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Un Taco Pequeno (Scenario) Imagine that you are the president of Taco Rocket, a

ID: 463527 • Letter: U

Question

Un Taco Pequeno (Scenario)

Imagine that you are the president of Taco Rocket, a new and successful chain of 100 Mexican fast-food restaurants in the U.S. The success you have experienced in the last five years has you thinking of what to do with the business next. Should you expand the business at the current rate or open new and different restaurants?


You decide to purchase a local five-store hardware chain because it was a good investment. This is an example of ________.

Question 47 options:

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Question 48 (2 points)

________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working.

Question 48 options:

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Question 49 (2 points)

El Taco Grande (Scenario)

As the original owner of Taco Rocket, you have seen your business holdings grow substantially over the last 10 years. The number of stores you own and franchise has grown by 200 percent and you own a number of companies in related and unrelated areas.


Recently, you also purchased a company that manufactures a new satellite dish, allowing you to enter into the cable television market. The business is profitable and growing, but the technological unknowns make it risky. BCG considers it a ________.

Question 49 options:

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Question 50 (2 points)

Managers do an external analysis so that they know about ________.

Question 50 options:

A) concentration growth strategy B) stabilization strategy C) related diversification D) unrelated diversification

Explanation / Answer

47) Option (D)- It is a form of diversification where the entity enters into new product lines or unrelelated product lines (i.e completely unreleated to the existing product lines of the entity).

48)Option(B)- Organisation should adopt to its environment and it is difficult to maintain success through a single strategy.

49)Option(A)- Cash cow of the BCG Matrix is having high market share but low growth rate.

50)Option(B)- Managers often do external analysis to know what the customers prefer and what the competitors are doing.