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GGG is a manufacturer of four different components produced in four separate facilities.

GGG is a manufacturer of four different components produced in four separate facilities. The Production Director has sufficient funds to modernise one of the facilities.  GGG's decision rule in these circumstances is that investment is permissible in either a 'Cash Cow' or a 'Star' but not a 'Dog' or a 'Problem Child?'. Which facility should be modernised?

A.

Facility A produces a component with a relative market share of 1:5. Its current market growth rate is 4.5%.

B.

Facility B produces a component with a relative market share of 1:4. Its current market growth rate is 9%.

C.

Facility C produces a component with a relative market share of 3:1. Its current market growth rate is 11%.

D.

Facility D produces a component with a relative market share of 1:6. Its current market growth rate is 10%.

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