Alex, a product manager with Lucy plc, is currently preparing a report for the company’s directors in which he will provide an assessment of each of the company’s existing product lines.
In preparing his report, Alex is making use of the Boston Consulting Group Matrix.
He has classified one product, the Midlander, as having a low market share in a high growth market.
In the conclusion to his report, therefore, we would expect Alex to recommend that, regarding the Midlander, Lucy plc should pursue the following?
Select ONE answer:
- Either a hold or a divest strategy
- Either a hold or a harvest strategy
- Either a build or a harvest strategy
- Either a build or a leave strategy
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct == > With a low market share of a high growth market, the Midlander would be classified as a Question Mark within the BCG matrix, for which the possible recommended strategies are Build or Harvest.
- Not correct
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