Hankson Corp. has five strategic business units (SBUs)-information technology, insurance, publishing, fine arts, and tourism. It invests the majority of its funds in the information technology unit as the unit has a large market share and generates large amounts of its profits in a fast-growing market. In the context of the BCG matrix, which of the following categories of SBUs best describes the information technology unit?

Question

Quizplus · Accepted Answer

The information technology unit is described as having a large market share and generating large amounts of profits in a fast-growing market. This fits the characteristics of a "star" in the BCG matrix, which represents high-growth, high-market-share businesses that require significant investment to maintain their position.