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Calculating quantitative attractiveness ratings for the industries a company has diversified into involves Multiple Choice determining each industry s average profit margins, calculating how far
Calculating quantitative attractiveness ratings for the industries a company has diversified into involves
Multiple Choice
determining each industrys average profit margins, calculating how far the firms profit margins are above or below the industry averages, and then using these values to draw conclusions about industry attractiveness.
determining the strength of the five competitive forces in each industry, calculating the ability of the company to overcome or contend successfully with each force, and obtaining overall measures of the firms ability to compete successfully in each of its industries.
selecting a set of industry attractiveness measures, weighting the importance of each measure with the sum of the weights adding to rating each industry on each attractiveness measure, multiplying the industry ratings by the assigned weight to obtain a weighted rating, adding the weighted ratings for each industry to obtain an overall industry attractiveness score, and using the overall industry attractiveness scores to evaluate the attractiveness of all the industries, both individually and as a group.
identifying each industrys average price, rating the difficulty of charging an aboveaverage price in each industry, and deciding whether the companys prospects for being able to charge aboveaverage prices make the industry attractive or unattractive.
rating the attractiveness of each industrys strategic and resource fit, summing the attractiveness scores, and determining whether the overall scores for the industries as a group are appealing or not.
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