Describe the recommendations of the Boston Consulting Group's Growth-Share Matrix
What will be an ideal response?
The recommendations of the BCG Matrix are as follows:
? A business unit that is both low in market share and low in market growth is a dog and should be divested as soon as possible.
? A business unit that has a high market share in a market with low growth potential is a cow and should be "milked" as much as possible with only limited additional resources devoted to it.
? If a business unit has both a high market share and operates in a growing market, it is a star and the corporation should greatly invest in it to fuel additional growth.
? If a business unit has a low market share but operates in a growing market, it is a question mark and additional analysis is necessary to decide whether or not more resources should be channeled its way.
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Indicate whether the statement is true or false
A possible unintended effect of business legislation is ________
A) restricting fair competition in the market B) encouraging unbridled business behavior C) reducing the social cost of producing a particular commodity D) exposing consumers to unfair trade practices E) slowing economic growth