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labwork [276]
3 years ago
14

You have accepted a job as the president and CEO of a large transportation conglomerate. Over the years, the conglomerate has ac

quired a number of unrelated divisions. Your first action as CEO is to complete a strategic plan.
Business Projected Growth Rate Current market share
Shipping Low 1%
Cargo inspection High 5%
Railroad loading Low 75%
Freight forwarding High 70%

Which of the following divisions would you take profits from and continue to run?
a. Railroad loading
b. Shipping
c. Freight forwarding
d. Cargo inspection
Business
1 answer:
rjkz [21]3 years ago
6 0

Answer: a. Railroad loading

Explanation:

This question relates to the BCG matrix which allows a company with multiple divisions to know how to deal with its various divisions based on their growth rate and market share.

The question specifically relates to a matrix called "Cash cows". Cash cows are divisions that have a significant market share but a low growth rate. These divisions are stable and bring more money into the company than they cost to run.

This allows us to take profits from them and invest in other. The Railroad loading controls a significant market share of 75% but has a low growth rate so is a Cash cow.

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1) You are indecisive about which stock to buy Microsoft, which is selling for $173 a share; or Apple, which is selling for $285
almond37 [142]

Answer:

I would buy the APPLE stock

Explanation:

Microsoft stock price = $173  

dividends earned = $4, $5 and $5.5

value after 3 years = $190

Apple stock price = $285

Dividends earned = $5.5, $8.5 and $10.5

value after 3 years = $330

Applying the dividend discount model

IVO = present value of dividend + present value of terminal price

for Microsoft

IVO = ( 4/1.1 + (5/(1.1/2)) + ( 5.5/(1.1/3)) + ( 190/(1.1/3))

      = $154.65  

for Apple

IVO = ( 5.5/1.1 + ( 8.5/( 1.1/2)) + (10.5/(1.1/3)) + ( 330/(1.1/3))

       = $267.8

Note: the IVO's are less than the current price of the stocks ( IVO = the intrinsic value of the shares ) but Microsoft shares are overpriced compared to apple

5 0
3 years ago
Read 2 more answers
________ consists of the factors that have an impact on the definition of the marketing research problem, including past informa
ICE Princess25 [194]

Answer: Environmental context of the problem

Explanation:

 The environmental context of the given problem basically consist of the various types of factors which have a huge impact on the marketing research related problems.

It basically helps in understanding the various types background related concepts about the industry and also about the client issue.

According to the given question, the marketing related issue basically include the forecast, past information and also the constraints of an organization by developing various types of technological skills in the firm.    

 Therefore, Environmental context of the problem is the correct answer.  

4 0
3 years ago
Sara had a final interview with a cosmetic company that she has dreamed of working for. She arrived 10 minutes early to the inte
zloy xaker [14]

Answer: d

Explanation: I would say she asked about pay before she was offered the position

5 0
4 years ago
Read 2 more answers
In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive ad
yuradex [85]

Answer:

First-mover

Second-mover

Explanation:

A first mover is a provider of product, that achieves a market advantage by being the first type of product to be marketed. Generally, being gets the first firm in the market to get the advantage of the strong market and customer satisfaction.

The "second mover's advantage" is the value of joining others into a business or imitating an old product that a new innovative company gets.

In this case VisiCalc is a First-mover and Microsoft is a Second-mover.

3 0
4 years ago
The primary goal of a firm pursuing a blue ocean strategy should be to
Mandarinka [93]
The primary goal of a firm pursuing a blue ocean strategy should be to OFFER A DIFFERENTIATED SERVICE OR PRODUCT AT A LOW COST.<span>
<span>Blue ocean strategy is a marketing strategy which submits that leading companies can succeed not by engaging in competition with other companies but by systematically creating uncontested market space which are ripe for growth. The strategy employs simultaneous pursuit of high product differentiation and low cost, which makes competition irrelevant</span></span>
4 0
3 years ago
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