Which of the following is an example of a strategic business unit with question marks?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

A strategic business unit (SBU) categorized as a question mark is characterized by low market share in a high-growth market. This positioning presents a dilemma: the SBU has potential due to the growth of the market, yet it lacks a strong foothold, which makes its future uncertain.

Units in highly competitive markets often represent environments where there are many players vying for market share, which aligns with the definition of a question mark. In these competitive settings, new entrants or less established units might struggle to capture customers effectively despite the overall market growth, leading to their classification as question marks. The growth potential is there, but the unit has yet to prove its positioning and ability to compete.

Other choices indicate scenarios that do not align with the characteristics of question marks. Strong cash flow typically suggests a more established and potentially profitable SBU, not one with an uncertain future. Units in slow-growing markets with no market share are stagnant and not actively seeking growth, while units holding significant market share in fast-growing markets are seen as stars, as they have established themselves successfully in a favorable environment. Thus, option A distinctly reflects the uncertainties associated with SBUs categorized as question marks.

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