5. Which of the following is NOT a purpose of the portfolio management matrix? S

Question

5.

Which of the following is NOT a purpose of the portfolio management matrix?

Select one:

a. To assist a firm in achieving a balanced portfolio of businesses

b. To identify priorities for the allocation of resources

c. Achieve a better understanding of the competitive position of an overall portfolio of businesses

d. To reduce levels of diversification

7.

Restructuring is a way in which a corporate office can add value to a business.  Which of the following is not one of the three primary restructuring activities?

Select one:

a. Capital restructuring

b. Diversification restructuring

c. Asset restructuring

d. Management restructuring

12.

Imagine a pharmaceutical company, Roche Holdings, produces a drug called Herceptin which is effective in treating a rare stomach cancer, therefore there is little needs for local adaptation.  Because of the rarity of the disease, each course of treatment costs $50,000 and there is little pressure for Roche Holdings to lower costs.  What type of global market strategy would be used for Herceptin?

Select one:

a. International

b. Multidomestic

c. Global

d. Transnational

Explanation / Answer

5) Which of the following is NOT a purpose of the portfolio management matrix?

Answer: Option (D) - To reduce levels of diversification

7) Restructuring is a way in which a corporate office can add value to a business. Which of the following is not one of the three primary restructuring activities?

Answer: Option (B) - Diversification restructuring

12) Imagine a pharmaceutical company, Roche Holdings, produces a drug called Herceptin which is effective in treating a rare stomach cancer, therefore there is little needs for local adaptation. Because of the rarity of the disease, each course of treatment costs $50,000 and there is little pressure for Roche Holdings to lower costs. What type of global market strategy would be used for Herceptin?

Answer: Option (D) - Transnational

Explanation: Transnational strategy is best suited for organizations seeking local responsiveness and reduction in costs. In the given scenario, the Herceptin drug that Roche Holdings produces needs local adaptation. The company is also facing little pressure to lower the cost of the treatment using the Herceptin drug.

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