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In strategic planning, the BCG Matrix classifies high market share business units in low-growth industries as:

AStars
BDogs
CCash Cows
DQuestion Marks

Explanation

• Cash Cows generate substantial cash surpluses beyond what is needed to maintain their market position in slow-growing industries.
• Funds generated by Cash Cows are reinvested to support high-potential Question Marks and Stars.
• When industry growth slows down, Stars naturally transition into Cash Cows if they maintain market leadership.

Exam Relevance
  • Topic: Strategic Management
  • Subtopic: BCG Matrix
Submitted by: mcqstutor Team More Management MCQs →

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