Which of the following is true with regard to the product/expansion grid?
A) It classifies SBUs into four distinct categories.
B) It is a useful device for identifying growth opportunities.
C) It helps companies analyze their internal strengths and weaknesses.
D) It functions on the premise that firms should downsize to regain market share.
E) It is a useful device for segregating customers into distinct categories.

Question

Quizplus · Accepted Answer

The product/expansion grid, also known as the Ansoff matrix, is a strategic tool used by businesses to identify growth opportunities by considering four different strategies: market penetration, market development, product development, and diversification. It does not classify SBUs into distinct categories nor does it help to analyze internal strengths and weaknesses. The product/expansion grid is focused on identifying growth opportunities, not downsizing to regain market share. It is not used for segregating customers into distinct categories either. Therefore, the correct option is B.

Which of the Following Is True with Regard to the Product/expansion