Question

Strategic business units that have a relatively low market share but have the potential to grow are best categorized under ________ in the Boston Consulting Group (BCG) growth-share matrix.
A. cash cows
B. dogs
C. question marks
D. stars

Answer 1

Answer:

question marks

Explanation:

BCG is corporate strategy planning framework developed by management consultation firm BCG (Boston Consulting Group).

It is a two by two matrix designed to analyze the position and performance of different business unit of the firm based on their relative market share(market share relative to other companies competing in same business type) and the growth rate of the unit.

Business units are different business in which a company operates for example Proctor and gamble operate in beauty care, grooming, household cleaning.

In This matrix market share and growth rate are divided into two parts low and high. Thus, four quadrants are generated based on low high performance of growth and market share. They have been given name as cows, star, dog and question mark.

Given below are brief description of it.

Cows: These are business unit which have relative high market share but they have low growth rate. They are highly profitable unit for the companies. The general strategy for such unit should be take profit from such unit and invest in unit where the growth rate is high.  

Dogs: Dogs are the units which have low market share and low growth rate. Such unit can be termed as poor performers. It can be either due to declining stage of the market or inefficiency of the company. General strategy for such unit is liquidation and divestment.

Stars : stars are unit which possess high market share and high growth. They are high performing unit. Gerald plan for such unit is more investment as it will lead to more growth.

Question marks: They are unit with low market share but high growth. Such units are complicated one as it can be become high performer owing to growth potential but can under perform as because of less market share and increased competition in the market. General strategy applied here are product development, market penetration and divestment.

Now the condition given in question is a business unit has low market share but has growth potential based on the discussion based above it falls in question marks part of BCG matrix