key mkt chap 3

Characteristics of market Introduction stage of a products life cycle:

- Cost are very high

- Slow sales Volumes to start.

- Little or no Competition.

- Customers have to be prompted to try the product.

- Makes no money /profit in this stage

• All of these

• - Little or no Competition.

2. The BCG (Boston Consulting Group) matrix: -----------have small market shares and no growth

prospects. Fill in the blank.

• “Dogs”

• “Cash cows”

Difference between BCG Matrix and GE Business Screen:

1. BCG matrix is simpler in comparison to the GE matrix, as the former is easy to draw and

consist of only four cells, while the latter consists of nine cells.

2. BCG matrix is used by companies to deploy their resources among various business

units. On the contrary, firms use the GE matrix to prioritize investment among various

business units.

3. In the BCG matrix, only a single measure is used, whereas, in the GE matrix, multiple measures

are used.

4. “Stars” of the BCG matrix corresponds to “Winner” in the GE matrix, and “Dogs” corresponds to “Loser”.

Similarly, in BCG Matrix, there is an enterprise named ”Cash Cow” whereas “Profit Producer”

in GE matrix is its counterpart.

• All of these

• “Stars”

Internal opportunities can be represented by major competitors’ weaknesses.

• True

• False

Developed for activities that recur regularly over a period of time

• standing plans

• standing plans

6. single-use plans, standing plans

• two most basic forms of operational plans

• standing plans

Developed to carry out a course of action no likely to be repeated in the future

• single-use plans

• organisational weaknesses

missing skills or capabilities that limit an organisation to choose and implement strategies that

support its mission

• organisational weaknesses

• organisational strengths

Businesses that have only a small share of a fast-growing market

• question marks

• “Cash cows”

10. a comprehensive plan for accomplishing an organizations goals

• strategy

• strategic management