According to the Boston Consulting Group (BCG) matrix, companies should consider eliminating investments in

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BlackTom AI · Accepted Answer

The question asks about the BCG matrix and where investments should be eliminated.
Option 1: 'question marks.' In the BCG framework, question marks (also called problem children) are high-growth potential units that may require heavy investment to become stars. They are not typically the ones for immediate elimination; some are developed into stars if successful. So this option misidentifies the typical divestment target.
Option 2: 'red squares.' This term has no standard meaning in the BCG matrix; it seems to be a distractor or a misnomer, and therefore cannot be the correct basis for the recommended action.
Option 3: 'cats.' Like 'red squares,' this is not a recognized category in the BCG framework, making it an implausible choice for the proposed guidance.
Option 4: 'dogs.' In the BCG matrix, dogs are units with low market share and low market growth. They are often candidates for divestiture or liquidation because they generate low returns and require resources that could be better used elsewhere. This aligns with the common strategic recommendation to eliminate or reduce investments in dogs.
Option 5: 'cows.' While some people mistakenly refer to cash cows, the standard term in the BCG matrix is 'cash cows' for units with high market share in a low-growth market. They are typically candidates for milk-ing profits rather than elimination, so this option describes a different category and would not be the advised elimination target.
In summary, the only option that corresponds to the BCG rationale for divestment is the one describing dogs, while the others either reference nonstandard terms or mislabel the categories.

BUSI406 [Kubowicz Malhotra]: Principles of Marketing Midterm

According to the Boston Consulting Group (BCG) matrix, companies should consider eliminating investments in

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