BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cow
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Question mark
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Dog
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Detailed explanation-1: -According to the BCG matrix, companies should liquidate, divest, or reposition these “pets.”1 In reality, though, such a move might not make financial sense because dogs may already have such low value and could distract management during the sale process.
Detailed explanation-2: -Dogs. These are low growth or low market share products. There are few chances that they will be profitable, so investors must be careful to decide whether to invest in such companies. Investing in these businesses requires a good understanding of their strategies and prospects.
Detailed explanation-3: -Definition: ‘Dog’ is named as one of the quadrants of the Boston Consultancy Group (BCG) matrix which has a small market share in a mature industry. The BCG growth share matrix was developed to manage different categories of business units in the company itself.
Detailed explanation-4: -Therefore, in such situation, managers need to decide whether the investment currently being spent on keeping these products alive, could be spent on making something that would be more profitable. Diet coke, a Coca-Cola product, is on such example of Dogs.