Ask Question
8 October, 19:27

You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, you explain that you'll only consider a unit categorized, according to the BCG matrix, as a question mark. Here are your choices:Unit A has revenue of $27 billion and a profit of $6 billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors. Unit B has revenue of $30 billion and a profit of $7 billion. Its market share is strong and growing. While its product is based on an outdated technology, the product has a loyal following for now. Which of the corporation's two profitable units meets your criterion?

+3
Answers (1)
  1. 8 October, 19:35
    0
    Unit A has revenue of $27 billion and a profit of $6 billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors.

    Explanation:

    According to the BCG Matrix, question marks are business units that operate in rapidly growing markets but currently only possess a low market share.

    This results in a lot of cash being consumed by the business unit, but also the possibility of high growth. It is called a question mark because it is uncertain if the business unit will be successful or not. This means that they are very risky investments.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, you explain ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers