Deck 32: Note : Products - Product Portfolios

Question 1

Unlike the BCG Matrix,the GE/McKinsey Grid benefits from a high level of objectivity.

Answer 1

False

Question 2

Relative market share is a strong indicator of competitive advantages in industries where size leads to cost advantages.

Answer 2

True

Question 3

What is the main difference between the BCG Matrix and the GE/McKinsey Grid?

A) The GE/McKinsey Grid uses a higher number of variables than the BCG Matrix.
B) The BCG Matrix evaluates strategic business units, and the GE/McKinsey Grid does not.
C) The GE/McKinsey Grid relies more heavily on market attractiveness than the BCG Matrix.
D) The BCG Matrix generates more specific strategic guidelines than the GE/McKinsey Grid.

Answer 3

A

Question 4

When using the GE/McKinsey Grid,the first step is to ________.

A) define and weight business strength markers
B) evaluate each product's market attractiveness
C) define and weigh market attractiveness markers
D) evaluate each SBU's business strength

Question 5

Based on the BCG matrix,which of the following is NOT necessarily a characteristic of a well-managed portfolio?

A) products in each stage of the product life cycle
B) business units in each quadrant
C) balanced cash flow
D) balanced risk

Question 6

In the BCG matrix,question marks are characterized by ________ market share and ________ market growth.

A) low; low
B) high; high
C) high; low
D) low; high

Question 7

Stars in the BCG matrix are typically market leaders in low-growth markets.

Question 8

The BCG matrix uses ________ as the only variable for determining attractiveness.

A) market growth rate
B) product awareness
C) brand loyalty ratios
D) market segment size

Question 9

Which of the following is a common marker of market attractiveness?

A) marketing capabilities
B) competitive intensity
C) brand awareness
D) market share

Question 10

Which of the following is a true statement about the BCG matrix?

A) Cash cows require no investment.
B) Dogs typically have fluctuating cash flow.
C) Stars require only minimal investment.
D) Question marks typically have negative cash flow.

Question 11

Which of the following questions would LEAST likely be answered by the BCG matrix?

A) How strong is the product in the market?
B) How loyal are customers in the market?
C) How strong is the SBU in the market?
D) How attractive is the market?

Question 12

What are some of the limitations of the BCG matrix?

Question 13

According to the text,the BCG matrix should be used to ________.

A) formulate strategic decisions
B) guide strategic discussions
C) plan the marketing mix
D) generate innovations

Question 14

In the BCG matrix,cash cows are characterized by ________ market share and ________ market growth.

A) low; low
B) high; high
C) high; low
D) low; high