Question 1

On the BCG Matrix, what is a cash cow?

Options :

A :

high market share, high market growth

B : high market share, low growth

C : low market share, low growth

D : low market share, high growth

Answer: B

Question 2

Which of the following are potential consequences for an organisation which fails to identify and address risk? Select TWO

Options :

A : lawsuits

B : corruption

C :

damage to brand image

D : financial loss

Answer: C,D

Question 3

Joan is a Category Manager at a packaging plant in Birmingham, UK. Her company creates and supplies different forms of packaging to manufacturers in the food and retail sectors. She is creating a Profile of the Category she manages in order to identify the spend category. By obtaining data on her Category, which of the following will Joan be able to do?

Options :

A : Find alternative suppliers

B : Prepare projections and budgets for the future

C : Competitive Supplier Selection

D : Benchmarking

Answer: B

Question 4

Which of the following will you put into box 6?

Options :

A : Profitability Concern

B : Liquidity Concern

C :

Gearing Concern

D : Efficiency Concern

Answer: C

Question 5

According to studies completed by Reeves, Moose and Venema in 2014, which of the following was proven to be true with regards to the BCG matrix?

Options :

A :

companies nowadays have more 'cash cow' items than in the past

B : products move through the four quadrants faster nowadays than in the past

C : there is a higher correlation between share leaders and profit leaders nowadays than in the past

D : there is a longer time between innovation and adoption nowadays than in the past

Answer: B

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