One of the Weaknesses Inherent in the Use of the BCG

question 296

Multiple Choice

One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it

• A) causes tension between different divisions when one is labeled a "star" and another a "dog."
• B) reduces employee motivation to move a low valued SBU to a higher one.
• C) considers too many SBU factors beyond market growth rate and relative market share.
• D) does not require sales forecasts in order to be implemented.
• E) is often difficult to obtain the needed information to correctly place SBUs in the matrix.

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Definitions:

Limited Liability

A legal structure for businesses that protects its owners' personal assets from the company's debts and liabilities.

Corporation

A legal entity that is separate and distinct from its owners, allowing it to own assets, incur liabilities, and conduct business in its name.

General Partnership

A type of business partnership where all partners share management responsibilities and are equally liable for business debts and obligations.

Pooled Talents

The combining of skills, knowledge, and abilities from multiple individuals or teams to achieve a common goal.