Using the Boston Consulting Group Growth-Share Matrix, the Managers of Xylicon

question 87

Multiple Choice

Using the Boston Consulting Group growth-share matrix, the managers of Xylicon International determined that their business unit devoted to personal health monitoring devices was a star. Based on this finding, which of the following strategies is likely to produce the best results?

• A) Increase investment in the personal health monitoring unit to encourage future growth.
• B) Seek to lower costs in the personal health monitoring unit to increase market share.
• C) Harvest as much cash flow as possible before shutting the business down.
• D) Immediately divest from the personal health monitoring industry.

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Definitions:

Materials Costs

The expenses related to the raw materials used in the production of goods or services.

Total Cost

The complete accumulation of all expenses incurred to produce, acquire, or deliver a product or service.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for a specific period of time.

Smart Watches

Wearable devices that offer a range of functionalities beyond timekeeping, including health tracking and notifications.