Anna Is Using the BCG Growth-Share Matrix to Perform a Portfolio

question 63

Multiple Choice

Anna is using the BCG Growth-Share Matrix to perform a portfolio analysis for her company, Craycol Incorporated, which has four divisions: Red, Orange, Yellow, and Green.The Yellow division is doing quite well.Although it faces strong competition in a market that is still growing and changing rapidly, it currently has a narrow lead in market share.The Red division has long been the company's top performer and dominates market share in an industry that has been stable for the past ten years.The Green division has been performing poorly for the past five years, and there doesn't seem to be much opportunity to gain market share from its competitors, as customer demand has dropped significantly and is not likely to increase.The Orange division is Craycol's newest division.The market Orange produces products for is potentially large, but many other companies are pursuing the same customers and it remains to be seen how Orange will perform, as it currently lags behind some of its competitors while outperforming others.According to the BCG Matrix, the __________ division would likely be identified as a Dog.

• A)Red
• B)Orange
• C)Yellow
• D)Green

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Definitions:

Mental Representation

The cognitive process through which the mind stores and interprets information about the world, allowing for thought and imagination.

Primary Circular Reaction

Repetitive actions focused on the body that are demonstrated by infants as an early form of learning through physical activity.

A-not-B Error

A cognitive error observed in infants, where they reach for a hidden object where it was last found rather than its new location, demonstrating their developing memory and understanding of object permanence.

Deferred Imitation

The ability to reproduce a behavior observed at an earlier time, even in the absence of the original model or stimuli.