Exam 15: Setting Priorities for Businesses and Brandsthe Exit, Milk, and Consolidate Options

An exit decision should be considered if the market demand, competitive intensity, or strategic fit is regarded unfavorably.

____________ would be disciplined about minimizing the expenditures toward the brand and maximizing the short-term cash flow, while ___________ would sharply reduce long-term investment, but continue to support marketing and service operating areas.

Confirmation bias occurs when the objective information cast doubt on the sales projections of a business.

Strategic brand consolidation process includes five distinct steps: identifying the relevant brand set, assessing the brands, ______________, creating a revised brand portfolio strategy and ______________.

The GE model is less complex than the BCG model.

A hold strategy may prevent a firm from making investments that would help retain product relevance.

Implementing an exit decision is often delayed by managers who attempt to turn around a struggling business.

Centurion organized its brands into four groupings labeled blue, green, yellow and black.

Business portfolio analysis provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strengths of competitor's in that market.

Some of the conditions that favor a milking strategy include a price structure that is stable at a level that is profitable for efficient firms.

Biases inhibiting exit decisions are ______________ and ______________.

Andy Grove made the decision to get out of memory by pretending he was a new CEO brought in from the outside.

A hold strategy will be superior to a milk strategy when the market prospects and/or the business position is not as grim.

Exit strategies should be considered in all of the following situations except:

Motivations for exiting include avoidance of drain on profits by dog businesses in portfolio and purging businesses that do not fit the strategy of the firm.

A milk or harvest strategy aims to generate cash flow by reducing investment and operating expenses to a minimum.

Cash cows are units that should no longer absorb investments aimed at growing the business.