Assessments of the Long-Term Attractiveness of Each Industry Represented in a Diversified

question 148

Multiple Choice

Assessments of the long-term attractiveness of each industry represented in a diversified company's lineup of businesses should be based on:

• A) a complete value chain analysis of each industry.
• B) whether the industries have the same kinds of driving forces.
• C) how many companies in each industry are making money and how many are losing money.
• D) quantitative industry attractiveness scores derived from rating each industry on several relevant attractiveness measures (weighted according to their relative importance in determining overall attractiveness).
• E) the competitive advantage potential offered by each industry's key success factors.

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Definitions:

Tea Sales

This refers to the commercial activity of buying and selling tea in various forms and quantities.

Perfectly Price Inelastic

A situation in demand where the quantity demanded does not change regardless of changes in the price of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Perfectly Price Elastic

A situation in which the quantity demanded or supplied changes infinitely in response to any change in price.