Question

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________. Group of answer choices market growth rate and relative market share market growth rate and market penetration market growth rate and market development relative market share and market penetration relative market share and product development

Answer 1

Answer:

Market growth rate and relative market share

Explanation:

The Boston Consulting Group (BCG) product portfolio matrix is a representation of a strategic business unit's(SBU) performance and operational potential.

The model is also referred to as cow-dog metaphor. The model represents a strategic business unit's relative market share on horizontal axis and market growth rate on vertical axis.

It classifies the position of an SBU into four situations.

Stars, that represent a SBU operating in high growth market with high relative market share. The suggested strategy is to Hold such position.

Cash cows, represent an SBU operating in low market growth rate with high relative market share. Suggested strategy is to Harvest the benefits.

Question marks, represent an SBU operating in high growth rate markets with low relative market share. The strategy suggested being to Build the position.

Dogs represent an SBU operating in low growth rate markets with low relative market share. The strategy suggested being to Divest/liquidate.