One of the Weaknesses Inherent in the Use of the BCG

question 149

Multiple Choice

One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it

• A)causes dissension between different divisions when one is labeled a "star" and another a "dog."
• B)reduces employee motivation to move a low valued SBU to a higher one.
• C)considers too many SBU factors beyond market growth rate and relative market share.
• D)does not require sales forecasts in order to be implemented.
• E)is often difficult to obtain the needed information to correctly place SBUs in the matrix.

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Definitions:

Special Interest Influence

The impact that interest groups or lobbyists can have on policymaking, often aiming to benefit a specific sector or group.

Property Rights

Legal rights to use, control, and dispose of property, including real estate, personal property, and intellectual property. These rights convey the benefits and responsibilities of ownership.

Competitive Markets

Marketplaces characterized by a large number of buyers and sellers, facilitating fair pricing and innovation.

Economic Outcomes

The results of economic activities and policies, encompassing aspects like growth, employment, inflation, and income distribution within a country or region.