Which term describes business units in the BCG Matrix that present high potential but require high investment?

The term that describes business units in the BCG Matrix that have high potential but require high investment is "Question Marks." In the context of the BCG Matrix, Question Marks are characterized by low market share in a high-growth market. This indicates that while there is significant opportunity for growth, these units need substantial investment to increase their market share and possibly transform into Stars, which are business units with high market share and high growth potential.

The key distinction for Question Marks is their uncertain status; although they have potential, it is not guaranteed, and they require strategic decision-making regarding whether to invest and nurture them or potentially divest. The BCG Matrix is a strategic tool that helps organizations analyze their portfolio of business units and make informed investment decisions.

In contrast, Dogs represent units with low market share and low growth, Stars are units with both high market share and high growth, and Cash Cows are those with high market share but low growth, often generating steady cash flow with less need for investment. Understanding these categories aids in strategic planning and resource allocation within a business.