CA Intermediate · Financial Management and Strategic Management · Strategic Choices
A business unit of Bharat Auto Components operates in a low-growth industry and holds a low relative market share, yet generates modest cash. In the BCG matrix, this unit is classified as a:
The unit is a Dog. In the BCG matrix, a business with low relative market share in a low-growth industry is called a Dog, regardless of small cash generation. Cash cows have high share in low growth, and question marks have low share in high growth.
- AStar
- BQuestion mark
- CCash cow
- DDogCorrect
Explanation
Low market growth combined with low relative market share defines a Dog in the BCG matrix. A cash cow has high share in low growth, while a question mark has low share in high growth. The modest cash flow does not change the classification.
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