Final answer:
A 'dog' in the business context refers to a product or business that has a low market share in a mature, slow-growing industry. Dogs are considered to be poor investments and often bring low or negative cash returns to a company.
Step-by-step explanation:
In the context of a product or business, a 'dog' is an industry term derived from the Boston Consulting Group's matrix. A dog refers to a product or business with a low market share in a mature industry, which usually equates to option 1) A product or business with low market share in a mature industry. Dogs are typically considered to be cash traps because they generate low or negative cash returns.
Considering a business scenario, dogs do not have a significant role in a competitive market. They are in a poor position because the industry is not growing and the product has a low market share. As such, the investment in these business units is minimized or they are divested. Attempting to gain market share in this position is often not financially feasible, unless the business is undergoing major repositioning or transformation.