An organization's board of directors is particularly focused on positioning, the organization as a leader...

Understanding Competitive Business Strategies:

The board of directors' focus is on industry leadership and outperforming competitors.

A strong research and development (R&D) strategy drives innovation, allowing the organization to introduce new and differentiated products that enhance competitive advantage.

Why Option C (Investment in R&D) Is Correct?

R&D drives product innovation, helping the organization stay ahead of competitors.

Investing in new technologies and unique product features differentiates the company and strengthens market leadership.

IIA Standard 2120 – Risk Management supports evaluating strategic investments that enhance business growth and competitive positioning.

Why Other Options Are Incorrect?

Option A (Divesting unprofitable product lines):

While divestment improves financial health, it does not directly contribute to market leadership.

Option B (Increasing diversity of business units):

Expanding into new business areas spreads risk but may not provide a focused competitive advantage in the primary industry.

Option D (Relocating manufacturing to another country):

Lowering costs improves efficiency, but it does not directly position the company as an industry leader.

Investing in R&D aligns best with the board’s goal of industry leadership and competitive advantage.

IIA Standard 2120 supports strategic risk management and innovation investment.

Final Justification:IIA References:

IPPF Standard 2120 – Risk Management (Strategic Investment & Competitive Advantage)

COSO ERM – Business Growth & Innovation Risk Management

Porter’s Competitive Strategy Model – R&D as a Market Differentiator