Boston Consulting Group (BCG)business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs)on a growth-share matrix.The vertical axis of this matrix indicates
A) the annual rate of growth of the firm's largest competitor.
B) the relative dollar ($) market share of the largest competitor.
C) the annual rate of growth of the SBU's industry.
D) the relative unit (#) market share of the largest competitor.
E) the annual rate of growth of the firm itself.

Question

Quizplus · Accepted Answer

The vertical axis of the BCG growth-share matrix indicates the annual rate of growth of the SBU's industry. This enables the organization to evaluate the potential for growth and profitability of each SBU based on the current market conditions and trends. By locating each SBU on the matrix, the organization can determine the appropriate strategy to pursue for each SBU, such as investing, maintaining, harvesting, or divesting.

Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization to Locate