Business Studies

These questions will test knowlege on :
- the boston matrix

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What is a Cash Cow ?

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They have a high market share
Low growth markets
Low cost support
High customer loyalty
High cash revenue

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What is a problem Child ?

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Products have a low market share in a high growth market
May have potential but needs money to develop
May produce negative cash flow
Protential for the future or ditch the product ?

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What is a dog ?

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Products in a low growth market
Have low or declining market share
Associated with negative cash flow
May require large sums of money to support
Company may drop them soon

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What are stars ?

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Products in markets experiancing high growth rates with a high or increasing share of the market
Likely to be in the growth stage of the products life cycle so costs of advertising and machinery could still be high
potenial for high revenue and profit in the future but not in the present.

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