In a BCG Growth-Share Matrix, a Relative Market Share of 10x

question 180

Multiple Choice

In a BCG growth-share matrix, a relative market share of 10x at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1x at the right end of the scale on its horizontal axis means that

• A)the SBU has only 10 percent of the share of its average competitor.
• B)the SBU has 100 percent of the share of its largest competitor.
• C)the growth rate between the SBU and the next largest competitor is actually identical.
• D)the SBU has only 10 percent of the share of its largest competitor.
• E)the industry growth rate is declining.

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Definitions:

Coefficient of Variation

A measure of relative variability calculated as the standard deviation divided by the mean, often expressed as a percentage.

PHStat

An Excel add-in that enhances the statistical functions of the software, providing tools for more complex statistical analysis in business, finance, and research applications.

Correlation Among Assets

A measure indicating the degree to which two or more assets move in relation to each other.