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

Question

Quizplus · Accepted Answer

The BCG portfolio analysis forces firms to assess their strategic business units (SBUs) in terms of their relative market share and industry growth rate, which can be helpful in making strategic decisions about which SBUs to invest in and which to divest. This analysis considers only two factors, which can be overly simplistic and may not capture all factors that impact an SBU's value to an organization. It is not necessarily a motivational tool for employees in all situations.

One of the Strengths Inherent in the Use of the BCG