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:

Perceptual Hypotheses

A theory in psychology suggesting that perception involves the brain's activity of generating theories about what objects in the external world are most likely to account for the sensory information it receives.

Binocular Depth Cues

Visual information that the brain uses to determine the depth and distance of objects, requiring both eyes.

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface by converging parallel lines towards a single point on the horizon.

Place Theory

A theory in hearing that suggests different areas of the inner ear's basilar membrane respond to different frequencies, contributing to our perception of pitch.