A major limitation of the BCG matrix in guiding corporate strategy is:
A)The assumption that each business has synergistic links with every other business within the portfolio.
B)Business' market shares and growth rates are difficult to measure.
C)Neither market growth nor relative market share is reliable indicators of a businesses' future profitability.
D)Its long history renders it obsolete.

Question

Quizplus · Accepted Answer

The BCG matrix's reliance on market growth and relative market share as indicators can be misleading, as they do not necessarily predict future profitability or account for other important factors affecting business success.

A Major Limitation of the BCG Matrix in Guiding Corporate