188) The Boston Consulting Group (BCG) business portfolio analysis requires an organization to
locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a
growth-share matrix, the vertical axis of the matrix indicates
A) the annual rate of growth of the firm’s largest competitor.
B) the relative dollar market share of the largest competitor.
C) the annual rate of growth of the SBU’s industry.
D) the relative unit market share of the largest competitor.
E) the annual rate of growth of the firm itself.
189) The Boston Consulting Group (BCG) business portfolio analysis requires an organization to
locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a
growth-share matrix, the horizontal axis of the matrix indicates
A) the annual rate of growth of the SBU’s industry.
B) the relative dollar market share of the largest competitor.
C) the annual rate of growth of the firm’s largest competitor.
D) the relative unit market share of the smallest competitor.
E) the annual rate of growth of the firm itself.
190) In the Boston Consulting Group (BCG) model for analysis of a firm’s strategic business
units, or SBUs, the horizontal axis reflects
A) market growth rate.
B) marketing efficiencies.
C) industry attractiveness.
D) market segment size.
E) relative market share.
191) In a BCG growth-share matrix, a relative market share of 10 × at the left end of the scale on
its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a
relative market share of 0.1 × at the right end of the scale on its horizontal axis means that
A) the SBU has only 10 percent of the share of its average competitor.
B) the SBU has 100 percent of the share of its largest competitor.
C) the growth rate between the SBU and the next largest competitor is actually identical.
D) the SBU has only 10 percent of the share of its largest competitor.
E) the industry growth rate is declining.
192) All of the following are names the Boston Consulting Group (BCG) has given to describe
the four quadrants in its growth-share matrix except which?
A) Dogs
B) Stars
C) Slugs
D) Cash cows
E) Question marks
193) The Boston Consulting Group (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.
194) Strategic business units (SBUs) with dominant shares of slow-growth markets that provide
cash to cover the organization’s overhead and to invest in other SBUs are referred to as
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) exclamation points.
195) Several years ago, Black & Decker purchased General Electric’s small appliances product
line. Black & Decker purchased the line because it needed the cash generated from a product line
that had a dominant market share in the slow-growth small appliance industry. GE’s small
appliances product line is most likely a ________ for Black & Decker.
A) dog
B) cash cow
C) question mark
D) star
E) camel
196) The Boston Consulting Group (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. Stars 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.
197) Strategic business units (SBUs) with a high share of high-growth markets that may not
generate enough cash to support their own demanding needs for future growth are referred to as
A) dogs.
B) cash cows.
C) question marks.
D) stars.
E) sprouts.
198) Solarcom is a 30-year-old information technology company that owns several subsidiaries.
One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for
refurbished computer equipment. It has a large share of an industry that is growing worldwide.
According to the BCG business portfolio analysis framework, Atlantix Global would most likely
be classified as a
A) dog.
B) cash cow.
C) question mark.
D) sprout.
E) star.
199) Strategic business units with a low share of high-growth markets that may require large
cash injections of cash just to maintain market share are referred to as
A) dogs.
B) cash cows.
C) question marks.
D) stars.
E) elephants.
200) The Boston Consulting Group (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. Question marks 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.
201) Strategic business units (SBUs) with a low share of slow-growth markets that may generate
enough cash to sustain themselves but do not hold the promise of ever becoming real winners for
the organization are referred to as
A) dogs.
B) cash cows.
C) stars.
D) question marks.
E) hedgehogs.
202) The Boston Consulting Group (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. Dogs 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.
203) In its business portfolio analysis, an organization’s strategic business units (SBUs) often
start as ________ and eventually become ________.
A) dogs; question marks
B) question marks; stars
C) stars; question marks
D) stars; dogs
E) question marks; dogs
204) While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still,
hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years.
Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of
the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in
the United States. For years, Honda has experienced tremendous success with its Accords; these
Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic
(hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?
A) The hybrid Civic is a star; the Accord is a cash cow.
B) The hybrid Civic is a cash cow; the Accord is a star.
C) Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are
cash cows.
D) The hybrid Civic is a dog; the Accord is a cash cow.
E) The hybrid Civic is a dog; the Accord is a star.
205) In Figure 2-4 shown above, SBUs found in quadrant A would be called
A) cash cows.
B) question marks.
C) dogs.
D) hedgehogs.
E) stars.
206) In Figure 2-4 shown above, SBUs found in quadrant B would be called
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) hedgehogs.
207) In Figure 2-4 shown above, SBUs found in quadrant C would be called
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) hedgehogs.
208) In Figure 2-4 shown above, SBUs found in quadrant D would be called
A) cash cows.
B) stars.
C) question marks.
D) dogs.
E) hedgehogs.
209) To move an SBU from its current position on a BCG business portfolio analysis, a manager
should concentrate mostly on
A) influencing the relative market share.
B) enhancing employee motivation to move a low-valued SBU to a higher one.
C) adding a variety of new SBUs that will force out older ones.
D) influencing the market growth rate.
