Using the BCG matrix:
A)Assumes that each business in the portfolio has strong synergies with every other in the group
B)Has gained in popularity in recent years
C)Yields the possibly surprising result that well-known firms like Pepsi may be 'dogs' because they are No.2 in a mature industry
D)Has been abandoned in recent years, because it is too complex

Question

Quizplus · Accepted Answer

The BCG matrix is a framework that is designed to help companies analyze their business units or product lines. It suggests that businesses can be categorized into four different categories - stars, cash cows, question marks, and dogs - based on their market growth rate and their relative market share. The framework does not assume strong synergies among businesses in the portfolio, it has been in use for several decades, and it can yield surprising results like well-known firms being labeled as 'dogs' if they are No.2 in a mature industry. However, it has not been abandoned in recent years and is still widely used.

Using the BCG Matrix