Calculating Quantitative Competitive Strength Ratings for Each of a Diversified

question 114

Multiple Choice

Calculating quantitative competitive strength ratings for each of a diversified company's business units involves

• A) determining each industry's key success factors, rating the ability of each business to be successful on each industry KSF, and adding the individual ratings to obtain overall measures of each business's ability to compete successfully.
• B) identifying the competitive forces facing each business, rating the strength of these competitive forces industry-by-industry, and then ranking each business's ability to be profitable, given the strength of the competition it faces.
• C) selecting a set of competitive strength measures, weighting the importance of each measure, rating each business on each strength measure, multiplying the strength ratings by the assigned weight to obtain a weighted rating, adding the weighted ratings for each business unit to obtain an overall competitive strength score, and using the overall competitive strength scores to evaluate the competitive strength of all the businesses, both individually and as a group.
• D) determining which businesses possess good strategic fit with other businesses, identifying the portion of the value chain where this fit occurs, and evaluating the strength of the competitive advantage attached to each of the strategic fits to get an overall measure of competitive advantage potential-businesses with the highest/lowest competitive advantage potential have the most/least competitive strength.
• E) rating the caliber of each businesses strategic and resource fits, weighting the importance of each type of strategic/resource fit, calculating weighted strategic/resource fit scores, and adding the weighted ratings for each business to obtain an overall strength score for each business unit that indicates whether the company has adequate strategic/resource fits to be a strong market contender in each of the industries where it competes.

---

Definitions:

Alkaline

Having a pH greater than 7, indicating a base where concentration of hydroxide ions is greater than that of hydrogen ions.

Blood

A body fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

pH

A scale measuring the acidity or alkalinity of a solution, where 7 is neutral, values below 7 are acidic, and values above 7 are alkaline.

Buffers

Substances that minimize changes in the pH of a solution by absorbing or releasing hydrogen ions.