CONCEPT PRACTICE

PPM Star investment

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Volume 2 · Chapter 2 · Textbook Exercises · Q3

Original Volume 2 · Chapter 2 · Textbook Exercises, question 3. Accessible description follows. — Original textbook exercise · Select the image to enlarge

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Which of the following is an explanation of “Star” in the context of PPM (Product Portfolio Management)?

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Choose your answerAIt indicates products that have a high market growth rate and a high market share. These products require heavy investments to grow, so the money creation effect is not necessarily large.BIt indicates products with a low market growth rate and a low market share. The money creation effect is small, and the amount of cash flow is also small.CIt indicates products with a high market growth rate and a low market share. Although long-term possibilities can be expected, the extent of the money creation effect is not known.DIt indicates products that have a low market growth rate and a high market share. These products have a large money creation effect, and act as the support for a company by being the source of capital.

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Source: FE Vol 2.pdf, PDF page 196, textbook p. 192 · Information-technology Promotion Agency, Japan · First Edition: April, 2015. ID: tb-v2-c2-q3. Publisher answer and commentary · private review.