- Размер10,37 Kб
They produce a great amount of cash for the organization but, since the market is not growing, do not require a great amount of financial resources for growth and expansion. As result, the cash they generate can be used by the organisation to satisfy current dept and to support SBUs in need of cash. Question marks.
When an SBU has a low share of a high-growth marked the organisation must decide whether to spend more financial resources to build it into a star, or to phase it down or eliminate it al together. Cash traps or dogs. When an SBU has a low-growth market, it may generate enough cash to maintain itself, or it may drain money from other SBUs.
The only certainty is that, cash traps are not great sources of cash. Thus, depending on whether the SBUs are products, product lines, entire divi¬sions, or departments, an organisation may have one star, three cash cows, two ques¬tion marks, and two cash tarps. After classifying each SBU according to the business portfolio matrix, management must then decide which of the four alternative strategies should be pursued for each: 1.
Build. If an organisation has an SBU that it believes has the potential to be a star (probably a question mark at present), this would be an appropriate objective. Thus, the organisation may even decide to give up short-term profits to provide the necessary financial resources to achieve this objective.
2. Hold. If an SBU is a very successful cash cow, a key objective would certainly be to hold or preserve the market share so that the organisation can take advantage of the very positive cash flow.
3. Harvest. This objective is appropriate for all SBUs except those classified as stars.
The basic objective is to increase the short-term cash return .Скачать