BCG Matrix Analysis

What does BCG stand for in BCG Matrix analysis?

• Business Consulting Group

• Boston Consulting Group

• Budget Control Group

• Basic Consulting Guidelines

Which two factors are used to evaluate a company's business units in the BCG Matrix?

• Product quality and advertising budget

• Market growth rate and relative market share

• Customer satisfaction and employee turnover rate

• Revenue and profit margin

What does a 'star' represent in the BCG Matrix?

• High-growth, low-market-share business unit

• Low-growth, high-market-share business unit

• High-growth, high-market-share business unit

• Low-growth, low-market-share business unit

What does a 'cash cow' represent in the BCG Matrix?

• A 'cash cow' represents a business unit with a low market share in a high-growth market.

• A 'cash cow' represents a business unit with a high market share in a low-growth market.

• A 'cash cow' represents a business unit with a low market share in a low-growth market.

• A 'cash cow' represents a business unit with a high market share in a high-growth market.

What does a 'question mark' represent in the BCG Matrix?

• Products with high market share in low-growth markets

• Products with low market share in high-growth markets

• Products with high market share in high-growth markets

• Products with low market share in low-growth markets

What does a 'dog' represent in the BCG Matrix?

• High market share in a low-growth market

• Low market share in a high-growth market

• High market share in a high-growth market

• Low market share in a low-growth market

How is market growth rate typically measured in the BCG Matrix?

• Total revenue generated by the market

• Number of competitors in the market

• Average price of products in the market

• Percentage increase in market size over a specific period of time

What is the main purpose of using the BCG Matrix?

• To analyze customer demographics

• To analyze a company's product portfolio and make strategic decisions

• To design marketing campaigns

• To calculate financial ratios

What are some limitations of the BCG Matrix analysis?

• Oversimplification, inaccurate market share and growth rate definition, lack of external factors consideration, assumption of high market share always leads to profitability

• Simplicity, precise market share and growth rate definition, inclusion of external factors, assumption of moderate market share always leads to profitability

• Consideration of external factors, assumption of low market share always leads to profitability

• Overcomplication, accurate market share and growth rate definition

How can a company use the BCG Matrix to make strategic decisions?

• By randomly selecting products to focus on

• By ignoring market growth rate and relative market share

• By only considering market growth rate

• By categorizing products into quadrants based on market growth rate and relative market share, companies can allocate resources effectively and develop appropriate strategies for each product category.