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pany is inadequate and cannot support the question marks. The company may allocate available cash among all question marks in equal proportion. Dogs may also be given occasional cash nourishment. If the company continues its current strategy, it may find itself in a dangerous position in five years, particularly when the cash cow moves closer to becoming a dog. To take corrective action, the company must face the fact that it cannot support all its question marks. It must choose one or maybe two of its three question marks and fund them adequately to make them stars. In addition, disbursement of cash in dogs should be totally prohibited. In brief, the strategic choice for the company, considered in portfolio terms, is obvious. It cannot fund all question marks and dogs equally.

The portfolio matrix focuses on the real fundamentals of businesses and their relationships to each other within the portfolio. It is not possible to develop effective strategy in a multiproduct, multimarket company without considering the mutual relationships of different businesses.

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