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

question 261

Multiple Choice

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.The vertical axis of this 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:

Marginal Cost

An elevation in the cumulative expense resulting from manufacturing one more unit of a product or service.

Deadweight Loss

A decrease in economic efficiency resulting from the failure to reach equilibrium in the market for a good or service.

Monopolies

Market structures characterized by a single seller who controls the market supply of a good or service and can influence the price.

Efficiency

The optimal allocation of resources to maximize desired outputs without wasting any input.