According to the General Electric Portfolio Model,what should an organization do with its strategic business units (SBUs)that fall into the red zone?
A)Hold share and build share
B)Harvest or divest
C)Produce and divest
D)Build share and harvest

Question

Quizplus · Accepted Answer

The General Electric Portfolio Model suggests that SBUs should be classified into one of four categories: stars, question marks, cash cows, and dogs. The SBUs that fall into the red zone are considered dogs, which means they have a low market share in a low-growth market. In this case, it is recommended to either harvest or divest the SBU. Harvesting means reducing investment in the SBU to maximize short-term cash flows, while divesting means selling off or closing down the SBU. Therefore, choice B is the best option.

According to the General Electric Portfolio Model,what Should an Organization