Question Completion with Options:
O sticking closely with the existing business lineup and pursuing opportunities that those businesses present.
O Divesting certain businesses and retrenching to a narrower base of business operations.
O Widening the company's business scope by making new acquisitions in new industries.
Answer:
The broad categories of action for crafting strategic moves to improve a diversified company's overall performance are:
O sticking closely with the existing business lineup and pursuing opportunities that those businesses present.
O Divesting certain businesses and retrenching to a narrower base of business operations.
O Widening the company's business scope by making new acquisitions in new industries.
Explanation:
In addition to pursuing existing business opportunities, a diversified company can increase its performance indexes by divesting itself of certain unprofitable lines of business or slow-growth businesses and focusing its resources on cash cows and stars. The pursuit of stars will lead it to make new acquisitions in relatively new industries in order to remain attractive to investors, otherwise, it runs the risk of growing into extinction like the historical dinosaur.
Answer and Explanation:
a. The estimation of the contribution margin for each segment is shown below:
(in millions)
<u>Particulars Investor Advisor Services Services </u>
Income from
operations $1,681 $1,660
Add:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Now the estimation of decline in operating income is
(in millions)
<u>Particulars Combined services Institutional Services </u>
Revenues $9,368 $4,771
Less:
Variable cost $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed cost -$325 -$171
Net income $3,341 $1,681
So according to the above calculations, the net operating income is declined by
= $3,341 - $1,681
= $1,660 million
The variable cost is come from
= Service revenues - income from operations - depreciation expense
Answer:
The correct answer is b. It makes a company more susceptible to competitive inroads.
Explanation:
Market segmentation is essential to know how is the public that makes up the market in which we are. There are a number of advantages and disadvantages of market segmentation that you should keep in mind, before venturing into such a study for your company.
Errors when establishing the segment
The first and main disadvantage of including market segmentation techniques is the wrong selection of a segment.
Keep in mind that if the company chooses a wrong market fraction, too small or irrelevant for the company's business, then the business will find it difficult to market its product.
Commercial Saturation Issues
Another drawback derived from this strategy is to enter a market segment in which there is strong competition and saturation. When we are about to create a company or product we must take into account the development possibilities we have in that market.
Answer:
TRUE
Explanation:
It is true that if you want to support business operations, you will focus on building a strong information MIS infrastructure, which identifies where and how important information, such as customer records, is maintained and secured.
A Management Information System (MIS), collects data from many different sources and then processes and organizes that data <u>to support businesses in making decisions.</u>
Most recently, technology and <u>data collection are so prevalent that businesses large and small are using Management Information Systems to improve their outcomes.
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