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15 September, 17:25

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?

A) Stars

B) Cash cows

C) Question marks

D) Dogs

+5
Answers (1)
  1. 15 September, 17:38
    0
    Dogs

    Explanation:

    The reason is that the Dogs are the business units that generate very fewer cash and has very low sales growth which is the case of petroleum extraction unit. It has no profits earned which means fewer cash generation and also has lower growths because the market is mature and that the market has greater number of competitors who compete in a better position.
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Home » Business » 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.
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