Conclusions about what the priorities should be for allocating resources to the various businesses of a diversified company need to be based on such considerations as

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As a rule,business subsidiaries with the brightest profit and growth prospects,attractive positions in the nine-cell matrix,and solid strategic and resource fit should receive top priority for allocation of corporate resources.However,in ranking the prospects of the different businesses from best to worst,it is usually wise to also consider each business's past performance as concerns sales growth,profit growth,contribution to company earnings,return on capital invested in the business,and cash flow from operations.Competitively strong businesses in attractive industries have significantly better performance prospects than competitively weak businesses in unattractive industries.

Conclusions About What the Priorities Should Be for Allocating Resources