List the Four Basic Strategies Used Once an Organization Has

question 76

Essay

List the four basic strategies used once an organization has identified its strategic business units in terms of the portfolio matrix.Describe when each is used.

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Definitions:

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, effectively maximizing overall social welfare.

Productive Efficiency

A situation where an economy or entity cannot produce more of one good without reducing the output of another good, indicating optimal resource allocation.

Monopoly Power

Monopoly power refers to the ability of a firm to control market prices and production, typically due to lack of competition in the marketplace.

Product Variety

The assortment of different products or services offered by a firm or available in a market.