Jem Dons has three strategic business units (SBUs)-smartphones, healthcare, and accounting. Its smartphone unit is its most profitable unit and is the current market leader in the rapidly growing industry. In the context of the BCG matrix, which of the following categories of SBUs best describes the smartphones unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Question

Quizplus · Accepted Answer

The smartphones unit of Jem Dons is the current market leader in a rapidly growing industry, indicating that it has high market share and high market growth. This places it in the "Stars" category of the BCG matrix. Stars are high-growth, high-market-share businesses or products that require heavy investment to maintain their position but can become the next cash cows if market growth slows.

Jem Dons Has Three Strategic Business Units (SBUs)-Smartphones, Healthcare, and Accounting