1. What does the BCG Matrix stand for?
a) Boston Creative Group Matrix
b) Boston Consulting Group Matrix
c) Business Competitive Growth Matrix
d) Brand Consulting Growth Matrix
Answer: b) Boston Consulting Group Matrix

2. What is the primary purpose of the BCG Matrix?
a) To develop marketing strategies
b) To evaluate a company’s product portfolio
c) To determine pricing strategies
d) To identify operational efficiencies
Answer: b) To evaluate a company’s product portfolio

3. How many quadrants are there in the BCG Matrix?
a) Two
b) Three
c) Four
d) Five
Answer: c) Four

4. What are the two dimensions of the BCG Matrix?
a) Revenue and profit
b) Market share and market growth
c) Price and quality
d) Brand value and customer retention
Answer: b) Market share and market growth

5. Which quadrant represents a high market share and high market growth?
a) Dogs
b) Stars
c) Cash Cows
d) Question Marks
Answer: b) Stars

6. Which quadrant is considered a “low market share, high market growth” segment?
a) Cash Cows
b) Stars
c) Dogs
d) Question Marks
Answer: d) Question Marks

7. What is the primary strategy for products in the “Cash Cow” quadrant?
a) Divest
b) Invest heavily
c) Harvest profits
d) Enter new markets
Answer: c) Harvest profits

8. Which quadrant indicates low market share and low market growth?
a) Stars
b) Dogs
c) Question Marks
d) Cash Cows
Answer: b) Dogs

9. What is the recommended action for “Stars” in the BCG Matrix?
a) Maintain and invest for growth
b) Divest to free up resources
c) Reduce marketing expenses
d) Eliminate from the portfolio
Answer: a) Maintain and invest for growth

10. Which quadrant is also known as “Problem Child”?
a) Stars
b) Dogs
c) Question Marks
d) Cash Cows
Answer: c) Question Marks

11. What is the role of the BCG Matrix in strategic management?
a) Optimizing workforce allocation
b) Allocating resources across business units
c) Determining brand equity
d) Measuring operational efficiency
Answer: b) Allocating resources across business units

12. In which quadrant should the company prioritize investment to achieve market dominance?
a) Dogs
b) Stars
c) Question Marks
d) Cash Cows
Answer: b) Stars

13. Which of the following is a limitation of the BCG Matrix?
a) It requires high investment costs
b) It only considers internal business factors
c) It oversimplifies the complexities of market dynamics
d) It focuses too much on pricing strategies
Answer: c) It oversimplifies the complexities of market dynamics

14. Which quadrant typically requires resources from Cash Cows to grow?
a) Stars
b) Dogs
c) Question Marks
d) All quadrants
Answer: c) Question Marks

15. The BCG Matrix is primarily used for which type of analysis?
a) Industry analysis
b) Financial analysis
c) Product portfolio analysis
d) Competitor analysis
Answer: c) Product portfolio analysis

16. Which company is known for using the BCG Matrix to optimize its diverse portfolio?
a) General Electric
b) Procter & Gamble
c) Apple Inc.
d) Amazon
Answer: b) Procter & Gamble

17. What kind of products are typically in the “Stars” quadrant?
a) Declining products in saturated markets
b) Emerging products in growing markets
c) Stable products with high profitability
d) Low-performing products in niche markets
Answer: b) Emerging products in growing markets

18. What is the main risk of investing in “Question Marks”?
a) High operational costs
b) Uncertain return on investment
c) Lack of customer loyalty
d) High competition
Answer: b) Uncertain return on investment

19. Which of the following represents a Cash Cow in the tech industry?
a) Netflix’s streaming service
b) Microsoft Office Suite
c) Amazon Web Services
d) Tesla’s electric vehicles
Answer: b) Microsoft Office Suite

20. Why are Dogs often divested in strategic planning?
a) They generate no revenue
b) They drain resources with little return
c) They have unpredictable growth
d) They dominate niche markets
Answer: b) They drain resources with little return

21. What does a “high market growth” indicate in the BCG Matrix?
a) A mature and stable market
b) A rapidly expanding market opportunity
c) A market with declining profitability
d) A market facing intense competition
Answer: b) A rapidly expanding market opportunity

22. Which quadrant generates the highest profits with the least investment?
a) Stars
b) Question Marks
c) Dogs
d) Cash Cows
Answer: d) Cash Cows

23. How does market share affect the categorization in the BCG Matrix?
a) Higher market share indicates better profit potential
b) Lower market share guarantees divestment
c) Market share is irrelevant to the BCG Matrix
d) Market share only applies to niche markets
Answer: a) Higher market share indicates better profit potential

24. What is the purpose of balancing a portfolio using the BCG Matrix?
a) To focus solely on high-growth segments
b) To ensure long-term sustainability of revenue streams
c) To eliminate low-performing products
d) To prioritize new product launches
Answer: b) To ensure long-term sustainability of revenue streams

25. Which factor is not explicitly considered in the BCG Matrix?
a) Competitor analysis
b) Market growth
c) Market share
d) Profitability
Answer: a) Competitor analysis

26. What is the investment priority for Cash Cows?
a) Minimal investment for consistent returns
b) High investment to expand market share
c) No investment; immediate divestment
d) Moderate investment to maintain position
Answer: a) Minimal investment for consistent returns

27. How are Stars different from Cash Cows?
a) Stars require higher investment due to market growth
b) Stars generate higher profits with minimal investment
c) Stars are in declining markets, unlike Cash Cows
d) Stars are limited to niche segments
Answer: a) Stars require higher investment due to market growth

28. What is the strategic risk of relying too heavily on Cash Cows?
a) Over-reliance on declining markets
b) Lack of resources for investment in Stars
c) Reduced profitability over time
d) Higher operational costs
Answer: a) Over-reliance on declining markets

29. What type of products are ideal for divestment in the BCG Matrix?
a) Cash Cows
b) Stars
c) Question Marks
d) Dogs
Answer: d) Dogs

30. How can the BCG Matrix support decision-making?
a) By determining which markets to enter
b) By optimizing resource allocation across products
c) By improving customer engagement strategies
d) By reducing operational inefficiencies
Answer: b) By optimizing resource allocation across products
Answers
1. b
2. b
3. c
4. b
5. b
6. d
7. c
8. b
9. a
10. c
11. b
12. b
13. c
14. c
15. c
16. b
17. b
18. b
19. b
20. b
21. b
22. d
23. a
24. b
25. a
26. a
27. a
28. a
29. d
30. b