Four companieslong dash—A, B, C, and Dlong dash—have revenues of 1, 2, 3, and 4, respectively. Company C develops a BCG Mat

Question

3 years ago

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Four companieslong dash—A, B, C, and Dlong dash—have revenues of 1, 2, 3, and 4, respectively. Company C develops a BCG Mat

rix. What would the RMSP be for company C if all four firms have the same net income? A. 0.25 B. 0.50 C. 0.75 D. 0.40 E. 0.20

Business

1 answer:

AVprozaik [17] · Answer 1 · 2022-08-05T06:56:42+03:00

Answer:

If all the four firms have same net income then RMSP for company C will be 0.30.

Explanation:

The BCG matrix (Boston Consulting group's product portfolio matrix) is used for doing strategic planning for long-term. It looks into how business growth will be possible by looking at portfolio of products and then decides where to invest, or which product to discontinue. It says that if the market share of the product is higher, it would be more beneficial for the company.

In the given problem, all the four companies A,B,C,D have revenues 1,2,3,4 respectively. We calculate Relative market share or RMSP by subtracting a company's market share from 100 to find the percentage it does not control. So, RMSP for Company C would be 0.30.

Four companieslong dash—​A, ​B, C, and Dlong dash—have revenues of​ 1, 2,​ 3, and​ 4, respectively. Company C develops a BCG Mat

Four companieslong dash—A, B, C, and Dlong dash—have revenues of 1, 2, 3, and 4, respectively. Company C develops a BCG Mat