The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization

question 324

Multiple Choice

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.In a growth-share matrix,the vertical axis of the matrix indicates

• A)the annual rate of growth of the firm's largest competitor.
• B)the relative dollar market share of the largest competitor.
• C)the annual rate of growth of the SBU's industry.
• D)the relative unit market share of the largest competitor.
• E)the annual rate of growth of the firm itself.

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Definitions:

Product or Service

The final output offered by a company to consumers, which can either be a tangible item (product) or an activity benefiting the customer (service).

Raw Materials Inventory

Goods or components that a company uses in the manufacture of finished products.

Completed Goods

Final products that have undergone the manufacturing process and are ready to be sold or distributed.

Cost

The total expense incurred in producing a product or providing a service, including materials, labor, and overhead charges.