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CIMA Exam CIMAPRA19-E03-1 Topic 4 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 82
Topic #: 4
[All CIMAPRA19-E03-1 Questions]

A has a portfolio of business units. One of A's units has a total market share of 25% and its largest competitor has a market share of 20%. In the last year the overall market of this business unit has declined by 2%, although its revenues have increased by 12%. following a successful marketing campaign.

According to the BCG matrix. A's business unit would be classified as which of the following?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Carin at Mar 21, 2024, 10:49 PM

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Pok
8 months ago
I'm leaning towards agreeing with Marica. The business unit seems to be in a growth phase, making it a Star.
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Eloisa
8 months ago
I see where you're coming from, Katie. However, the high market share and revenue growth suggest it's definitely a Star.
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Katie
8 months ago
But the overall market has declined, doesn't that make it more of a Question Mark?
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Marica
8 months ago
I agree with Arlean. The business unit's market share is high and revenues have increased, fitting the definition of a Star.
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Pedro
8 months ago
I disagree, I believe it should be classified as a Cash Cow.
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Arlean
8 months ago
I think A's business unit would be classified as a Star.
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Viki
8 months ago
That's an interesting point. It seems like there are multiple factors to consider.
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Georgiana
8 months ago
Well, despite the market share, the declining market and increasing revenues suggest it's a risky investment.
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Daron
8 months ago
A Question Mark? Why do you think that?
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Viki
9 months ago
I can see why you think that, but I also think it could be a Question Mark.
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Georgiana
9 months ago
I disagree, I believe it's a Cash Cow.
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Daron
10 months ago
I think it would be classified as a Star.
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