Chapter 15—Setting Priorities for Businesses and Brands—The Exit, Milk, and Consolidate Options
15.1
Cash cows are units that should no longer absorb investments aimed at growing the business.
15.2
The GE model is less complex than the BCG model.
15.3
An exit decision should be considered if the market demand, competitive intensity, or strategic fit is
regarded unfavorably.
15.4
Motivations for exiting include avoidance of drain on profits by dog businesses in portfolio and purging
businesses that do not fit the strategy of the firm.
15.5
Implementing an exit decision is often delayed by managers who attempt to turn around a struggling
business.
15.6
Exit strategies should be considered in all of the following situations except:
a. When the business position is weak.
b. When a firm’s reputation is at stake.
c. When demand is diminishing quickly with no impending resurgence.
d. When the strategic direction of the firm has changed.
15.7
Biases inhibiting exit decisions are ______________ and ______________.
15.8
A milk or harvest strategy aims to generate cash flow by reducing investment and operating expenses to a
minimum.
15.9
____________ would be disciplined about minimizing the expenditures toward the brand and maximizing
the short-term cash flow, while ___________ would sharply reduce long-term investment, but continue to
support marketing and service operating areas.
15.10
A hold strategy will be superior to a milk strategy when the market prospects and/or the business position is
not as grim.
15.11
A hold strategy may prevent a firm from making investments that would help retain product relevance.
15.12
Strategic brand consolidation process includes five distinct steps: identifying the relevant brand set,
assessing the brands, ______________, creating a revised brand portfolio strategy and ______________.
15.13
Business portfolio analysis provides a structured way to evaluate business units on two key dimensions:
the attractiveness of the market involved and the strengths of competitor’s in that market.
15.14
Some of the conditions that favor a milking strategy include a price structure that is stable at a level that is
profitable for efficient firms.
15.15
Confirmation bias occurs when the objective information cast doubt on the sales projections of a business.
15.16
Andy Grove made the decision to get out of memory by pretending he was a new CEO brought in from the
outside.
15.17
Centurion organized its brands into four groupings labeled blue, green, yellow and black.