Which portfolio model groups products into stars, cash cows, problem children and dogs?

Which portfolio model groups products into stars, cash cows, problem children and dogs?

• A. Boston Matrix
• B. Product Life Cycle
• C. Ansoff Matrix
• D. McKinsey Matrix

Answer: (A)

This question is about a portfolio management tool that classifies a company's products into four categories to guide investment decisions. It uses two dimensions: market growth rate and relative market share. High-growth, high-share products are “stars”—they demand investment to maintain momentum. High-share, low-growth products are “cash cows”—they generate steady profits with relatively little investment. High-growth, low-share products are “problem children” (often called question marks)—they may become stars with investment but carry risk. Low-growth, low-share products are “dogs”—low potential and often candidates for divestment. This framework is known as the Boston Matrix (BCG Matrix), which is why this labeling fits the question.

This question is about a portfolio management tool that classifies a company's products into four categories to guide investment decisions. It uses two dimensions: market growth rate and relative market share. High-growth, high-share products are “stars”—they demand investment to maintain momentum. High-share, low-growth products are “cash cows”—they generate steady profits with relatively little investment. High-growth, low-share products are “problem children” (often called question marks)—they may become stars with investment but carry risk. Low-growth, low-share products are “dogs”—low potential and often candidates for divestment. This framework is known as the Boston Matrix (BCG Matrix), which is why this labeling fits the question.