The Most Important Strategy-Making Guidance That Comes from Drawing a 9-Cell

question 72

Multiple Choice

The most important strategy-making guidance that comes from drawing a 9-cell industry attractiveness-competitive strength matrix is

• A) which businesses in the portfolio have the most potential for strategic fit and resource fit.
• B) why cash cow businesses are more valuable than cash hog businesses.
• C) that corporate resources should be concentrated on those businesses enjoying both a higher degree of industry attractiveness and competitive strength and that businesses having low competitive strength in relatively unattractive industries should be looked at for possible divestiture.
• D) which businesses have the biggest competitive advantages and which ones confront serious competitive disadvantages.
• E) which businesses are in industries with profitable value chains and which are in industries with money-losing value chains.

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Definitions:

Too Much Information

A situation where an individual is overwhelmed by an excessive amount of data or facts, making it difficult to make decisions.

Information Overload

A condition where an individual or organizational capacity to process information is exceeded, leading to difficulty in understanding or making decisions.

Losses

Refers to the decrease in resources, value, or profits, often as a result of business activities, investments, or unforeseen events.

Riskier

Characterized by or involving higher levels of risk; more uncertain or liable to result in adverse outcomes compared to alternatives.