SM5 Infinity Enterprises, a large organization with seven business units, recently prepared a BCG Growth-Share Matrix to evaluate whether it has a balanced portfolio of businesses. Upon analysis, its three large business units were identified as stars, two medium-size business units were identified as question marks, and one small business unit each was identified as a cash cow and as a dog. Which of the following is a conclusion you can draw upon evaluating the data? A The company needs to set up more business units that operate in high-growth markets. B The company is probably facing a shortage of funds to fuel its growth. C The company should hold onto the business unit identified as a dog in order to maintain a balanced portfolio of businesses. D The company is probably generating excess cash that can be used to start new business units

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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SM5 Infinity Enterprises, a large organization with seven business units, recently prepared a BCG Growth-Share Matrix to evaluate whether it has a balanced portfolio of businesses. Upon analysis, its three large business units were identified as stars, two medium-size business units were identified as question marks, and one small business unit each was identified as a cash cow and as a dog. Which of the following is a conclusion you can draw upon evaluating the data? A The company needs to set up more business units that operate in high-growth markets. B The company is probably facing a shortage of funds to fuel its growth. C The company should hold onto the business unit identified as a dog in order to maintain a balanced portfolio of businesses. D The company is probably generating excess cash that can be used to start new business units
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