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

question 107

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 Question Mark.

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

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Definitions:

Computer Network

A system of interconnected computers and devices that can exchange data and share resources amongst each other.

Bridge

A device that is used to send data between different collision domains in a network, depending on where the recipient device is located.

Collision Domain

A network segment where data packets can collide with one another when being sent on a shared medium, often requiring retransmission.

Sends Data

The process of transmitting information from one computer, device, or application to another.