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Two large multispecialty medical groups have recently asked you to conduct audits using the BCG matrix.

a. For the first group, your analysis reveals the following distribution of services: Cash cows—65%; stars—10%; problem children—20%; dogs—5%.

b. In the second group, the distribution is: Cash cows—20%; stars—60%; problem children—15%; dogs—5%.

What does this mean? Explain the breakdown. Where you might want to invest further and where you might begin limiting funding?

Operation Management, Management Studies

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