BCG Matrix

Question 1

Graphically portrays differences among divisions in terms of relative market share position and industry growth rate.

Answer 1

BCG Matrix (Boston Consulting Group)

Question 2

The ratio of a division’s own market share in a particular industry to the market share held by the largest rival firm in that industry.

Answer 2

Relative Market Share

Question 3

BCG Matrix Graph

Answer 3

x-axis : Relative Market Share
y-axis : Market Growth Rate

Star | Question Marks
Cash Cow | Dog

Question 4

A business that has a LOW RELATIVE MARKET SHARE in a industry characterized by HIGH MARKET GROWTH

Answer 4

Question Mark

Question 5

A fast growing market leader. High Market Share & High Market Growth

Answer 5

Star

Question 6

A business unit that generates more cash than it needs to maintain its market share.

Answer 6

Cash Cow

Question 7

A business unit that has low growth potential and a small market share.

Answer 7

Dog

Question 8

Organization must decide whether to strengthen them by pursuing an intensive strategy(market penetration, market development, product development) or to sell them. (Quadrant I)

Answer 8

Question Marks

Question 9

Represents the organization’s best long-run opportunities for growth and profitability. (Quadrant II)

Answer 9

Stars

Question 10

Generates cash in excess of their needs. Should be managed to maintain their strong position for as long as possible.(Quadrant III)

Answer 10

Cash Cows

Question 11

Compete in a slow or no growth market industry. Businesses are often liquidated, divested, or trimmed down through retrenchment. (Quadrant IV)

Answer 11

Dogs