Real Goods Inc. is a large conglomerate. The company's beverages strategic business unit (SBU) has been recognized as a cash cow, and its tobacco SBU has been categorized as a dog. Which of the following can be inferred from this scenario?
A) While the tobacco SBU operates in a low-growth market, the beverages SBU operates in a high-growth market.
B) The management of the company should use the cash inflow from the beverages SBU and invest it in the tobacco SBU.
C) While the market share of the company in the beverages industry will be high, the market share in the tobacco industry will be low.
D) The tobacco SBU should follow a backward integration strategy, and the beverages SBU should pursue a forward integration strategy.
Correct Answer:
Verified
Q68: Coca-Cola was primarily known for its core
Q69: Greenway Industries is a major multinational conglomerate.
Q70: ElectraSync Inc., a large consumer electronics company,
Q71: Which quadrant in the core competence-market matrix
Q72: The core competency of GoGo Motors is
Q74: BestDrive Inc. is a large automobile company.
Q75: Ancho Corp. is an automobile company whose
Q76: Using the Boston Consulting Group growth-share matrix,
Q77: Why is following an unrelated diversification strategy
Q78: In 2007, Salesforce.com recognized an emerging market
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents