Which strategy would be most appropriate for a division classified as a Dog?
A) Market penetration
B) Market development
C) Product development
D) Retrenchment
E) Forward integration

Question

Quizplus · Accepted Answer

A division classified as a Dog has low market share and operates in a low-growth market. Such a division is not generating enough profits and is not adding value to the company. Retrenchment is the most appropriate strategy for such a division because it involves reducing the amount of resources allocated to the division, possibly downsizing or divesting, and cutting back on expenses to minimize losses. This strategy helps the company to focus on more profitable divisions and areas of growth. Market penetration, market development, and product development strategies are more appropriate for divisions classified as Stars or Question Marks, while forward integration is more appropriate for divisions classified as Cash Cows.

Which Strategy Would Be Most Appropriate for a Division Classified