Cash cows are SBU's that typically generate:
A. problems for product managers
B. paper losses in the long run
C. large awareness levels but few sales
D. a lot of competition
Answer: Option D
Solution(By Examveda Team)
Cash cows are SBU's that typically generate a lot of competition. A Cash Cow is a metaphor used for a business or a product, which exhibits a strong potential in terms of returns in a low-growth market. The rate of return from this business is usually greater than the market growth rate. A company does not have to invest much in the business apart from the initial outlay. Once the company recovers its initial investment, it does not have to put in more cash to keep the business growing.Related Questions on Strategic Management
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C. strategic mode
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A. corporate level
B. business level
C. functional level
D. strategic level
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A. Strategies
B. Policies
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B. Growth strategy
C. corporate strategy
D. functional strategy
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