One of the strengths inherent in the use of the BCG portfolio analysis is the fact that it:
A)forces firms to assess their SBUs in terms of relative market share and industry growth rate.
B)considers all factors that might impact an SBU's value to an organization.
C)is remarkably easy to locate an SBU on the BCG matrix.
D)acts as a strong motivational tool for employees in SBUs that have been labeled dogs or problem children.

Question

Quizplus · Accepted Answer

The BCG portfolio analysis forces firms to assess their SBUs in terms of relative market share and industry growth rate, providing a clear framework for decision making and resource allocation. This can help organizations prioritize investments and divestments based on the potential for growth and profitability.

One of the Strengths Inherent in the Use of the BCG