BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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According to BCG matrix, ‘Hungry Dogs’ are the services or service units which ____
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have been continually making loss but have potential for revival
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have been continually making profit and have high potential for further development
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are generating returns but have little scope for further development
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have been continually making loss and have little potential for revival
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Explanation:
Detailed explanation-1: -A dog is a business unit that has a small market share in a mature industry. A dog thus neither generates the strong cash flow nor requires the hefty investment that a cash cow or star unit would (two other categories in the BCG matrix). A dog measures low on both market share and growth.
Detailed explanation-2: -Due to low market share, these firms face cost disadvantages. 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.
Detailed explanation-3: -1 Answer. Decline does Dog symbolize in BCG matrix.
There is 1 question to complete.