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

question 50

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 Cash Cow.

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

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Definitions:

Designer Clothing

Apparel created by a well-known fashion designer, often characterized by high quality, exclusivity, and high price.

Luxury Vehicles

High-end vehicles that offer superior comfort, features, and performance compared to standard automobiles.

Collectivistic

Emphasizing the group, community, or society over individual gain, and valuing social harmony, cooperation, and interdependence among members.

Community Support

Assistance and resources provided by a group of people to its members in times of need.