Jameson&Dawson has four strategic business units (SBUs)—agriculture, auto, advertising, and accommodations. The agriculture industry is a rapidly growing industry, and Jameson&Dawson's SBU holds majority of the market share in the industry. Hence, the company earns large profits from its agriculture unit and invests majority of its funds in it. In the context of the BCG matrix, which of the following categories of SBUs best describes the agriculture unit?A) Stars
B) Cash cows
C) Question marks
D) Dogs

Question

11-10-2019
Business

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Jameson&Dawson has four strategic business units (SBUs)—agriculture, auto, advertising, and accommodations. The agriculture industry is a rapidly growing industry, and Jameson&Dawson's SBU holds majority of the market share in the industry. Hence, the company earns large profits from its agriculture unit and invests majority of its funds in it. In the context of the BCG matrix, which of the following categories of SBUs best describes the agriculture unit?A) Stars
B) Cash cows
C) Question marks
D) Dogs

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Answer: Stars

Explanation: Stars are placed on the left quadrant in a BCG matrix. In simple words, it refers to those products that belong to a market which has high growth. Such products have good market share and are invested more.

In the given case, Jameson and Dawson are making major profits from agriculture and have majority share in it. Also the company is continuously investing in it.

Hence from the above we can conclude that the correct option is A.