According to the example BCG matrix in Figure 6-7, which division is considered a Star?
Explanation
The BCG Matrix visually represents a company's business portfolio. Stars, like Division 1 in the example, are leaders in high-growth markets and represent the best long-run opportunities, though they often require substantial investment to maintain their position.
Other questions
The strategy-formulation analytical framework is composed of three sequential stages. What is the correct order of these stages?
Which of the following sets of tools belongs to the Matching Stage of the strategy-formulation framework?
In a SWOT Matrix, what is the primary objective of a WO (Weaknesses-Opportunities) Strategy?
The SPACE Matrix analyzes a firm's strategic position based on two internal and two external dimensions. What are the two external dimensions?
In a SPACE Matrix analysis for a bank, the following average scores were calculated: SP Average is -4.33, IP Average is +3.33, CP Average is -3.00, and FP Average is +2.25. What are the final coordinates for the directional vector?
In the Boston Consulting Group (BCG) Matrix, what are divisions located in Quadrant I, which have a low relative market share yet compete in a high-growth industry, called?
What does the pie slice within a circle on a BCG Matrix represent?
The Internal-External (IE) Matrix positions a firm's divisions in a nine-cell display. What are the two key dimensions on its axes?
In the IE Matrix, what is the common prescription for divisions that fall into cells VI, VIII, or IX?
The Grand Strategy Matrix is based on two evaluative dimensions. What are they?
According to the Grand Strategy Matrix, firms located in Quadrant II are in a rapid-market-growth industry but have a weak competitive position. What type of strategy is usually the first option that should be considered for these firms?
What is the single analytical technique that comprises Stage 3, the Decision Stage, of the strategy-formulation framework?
In developing a Quantitative Strategic Planning Matrix (QSPM), what is the first step?
What is the defined range for Attractiveness Scores (AS) in a QSPM?
In the example QSPM for a retail computer store, the factor 'Rival computer store opening 1 mile away' has a weight of 0.10. 'Strategy 1: Buy New Land' has an AS of 2, and 'Strategy 2: Fully Renovate' has an AS of 4. What is the Total Attractiveness Score (TAS) for Strategy 2 regarding this factor?
What is the term for a political tactic where strategists recognize that achieving a successful outcome is more important than imposing the specific method of achieving it, and thus may generate new alternatives that give equal results but with greater potential for gaining commitment?
According to the duties and responsibilities of a board of directors, which of the following falls under the category of 'Control and Oversight Over Management'?
The text lists fourteen principles of good governance as evaluated by BusinessWeek. Which of the following is NOT one of those principles?
In a SPACE matrix, what does a directional vector located in the upper-right or 'aggressive' quadrant suggest for an organization?
What is a key difference between the BCG Matrix and the Internal-External (IE) Matrix?
For the Grand Strategy Matrix, what is the threshold for an industry to be considered as having 'rapid growth'?
If a firm has a strong competitive position but is in a slow-growth industry, in which quadrant of the Grand Strategy Matrix would it be positioned?
What does the tendency to put too much weight on a single factor in the strategy-formulation process, which can lead to biased decisions, refer to?
In a QSPM, what should an analyst do if a particular key factor does not affect the choice of strategies being made?
Which of the following is a limitation of SWOT analysis?
What is the primary role of culture in the context of strategy analysis and choice?
In a SPACE Matrix, the numerical values assigned to the variables for the Stability Position (SP) and Competitive Position (CP) dimensions range from what values?
What is the primary purpose of the eight steps involved in constructing a SWOT Matrix?
A director on the board of Hewlett-Packard who also sits on the board of another technology company would be an example of what governance issue that is discouraged by good governance principles?
In the BCG Matrix provided in Figure 6-8, Division 5 has sales of $42 million and an operating loss of $188 million. What is its percent of total corporate profits?
What is the primary focus of strategies prescribed for divisions that fall into the 'hold and maintain' region of the IE Matrix (cells III, V, or VII)?
Which matching tool is considered the most difficult to develop because it requires good judgment to align key external and internal factors, and there is no one best set of matches?
If a firm in a rapid-growth market is too heavily committed to a single product, what strategy might be effective for reducing risk according to the Grand Strategy Matrix analysis for Quadrant I firms?
According to the principles of good governance listed in the chapter, fully employed directors should sit on no more than how many boards?
What is the primary reason that firms often prepare both a BCG Matrix and an IE Matrix when formulating strategies?
What is a major limitation of the BCG matrix that is related to its temporal qualities?
In the example of matching key factors to formulate strategies in Table 6-1, a firm's 'Poor employee morale' (an internal weakness) is matched with 'Rising healthcare costs' (an external threat). What is the resultant WT strategy?
How many factors, at a minimum, should be included in a QSPM from the EFE and IFE matrices?
What is the political tactic of achieving satisfactory results with an acceptable strategy, which is considered far better than failing to achieve optimal results with an unpopular strategy?
In the example QSPM for a retail computer store in Table 6-7, what is the Sum Total Attractiveness Score (STAS) for the strategy 'Buy New Land and Build New Larger Store'?
According to the principles of good governance, the audit, compensation, and nominating committees of a board should be made up of whom?
The text warns that a shift from a words-oriented to a numbers-oriented planning process can give rise to what?
If a division has a low relative market share position but the industry it competes in is growing slowly or not at all, what is it called in the BCG Matrix?
In a SPACE Matrix, if a firm's directional vector falls in the lower-left or defensive quadrant, what does this suggest?
In the Grand Strategy Matrix, what strategies are most appropriate for a firm in Quadrant III, which has a weak competitive position in a slow-growth market?
How is the Relative Market Share Position on the x-axis of the BCG Matrix defined?
Which of the following describes a key principle for constructing a QSPM?
Successful strategists often use political tactics to gain commitment. What tactic involves raising an issue to a higher level, such as firm survival, to postpone short-term interests?
In the Internal-External (IE) Matrix, what does an IFE total weighted score of 3.5 represent?