Question

Keplem has a business unit in the insurance sector. The insurance sector is a slow-growing industry, and Keplem does not have a large market share in the industry. In the context of the BCG matrix, which of the following categories of SBUs best describes Keplem's business unit?
A) Stars
B) Cash cows
C) Question marks
D) Dogs

Answer 1

Answer:

D) Dogs

Explanation:

As Keplem has a business unit in the insurance sector where the insurance sector is a slow-growing industry, and Keplem does not have a large market share in the industry. In the context of the BCG matrix, Keplem's business unit can be categorized as Dogs. Dogs are the low share and low growth business and products. They can generate enough profits and cash to support only themselves but they are not the sources of huge profits and cash. Organization want to harvest the dogs from their SBUs and eliminate them from their product portfolio, therefore, Keplem is in need to thinking seriously whether he should continue this business or what other business he can enter or what is required to be done with this current business in order to make it a star and then a Cash Cow which are highly profitable businesses and products.