Presented below is a sample response to a question #B for the company American Entertainment, Inc. This is for guidance only. As stressed in class, each company and their situation is different and the answers to the final question will vary considerably.

B. What does this theory recommend for this company? Explain.

The company falls in the middle area of the matrix. Companies in that area should either select opportunities by investing to maintain, holding positions, or finding growth segments, or consolidate resources by specializing products, finding niches, investing selectively, or actively managing (Kulzick handout).

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