One of the Most Significant Contributions to Strategy Making in Diversified

question 98

Multiple Choice

One of the most significant contributions to strategy making in diversified companies that the nine-cell industry attractiveness competitive strength matrix provides is

• A)identifying which businesses have strategies that should be continued, which businesses have strategies that need fine-tuning, and which businesses have strategies that need a major overhaul.
• B)that businesses having the greatest competitive strength and that are positioned in the most attractive industries should have the highest priority for corporate resource allocation and that competitively weak businesses in relatively unattractive industries should have the lowest priority and perhaps even be considered for divestiture.
• C)pinpointing which strategies are most appropriate for businesses positioned in the four corners of the matrix (although the matrix reveals little about the best strategies for businesses positioned in the remainder of the matrix).
• D)its ability to pinpoint what kind of competitive advantage or disadvantage each business has.
• E)pinpointing which businesses to keep and which ones to divest.

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Definitions:

Exact Simple Interest

Interest calculated precisely based on the principal amount, a fixed interest rate, and the number of days between payments.

365-Day Year

A method used in finance that assumes all years have 365 days for the purpose of interest calculation.

High-Speed Copy Machine

An office machine designed for rapid copying of documents and images, capable of producing numerous copies within a short period.

Ordinary Simple Interest

A method of calculating interest where the interest charge is computed only on the principal amount, without compounding over a specified time period.