The BCG Matrix Approach Is Problematic in That It ________

question 97

Multiple Choice

The BCG matrix approach is problematic in that it ________.

• A) focuses on planning for the future at the cost of ignoring the present
• B) focuses solely on current businesses and provides little scope for future planning
• C) tends to undermine the importance of market growth rate as a measure of market attractiveness
• D) tends to undermine the importance of relative market share as a measure of company strength in the market
• E) fails to classify SBUs

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Definitions:

Spending Limit

The maximum amount of money a person or organization is willing to spend on a particular item, project, or overall budget.

Budget Line

A visual depiction of every combination of two items that a person can purchase, based on their earnings and the costs of these products.

Good X

A placeholder term often used in economics to denote a specific, but unspecified, commodity or product in theoretical discussions.

Good Y

A placeholder term often used in economics to denote a specific good or product under consideration in a model or theory.