all of the following are limitations of the bcg matrix except

In fact, the strategic managers are evaluated in terms of management style, values and skills by the top management. The strategic managers must evaluate the mission, objectives and policies. If the results are equal to or greater than the current objectives and past year’s results, the company will mostly continue with the current strategy otherwise, the strategy formulation process begins in earnest. Current performance results are compared with the current objectives and with that of the previous year’s performance results. Performance results are generally periodic measurements of developments that occur during a given time period like return on investment, profits after taxes, earnings per share and market share. There are periods of stability in strategy development, but also there are periods of flux, of grouping of piecemeal changes and of global change.” “It is small often an irregular, discontinuous process, proceeding in fits and starts. Henry Mintzberg, after much research found that strategy formulation is typically not a regular, continuous process. The ultimate goal of every strategy that is being formulated should be to deliver outstanding value to customers at all times. Strategies, once formulated, must ensure a best fit between goals, resources and effort put in by people. Since strategies consume time, energy and resources, they must be formulated carefully.

Once the strengths are known, opportunities to be exploited are identified a long-term plan is chalked out for concentrating resources and effort. To achieve this, a firm seeks to find out what it can do best. There is a conscious and deliberate attempt to focus attention on what the firm can do better than its rivals. It seeks to set the long-term goals that help a firm exploit its strengths fully and encash the opportunities that are present in the environment. Strategy formulation is the process of offering proper direction to a firm.

All of the following are limitations of the bcg matrix except