One of the most significant contributions to strategy making in diversified companies that the nine-cell industry attractiveness competitive strength matrix provides is
A)identifying which businesses have strategies that should be continued, which businesses have strategies that need fine-tuning, and which businesses have strategies that need a major overhaul.
B)that businesses having the greatest competitive strength and that are positioned in the most attractive industries should have the highest priority for corporate resource allocation and that competitively weak businesses in relatively unattractive industries should have the lowest priority and perhaps even be considered for divestiture.
C)pinpointing which strategies are most appropriate for businesses positioned in the four corners of the matrix (although the matrix reveals little about the best strategies for businesses positioned in the remainder of the matrix).
D)its ability to pinpoint what kind of competitive advantage or disadvantage each business has.
E)pinpointing which businesses to keep and which ones to divest.

Question

Quizplus · Accepted Answer

The nine-cell industry attractiveness competitive strength matrix provides the significant contribution of helping the diversified companies to identify the priority of corporate resource allocation based on the businesses' competitive strength and attractiveness of industries they are positioned in. This prioritization enables the company to allocate resources efficiently and even consider divestiture of businesses that are relatively weak in less attractive industries.

One of the Most Significant Contributions to Strategy Making in Diversified