Final answer:
The BCG matrix and other formal methods can be difficult and time-consuming to execute, and they are not inexpensive or decentralized. They provide extensive advice for future planning and have significantly impacted business strategic planning practices. The correct option is c. provide extensive advice for future planning.
Step-by-step explanation:
The BCG (Boston Consulting Group) matrix and other formal strategic planning methods can be difficult and time-consuming to execute (Option d). These tools are designed to help businesses with portfolio analysis by categorizing their business units or products into four categories: stars, cash cows, question marks, and dogs. This categorization aids organizations in allocating resources and making strategic decisions. However, using the BCG matrix or similar models typically requires extensive data collection and analysis, which can be resource-intensive.
While it might be argued that some aspects of formal strategic planning have decentralized elements, the BCG matrix itself is not inherently a decentralized approach to strategic management (Option B). Moreover, such formal methods are not very inexpensive to implement (Option A), as they can involve significant costs in terms of time and expertise needed for proper execution.
These methods do provide extensive advice for future planning (Option C). They help managers focus on the bigger picture of the organization's portfolio and make informed decisions about where to invest or divest. By analyzing market share and growth, firms can establish strategic priorities and allocate resources optimally to maintain or achieve a competitive edge.
Finally, it is incorrect to claim that formal methods like the BCG have had little to no effect on strategic planning (Option e). On the contrary, such tools have had a profound impact on how companies approach strategy development and have been widely incorporated into strategic planning processes.