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Flip to reveal answersA healthy portfolio has ___ funding ___ and promising ___
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All 25 Flashcards — The BCG matrix
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Question
A healthy portfolio has ___ funding ___ and promising ___
Answer
Cash cows funding stars and promising question marks.
💡 Hint
Cows fund stars + ?s
Question
BCG: Stars = invest. Cash Cows = milk. Question Marks = ___. Dogs = ___
Answer
Decide (invest or divest). Divest/discontinue.
💡 Hint
Decide; divest
Question
Three limitations of the BCG matrix?
Answer
Only two measures; assumes high share = high profit; hard to measure accurately; static; dogs may still be valuable.
💡 Hint
Two measures + assumption + static
Question
Stars = ___ share + ___ growth. Strategy?
Answer
High share + high growth. Invest to maintain position — future cash cows.
💡 Hint
High+high → invest
Question
What is the BCG matrix?
Answer
A 2×2 grid classifying products by market share (high/low) and market growth (high/low) — manages the product portfolio.
💡 Hint
Share vs growth grid
Question
Cash Cows = ___ share + ___ growth. Strategy?
Answer
High share + low growth. Milk them — use profits to fund Stars and Question Marks.
💡 Hint
High+low → milk
Question
BCG helps answer which two questions?
Answer
Which products should we invest in? Which should we drop?
💡 Hint
Invest or drop?
Question
Too many dogs means the business needs to ___
Answer
Innovate — it has too many declining products and no growth prospects.
💡 Hint
Innovate
Question
BCG assumes high market share = high profitability. Why isn't this always true?
Answer
A business could have high share through heavy spending — share doesn't guarantee margins.
💡 Hint
Share ≠ profit
Question
Healthy portfolio: cash cows funding ___
Answer
Stars and promising question marks.
💡 Hint
Stars + ?s
Question
BCG axes: x-axis = ___, y-axis = ___
Answer
Market share (high/low). Market growth (high/low).
💡 Hint
Share (x), growth (y)
Question
Dogs may still be valuable because ___
Answer
They serve a niche market or complete the brand range — strategic reasons to keep them.
💡 Hint
Niche + brand completeness
Question
No stars means ___
Answer
No future growth products — the business faces long-term decline.
💡 Hint
No future growth
Question
Question Marks = ___ share + ___ growth. Strategy?
Answer
Low share + high growth. Invest selectively or divest — uncertain potential.
💡 Hint
Low+high → decide
Question
Limitations: only two measures, static, ignores ___
Answer
Profitability and brand strength.
💡 Hint
Profitability
Question
Dogs = ___ share + ___ growth. Strategy?
Answer
Low share + low growth. Divest or discontinue — unless they serve a niche.
💡 Hint
Low+low → divest
Question
Use alongside ___ and ___
Answer
SWOT and product life cycle analysis.
💡 Hint
SWOT + PLC
Question
Name the four BCG quadrants
Answer
Stars, Cash Cows, Question Marks, Dogs.
💡 Hint
Stars, Cows, ?s, Dogs
Question
Hotel chain BCG example: luxury suites = ___
Answer
Star (high share, growing market). Standard rooms = Cash Cow. Budget range = Question Mark.
💡 Hint
Star, Cow, ?
Question
BCG is a ___ snapshot — products move between quadrants over ___
Answer
Static; time — today's star could become tomorrow's cash cow or dog.
💡 Hint
Static + time
Question
BCG ignores ___, ___ and brand strength
Answer
Profitability; brand strength — only looks at share and growth.
💡 Hint
Profit + brand
Question
Quick: High share + high growth = ___
Answer
Star.
💡 Hint
Star
Question
BCG manages the business's ___
Answer
Product portfolio — the full range of products it sells.
💡 Hint
Product portfolio
Question
Stars need heavy investment because ___
Answer
The market is growing fast — competitors are fighting for share and you must invest to stay ahead.
💡 Hint
Fast growth = invest to compete
Question
BCG helps prioritise where to ___ and where to ___
Answer
Invest; cut — directing resources to the most promising products.
💡 Hint
Invest vs cut
Read the notes
Full study notes for The BCG matrix
Topic 6.4 hub
Boston Consulting Group (BCG) matrix
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