Chapter $02$: Assignment

Total points: $\frac{4\mathrm{.}77}{10}$

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Sell Brand B$.$ The company should not remain in this business.

You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, you explain that you'll only consider a unit categorized, according to the BCG matrix, as a question mark. Here are your choices:

Unit A has revenue of $$27$ billion and a profit of $$6$ billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors.

Unit $B$ has revenue of $$30$ billion and a profit of $$7$ billion. Its market share is strong and growing. While its product is based on an outdated technology, the product has a loyal following for now.

Which of the corporation's two profitable units meets your criterion?

Neither meets your criterion, because Unit A is a star and Unit B is a cash cow.

Unit B