Real Goods Inc. is a large conglomerate. The company's beverages strategic business unit (SBU) has been recognized as a cash cow, and its tobacco SBU has been categorized as a dog. Which of the following can be inferred from this scenario?
A. While the market share of the company in the beverages industry will be high, the market share in the tobacco industry will be low.
B. The tobacco SBU should follow a backward integration strategy, and the beverages SBU should pursue a forward integration strategy.
C. While the tobacco SBU operates in a low-growth market, the beverages SBU operates in a high-growth market.
D. The management of the company should use the cash inflow from the beverages SBU and invest it in the tobacco SBU.
Answer: A
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