Most standard portfolio analysis methods evaluate SBUs on the ________.
A) potential for niche or global marketing
B) degree of product differentiation
C) strength of the market or industry position
D) accessibility to rural markets
E) number of successful business acquisitions

Question

Quizplus · Accepted Answer

The standard portfolio analysis methods, such as the BCG Matrix and the GE-McKinsey Matrix, evaluate strategic business units (SBUs) based on their market or industry position. This evaluation involves analyzing the SBU's market share and the growth rate of the industry in which it operates. The evaluation helps to determine the SBU's potential for generating cash and its ability to maintain or improve its position in the market.
Option A is incorrect because while potential for niche or global marketing may be a consideration in portfolio analysis, it is not the most significant factor.
Option B is incorrect because the degree of product differentiation is not a primary factor in portfolio analysis, although it may be considered as a secondary factor.
Option D is incorrect because accessibility to rural markets is not a significant factor in portfolio analysis, although it may be relevant to companies that operate in rural areas.
Option E is incorrect because the number of successful business acquisitions is not a primary factor in portfolio analysis, although it may be considered as a secondary factor.

Most Standard Portfolio Analysis Methods Evaluate SBUs on the ________