Using the Boston Consulting Group growth-share matrix, the managers of Xylicon International determined that their business unit devoted to personal health monitoring devices was a star. Based on this finding, which of the following strategies is likely to produce the best results?
A) Increase investment in the personal health monitoring unit to encourage future growth.
B) Seek to lower costs in the personal health monitoring unit to increase market share.
C) Harvest as much cash flow as possible before shutting the business down.
D) Immediately divest from the personal health monitoring industry.

Question

Quizplus · Accepted Answer

A corporation's star SBUs hold a high market share in a fast-growing market. Their earnings are high and either stable or growing. The recommendation for the corporate strategist is to invest sufficient resources to hold the star's position or even increase investments for future growth.

Using the Boston Consulting Group Growth-Share Matrix, the Managers of Xylicon