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Forums › ACCA Forums › ACCA SBL Strategic Business Leader Forums › BCG Matrix
I got this sentence from Kaplan book.I.e.firms that embark on acquisition programmes often forget that the most likely targets for acquisition are not cash cows and stars of the business world but question marks and dogs.plz….justify this.
If you have four organisations in your portfolio – one of each on the BCG. Which are you most likely to be open to selling to somebody else?
You’re going to want to keep your star and cash cow, so that leaves the question mark and dog. A prospective buyer of either of those might have more expertise in whatever the line of business is and see an opportunity to turn them around and snap them up at a lower price than they’d have to pay for a star or cash cow.
Thank you ! So you mean on the basis of cost only buyer would look for question mark and dog since they will cheaper than rest of two?
In addition to fidget’s sound reasoning, the very fact that the BCG matrix is drawn up on the basis of relative market share limits the number of potential cash cow and star targets in comparison to question mark and dog targets.
