Scenario - Theresa Teutul

question 83

Multiple Choice

Scenario - Theresa Teutul
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.
-The strategy that the BCG matrix suggests that Theresa should take for this SBU is:

• A) invest and grow.
• B) liquidate while still profitable.
• C) ask her astrologer for advice.
• D) keep the SBU healthy and use its excess earnings to invest in other SBU's.
• E) divestiture.

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Definitions:

Rational Choice Theory

An economic principle that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Maximize Benefits

A strategy aimed at obtaining the highest possible gain or advantage from a particular action or situation.

Define Power

The ability or capacity to influence or control the behavior of others, either directly or indirectly, often through the possession of authority, knowledge, or means.

Milgram Authority Experiment

A psychological experiment conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.