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agasfer [191]
3 years ago
5

Mega-Big Corp. has a small strategic business unit (SBU) that produces a component vital to the manufacturers of automobiles and

has been extremely profitable for 18 years. The SBU acts as a key source of income for the firm. In the context of the BCG matrix, Mega-Big Corp. is most likely considered a _____.
Business
1 answer:
galina1969 [7]3 years ago
6 0

Answer:

Cash cow

Explanation:

Boston consulting group (BCG) Matrix: It is a framework created for the strategic position of the business and its potential. It classifies business units into four categories of a cash cow, Stars, question mark and Dogs on the matrix of the growth rate of industry and relative market share. This matrix is also known as the growth-share matrix.  

In the BCG matrix, If business unit lies in the category of a Cash cow, then it is considered as market leader as it generates more income and company are able to get a good return out of investment in this business unit. In the matrix, the Business unit have high market share, however, it has less growth prospect.  

In the given case, Mega-Big Corp has been manufacturing components of automobiles and has been extremely profitable for 18 years, therefore, Mega-Big Corp. is most likely considered a cash cow.

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Why might you complete a 1040 intead of a 1040EZ?
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A pharmacy (due to increased competition from a neighboring supermarket) has now added an exclusive line of cosmetics, and has e
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The long-run aggregate supply curve is vertical because: minimum wage sets the long-run wages. the price level is constant in th
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Question(2 points) Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that follow. Use
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