The GE Business Strength-Industry Attractiveness Matrix

question 38

Multiple Choice

The GE business strength-industry attractiveness matrix:

• A)has 16 cells
• B)has two axes with factors determined by General Electric's CEO Jack Welsh
• C)incorporates the PIMS data gathered from a wide range of US businesses
• D)allows weights to be applied to each factor to obtain an 'objective' assessment

Identify the difference between theoretical standards and practical standards and their effect on employee motivation and performance evaluation.

Understand the concept and application of standard costs in cost management and product costing.

Analyze the impact of practical standards on manager attitudes and commitment.

Identify potential negative outcomes of incentive systems based on meeting predetermined standards.

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Definitions:

Net Present Value

A valuation method used to estimate the attractiveness of an investment, by calculating the present value of expected future cash flows minus the initial investment cost.

Cash Flow

The overall volume of cash and cash-equivalents that are exchanged in and out of a business entity.

Timing

The selection of an optimal time or period for making an investment, launching a product, or executing a decision to maximize benefits or outcomes.

Capital Budgeting

The process of planning and evaluating investments in long-term assets, analyzing their expected cash flows and their impact on the company's financial future.