In Managing the Corporate Portfolio,the BCG Matrix Would Suggest That

question 19

Multiple Choice

In managing the corporate portfolio,the BCG matrix would suggest that

• A) dogs should be invested in to increase market share and become cash cows.
• B) stars are in low growth markets and can provide excess cash to fund other opportunities.
• C) cash cows require substantial cash outlays to maintain market share.
• D) question marks can represent future stars if their market share is increased.

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Definitions:

Marginal Cost

The cost escalation resulting from the creation of one additional unit of a good or service.

Lawn-mowing

The process of cutting the grass in a yard or field to a uniform length, typically using a manual, electric, or gas-powered lawn mower.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period.

Perfectly Competitive

An alternative term for perfect competition, emphasizing a market scenario with many buyers and sellers and no barriers to entry.