Question

A strategic business unit​ (SBU) of a major corporation has high market share in its​ industry, but the growth rate of the industry is expected to be stagnant over the long run. According to the BCG​ matrix, how would this SBU be​ categorized?

Answer 1

Answer:

Cash cow

Explanation:

A cash cow is seen or made reference to as that part of a business, investment, or product that provides a steady income or profit.

Basically a cash cow is a business unit, product line, or investment that has a return on assets (ROA) greater than the market growth rate. This is expressed with an Idiom to mean that it produces "milk" that is profit long after the cost of the investment has been recouped.

The strategic business unit of this organization having high market share in its​ industry, but the growth rate of the industry is expected to be stagnant over the long run is simply yielding steady profit for the corporation through its high market value and this will continue for longer because it has to be at that high rate for a long period of time.

The SBU can be categorised as acting as the cash cow for that corporation.

Answer 2

Answer:

Cash Cow.

Explanation:

A strategic business unit(SBU) is a special unit of a business Organisation which has its own unique mission and directions,this unit work Independent on the main Organisation.

A Strategic Business unit is usually formed in order to achieve a particular goal, and it is believed that this goal will only be achieved through the independence of the unit in both it's Activities and it's Functionality.