Lately the demand for building materials has dropped due to the slow down in new housing construction.Wood-O Corp.is thinking of closing its building materials division as it has been making a loss.Mostly likely the building materials division would be classified as a ____________.

Question

Quizplus · Accepted Answer

According to the BCG matrix, a "Dog" represents a business unit that has a small market share in a low-growth market. In this case, the building materials division is experiencing a drop in demand due to the slow down in new housing construction, which indicates a low-growth market. Additionally, the fact that it is making a loss shows that it has a small market share, hence it would most likely be classified as a "Dog."

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