of the strengths inherent in the use of the BCG business portfolio analysis is that it
A) is based solely on company perception rather than actual data.
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 "question marks."
D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers and cash users in the future.
E) identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.

Question

Quizplus · Accepted Answer

The BCG matrix forces a firm to categorize its SBUs based on market growth rate and relative market share, which helps the firm determine which SBUs will generate cash (stars and cash cows) and which will consume cash (question marks and dogs) in the future. This provides guidance for resource allocation and strategic decision-making. The other options are incorrect as they do not accurately reflect the strengths of the BCG matrix analysis.

Of the Strengths Inherent in the Use of the BCG