Difference between revisions of "Dogs"

From knowledgebase
Jump to navigation Jump to search
(Created page with "Dogs or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to m...")
 
 
(One intermediate revision by the same user not shown)
(No difference)

Latest revision as of 19:24, 27 August 2020

Dogs or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.

Part of: BCG Matrix