Asked by Nicholas Bermudez on May 03, 2024
Verified
The preferred strategy for Stars is
A) stability or modest growth.
B) targeting only the most promising of the Stars.
C) retrenchment of some of the Stars.
D) decrease of current operations.
E) growth and further resource investments.
Stars
In business, it refers to products or business units with high market growth and high market share in a competitive industry.
Growth
Describes the process of increasing in size, value, or importance, typically used in economic and business contexts to refer to the expansion of companies or economies.
Resource Investments
The allocation of resources, such as time, money, or materials, into projects or activities with the expectation of achieving returns.
- Determine particular tactics suitable for each classification (Dogs, Question Marks, Stars, Cash Cows) within the BCG Matrix framework.
Verified Answer
SG
Shatima GodleyMay 08, 2024
Final Answer :
E
Explanation :
The preferred strategy for Stars is growth and further resource investments. Stars have already shown promising growth potential and market share, so investing in them further can lead to increased profits and market dominance. Retrenchment or decrease in operations may lead to missed opportunities and hinder the company's ability to compete in the future. Therefore, the best strategy for Stars is to prioritize growth and investment.
Learning Objectives
- Determine particular tactics suitable for each classification (Dogs, Question Marks, Stars, Cash Cows) within the BCG Matrix framework.