Page 31 - Portfolio Analysis
P. 31
FIGURE 16
PROBLEM CHILD
MGR CASH GENERATED 20 HIGH
CASH USED 100
+ 80
MD
LOW
DOG
The finaly category businesses are Dogs. Their relative low growth rate
means that the cost of gaining share may well be prohibitive while their
low market share means costs are high relative to competitors. Many
such businesses tend to become cash traps, perpetually absorbing cash
resources unless strong action is taken to divest them
