The Axes of the BCG and GE/McKinsey Portfolio Planning Matrices

question 44

Multiple Choice

The axes of the BCG and GE/McKinsey portfolio planning matrices act as proxies for two key strategic variables:

• A)Market share and market growth
• B)Competitive advantage and market growth
• C)Competitive advantage and market attractiveness
• D)Individual business unit performance and potential for synergy.

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Definitions:

Decision-Making Efficiency

The effectiveness and speed with which decisions are made, often emphasizing the quality of outcomes with minimal time and resources.

Errors In Judgment

Mistakes made due to flawed reasoning or misinterpretation of information leading to incorrect conclusions or decisions.

Intelligence

The ability of an individual to learn from experience, adapt to new situations, understand complex ideas, solve problems, and use various forms of reasoning.

Biases

Cognitive shortcuts or predispositions that can influence decision-making processes and perceptions, often leading to irrational or unfair outcomes.