The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.
A) market segment
B) strategic business unit
C) question mark
D) prospect
E) product portfolio

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) is a standalone unit of a larger company that operates independently and has its own set of business strategies, products, and customers. In the case of Kimberley and Price, the breakfast cereal and gardening tool businesses are distinct SBUs since they have different products and customer bases, and likely require different business strategies and approaches. Therefore, the most appropriate choice to describe these businesses is option B) strategic business unit.
Option A) market segment refers to a group of customers with similar needs or characteristics that a company targets with its products or services. While the breakfast cereal and gardening tool businesses may have different target markets, they themselves are not market segments.
Option C) question mark is a term used in portfolio analysis to refer to a business with low market share in a high-growth market. This is not relevant to the description of Kimberley and Price's businesses.
Option D) prospect refers to a potential customer or client who has shown interest in a company's products or services. This is not relevant to the description of Kimberley and Price's businesses.
Option E) product portfolio refers to the collection of products or services offered by a company. While the breakfast cereal and gardening tool businesses are both part of Kimberley and Price's product portfolio, this term does not capture the distinct nature of each business unit.

The Key Businesses of Kimberley and Price Consist of a Division