The Boston Consulting Group Uses Business Portfolio Analysis to Quantify

question 207

Multiple Choice

The Boston Consulting Group uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) or offerings

• A) as if each were a separate investment.
• B) to establish their worth to society at large.
• C) to determine which would be suited for a SWOT analysis.
• D) to determine which units are candidates for diversification analysis.
• E) to determine which units can be divided into smaller, tactical business units.

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Definitions:

Industry Expanding

A phase where the sector's businesses are growing in terms of production, workforce size, or market reach.

Production Facilities

Physical locations designed and equipped for the production of goods or services.

Raw Materials

The basic, unprocessed inputs used in manufacturing or production processes to create goods and products.

Normal Profits

The level of profit that is necessary for a business to remain competitive in the market, typically equal to the opportunity cost of the capital employed.