All of the Following Are Limitations (Or Downsides)of the BCG

question 80

Multiple Choice

All of the following are limitations (or downsides) of the BCG (Boston Consulting Group) matrix EXCEPT:

• A) Every business cannot be accurately measured and compared on the two dimensions.
• B) It takes a dynamic view of competition which can lead to overly complex analyses.
• C) It views each business as a stand-alone entity and ignores the potential for synergies across businesses.
• D) While easy to comprehend, the BCG matrix can lead to some troublesome and overly simplistic prescriptions.

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Definitions:

Method

A systematic plan, procedure, or technique used to accomplish a specific task or solve a particular problem.

Method of Agreement

A principle in inductive reasoning that identifies a cause of a phenomenon by finding common factors in different instances where the phenomenon occurs.

Cause

The source or reason something happens, leading to a particular effect or outcome.

Method of Residues

A technique in scientific and logical analysis where elements accounted for by existing explanations are removed to isolate the effect of a single factor.