Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
A)market share; strength of the SBU's position
B)market or industry growth rate; market or industry attractiveness
C)market or industry attractiveness; strength of the SBU's position in that market or industry
D)market growth rate; profits
E)market penetration; market development

Question

Quizplus · Accepted Answer

Most portfolio analysis methods evaluate SBUs (strategic business units) on two dimensions- market or industry attractiveness and the strength of the SBU's position in that market or industry. Market or industry attractiveness is evaluated based on factors like market growth rate, market size, competition intensity, etc. Strength of the SBU's position is evaluated based on factors like market share, relative brand strength, relative cost position, etc. Choice A and B are partially correct but do not cover all the critical factors evaluated in portfolio analysis, while choice D and E do not accurately reflect the dimensions evaluated in portfolio analysis.

Most Portfolio Analysis Methods Evaluate SBUs on Two Dimensions, Namely