In Andersen Major's BCG matrix, what category best describes the food and beverage unit?

The food and beverage unit would best be characterized as a “Cash cow” in Andersen Major’s BCG matrix if it generates strong cash flows with a high market share but operates in a mature market with lower growth prospects. Cash cows are units that maintain a steady and reliable revenue stream, allowing the company to reinvest in other areas or support struggling divisions. This position typically arises when a business unit has matured, thus providing strong profits to fund other growth initiatives within the organization.

On the other hand, “Stars” are units that have high market share in fast-growing markets, and they require significant investment to maintain their market leadership. “Question marks” indicate units with low market share in high-growth markets, where the future is uncertain and investments might be required to gain market share. “Dogs” refer to units with low market shares and low growth that may drain resources without providing significant returns.

Understanding the different categories helps businesses strategize on how to allocate resources effectively and make informed decisions about investments and divestitures.