Which portfolio model groups products into stars, cash cows, problem children and dogs?

• A. Boston Matrix
• B. Product Life Cycle
• C. Ansoff Matrix
• D. McKinsey Matrix

Answer: (A)

This question is about a portfolio management tool that classifies a company's products into four categories to guide investment decisions. It uses two dimensions: market growth rate and relative market share. High-growth, high-share products are “stars”—they demand investment to maintain momentum. High-share, low-growth products are “cash cows”—they generate steady profits with relatively little investment. High-growth, low-share products are “problem children” (often called question marks)—they may become stars with investment but carry risk. Low-growth, low-share products are “dogs”—low potential and often candidates for divestment. This framework is known as the Boston Matrix (BCG Matrix), which is why this labeling fits the question.