1 answer

Calculating quantitative attractiveness ratings for the industries a company has diversified into involves selecting a set...

Question:

Calculating quantitative attractiveness ratings for the industries a company has diversified into involves selecting a set of
Calculating quantitative attractiveness ratings for the industries a company has diversified into involves selecting a set of industry attractiveness measures, weighting the importance of each measure, 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 a weighted overall industry attractiveness score, and using the weighted overall industry attractiveness scores to evaluate the attractiveness of all the industries, both individually and as a group. determining each industry's key success factors, rating the ability of the company to be successful on each industry KSF (using a scale of 1 to 10), and using the KSF ratings to calculate quantitative scores of the firm's ability to compete successfully in each of these industries. rating the difficulty of achieving above-average profitability in each industry and rating the competitive power of the company's resources and capabilities in each industry (using a scale of 1 to 10) to determine whether the company's prospects for above-average profitability are attractive or unattractive, industry-by-industry. determining each industry's competitive advantage factors, calculating the ability of the company to be successful on each competitive advantage factor, and obtaining overall measures of the firm's ability to achieve sustainable competitive advantage in each of its industries based on the combined competitive advantage factor ratings. selecting an appropriate set of measures of cross-industry strategic and resource fit, rating

Answers

Ans a) selecting a set of industry attractiveness measures, weighting the importance of each measure (with the sum of the weights adding to 1.0), 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.

Explanation- It is by definition of the procedure

.

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