Jay Minkoff at First Flavor may use the Boston Consulting Group (BCG) matrix to help him in making decisions for his firm
What does he need to understand about the purpose of the matrix and the four categories of the BCG growth-market share matrix ?
The BCG model focuses on determining the potential of a firm's existing SBUs to generate cash that the firm can then use to invest in other businesses. By categorizing SBUs as stars, cash cows, questions marks, or dogs, the matrix helps managers make good decisions about how the firm should grow. Stars are SBUs with products that have a dominant market share in high-growth markets. Cash cows have a dominant market share in a low-growth potential market. Question marks, also called problem children, are SBUs with low market shares in fast-growth markets. Dogs are SBUs with low market share in low-growth markets.
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Indicate whether the statement is true or false