Question 1

Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment. It has a large share of an industry that is growing worldwide. According to the BCG business portfolio analysis framework, Atlantix Global would most likely be classified as a
A) dog.
B) cash cow.
C) question mark.
D) sprout.
E) star.

Accepted Answer

Atlantix Global Systems is likely classified as a "star" because it has a large market share in a growing industry, which aligns with the characteristics of a "star" in the BCG matrix.

Question 2

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant D would be called
A) cash cows.
B) stars.
C) question marks.
D) treasure chests.
E) dogs.

Accepted Answer

The answer of  Figure 2-4In Figure 2-4 shown above,...

Question 3

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant B would be called
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) jackrabbits.

Accepted Answer

The answer of  Figure 2-4In Figure 2-4 shown above,...

Question 4

Strategic business units with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as
A) dogs.
B) cash cows.
C) question marks.
D) stars.
E) elephants.

Accepted Answer

Strategic business units with a low share of high-growth markets are referred to as "question marks" because they have potential but require significant investment to increase market share.

Question 5

In the BCG business portfolio model, a relative market share of 10 × at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 × at the right end of the scale on its horizontal axis means that
A) the SBU has only 10 percent of the share of its average competitor.
B) the SBU has 100 percent of the share of its largest competitor.
C) the growth rate between the SBU and the next largest competitor is actually identical.
D) the SBU has only 10 percent of the share of its largest competitor.
E) the industry growth rate is declining.

Accepted Answer

A relative market share of 0.1 × means the SBU has only 10 percent of the share of its largest competitor.

Question 6

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant C would be called
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) speedbumps.

Accepted Answer

The answer of  Figure 2-4In Figure 2-4 shown above,...

Question 7

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having
A) high market growth rates and high relative market shares.
B) low market growth rates but high relative market shares.
C) low market growth rates and low relative market shares.
D) high market growth rates but low relative market shares.
E) medium market growth rates and medium relative market shares.

Accepted Answer

Dogs are SBUs with low market growth rates and low relative market shares, often generating little profit and sometimes requiring more investment than they return.

Question 8

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having
A) high market growth rates and high relative market shares.
B) low market growth rates but high relative market shares.
C) low market growth rates and low relative market shares.
D) high market growth rates but low relative market shares.
E) medium market growth rates and medium relative market shares.

Accepted Answer

Question marks are SBUs with high market growth rates but low relative market shares, indicating potential but requiring investment to increase market share.

Question 9

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having
A) high market growth rates and high relative market shares.
B) low market growth rates but high relative market shares.
C) low market growth rates and low relative market shares.
D) high market growth rates but low relative market shares.
E) medium market growth rates and medium relative market shares.

Accepted Answer

Stars are characterized by high market growth rates and high relative market shares, indicating they generate significant cash but also require investment to maintain their position.

Question 10

All of the following are names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrix except which?
A) Dogs
B) Stars
C) Tortoises
D) Cash cows
E) Question marks

Accepted Answer

The BCG growth-share matrix includes Dogs, Stars, Cash Cows, and Question Marks. Tortoises is not one of the names used in this model.

Question 11

Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash generated from a product line that had a dominant market share in the slow-growth small appliance industry. GE's small appliances product line is most likely a ________ for Black & Decker.
A) dog
B) cash cow
C) camel
D) star
E) question mark

Accepted Answer

A "cash cow" is a product line with a dominant market share in a slow-growth industry, generating steady cash flow, which is why Black & Decker purchased GE's small appliances line.

Question 12

Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share. The most likely way for a company to turn a question mark into a star rather than a dog is to
A) divert funds to other SBUs.
B) reduce advertising for it.
C) inject cash into it.
D) reduce the feature set for it.
E) decrease the market growth rate.

Accepted Answer

Injecting cash into a question mark SBU can help increase its market share, potentially turning it into a star if the market growth rate remains high.

Question 13

Strategic business units (SBUs) with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as
A) turkeys.
B) cash cows.
C) stars.
D) question marks.
E) dogs.

Accepted Answer

Dogs are SBUs with low market share in a slow-growth market. They typically generate just enough cash to maintain themselves but are not considered promising for future growth or profitability.

Question 14

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having
A) high market growth rates and high relative market shares.
B) low market growth rates but high relative market shares.
C) low market growth rates and low relative market shares.
D) high market growth rates but low relative market shares.
E) medium market growth rates and medium relative market shares.

Accepted Answer

Cash cows are SBUs with low market growth rates but high relative market shares, generating more cash than they consume.

Question 15

While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?
A) The hybrid Civic is a star; the Accord is a cash cow.
B) The hybrid Civic is a cash cow; the Accord is a star.
C) Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows.
D) The hybrid Civic is a dog; the Accord is a cash cow.
E) The hybrid Civic is a dog; the Accord is a star.

Accepted Answer

The hybrid Civic is a star because it has a high market share and is growing rapidly. The Accord is a cash cow because it has a high market share and is growing slowly.

Question 16

To move an SBU from its current position on a BCG business portfolio analysis, a manager should concentrate mostly on
A) influencing the relative market share.
B) enhancing employee motivation to move a low-valued SBU to a higher one.
C) adding a variety of new SBUs that will force out older ones.
D) influencing the market growth rate.
E) simplifying its offerings by removing features.

Accepted Answer

A manager should focus on influencing the relative market share, as this is a key factor in the BCG matrix that determines the position of an SBU. Increasing market share can move an SBU from a "Question Mark" to a "Star" or from a "Dog" to a "Cash Cow."

Question 17

In its business portfolio analysis, an organization's strategic business units (SBUs) often start as ________ and eventually become ________.
A) dogs; question marks
B) question marks; stars
C) stars; question marks
D) stars; dogs
E) question marks; dogs

Accepted Answer

The answer of In its business portfolio analysis, an organization's...

Question 18

Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as
A) dogs.
B) sprouts.
C) question marks.
D) stars.
E) cash cows.

Accepted Answer

Stars are SBUs with a high market share in high-growth markets. They often require significant investment to sustain their growth and maintain their market position.

Question 19

Strategic business units (SBUs) with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) exclamation points.

Accepted Answer

Cash cows are SBUs with a dominant market share in a slow-growth industry. They generate more cash than they consume, providing funds to support other business units and cover organizational overhead.

Question 20

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant A would be called
A) cash cows.
B) question marks.
C) dogs.
D) lightning strikes.
E) stars.

Accepted Answer

The answer of  Figure 2-4In Figure 2-4 shown above,...

Quiz 2: Developing Successful Organizational and Marketing Strategies

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant D would be called

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant B would be called

Strategic business units with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as

In the BCG business portfolio model, a relative market share of 10 × at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 × at the right end of the scale on its horizontal axis means that

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant C would be called

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having

All of the following are names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrix except which?

Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share. The most likely way for a company to turn a question mark into a star rather than a dog is to

Strategic business units (SBUs) with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having

To move an SBU from its current position on a BCG business portfolio analysis, a manager should concentrate mostly on

In its business portfolio analysis, an organization's strategic business units (SBUs) often start as and eventually become .

Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as

Strategic business units (SBUs) with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are

Figure 2-4In Figure 2-4 shown above, a representation of the BCG business portfolio analysis, SBUs found in quadrant A would be called