Navya Foods' instant-noodles SBU has a 35% share of a market growing at 2% a year, and its nearest rival has a 12% share. Management wants to increase the SBU's short-term cash flow, accepting some long-term loss of position, to fund a fast-growing beverages SBU. In BCG terms, the noodles SBU and the strategy chosen for it are:

Correct answer: D) Cash cow; harvest

Explanation

Relative market share = 35% / 12% = about 2.9, which is high, and market growth of 2% is low, so the SBU is a cash cow. Of the BCG post-identification strategies, harvest aims to increase short-term cash flow regardless of the long-term effect. Build increases market share, hold preserves it, and divest sells or liquidates the business.