanced Scorecard: A framework measuring strategy through financial, customer, process, and learning perspectives.

21. Review Questions

Short Answer Questions

1. Define strategic management and distinguish it from operational management.

2. What is the difference between a mission statement and a vision statement?

3. Identify the three main levels of strategy.

4. What are the four elements of SWOT analysis?

5. State the five forces in Porter’s industry analysis model.

Long Answer Questions

1. Explain the strategic management process from establishing direction to evaluation.

2. Discuss how resources and capabilities can create competitive advantage.

3. Explain Porter’s generic strategies and the conditions under which each may be appropriate.

4. Describe the role of organisational structure, culture, leadership and systems in strategy implementation.

5. Discuss the ethical and governance issues that managers should consider when using digital technologies strategically.

Analytical / Application Questions

1. A small café faces rising rent, several new competitors and growing demand for online ordering. Apply SWOT and Porter’s Five Forces to analyse its situation and recommend a strategy.

2. A manufacturer has strong engineering skills but declining sales in its traditional market. Use the Ansoff matrix to develop and compare possible growth options.

3. Design three strategic objectives and suitable performance indicators for a local retailer pursuing a focused differentiation strategy.

22. Multiple Choice Questions with Answers

Question 1

Which statement best describes strategic management?

A. Supervising daily employee attendance only

B. A process of analysing conditions, making choices, implementing strategy and evaluating results

C. Preparing financial statements for external users

D. Promoting products through social media

Correct Answer: B. A process of analysing conditions, making choices, implementing strategy and evaluating results

Question 2

A company decides to concentrate on premium services for a narrowly defined customer group. Which strategy is this most likely to represent?

A. Focused differentiation

B. Undifferentiated cost leadership

C. Unrelated diversification

D. Market withdrawal

Correct Answer: A. Focused differentiation

Question 3

Which of the following is an external factor in SWOT analysis?

A. Employee expertise

B. Production efficiency

C. Growing customer demand

D. Strong brand reputation

Correct Answer: C. Growing customer demand

Question 4

A firm examines the threat of substitutes and bargaining power of buyers. Which model is it using?

A. Balanced Scorecard

B. Ansoff matrix

C. Porter’s Five Forces

D. Value chain analysis

Correct Answer: C. Porter’s Five Forces

Question 5

What is the main purpose of a mission statement?

A. To describe the organisation’s fundamental purpose

B. To list every employee’s duties

C. To forecast exact annual profits

D. To replace operational procedures

Correct Answer: A. To describe the organisation’s fundamental purpose

Question 6

Which question is primarily concerned with strategy feasibility?

A. Will stakeholders accept the expected risks and returns?

B. Does the strategy fit the external situation?

C. Can the organisation obtain the required resources and capabilities?

D. Will competitors immediately copy the strategy?

Correct Answer: C. Can the organisation obtain the required resources and capabilities?

Question 7

A retailer introduces existing products to a new geographic market. According to the Ansoff matrix, this is:

A. Market penetration

B. Market development

C. Product development

D. Diversification

Correct Answer: B. Market development

Question 8

Which action best demonstrates effective strategy implementation?

A. Writing a vision statement without changing operations

B. Allocating responsibilities, budgets, systems and performance measures

C. Avoiding employee communication until the strategy is complete

D. Measuring only competitors’ advertising expenditure

Correct Answer: B. Allocating responsibilities, budgets, systems and performance measures

Question 9

Why should strategic evaluation include non-financial measures?

A. Financial measures are never useful

B. Non-financial indicators can reveal customer, process and learning outcomes affecting future performance

C. Non-financial measures eliminate uncertainty

D. They guarantee that implementation will succeed

Correct Answer: B. Non-financial indicators can reveal customer, process and learning outcomes affecting future performance

Question 10

A company uses customer data to personalise offers. Which issue is especially important?

A. Ignoring customer consent because personalisation increases sales

B. Using data without security controls

C. Considering privacy, consent, security and possible bias

D. Replacing all managerial judgement with an algorithm

Correct Answer: C. Considering privacy, consent, security and possible bias