In the BCG matrix, a ________ has a low anticipated growth rate and a low market share

1

Jerome Washington's company has decided to acquire two other businesses in order to increase its growth and earning potential. In essence, Jerome's company desires to become a multi-business company. Which one of the following would be least likely to be considered another valid rationale for why the company would desire to take this action?
A)
The company wants to be able to monopolize a portion of the market segment.
B)
The company wants to diversify risks.
C)
It wishes to increase vertical integration.
D)
It desires to have an instant market presence without waiting on the process of slow internal growth.
2

The market share of a business divided by the market share of its largest competitor equals the business's ________.
A)
relative differentiation strategy
B)
BCG growth share matrix
C)
portfolio technique results
D)
relative competitive position
3

According the BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?
A)
Dog
B)
Question mark
C)
Cash cow
D)
Star
4

The 1 4 U 2 N V Corporation currently possesses a low share of its available market. Additionally, this company's portfolio reveals it has extremely low market growth. This business is most likely to be classed as which one of the following according the BCG growth-share matrix?
A)
Dog
B)
Question mark
C)
Star
D)
Cash cow
5

All of the following would be considered reasons for why the industry attractiveness-business strength matrix offers improvement over the BCG matrix except _________.
A)
the terminology used is preferred and more understandable
B)
it reduces the need for strategy formulation
C)
the measures tap many additional factors
D)
it brings to light important considerations in strategy implementation
6

Which one of the following would not be classed as a necessary financial strength factor to be considered when a company is constructing its industry attractiveness-business strength matrix?
A)
Solvency
B)
Cash flows
C)
Sales volatility
D)
Break-even point
7

The Ride 'Em Cowboy Western Wear Corporation of Houston is very efficient in maintaining low overhead costs. This corporation has excellent skills in operational efficiency and cost management. However, it faces few sources of advantage within its industry, with most of those being quite small. Under which of the following industry environments is this corporation most likely to be placed?
A)
Specialization businesses
B)
Stalemate businesses
C)
Volume businesses
D)
Fragmented businesses
8

Businesses with many sources of advantage that are characterized by high levels of skill in achieving differentiation such as product design and innovation would most likely be classed as which one of the following under the BCG's strategic environments matrix?
A)
Volume business
B)
Fragmented business
C)
Stalemate business
D)
Specialization business
9

Which one of the following would not be considered a contribution to strategic analysis through the organizations' use of the portfolio approach?
A)
It does not address how value is created across business units.
B)
It helps to convey large amounts of information about business units in a simplified format.
C)
It serves to convey rationales behind corporate strategies in an easily understandable manner.
D)
It simplifies priorities for sharing resources.
10

In multi-business organizations, there are many opportunities to build value or sharing. Which one of the following would be least likely to be considered a potential competitive advantage for organizations sharing common distribution channels?
A)
Lower distribution costs
B)
Enhanced bargaining power for shelf space
C)
Improved input quality
D)
Enhanced bargaining power to achieve better profit margins
11

When making evaluations of multi-business companies, impediments to achieving enhanced value through operating opportunities are most likely to include all but which one of the following?
A)
Input needs are different.
B)
Lower input costs
C)
Inputs are needed at different plant locations.
D)
Centralized purchasing is not responsive to the separate needs of the various plants.
12

All of the following would be considered to be true statements regarding organizations that embrace the synergy approach except __________.
A)
The businesses must be related in ways that make the core competencies beneficial.
B)
The combination of competencies must be difficult to re-create.
C)
Each company's core competencies should provide a relevant competitive advantage to the business.
D)
One of the businesses must possess all the stronger core competencies for the approach to work effectively.
13

The ______ perspective sees multi-business companies as creating value by influencing the businesses they own.
A)
parenting framework
B)
synergy approach
C)
portfolio
D)
patching
14

There are various places organizations can look to obtain parenting opportunities that can become the focal points of strategic analysis across multiple businesses. Which one of the following would not be considered a place for this type of opportunity to be found?
A)
Size and age of the company
B)
Common capabilities
C)
Internal weaknesses
D)
External relationships
15

Excessive diversification, under or over investment during business cycle swings, and lengthy product life cycles are all examples of ______ found within the parenting framework.
A)
linkages
B)
predictable errors
C)
major changes
D)
common capabilities
16

The executives of the Johnson Submarine Corporation are facing rapid changes taking place within the available market opportunities of the organization. These executives have decided to "remap" the business so as to better match these quick changes. This "remapping" approach is best referred to as _________.
A)
patching
B)
strategic positioning
C)
retrenchment
D)
strategic processing
17

All of the following are true about the concept of patching except which one of the following?
A)
Patching is a process of remapping a business.
B)
Patching focuses on the role and ability of managers to create value in the management of multi-business companies.
C)
Patching is a costly undertaking with an anticipated low return on the investment.
D)
Patching can take the form of splitting or combining chunks of the businesses.
18

Critical business undertakings such as decision making, operational activities, and sales activities are often referred to as an organization's ________.
A)
strategic positioning
B)
strategic processes
C)
maturation
D)
globalization
19

_________ is the way a business is designed and positioned to serve target markets.
A)
Volume business
B)
Global focusing
C)
Strategic positioning
D)
A parenting framework
20

Of the following, which one would not be considered a type of simple rule for flexibility that can help executives manage the different aspects of seizing opportunities?
A)
Boundary rules
B)
Timing rules
C)
Entrance rules
D)
Priority rules

What is market growth rate in BCG matrix?

The market growth rate is this years industry sales minus the past years industry sales. The y-axis of the graph/matrix represents rate of market growth while the x-axis represents a products overall market share.

What is cash cow in BCG matrix?

Cash Cows are business units or products with a high market share but low growth prospects. Cash Cows provide the cash required to turn a Question Mark into a market leader, cover the administrative costs of the company, fund research and development, service the corporate debt, and pay dividends to shareholders.

What is dog in BCG matrix?

What Is a Dog? In business, a dog (also known as a "pet") is one of the four categories or quadrants of the BCG Growth-Share matrix developed by Boston Consulting Group in the 1970s to manage different business units within a company. A dog is a business unit that has a small market share in a mature industry.

What does Star symbolize in BCG matrix?

What does Stars symbolize in BCG matrix? Explanation: The horizontal axis of the BCG Matrix represents the amount of market share of a product and its strength in the particular market. By using relative market share, it helps measure a company's competitiveness.

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