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r-ruslan [8.4K]
3 years ago
11

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
Business
1 answer:
Vikentia [17]3 years ago
6 0

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

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Answer:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Explanation:

Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.

The price of each bond of the bond can be calculated using the following excel function:

Bond price = -PV(rate, NPER, PMT, FV) ........... (1)

Where;

rate = Yield to maturity of each of the bonds

NPER = Years to maturity

PMT = Payment = Coupon rate * Face value

FV = Face value

Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:

Years to maturity       Price of Bond C            Price of Bond Z

         4                               $1,084.42                       $711.03

         3                               $1,065.93                       $774.31

         2                               $1,045.80                      $843.23

         1                                $1,023.88                       $918.27

Download xlsx
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A decrease in the price of domestically produced industrial robots will be reflected in a. the GDP deflator but not in the consu
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A decrease in the price of domestically produced industrial robots will be reflected in the GDP deflator but not in the consumer price index.

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An hourly employee works 40 regular hours during a pay period. His base pay
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What should you be concerned about if you are<br> going to buy television ads for your business?
vladimir1956 [14]

Answer:

Explained below.

Explanation:

The things I will be concerned about if I am going to buy television ads for my business are given as follows:

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6 0
3 years ago
EB5.
rusak2 [61]

Answer:

1. Break-even in units is 6,000 units

2. Break-even in dollars is $720,000

3. Contribution Income Statement for 10,000 units

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. Units to sell is 16,000

5. Dollars sale is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

Explanation:

1. To compute the Break-even point in units,

Formula is BEP = total fixed cost / unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the unit break-even in units using the formula.</em>

BEP = total fixed cost / unit contribution margin

BEP = $180,000 / 30

BEP = 6,000 units

2. To compute the Break-even point in dollars,

Formula is BES = total fixed cost / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the unit break-even in dollars using the formula.</em>

BEP = total fixed cost / contribution margin ratio

BEP = $180,000 / 25%

BEP = $720,000

3. To prepare the contribution margin income statement, we will multiply the units sold of 10,000 units by $120 to get the sales revenue. Then multiply 10,000 units by $90 to get the variable cost. Further illustration below;

Sales revenue (10,000 x 120)    $1,200,000

Variable cost   (10,000 x 90)       <u> (900,000)</u>

Contribution margin                    $300,000

Fixed cost                                     <u> (180,000)</u>

Profit                                              $120,000

4. To compute the units to sell to realize the target profit we will use the formula:

(Total fixed cost +  Target profit )/ unit contribution margin

 <em>Step 1. Compute the unit contribution margin</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

  <em>Step 2. compute the units to sell using the formula.</em>

(Total fixed cost + target profit) / unit contribution margin

($180,000  + $300,000) / 30

Answer is 16,000 units

5. To compute the sales in dollars to realize the target profit of $300,000,

Formula is (Total fixed cost + target profit) / contribution margin ratio

 <em>Step 1. Compute the contribution margin ratio</em>

Unit selling price              $120

Less : variable cost             <u> 90</u>

Unit contribution margin   $30

So, $30 divided by $120 equals 25% (CMR)

  <em>Step 2. compute the target sales in dollars using the formula.</em>

(Total fixed cost + target profit) / contribution margin ratio

($180,000 + $300,000) / 25%

$480,000 / 25%

Answer is $1,920,000

6. Contribution Income Statement for $2,400,000 sales revenue. FIRST we must determine how many unit are sold to have that sales revenue. $2,400,000 sales revenue divided by unit selling price equals 20,000 units. To further illustrate, see presentation below.

$2,400,000 / $120 = 20,000 units

Sales revenue (20,000 x 120)    $2,400,000

Variable cost   (120,000 x 90)     <u> (1,800,000)</u>

Contribution margin                       $600,000

Fixed cost                                       <u> (180,000)</u>

Profit                                              $420,000

4 0
3 years ago
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