What can provide a framework for understanding diverse businesses and help managers establish priorities for making resource allocation decisions?

Question

Quizplus · Accepted Answer

A corporate portfolio matrix, such as the Boston Consulting Group's (BCG) matrix, can provide a framework for understanding diverse businesses and help managers prioritize resource allocation decisions. The matrix categorizes a company's businesses into four categories based on their market share and market growth rate, which can help managers determine which businesses to invest in, divest from, or harvest for cash. This tool can be especially useful for companies with a diversified portfolio of businesses.

What Can Provide a Framework for Understanding Diverse Businesses and Help