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Juli2301 [7.4K]
3 years ago
11

A strategic business unit​ (SBU) of a major corporation has high market share in its​ industry, but the growth rate of the indus

try is expected to be stagnant over the long run. According to the BCG​ matrix, how would this SBU be​ categorized?A.Question MarkB.StarC.Cash cowD.DogE.Horse
Business
1 answer:
horsena [70]3 years ago
7 0

Answer: The correct answer is "C. Cash cow".

Explanation: According to the BCG matrix, this SBU would be categorized as a Cash cow, because cow products are also known as cash generators are those that generate a lot of liquidity and require relatively few investments.  We would therefore be talking about products that are already consolidated in a market with little growth.

The objective is to maintain the competitive situation of these products because they are the ones that generate money for us to subsequently invest in others.

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In this case,  Wichasha's exports is higher than the total value of its imports so, it has a trade surplus or positive balance of trade.

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