Management

Schermerhorn · Davidson · Poole · Simon · Woods · Chau

// Strategy formulation and BCG matrix model

The BCG matrix — 'Cash cows'

‘Cash cows’ produce large profits and a strong cash flow. However, because the markets offer little growth opportunity, the preferred strategy is stability or modest growth. ‘Cows’ should be ‘milked’ to generate cash that can be used to support needed investments in stars and question marks.

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