Of the Weaknesses Inherent in the Use of the BCG

question 154

Multiple Choice

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 place SBUs in the matrix correctly.

Grasp the principles of discounted cash flow (DCF) and their use in investment decisions.

Understand the concept of net present value (NPV) and profitability index as methods of investment appraisal.

Learn the methodologies for calculating the discounted payback period.

Understand the concept and calculation of average accounting rate of return (AARR).

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Definitions:

Fear Of Taking Action

The apprehension or anxiety experienced at the thought of having to engage in a particular action, often resulting in avoidance or procrastination.

Notice Situation

The process of becoming aware of or recognizing a particular set of circumstances or conditions in one's environment.

Define

To explain the meaning of a word or concept.

Accept Responsibility

Recognizing and admitting one's role or involvement in a given situation, taking accountability for actions and their consequences.