One of the most recognized approaches to business portfolio analysis is the Boston Consulting Group's growth-share matrix. Describe this tool and the four quadrants of the matrix.
What will be an ideal response?
The BCG business portfolio analysis requires an organization to locate the position of each of its SBUs on a growth-share matrix. The vertical axis is the market growth rate, which is the annual rate of growth of the SBU's industry. The horizontal axis is the relative market share, defined as the sales of the SBU divided by the sales of the largest firm in the industry. The BCG has given specific names and descriptions to the four quadrants in its growth-share matrix. They are as follows: (1) Cash Cows - (lower left quadrant) have a dominant share of a slow-growth market; they typically generate large amounts of cash to invest in other SBUs. (2) Stars - (upper left quadrant) have a high share of high-growth markets; they may not generate enough cash to support their own needs to support future growth. (3) Question Marks - (upper right quadrant) are SBUs with a low share of high-growth markets; they require large amounts of money just to maintain their market share. (4) Dogs - (lower right quadrant) have a low share of slow-growth markets; although they may generate enough cash to sustain themselves, they hold little promise of becoming winners for the firm. See Figure 2-4.
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Heather, Incorporated reports the following annual cost data for its single product:Normal production and sales level60,000 unitsDirect materials$9.00 per unitDirect labor$6.50 per unitVariable overhead$11.00 per unitFixed overhead$720,000 in totalThis product is normally sold for $56 per unit. If Heather increases its production to 80,000 units while sales remain at the current 60,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to increase current production.
What will be an ideal response?
The ViVi brand is a line of designer clothing for pregnant businesswomen. If its owner believes that professional women in other countries have a need for conservative maternity wear, the owner of the small company would most likely hire a(n) ________ to locate and negotiate with buyers in other countries.
A. licensee B. joint venture partner C. licensor D. franchisee E. export merchant
Under process costing, the number of units to account for must always be ________ the number of units accounted for
A) greater than B) lesser than C) equal to D) twice
The Session Layer of the OSI model is
a. responsible for establishing a logical connection with appropriate permissions b. responsible for changing the data's format as needed c. responsible for providing the end user with access to the network d. responsible for checking for errors