A Major Limitation of the BCG Matrix in Guiding Corporate

question 12

Multiple Choice

A major limitation of the BCG matrix in guiding corporate strategy is:

• A)The assumption that each business has synergistic links with every other business within the portfolio.
• B)Business' market shares and growth rates are difficult to measure.
• C)Neither market growth nor relative market share is reliable indicators of a businesses' future profitability.
• D)Its long history renders it obsolete.

---

Definitions:

Self-control

The capacity to control our feelings, thoughts, and actions when confronted with challenges and spontaneous desires.

Contrast Assumption

The assumption that objects have only one label. Also known as the mutual exclusivity assumption (if a word means one thing, then it cannot mean another).

One Label

The concept of using a single term or classification to describe or identify something, often simplifying complex attributes.

Cognitive Sophistication

The advanced level of cognitive development characterized by complex thinking processes, such as abstract reasoning and problem-solving capabilities.