General Electric's "Strategic Planning Grid

question 46

Multiple Choice

General Electric's "strategic planning grid":

• A) focuses on market share and market growth rate.
• B) requires subjective judgments about business strengths and industry attractiveness.
• C) requires that all opportunities be judged either "High" or "Low."
• D) substitutes quantitative estimates for management judgment.
• E) All of the above are true.

Comprehend the concept of market attractiveness and the factors contributing to it.

Acknowledge the limitations inherent in the BCG Matrix.

Know how to apply the BCG Matrix in strategic decision-making and planning.

Understand the limitations and biases in traditional diagnostic systems, including gender and cultural biases.

---

Definitions:

Cash Conversion Cycle

A metric that shows the time span between a company's outlay of cash and its collection of receivables; a measure of liquidity.

Trade Credit

Credit extended by a seller to a buyer allowing the latter to purchase goods or services immediately and pay for them at a later date.

Discounts Offered

Discounts Offered are reductions from the regular price of goods or services, often used as an incentive for customers to purchase more or pay earlier.

Cash Budgets

Financial plans that estimate cash inflows and outflows over a specific period, helping businesses manage their liquidity and financial stability.