In: Economics
The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. “Cash cows” are SBUs that are classified as having
A. high market growth rates and high relative market shares.
B. low market growth rates but high relative market shares.
C. low market growth rates and low relative market shares.
D. high market growth rates but low relative market shares.
E. medium market growth rates and medium relative market shares.
Ans) the correct option is B. low market growth rates but high relative market shares.
They have dominant shares of slow-growth markets and provide cash to cover the organization’s overhead.