A diversified conglomerate must allocate scarce capital. It has one Star in renewable energy, two Cash Cows in consumer goods, and several Dogs in legacy industries. Which allocation logic aligns with BCG recommendations?

Question

Answer

Reinvest mainly in the Dogs to revive declining sectors

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Focus on cost reduction across all units equally

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Reduce Cash Cow reinvestment and shift funds to Question Marks

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Prioritize investment in the Star to ensure future growth

Crowdly

A diversified conglomerate must allocate scarce capital. It has one Star in rene...

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