İşletme Yönetimi Deneme Sınavı Sorusu #1096881

AZY company has a business manufacturing refrigerator. Market share of this business is relatively higher compared to the rest of the rivals; but, market growth is slow.

How would you name this business according to the BCG matrix.


Cash cow

Question mark

Dog

Star

Both star and dog


Yanıt Açıklaması:

The BCG matrix separates SBUs into four categories. Stars are SBUs that have a large share of a fast-growing market. To take advantage of a star, the corporation must invest considerably in it. Question marks are SBUs that have a small share of a fast-growing market. If the corporation invests in these companies, they may finally become stars, but their relatively small share in the market makes investing in question marks more risky than investing in stars. Cash cows are SBUs which have a large share of a slow-growing market. SBUs in this situation are often highly profitable, therefore the name “cash cow.” Finally, dogs are SBUs which have a small share of a slow-growing market. As the name suggests, having a small share of a slow-growth market is often not profitable. Since dogs lose money, they should either be sold to other companies or closed down and liquidated for their resources.

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