2. Four business units A, B, C and D of a firm X have been characterized as follows, after carrying out Business Portfolio Analysis: Business unit A B D Category Dog Cash Cow Star Question Mark Answer the following questions with respect to the above analysis: a) Plot the above-mentioned business units on BCG matrix. What are the recommended strategies for business units 'A' and 'B' as per the Business Portfolio Analysis? b) A competitor firm Y is keen to acquire firm X's business unit C' and is willing to pay an attractive amount for this purpose. Should firm X accept this offer? What are the pros and cons to firm X for selling business unit C to competitor firm Y?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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2. Four business units A, B, C and D of a firm X have been characterized as follows, after
carrying out Business Portfolio Analysis:
Business unit
A
C
D
Category
Dog
Cash Cow Star
Question Mark
Answer the following questions with respect to the above analysis:
a) Plot the above-mentioned business units on BCG matrix. What are the
recommended strategies for business units 'A' and 'B' as per the Business
Portfolio Analysis?
b) A competitor firm Y is keen to acquire firm X's business unit 'C' and is willing
to pay an attractive amount for this purpose. Should firm X accept this offer?
What are the pros and cons to firm X for selling business unit C to competitor
firm Y?
Transcribed Image Text:2. Four business units A, B, C and D of a firm X have been characterized as follows, after carrying out Business Portfolio Analysis: Business unit A C D Category Dog Cash Cow Star Question Mark Answer the following questions with respect to the above analysis: a) Plot the above-mentioned business units on BCG matrix. What are the recommended strategies for business units 'A' and 'B' as per the Business Portfolio Analysis? b) A competitor firm Y is keen to acquire firm X's business unit 'C' and is willing to pay an attractive amount for this purpose. Should firm X accept this offer? What are the pros and cons to firm X for selling business unit C to competitor firm Y?
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