Brenden Industries has five strategic business units (SBUs)-petroleum extraction, groceries, jewelry, telecommunication, and oil clothing. The petroleum extraction unit is costing the company a huge amount of money. It has not earned any profit so far nor will it earn any profit in the future as the oil fields are diminishing and the company has a small share in this market. In the context of the BCG matrix, which of the following categories of SBUs best describes the petroleum extraction unit?

Question

Quizplus · Accepted Answer

The petroleum extraction unit is not profitable and has no future potential, therefore it falls under the category of "Dogs" in the BCG matrix.

Brenden Industries Has Five Strategic Business Units (SBUs)-Petroleum Extraction, Groceries