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8 July, 17:30

Bennyson Corp. has five strategic business units (SBUs) - information technology, construction, education, consumer products, and energy. Its energy unit has a large market share in the industry and generates the majority of its profits. Bennyson is also considering investing more funds into the unit as the industry has been rapidly growing. In the context of the BCG matrix, which of the following categories of SBUs best describes the energy unit? stars cash cows question marks dogs

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  1. 8 July, 17:41
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    Answer: Stars

    Explanation: Strategic business units, also known as SBUs, are an independent function that operates on its own, with its own vision and direction, within an organisation. This function is usually responsible for a particular set of goods or activities. There are different categories of SBUs that are further discussed below:

    Stars - these are high - share high - growth enterprises or goods. They usually require high investments to fuel their rapid growth. The energy unit of Bennyson Corp. falls under stars as it has a large market share in a rapidly growing industry and contributes to the majority of Bennyson's Corp, meeting the characteristics of this category.

    Cash cows - these are high - share low - growth enterprises or goods. They don't need a lot of investment to hold market share.

    Question marks - these are low - share high - growth enterprises and goods. They need a lot of money to keep their share in the market, which is usually a low share in the market anyways.

    Dogs - these are low - share low - growth enterprises and goods. They can make enough money to maintain itself, but not necessarily to generate large amounts of cash.
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