16. Focal Task-BCG Matrix-Suma.docx

Question marks must be analyzed carefully in order to

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degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. What SBUs within you Focal Company are Question marks? SANOFI GENZYME- RARE DISEASES, MULTIPLE SCLEROSIS, ONCOLOGY, IMMUNOLOGY Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. What SBUs within you Focal Company are Stars? GENERAL MEDICINES AND EMERGING MARKETS DIABETES & CARDIOVASCULAR- Haemaccel, Lantus etc. SANOFI PASTEUR VACCINES Dogs Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture. What SBUs within you Focal Company are Dogs? GENERAL MEDICINES AND EMERGINNG MARKETS – No-spa, Avil MERIAL Cash cows As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question
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  • Spring '14
  • JohannesDenekamp
  • Cash cow

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