Kensei Corp. has three strategic business units (SBUs)-pharmaceutical, publishing, and consulting. Its pharmaceutical unit is relatively new in the sector and does not have a large market share. The pharmaceutical sector is a fast-growing sector, and companies with a large market share in the sector have been earning large profits. In the context of the BCG matrix, which of the following categories of SBUs best describes the pharmaceutical unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Question

Quizplus · Accepted Answer

The pharmaceutical unit of Kensei Corp. is described as a new entrant with a relatively small market share. This suggests that the unit has not yet reached a dominant position in the market and has high potential for growth. Such units are typically classified as "question marks" in the BCG matrix, indicating uncertainty about their future prospects and the need for further investment to capture market share.