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:

Compulsively Avoid

Refers to an uncontrollable need to avoid certain situations, tasks, or responsibilities out of fear, anxiety, or avoidance of discomfort.

Personal Orientation Inventory

A questionnaire based on self-reporting aimed at assessing individual development and the achievement of one's full potential.

Self-Actualization

The achievement or satisfaction of one's abilities and possibilities, seen as an innate motivation or necessity in every individual.

Correlate Negatively

A statistical relationship between two variables in which one increases as the other decreases.