194. The Boston Consulting Group's business portfolio analysis model can be used to guide a firm as it tries to change its relative market share (the factor on the horizontal axis). What conscious decisions can management make on the role each SBU should have in the future and how money should be budgeted for its operations? Answers will vary Feedback: The firm can invest more in the SBU in order to build its share, it can invest just enough to hold the SBU's share at about its current level, it can harvest the SBU trying to milk its short-term cash flow, even though it may lose share and become a dog in the longer run, or the firm can divest the SBU by phasing it out or actually selling it to gain cash to invest in the remaining SBUs. Blooms: Understand - Chapter 02 #194 Difficulty: Medium Learning Objective: 02-03 Discuss how an organization assesses where it is now and where it seeks to be. 195. Identify and describe the four market-product strategies an organization uses to identify alternative market opportunities. The four market-product strategies an organization uses to identify alternative market opportunities are: Answers will vary Feedback: (1) market penetration, which involves selling more of an existing product to existing market segments (2) product development, which involves developing a new product for existing market segments (3) market development, which involves selling an existing product to new market segments (4) diversification, which involves selling a new product to new market segments Blooms: Understand Crane - Chapter 02 #195 Difficulty: Medium Learning Objective: 02-03 Discuss how an organization assesses where it is now and where it seeks to be.
194. The Boston Consulting Group's business portfolio analysis model can be used to guide a firm as it tries to change its relative market share (the factor on the horizontal axis). What conscious decisions can management make on the role each SBU should have in the future and how money should be budgeted for its operations? Answers will vary Feedback: The firm can invest more in the SBU in order to build its share, it can invest just enough to hold the SBU's share at about its current level, it can harvest the SBU trying to milk its short-term cash flow, even though it may lose share and become a dog in the longer run, or the firm can divest the SBU by phasing it out or actually selling it to gain cash to invest in the remaining SBUs. Blooms: Understand - Chapter 02 #194 Difficulty: Medium Learning Objective: 02-03 Discuss how an organization assesses where it is now and where it seeks to be. 195. Identify and describe the four market-product strategies an organization uses to identify alternative market opportunities. The four market-product strategies an organization uses to identify alternative market opportunities are: Answers will vary Feedback: (1) market penetration, which involves selling more of an existing product to existing market segments (2) product development, which involves developing a new product for existing market segments (3) market development, which involves selling an existing product to new market segments (4) diversification, which involves selling a new product to new market segments Blooms: Understand Crane - Chapter 02 #195 Difficulty: Medium Learning Objective: 02-03 Discuss how an organization assesses where it is now and where it seeks to be.
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