One of the Strengths Inherent in the Use of the BCG

question 14

Multiple Choice

One of the strengths inherent in the use of the BCG business portfolio analysis is that it

• A) is based solely on company perception rather than actual data.
• B) considers all factors that might impact an SBU's value to an organization.
• C) acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks."
• D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future.
• E) identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.

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Definitions:

Formula

A mathematical relation or rule expressed in symbols.

Average Total Cost

The total cost divided by the number of units produced, representing the cost per unit.

Average Variable Cost

The cost per unit of output that varies with the level of production, typically including labor and material costs.

Marginal Cost

The cost added by producing one additional unit of a product or service.