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 are reliable indicators of a businesses' future profitability
• D)Its long history renders it obsolete.

---

Definitions:

Interactive Systems

Computer systems designed for human interaction, where input from users directly affects the output and operations of the system.

Upstream

Refers to the earlier stages in the process or supply chain, often related to the sourcing of raw materials or initial production stages.

Suppliers

Companies or individuals who provide goods or services to another entity, typically within a commercial supply chain.

Raw Metal

Unprocessed metal in its natural state, not yet altered by machining, shaping, or any form of treatment for use in manufacturing.