The Boston Consulting Group (BCG)uses Business Portfolio Analysis to Quantify

question 100

Multiple Choice

The Boston Consulting Group (BCG) uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs)

• A)as if each were a separate investment.
• B)to establish their worth to society at large.
• C)to determine which would be suited for a SWOT analysis.
• D)to determine which units are candidates for diversification analysis.
• E)to determine which units can be divided into smaller,tactical business units (TBUs).

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Definitions:

Producing Units

Producing units are individual entities, such as factories or plants, within an organization that are responsible for producing goods or services.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Marginal Revenue (MR)

The incremental earnings obtained from the sale of an additional good or service unit.

Marginal Cost (MC)

The increase or decrease in the total cost that arises when the quantity produced changes by one unit.