What category of SBUs best describes Hankson Corp.'s information technology unit in the context of the BCG matrix?

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In the context of the BCG matrix, categorizing Hankson Corp.'s information technology unit as a "Star" is based on the characteristics associated with this classification. Stars are business units with a high market share in a rapidly growing industry. They typically have strong competitive positions, which allows them to generate significant revenue.

If Hankson Corp.'s information technology unit is growing quickly and has already attained a strong foothold in its market, it would be positioned as a Star. This category represents units that not only contribute to a company’s revenue significantly but also require substantial investment to maintain their growth momentum. These businesses often have the potential to become the next Cash Cows as they eventually mature and market growth slows down.

In contrast, a Cash Cow would imply that the unit has a high market share in a mature industry, which might not reflect the growth aspect of the information technology sector. Question marks indicate units with low market share in high-growth markets, suggesting uncertainty about their future potential. Dogs represent units with low market share in low-growth markets, generally not expected to generate significant profits. Thus, labeling the information technology unit as a Star aligns accurately with a scenario where it is actively capitalizing on market growth while maintaining a strong competitive presence.

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