Which pair of parameters describes the "candidates for divestiture" quadrant in the DEA strategic matrix?
A) Low efficiency and low profit.
B) Low efficiency and high profit.
C) High efficiency and high profit.
D) High efficiency and low profit.

Question

Quizplus · Accepted Answer

The "candidates for divestiture" quadrant in DEA strategic matrix is where the business units have high efficiency but low profit, which suggests that they are not generating enough revenue to sustain their operations despite having high productivity. Therefore, the best choice for this pair of parameters is D, which describes high efficiency and low profit.

Which Pair of Parameters Describes the "Candidates for Divestiture" Quadrant