The BCG approach to portfolio analysis is less likely to provide a useful framework for analysis when which of the following conditions is evident?
A)It is difficult to define the organisational SBUs.
B)It is difficult to measure market share.
C)It is difficult to measure market growth rates.
D)There are no direct competitors.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the above conditions make the BCG approach to portfolio analysis less likely to provide a useful framework for analysis. If it is difficult to define the organisational SBUs, then it will be hard to identify which products or services to include in the analysis. If it is difficult to measure market share or growth rates, then it will be hard to identify which products or services are cash cows, stars, question marks, or dogs. If there are no direct competitors, then the analysis will need to be modified to account for this unusual circumstance.

The BCG Approach to Portfolio Analysis Is Less Likely to Provide