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sasho [114]
2 years ago
7

Critics argue that the BCG portfolio model sometimes provides misleading advice concerning how resources should be allocated acr

oss SBUs or product markets. What are some of the possible limitations of the model? What might a manager do to reap the benefits of portfolio analysis while avoiding at least some shortcomings you have identified?
Business
1 answer:
Gnoma [55]2 years ago
7 0

Answer:

Limitation of the BCG model include;

• Market share and industry growth are not the only factors of profitability.

• Business can only be classified to four quadrants.

• It does not define what ‘market’ is.

• Does not include other external factors that may change the situation completely.

Explanation:

Necessary steps managers should take to overcome the limitations;

• BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself. Which unit will be chosen will have an impact on the whole analysis.

• It is important to clearly define the market to better understand firm’s portfolio position.

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Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $210.761 million Total Common Stock of $6.
xeze [42]

Answer:

the  Digby Corporation's total liabilities is $156.92 million

Explanation:

The computation of the total liabilities is given below:

Total Liabilities is

= Total Asset - (Total Common Stock + Retained Earnings)

= $210.761 - ($6.350 + $47.491)

= $210.761 - $6.350 - $47.491

= $156.92 million

Hence, the  Digby Corporation's total liabilities is $156.92 million

The same should be relevant

5 0
2 years ago
____________ is a management application that takes a deterministic approach in evaluating decisions regarding current and futur
a_sh-v [17]

Answer:

Menu engineering

Explanation:

The interdisciplinary study of profitability and popularity of the strategic layout of menu items is referred to as menu engineering. It also deals with menu pricing, design, and content. A grid is also used to evaluate decisions regarding current and future menu content. It is also a management application.

5 0
3 years ago
Turrubiates Corporation makes a product that uses a material with the following standards:________. Standard quantity 6.5 liters
Marina86 [1]

Answer:

Direct material quantity variance=  $810 unfavorable

Explanation:

Giving the following information:

Standard quantity 6.5 liters per unit Standard price $1.00 per liter

Actual production was 2,400 units.

The company used 16,410 liters of direct material to produce this output.

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

<u></u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 6.5*2,400= 15,600

Direct material quantity variance= (15,600 - 16,410)*1

Direct material quantity variance=  $810 unfavorable

7 0
3 years ago
Firm A has 11 equally risky capital budgeting projects, each costing $29.608 million and each having an expected rate of return
Vanyuwa [196]

Answer:

How much capital should Firm A raise and invest?

$296.08 million should be raised and invested in projects.

Explanation:

WACC = 8% when A's retained earnings breakeven point = $296.08 million

Expected rate of return = 8.25%

WACC is less than expected rate of return.

Therefore, WACC is less than expected rate of return, which is beneficial, since cost of capital is less than expected rate of return.

therefore, $296.08 million should be raised.

If the firm A raises, more than $296.08 million, <u>WACC</u> would be <u>increasing</u> to <u>8.5%</u>, this is greater than the <u>expected rate of return i.e. 8.25%. </u>

Hence raising amount <u>more than $296.08 million</u> will not be beneficial.

Hence it is clear that amount which should be raised and invested =$296.08 million.

Investment required in one project=$29.608 million.

Number of projects which can be started =$296.08/$29.608  =10 projects

All are equally risky therefore it does not matter which project should be left.

Hence, $296.08 million should be raised and invested in projects.

5 0
3 years ago
​Jack's Toys sells kites for $35 each. Variable costs are per kite. Fixed costs are per month. What is the contribution margin r
Nezavi [6.7K]

Answer:

contribution margin ratio= (selling price - unitary variable cost) / selling price

Explanation:

We weren't provided with enough information to calculate the contribution margin ratio, but, I will provide the formula and an example to guide an answer.

<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (selling price - unitary variable cost) / selling price

<u>For example:</u>

Selling price= $35

Unitary variable cost= 23

contribution margin ratio= (35 - 23)/35

contribution margin ratio= 0.34

5 0
3 years ago
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