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214) One of the strengths inherent in the use of the BCG business portfolio analysis is that it A) is based solely on company perception rather than actual data. B) considers all factors that might impact an SBU's value to an organization. C) acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks." D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future. E) identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings. Answer: D Explanation: The primary strength of business portfolio analysis lies in forcing a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future. Difficulty: 2 Medium Topic: Business Portfolio Analysis Learning Objective: 02-04 Discuss how an organization assesses where it is now and where it seeks to be. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 215) One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it A) causes dissension between different divisions when one is labeled a "star" and another a "dog." B) reduces employee motivation to move a low valued SBU to a higher one. C) considers too many SBU factors beyond market growth rate and relative market share. D) does not require sales forecasts in order to be implemented. E) is often difficult to obtain the needed information to correctly place SBUs in the matrix. Answer: E Explanation: Weaknesses of BCG business portfolio analysis arise from the difficulty in (1) getting the needed information and (2) incorporating competitive data into business portfolio analysis. Difficulty: 2 Medium Topic: Business Portfolio Analysis Learning Objective: 02-04 Discuss how an organization assesses where it is now and where it seeks to be. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

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