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Answer in 250-300 words. What are the benefits and advantages of using an industry attractive-business strength...

Answer in 250-300 words. What are the benefits and advantages of using an industry attractive-business strength (9-cell) matrix to evaluate a diversified company's lineup of businesses?

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Answer #1

The nine-cell industry attractive business strength matrix is a 3 by 3 matrix which is used to suggest the future avenues in which the business must invest, to utilize its remaining resources. This matrix is used to highlight the strength of each diversified unit of business. It also suggests the competitively weak business that should be shut down by company unless there is a substantial cash flow from that business. A diversified business must take into account the following 2 aspects while allocating capital and resources and different businesses:

  • Industry attractiveness
  • Business strength
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