Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a . A. cash cow B. primary firms C. unrelated firm D. core firm E. secondary firm

The correct answer is letter "D": core firm.

Explanation:

Situational analysis can help institutions to determine what is their position in the market. The main objective of this study is to spot what competitors are doing and what good practices can be assimilated to improve the competitive advantage of the firm. Besides, the core firm, or the central company that serves as the main reference in the market, is identified. The core firm is the direct and possibly stronger competitor the organization conducting the situational analysis has to deal with.

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