Brenden Corp. has five strategic business units (SBUs) - telecommunication, trucking, electronics, energy, and oil exploration. The telecommunication unit has slowed down in terms of growth and is now dominated mainly by a few large companies. Brenden Corp. has a low market share in the industry and does not generate enough revenue to even cover its costs. In the context of the BCG matrix, which of the following categories of SBUs best describes the telecommunication unit?

a. stars

b. cash cows

c. question marks

d. dogs

Question

Marco Banks

Social Studies

14 December, 15:47

Brenden Corp. has five strategic business units (SBUs) - telecommunication, trucking, electronics, energy, and oil exploration. The telecommunication unit has slowed down in terms of growth and is now dominated mainly by a few large companies. Brenden Corp. has a low market share in the industry and does not generate enough revenue to even cover its costs. In the context of the BCG matrix, which of the following categories of SBUs best describes the telecommunication unit?

a. stars

b. cash cows

c. question marks

d. dogs

+1

Answers (1)

Know the Answer?

Stacy · Answer 1

Answer: d. DOGS

Explanation:

The Boston Consulting Group (BCG) growth-share matrix which was established in 1970 is a business planning tool that uses graphical representation of the goods and services a company provides to enable the company to decide whether to keep, sell or invest more in it's products. The distinct categories represented are the: dogs, cash cows, stars and question marks.

The relevant category is the "DOGS" category.

If a company's product finds itself here it means that it has a low market growth and a low market share. It is not generating enough cash for the company and could easily turn into cash traps that keep the company bogged down for a long period of time financially. It is recommended that they are sold, liquidated or repositioned.