Exam 14: Portfolio Models

 On what assumption is the BCG Portfolio Model based? 

 In the early 1990s,Dean & Summers,Inc.marketed three brands of toilet paper,Coral,White Springs,and Baldwin.The toilet paper industry is typically described as a low growth industry.In 1993,Dean & Summers spent $8.1 million to advertise Coral and was rewarded with sales of over $312 million.In that same year,it spent nearly $8 million marketing White Springs,but the toilet paper had disappointing sales of less than $63 million.Baldwin,with hardly any promotion at all,had $3.6 million in sales.According to the BCG Portfolio Model,which of the following statements about these three products best describes the situation in 1993? 

The number of labor hours it takes to produce one unit of a particular product declines in a predictable manner as the number of units produced increases.Which of the following expresses this idea?

 According to the General Electric Portfolio Model,what should an organization do with its SBUs that fall into the yellow zone? 

 Which of the following objectives seeks to increase the product's short-term cash flow without concern for the long run impact? 

 Hecter & Gable marketed three brands of fabric softeners called Charms,White Cloud,and Lavender Days in the early 1990s.The industry for fabric softeners and allied products is typically described as a low growth industry.In 1993,Hecter & Gable,spent $8.1 million to advertise Charms and was rewarded with sales of over $312 million.In that same year,it spent nearly $8 million marketing White Cloud,but the product had disappointing sales of less than $63 million.Lavender Days,with hardly any promotion at all,had $3.6 million in sales.According to the General Electric Portfolio Model,which of the following statements about these three products best describes the situation in 1993? 

 In 1997,Apex Medicals sold its chemical products division because the division was showing slow growth in a market that was rapidly expanding.Apex Medicals used a _____ strategy with its chemical products division.

 According to the General Electric Portfolio Model,what should an organization do with its SBUs that fall into the red zone? 

 Which objective allows market share to decline in order to maximize earnings and cash flow and is appropriate for weak cash cows,weak question marks,and dogs? 

 The BCG matrix identifies _____ as SBUs that have a low share of a low-growth market. 

 The cellphone market is experiencing rapid growth,but the cellphones made by Broadwing Inc.,have such a low market share that Broadwing is looking to sell its cell phone division.According to the BCG Portfolio Model,the Broadwing cellphone division would be an example of a _____.

 The biotechnology industry has experienced rapid growth in recent years.One of the companies at the forefront of research on disease and insect-resistant seeds is Biotex's biotech division.The success of this division has led to many economists call it one of the leading firms in the market.In terms of the BCG Portfolio Model,Biotex's biotech division is a _____.

 According to the BCG matrix,_____ are often market leaders,but the market they are in is not growing rapidly. 

 Which of the following observations is true of the "build share" objective?