What combination of business units would represent the most appealing portfolio?Group of answer choicesStar, Cow, Question MarkDog, Cow, Question MarkStar, Question MarkCow, Cow, Cow
Question
What combination of business units would represent the most appealing portfolio?Group of answer choicesStar, Cow, Question MarkDog, Cow, Question MarkStar, Question MarkCow, Cow, Cow
Solution
The most appealing portfolio would be Star, Cow, Question Mark. Here's why:
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Star: These are high growth, high market share products. They are the leaders in the business and require attention to ensure they maintain their lead. They generate more revenue than they consume.
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Cow: These are low growth, high market share products. They are the foundation of the company and generate more cash than the amount of investment required. They are the cash cows and the money generated from these should be invested in other areas.
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Question Mark: These are high growth, low market share products. They consume resources and generate little in return. They absorb most money as you attempt to increase market share.
This combination allows for a balanced portfolio, with the stable income from the 'Cow' funding the potential future stars (the 'Question Marks'), and the 'Stars' representing the current best-performing products.
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