Which of the Following Is the BEST Guideline for Deciding

question 11

Multiple Choice

Which of the following is the BEST guideline for deciding what the priorities should be for allocating resources to the various businesses of a diversified company?

• A) Businesses with high industry attractiveness ratings should be given top priority and those with low industry attractiveness ratings should be given low priority.
• B) Business subsidiaries with the brightest profit and growth prospects, attractive positions on the nine-cell matrix, and solid strategic and resource fits generally should head the list for corporate resource support.
• C) The positions of each business in the nine-cell attractiveness-strength matrix should govern resource allocation.
• D) Businesses with the most strategic and resource fits should be given top priority and those with the fewest strategic and resource fits should be given low priority.
• E) Businesses with high competitive strength ratings should be given top priority and those with low competitive strength ratings should be given low priority.

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Definitions:

Pricing Strategy

A method or model used by businesses to set the selling price for their products or services, taking into account factors like cost, competition, target market, and overall business objectives.

Upscale Running Gear

refers to high-quality, often expensive, running attire and equipment designed for serious or professional athletes seeking performance improvement.

Prestige Product

High-quality goods that are sold at a high price, often seen as status symbols, and used to convey a sense of exclusivity or luxury.

Hermès

A French luxury goods manufacturer known for its high-quality leather goods, lifestyle accessories, perfumery, and ready-to-wear.