Strategic Management - Study Mode

[#311] A possible and desirable future state of an organization is called:
Correct Answer

(B) Vision

Explanation

Solution: A possible and desirable future state of an organization is called Vision. Vision is a future-oriented concept of the business. Forming a strategic vision is an exercise in thinking about where a company needs to head to be successful.

[#312] What does Question mark symbolize in BCG matrix?
Correct Answer

(A) Remain Diversified

Explanation

Solution: Question mark symbolize Remain Diversified in BCG matrix. The BCG growth-share matrix is used to help the company decide what it should keep, sell, or invest more in. The BCG growth-share matrix breaks down products into four categories: dogs, cash cows, stars, and “question marks.”

[#313] Selling all of a companys assets in parts for their tangible worth is called:
Correct Answer

(C) Liquidation

Explanation

Solution: Selling all of a companys assets in parts for their tangible worth is called Liquidation. Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.

[#314] What do Cash Cows symbolize in BCG matrix?
Correct Answer

(C) Stable

Explanation

Solution: Cash Cows symbolize Stable in BCG matrix. Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that have a high market share but low growth prospects.

[#315] The BCG matrix is based on
Correct Answer

(D) Industry growth rate and relative market share

Explanation

Solution: The BCG matrix is based on Industry growth rate and relative market share. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential.