ADMS 2200 Study Guide - Boston Consulting Group

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: all

Document Summary

Using the now classic boston consulting group (bdg) approach, a company classifies al its. Sbu (strategic business units )according to the growth- share matrix . the growth share matrix defines four types of sbus: Stars: stars are high growth, high share business or products. The often need heavy investments to finance their rapid growth. Eventually their growth will slow down and they will turn to cash cows. Cash cows: cash cows are low growth , high share business of products. These established and successful sbus need less investments to hold their market share. Thus they produce a lot of cash that the company uses to pay its bills and support other sbus that need investments. Question marks: question marks are low share business units in high growth markets. They require a lot of cash to hold their share, let alone increase it. Dogs: dogs are low growth , low share business and products.