A Company Has to Take a Decision on What Should

question 11

Multiple Choice

A company has to take a decision on what should be done with one of its strategic business units (SBUs) .The business strength of the SBU is medium,and the industry attractiveness is medium.According to the General Electric Portfolio Model,it would be ideal for the company to _____.

• A)hold share
• B)harvest
• C)build share
• D)divest

---

Definitions:

Price Fixing

An agreement among competitors to set the price of a product or service, rather than allowing it to be determined through free market competition.

Reaction Function

Describes how one player's strategic decision in a game or market scenario is influenced by the decisions of other players, effectively mapping out a player's optimal responses.

Profit-maximizing Output

The level of production at which a firm's marginal cost equals its marginal revenue, leading to the highest possible profit.

Cournot Model

A model of oligopoly in economics where competing firms simultaneously and independently decide on the quantity of production, leading to a strategic interaction.