- 10 Marks
BMIS – April 2022 – L1 – Q5a – Competitive advantage and strategic direction
Explain the concept of the BCG Matrix and its importance in assessing product lines.
Question
Bonus Oil Plantation is a listed company on the Ghana Stock Exchange. For a company with a large portfolio, it is important to assess its product lines regularly to see which products are profitable, which ones are making losses, and which ones need improvement. This practice will help the company to allocate its resources accordingly in order to function more efficiently.
While there are many practices and tools available to accomplish this mission, the CEO has suggested to the Board the BCG Matrix developed by the Boston Consulting Group as a standard.
Required:
At the CEO’s request, explain the concept of the BCG Matrix. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: BCG Matrix, Product Portfolio, Resource Allocation, Strategic Planning
- Level: Level 1
- Topic: Competitive advantage and strategic direction
- Series: APR 2022
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