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When Cabot Corporation Used the BCG Matrix to Evaluate Its

question 91

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When Cabot Corporation used the BCG matrix to evaluate its carbon black manufacturing business,the model led them to move away from ________ and to diversify into unrelated businesses listed as stars by the model.This resulted in a decline on return on assets.They eventually returned to carbon black manufacturing and divested the unrelated businesses; their 2016 revenue was 2.4 billion USD.


Definitions:

Independent Contractor

An individual who provides services to another entity under terms specified in a contract or agreement, but is not considered an employee of the entity.

Inherently Dangerous Activity

An activity that carries an inherent risk of harm or damage, even when all possible care is taken to prevent that harm.

Liability

The legal responsibility to settle a debt or fulfill an obligation, potentially involving payment for damages in legal cases.

Employer

An individual or organization that hires and pays individuals to perform services or work.

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