IB Business Management MCQ QuizIB_Business_Management_BCG matrix

Identify the statement that best describes the Boston Consulting Group (BCG) matrix.

• A marketing planning tool that helps a firm to determine its product and market development strategies

• A product portfolio analysis tool to determine future product investments

• A visual illustration of the various stages a product goes through in its commercial life

• An illustration of how a product or brand is perceived in a market

Identify the criteria used in the BCG matrix.

• Market analysis and market research

• Market growth and market share

• Market growth and market size

• Market research and market size

Identify the alternative term sometimes used for a question mark in a BCG matrix.

• Bargain product

• Cowboy product

• Premium good

• Problem child

Identify the term used to classify a product that is currently unsuccessful for a firm, with decreasing sales across the industry.

• Cash cow

• Dog

• Question mark

• Star

Identify the statement that least applies to question marks in the BCG matrix.

• Have high market share

• May have a poor marketing mix

• Operate in high growth markets

• Rely on funds generated by cash cows

Identify the term used to classify a successful product in a high growth market.

• Cash cow

• Dog

• Question mark

• Star

Identify the product type that requires the most investment yet have the highest level of risk.

• Cash cow

• Dog

• Question mark

• Star

Identify which product(s) a firm must have in order for the BCG matrix to be a useful tool.

• Cash cow

• Dog

• Star

• A or C

Identify the reason(s) why a business should not divest from its dog product(s).

• i. Dog products can remain profitable

• ii. Dog products may be complementary to the sale of other products

• iii. Dog products may be essential to some consumers

• iv. Dog products may have a highly loyal customer base

Identify the benefit of using the BCG matrix to analyse a firm’s product portfolio.

• Adaptation to changes

• Detailed guidance for strategic decision-making

• Relationship between market share and profitability

• Simplicity of classifying products