Question $20$

Calculating quantitative competitive strength ratings for each of a diversified company's business units involves

determining which businesses possess good strategic fit with other businesses, identifying the portion of the value chain where this fit occurs, and evaluating the strength of the competitive advantage attached to each of the strategic fits to get an overall measure of competitive advantage potential$--$businesses with the highest$/$lowest competitive advantage potentlat have the most$/$least competitive strength.

rating the caliber of each business's strategic and resource fits, weighting the importance of each type of strategic$/$resource fit, calculating weighted strategic$/$resource fit scores, and summing the weighted ratings for each business to obtain an overall strength score for each business unit that indicates the degree to which that business unit has adequate strategic$/$resource fits to be a strong market contender in its industry.

selecting a set of competitive strength measures, weighting the importance of each measure, rating the strength of each of the company's businesses on each strength measure $($often using a scale of $1$ to $10),$ multiplying the strength ratings by the assigned weight to obtain a weighted rating, summing the weighted ratings for each business unit to obtain an overall competitive strength score, and using the overall competitive strength scores to evaluate the competitive strength of the company's business units, both individually and as a group.

$$ selecting a set of competitive strength measures, using a scale of $1$ to $10$ to rate how strong each business is on each strength measure, summing a business unit's strength rating on all the various measures, and using the overall competitive strength scores to rank each business unit's strategy from best to worst and to forecast its relative market share.

$$ identifying the competitive forces facing each business, using a scale of $1$ to $10$ to rate the strength of the competitive forces facing each business unit in its respective industry, and then ranking each business unit's future profit prospects from best to worst, given the strength of the competition it faces.