What is the relevance of quantitatively measuring the competitive strength of each business in a diversified company's business portfolio and determining which business units are strongest and weakest?
What will be an ideal response?
Calculating quantitative industry attractiveness scores for each industry helps in ranking the performance prospects of the businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its various businesses. A good case can be made for concentrating resources in those businesses that enjoy higher degrees of attractiveness and competitive strength, being very selective in making investments in businesses with intermediate positions on the grid, and withdrawing resources from businesses that are lower in attractiveness and strength unless they offer exceptional profit or cash flow potential.
You might also like to view...
Treasury stock is stock that has been issued, but not currently outstanding
a. True b. False Indicate whether the statement is true or false
In deciding the motion for judgment on the pleadings, the judge also considers facts outside the pleadings.
Answer the following statement true (T) or false (F)
Belinda and Franco are partners in a jewelry business. Without Franco's knowledge, Belinda buys a ring from Janice for $2,200 . Janice has no reason to question the transaction since she is a regular customer of the store and assumes Belinda has authority to buy her ring. When Franco finds out he is furious and does not want to honor the agreement. Which of the following is TRUE?
a. Belinda acted with absolute authority and the partnership must honor the transaction. b. Belinda acted with actual authority and the partnership must honor the transaction. c. Belinda acted with implied authority and the partnership must honor the transaction. d. Belinda acted with apparent authority and the partnership must honor the transaction.
The largest, most powerful, most influential economy is the __________ economy.
a. China b. Europe c. Japan d. United States e. Russia