QUESTION 8 The principal merit of the BCG portfolio planning matrix is: [See pp.364-365] Its accuracy in predicting prof

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QUESTION 8
The principal merit of the BCG portfolio planning matrix
is:
[See pp.364-365]
Its accuracy in predicting profit and cash flow potential
Its empirical basis: the relationship between market share and
profitability has been widely observed
Its simplicity
Its use of metaphor (dogs, cash cows, stars, etc.)
1 points
QUESTION 9
Although sharing resources among the different businesses within
the multibusiness corporation can offer substantial cost economies,
these savings are often offset by:
[See pp.368-369]
Internal conflicts between divisional managers.
The need for each business to have resources and facilities that
are specialized to its own requirements.
The costs of coordinating such resource sharing.
The unwillingness of each business to pay for the maintenance of
common resources.