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:

Economic Profit

The split between entirety of income and the full scope of expenditures, considering both clear and implicit financial obligations.

Production Techniques

Methods and processes used in the creation of goods and services, influenced by technology, labor skills, and resource availability.

Labor and Capital

The primary factors of production where labor refers to human effort and capital represents buildings, machinery, and equipment.

Fundamental Questions

The basic economic questions that every society must answer, which include what to produce, how to produce, and for whom to produce.