Which statement defines efficiency in strategic terms?

• A. Efficiency is about doing the right things and achieving strategic goals.
• B. Efficiency is about maximizing market share.
• C. Efficiency is about doing things right, focusing on costs and processes.
• D. Efficiency and effectiveness are identical.

Answer: (C)

In strategy, efficiency means using resources in the right way to perform activities—doing things right, with a focus on costs and how processes run. It’s about optimizing how work is done, minimizing waste, and improving productivity so that inputs are converted into outputs as cost-effectively as possible.

This fits best because efficiency describes the method you use to execute tasks and manage operations, not just what goals you aim for. Doing the right things to achieve goals is a hallmark of effectiveness, which is a different dimension. Maximizing market share is a specific objective, not a description of how you perform activities. And efficiency and effectiveness are not the same thing—they are distinct concepts, with efficiency about the means and effectiveness about the ends.