A key condition for the BCG matrix to be effective is that the firm must be able to grow new businesses to dominance in their markets.

Question

Quizplus · Accepted Answer

The BCG matrix is designed to help firms allocate resources and prioritize investments in business units. For it to be effective, the firm should be able to grow new businesses to become market leaders, as this aligns with the matrix's focus on market share and growth potential.

A Key Condition for the BCG Matrix to Be Effective