Which of the following is the BEST guideline for deciding what the priorities should be for allocating resources to the various businesses of a diversified company?
A) Businesses with high industry attractiveness ratings should be given top priority and those with low industry attractiveness ratings should be given low priority.
B) Business subsidiaries with the brightest profit and growth prospects, attractive positions on the nine-cell matrix, and solid strategic and resource fits generally should head the list for corporate resource support.
C) The positions of each business in the nine-cell attractiveness-strength matrix should govern resource allocation.
D) Businesses with the most strategic and resource fits should be given top priority and those with the fewest strategic and resource fits should be given low priority.
E) Businesses with high competitive strength ratings should be given top priority and those with low competitive strength ratings should be given low priority.

Question

Quizplus · Accepted Answer

The guideline in option B considers a combination of factors such as profit and growth prospects, positioning on the nine-cell matrix, and strategic and resource fits. This holistic approach ensures that the company allocates its resources to businesses that are not only attractive but also have the potential for growth and fit well with the overall business strategy. Option A, C, D, and E only consider one or two factors, and may not provide a comprehensive framework for resource allocation.

Which of the Following Is the BEST Guideline for Deciding