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.

Understand the market value composition of firms, including assets, equity, and debt.

Evaluate the impact of financial variables on the price of call and put options.

Calculate the straight bond value and understand the influence of market yield and coupons.

Interpret the significance and usage of the Black-Scholes Option Pricing Model.

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