Question

The BCG matrix is a means of evaluating strategic business units on the basis of their :

A) Business costs and share of the market.
B) Differentiation and profitability.
C) Business growth rates and share of the market.
D) BCG ratio.
E) Product quality and profitability.

Answer 1

The BCG matrix is a means of evaluating strategic business units based on their business growth rates and share of the market. It helps organizations classify their business units into one of four categories: stars, question marks, cash cows, and dogs.

Step-by-step explanation:

The BCG matrix is a means of evaluating strategic business units based on their business growth rates and share of the market. It helps organizations classify their business units into one of four categories: stars, question marks, cash cows, and dogs.

Stars represent business units with high market share and high growth rates, while question marks have low market share but high growth potential. Cash cows have high market share but low growth rates, and dogs have low market share and low growth potential.

By analyzing their business units using the BCG matrix, organizations can make informed decisions about resource allocation and strategic planning.