Refer to the scenario below to answer the following questions.
Clubhouse Gourmet -A- (Scenario)
Imagine that you are the president of Clubhouse Gourmet, a successful chain of fast-food restaurants with 60 locations across Canada. The success you have experienced in the last five years has you considering various options about what to do next with the business. Should you continue to expand the business at the current rate? Or perhaps open new and different restaurants? What should you do?
-Your oldest business, Clubhouse Gourmet, has not grown much in recent years. However, it is virtually debt-free and continues to generate large amounts of profits. According to the BCG matrix, Clubhouse Gourmet would be considered a(n) __________.
A) cash cow
B) problem child
C) question mark
D) old dog
E) sleeping giant

Question

Quizplus · Accepted Answer

Since Clubhouse Gourmet is still generating large profits and has a low debt-to-equity ratio, it would be considered a cash cow according to the BCG matrix. Therefore, the best choice would be to continue expanding the business at its current rate and invest in the existing Clubhouse Gourmet locations to maximize its profits. Opening new and different restaurants would be a risky move and may not guarantee the same success as the existing Clubhouse Gourmet chain.

Refer to the Scenario Below to Answer the Following Questions