True

D

C

The BCG Matrix ties strategy formulation to an analysis of business opportunities based on market growth rate (low versus high-growth rate) and market share (low versus high share). The BCG Matrix has four combinations of business conditions, each of which has a particular strategic implication. These combinations are Stars, Question Marks, Cash Cows, and Dogs. Stars are high market share/high-growth businesses. They produce large profits through a dominant competitive position in a growing market. The preferred strategy is growth. Question Marks are low market share/high-growth businesses. They do not produce much profit but do compete in rapidly growing markets. The preferred strategies are growth for promising Question Marks and retrenchment for the other Question Marks. Cash Cows are high market share/low-growth businesses. They produce large profits and a strong cash flow but offer little growth opportunity. The preferred strategy is stability or modest growth, using the cash flow to fund investment in Stars or promising Question Marks. Dogs are low market share/low-growth businesses. They do not produce much profit and show little potential for future improvement. The preferred strategy is retrenchment by divestiture.

B

When teams take time to make decisions by consensus or unanimity, they gain special advantages over those relying more on individual or minority decision methods. The process of making a True team decision makes more information, knowledge, and expertise available. It expands the number of action alternatives that are examined and helps to avoid getting trapped by tunnel vision and considering only one or a few options. Team decisions also increase understanding and acceptance by members. This helps build commitments of members to work hard to implement the decisions they have made together.
The potential disadvantages of team decision making trace largely to the difficulties with group process. When many people are trying to make a team decision, it can be hard to reach agreement and there may be social pressure to conform. There may be minority domination, where some members feel forced or "railroaded" to accept a decision advocated by one vocal individual or small coalition. And, the time required to make team decisions can sometimes be a disadvantage. As more people are involved in the dialogue and discussion, decision making takes longer. This added time may be costly, even prohibitively so, in certain circumstances.