Question

Andersen Major has five strategic business units (SBUs)—technology, fashion, food and beverage, consumer products, and electronics. Its food and beverage unit has a small share in a rapidly growing sector, and the company believes that investing more money into the unit could lead to large profits in the future. In the context of the BCG matrix, which of the following categories of SBUs best describes the food and beverage unit?

Answer 1

Answer:

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Explanation:

The Boston Consulting Group (BCG) matrix divides the company's portfolio of products or business units into four categories:

1. Dogs: products that have a low market share and operate in a slowly growing market.
2. Cash cows: products that have a high market share and operate in a slowly growing market. They generate the largest revenues.  
3. Stars: products that have a high market share and operate in high growth industries. They generate a lot of cash but they also absorb a lot cash since constant investment is needed, if managed correctly can convert into cash cows.  
4. Question marks: products that have a low market share and operate in high growth industries. Their future is uncertain, because even though the industry is booming, they are falling behind. If managed correctly can convert into stars.  

Answer 2

Answer:

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Explanation: