One of the Weaknesses Inherent in the Use of the BCG

question 149

Multiple Choice

One 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 correctly place SBUs in the matrix.

Calculate cash flows and dividends per share.

Understand and compute financial leverage metrics including the equity multiplier.

Calculate various profitability metrics, such as profit margin and BEP (Break-Even Point).

Understand the significance of market valuation ratios including P/E ratio, market/book ratio, and calculate them.

---

Definitions:

Media Conglomerates

Large corporations that own a significant number of media companies across various communication platforms.

North America

A continent located in the Northern Hemisphere, largely in the Western Hemisphere, and bounded by the Arctic Ocean, Atlantic Ocean, Pacific Ocean, and the Caribbean Sea.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, known for its rich history, cultural diversity, and economic influence.

Japan

An island country located in East Asia known for its rich culture, advanced technology, and historical significance.