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]]
bag
finance_public
created
Sat, 16 Oct 2010 13:13:28 GMT
creator
dirkjan
modified
Sat, 16 Oct 2010 13:13:28 GMT
modifier
dirkjan
tags
M9
Term
creator
dirkjan