GenEx Group manufactures a variety of products for different markets.One of its SBUs,GenEx Textiles,is one of its leading revenue generators.GenEx Textiles is the leading player in the market for textiles.However,the parent company has realized that growth prospects in the textile industry is limited.The company has already exploited the market to the fullest and sustained growth in the future is unlikely.In fact,a substantial amount of the revenue generated from this textile business is used to fund other SBUs of the parent company.GenEx Textiles is an example of a ________ for the GenEx Group.
A)star
B)dog
C)cash cow
D)question mark
E)cost-leader

Question

Quizplus · Accepted Answer

GenEx Textiles is described as a leading player in its market with limited growth prospects, where the revenue it generates is used to fund other strategic business units (SBUs) of the parent company. This scenario fits the definition of a "cash cow" in the BCG matrix, which refers to a business unit that has a large market share in a mature, slow-growing industry and generates more cash than it needs to maintain its market share.

GenEx Group Manufactures a Variety of Products for Different Markets