E) simplifying its offerings by removing features.
210) Because an organization has limited influence on market growth rate, its main alternative
for moving an SBU on the portfolio analysis matrix is to try to change its relative market share.
The most likely way for a company to turn a question mark into a star rather than a dog is to
A) divert funds to other SBUs.
B) reduce advertising for it.
C) inject cash into it.
D) reduce the feature set for it.
E) decrease the market growth rate.
211) Apple’s iPod sold more than 50 million units annually until 2010 when the iPhone
integrated a music player. Since 2010 sales have been declining dramatically and in October
2014 Apple announced that it was discontinuing the iPod classic. Today Apple still sells three
iPod product lines although declining sales and discontinued products suggest that this SBU is
may have become a
A) question mark.
B) star.
C) hedgehog.
D) cash cow.
E) dog.
212) Apple launched its revolutionary Apple watch in 2015 as the first wearable technology that
used a multi-touch user interface. The wearable technologies market grew at a rate of more than
100 percent in 2015. Apple sales were substantial despite a relatively high price and short battery
life. The Apple watch entered the market as a
A) question mark.
B) raptor.
C) hedgehog.
D) cash cow.
E) dog.
213) Apple launched the iPhone in 2007, had very strong sales, and its market share now exceeds
44 percent. The global smartphone market is expected to grow at an annual rate of 7 percent due
to the growth internationally. Currently, Apple’s iPhone SBU appears to be a
A) question mark.
B) star.
C) hedgehog.
D) cash cow.
E) dog.
214) One of the strengths inherent in the use of the BCG business portfolio analysis is that it
A) is based solely on company perception rather than actual data.
B) considers all factors that might impact an SBU’s value to an organization.
C) acts as a strong motivational tool for employees in SBUs that have been labeled “dogs” or
“question marks.”
D) forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests
which SBUs will be cash producers or cash users in the future.
E) identifies specific marketing strategies and marketing tactics on how to solve SBU
shortcomings.
215) One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it
A) causes dissension between different divisions when one is labeled a “star” and another a
“dog.”
B) reduces employee motivation to move a low valued SBU to a higher one.
C) considers too many SBU factors beyond market growth rate and relative market share.
D) does not require sales forecasts in order to be implemented.
E) is often difficult to obtain the needed information to correctly place SBUs in the matrix.
216) A technique that helps a firm search for growth opportunities from among current and new
markets as well as current and new products is referred to as
A) diversification analysis.
B) business portfolio analysis.
C) a market-product grid framework.
D) synergy analysis.
E) market segmentation.
217) Diversification analysis refers to
A) a technique that seeks opportunities by finding the optimum balance between marketing
efficiencies versus R&D-manufacturing efficiencies.
B) a framework to relate the market segments of potential buyers to products offered or potential
marketing actions by an organization.
C) a technique that helps a firm search for growth opportunities from among current and new
markets as well as current and new products.
D) a technique used to determine the appeal of each SBU or offering and then the amount of
cash, if any, each should receive.
E) a framework that identifies four “generic” strategies to achieve a competitive advantage.
218) Which of the following statements regarding diversification analysis is most accurate?
A) Companies should only use diversification analysis if they are well-established; new
companies that use this process run the risk of trying to do too much too soon.
B) For any product, there is both a current and a new market; for any market, there is both a
current and a new product.
C) Most companies discover that there is at least one product that is targeted to the wrong
market.
D) Diversification analysis is only effective for consumer products.
E) Diversification analysis is used to forecast and calculate industry sales for new products.
219) A marketing strategy to increase sales of current products in current markets is referred to
as
A) market penetration.
B) market development.
C) product development.
D) diversification.
E) marketing synergy.
220) Market penetration refers to the marketing strategy of
A) selling current products to new markets.
B) selling new products to new markets.
C) selling new products to current markets.
D) selling the same brands in both current and new markets.
E) increasing sales of current products in current markets.
221) One way a company can benefit from implementing a market penetration strategy would be
to
A) sell more products at a lower price in new markets.
B) sell the same amount of product at a higher price in the same market.
C) find a new market and sell the product at a much higher price.
D) alter the product and sell it to a new market.
E) reduce promotion and distribution costs to improve production efficiencies for the product in
reaching new markets.
222) When using a ________ strategy, there is no change in either the basic product line or the
markets served. Instead, increased sales are generated by selling either more products through
better promotion or distribution or the same number of products at a higher price.
A) product development
B) market development
C) diversification
D) market saturation
E) market penetration
223) If Ben & Jerry’s sold more units of its Chocolate Chip Cookie Dough super premium ice
cream to U.S. consumers as a result of increased promotion while keeping its price per pint the
same, it would be using a ________ strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) market saturation
224) If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S. consumers
increased as a result of a slight price increase of $0.25 per pack, it would be using a ________
strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) market saturation
225) The marketing strategy to sell current products to new markets is referred to as
A) market penetration.
B) market infiltration.
C) market development.
D) product development.
E) diversification.