Dogs, 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 once short-time harvesting has been maximized.
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Growth–share matrix - Wikipedia, since such investment would be wasted in an industry with low growth. Cash "milked" is used to fund stars and question marks, that are expected to become cash cows some time in the future.[6] <span>Dogs, 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 once short-time harvesting has been maximized.[6] Question marks (also known as a problem child or Wild dogs) are businesses operating with a low market share in a high-growth market. They are a starting point for most businesses. Ques Summary
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