One of the Strengths Inherent in the Use of the BCG

question 41

Multiple Choice

One of the strengths inherent in the use of the BCG portfolio analysis is the fact that it:

• A)is remarkably easy to locate an SBU on the BCG matrix.
• B)considers all factors that might impact an SBU's value to an organization.
• C)acts as a strong motivational tool for employees in SBUs that have been labeled dogs or problem children.
• D)forces firms to assess their SBUs in terms of relative market share and industry growth rate.

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Definitions:

Motion

The action or process of moving or being moved, involving change in position or location.

Planes

Flat, two-dimensional surfaces that extend infinitely, or a reference to different levels or areas of thought, existence, or development.

Proximity

The physical or psychological closeness between people, objects, or ideas, which can influence their interaction and relationship.

Grouping

The cognitive process of organizing objects or thoughts into groups based on common attributes, which is fundamental to perception and pattern recognition.