Theresa Teutul
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970s was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.
-The strategy that the BCG matrix suggests that Theresa should take for this strategic business unit (SBU) is:
A) invest and grow.
B) liquidate while still profitable.
C) consider divestment.
D) keep the SBU healthy and use its excess earnings to invest in other, riskier businesses.
E) none of these.

Question

Quizplus · Accepted Answer

The BCG matrix suggests that in a situation where a product has a high market share but operates in a slow-growing market, the strategy should be to "milk" the SBU for cash that can be invested in other areas. This is known as the "cash cow" strategy, which aligns with keeping the SBU healthy and using its excess earnings to invest in other, riskier businesses.

Theresa Teutul Theresa Teutul Was an Executive with Digital Industries, a Leading