Calculating Quantitative Attractiveness Ratings for the Industries a Diversified Company

question 77

Multiple Choice

Calculating quantitative attractiveness ratings for the industries a diversified company has invested in:

• A) allows a company to rank the competitive advantage opportunities in each industry from best to worst.
• B) helps identify which industries have the best/worst prospects for revenue growth.
• C) identifies which industry has the best/worst value chain from the standpoint of cost reduction potential.
• D) provides a basis for deciding whether a diversified company has good prospects for growth and profitability,given the attractiveness ratings of the industries in which it has business interests.
• E) helps identify which industry is likely to be the largest/smallest contributor to the company's growth and profitability.

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Definitions:

Interquartile Range

The difference between the 75th and 25th percentiles of a data set, indicating the spread of the middle 50% of values.

Computational

Related to the process of using computer algorithms and software to solve problems and analyze data.

Definitional

Pertaining to the precise meaning or nature of a term or concept.

Formula

A mathematical expression that calculates or represents a relationship between different quantities.