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15. Always Ahead Ltd. is an established player in FMCG, Herbs, Health care and White goods. Company has classified its portfolio on investments in different businesses in four quadrants as suggested by Boston Consulting Group. On further analysis of relationship between market growth rate and relative market share for White goods business, it is found that opportunities to increase its market share are there. Emphasis need to be given to make a strong future with large market share even by foregoing short-term earnings for this business. Which strategy is being pursued by the company for White goods segment:

Options

ABuild
BHold
CHarvest
DDivest
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Correct Answer

Option ABuild

All Options:

  • ABuild
  • BHold
  • CHarvest
  • DDivest

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Detailed Solution & Explanation

The correct answer is **Option A: Build**.

**Explanation — BCG Matrix and Portfolio Strategies:**
The **Boston Consulting Group (BCG) Matrix** classifies a firm's SBUs into four quadrants based on **Market Growth Rate** (vertical axis) and **Relative Market Share** (horizontal axis):

| Quadrant | Market Growth | Market Share | BCG Label | Suitable Strategy |
|---|---|---|---|---|
| Stars | High | High | Stars | Build / Hold |
| Question Marks | High | Low | Question Marks | Build / Divest |
| Cash Cows | Low | High | Cash Cows | Hold / Harvest |
| Dogs | Low | Low | Dogs | Harvest / Divest |

**Four Generic Portfolio Strategies:**
1. **Build** — Increase market share, even if it means sacrificing short-term profits. Appropriate for Question Marks with potential, or Stars needing further investment.
2. **Hold** — Maintain current market share. Appropriate for Cash Cows generating strong cash flow.
3. **Harvest** — Milk the business for short-term cash without reinvesting. Appropriate for weak Cash Cows or Dogs.
4. **Divest** — Sell or liquidate the business. Appropriate for Dogs or loss-making Question Marks.

**Matching to the scenario:**
- White goods business has **opportunities to increase market share** — indicating it is in a growing market but may have a relatively lower share (Question Mark territory) OR is a Star needing continued investment.
- The company is willing to **forgo short-term earnings** to build a **strong future with large market share** — this is the textbook definition of the **Build** strategy.

Hence, **Option A** is the correct answer.

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