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?
-Recently, you also purchased a small company that produces computer imaging software for medical applications. The business is profitable and growing, but the technological unknowns make it risky. According to the BGC matrix, it would be considered a(n) __________.
A) cash cow
B) problem child
C) question mark
D) sleeping giant
E) star

Question

Quizplus · Accepted Answer

According to the scenario, the small company producing computer imaging software for medical applications is profitable and growing, but the technological unknowns make it risky. Based on this information, the small company would be considered a question mark in the BCG matrix. As a question mark, it requires significant investment to grow and gain market share, but it also has the potential to become a star or cash cow in the future. Therefore, the best choice would be to invest in the small company and try to turn it into a star or cash cow. Continuing to expand the fast-food restaurant chain or opening new and different restaurants may also be viable options, but the scenario does not provide enough information to determine their feasibility.

Refer to the Scenario Below to Answer the Following Questions