Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp. is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a ________.
A) star
B) cash cow
C) dog
D) problem child
E) top gun

Question

Quizplus · Accepted Answer

The Boston Consulting Group Growth-Share Matrix classifies products/divisions into four categories based on their market growth rate and relative market share. The fine wood division, which is facing a drop in demand, would most likely have a low market share and low market growth rate, making it a "dog" - a division with low market share in a low-growth market, generating low or negative cash flows.

Lately the Demand for Building Materials Has Dropped Due to the Slowdown