Exam 14: Portfolio Models

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

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

On what assumption is the BCG Portfolio Model based?

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

In the early 1990s, Dean & Summers Inc. marketed three brands of car fresheners, Coral, White Springs, and Autumn Breeze. The car freshener industry is typically described as a low-growth industry. In 1993, Dean & Summers spent $5.1 million to advertise Coral and was rewarded with sales of over $112 million. In the same year, it spent nearly $5 million marketing White Springs, but the car freshener had disappointing sales of less than $23 million. Autumn Breeze, with hardly any promotion at all, had $1.2 million in sales. According to the BCG Portfolio Model, which of the following statements about these three products best describes them?

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

Hecter & Gable Inc. 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 was typically described as a low-growth industry. In 1993, Hecter & Gable spent $3.1 million to advertise Charms and was rewarded with sales of over $312 million. In that same year, it spent nearly $6 million marketing White Cloud, but the product had disappointing sales of less than $63 million. Lavender Days, with hardly any promotion at all, had $4.6 million in sales. According to the General Electric Portfolio Model, which of the following statements about these three products best describes them?

Which of the following observations is true of the build share objective for a strategic business unit (SBU)?

According to the General Electric Portfolio Model, strategic business units (SBUs) that are high in both industry attractiveness and business strength are included in the _____.

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

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 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 terms best expresses this idea?

The BCG matrix identifies _____ as strategic business units (SBUs) that have a low share of a low-growth market.

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

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

A company has to take a decision on what should be done with one of its strategic business units (SBUs). The business strength of the SBU is medium and the industry attractiveness is medium. According to the General Electric Portfolio Model, it would be ideal for the company to _____.