Using General Electric's "Strategic Planning Grid," an Opportunity Rated "Medium

question 345

Multiple Choice

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "high" in terms of business strengths would be evaluated as:

• A) yellow-borderline.
• B) red-for no growth.
• C) green-for growth.
• D) could be yellow, red, or green-because the grid suggests that opportunities with medium ratings need more analysis.

---

Definitions:

Market Price

The actual selling price of goods or services available in the marketplace at any given time.

Marginal Revenue

Marginal revenue is the additional income earned from selling one more unit of a good or service.

Marginal Cost

The change in total cost that arises when the quantity produced changes by one unit; essentially the cost of producing one additional unit of a good or service.

Price-Taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its product.