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SMUnit 3 of 2-4

Essay Instructions:

In a BCG Matrix, all divisions are classified as either Question Marks, Stars, Cash Cows or Dogs. Define each of these terms and briefly discussion how you would apply the terms to strategic planning. Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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BCG Matrix
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Institution:
The question marks are parts of business entities that have a very high growth rate; however they do not have a market share that is as high. As such, they tend to have very little returns while at the same time they consume huge sums of money. This is also the reason as to why they are generally referred to as the problem child, given the fact that they are bleeding the company money. During strategic planning, these are entities that require a second look and clear way forward. The fact that they have high growth rates also means that they have great potential and can turn into a star. This means that during the strategic planning, in-depth analysis will have to be carried out to make sure that they are worth all the effort and the heavy investment.
The stars on the other hand are products or business entities that have the highest market share unlike the question marks. As such they happen to generate a lot of cash other than losses. They have very high growth rates similar to the question marks and thus also consume quite significant sums of money. Stars spend as much money as they generate. With respect to planning strategi...
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