Follett is barely investing in the business, Capital investment is minimal and its lowest level ever. They are conserving cash so that dividends can be paid. This is basic stuff, you have to invest to compete. You should invest in your employees but we know that will not happen but at least implement some new technologies. Have you looked at the junk in the stores?
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BCG Matrix - Where do you think Follett is?
Resources are allocated to business units according to where they are situated on the grid as follows:
Cash Cow - a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units.
Star - a business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead. If successful, a star will become a cash cow when its industry matures.
Question Mark (or Problem Child) - a business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown.
Dog - a business unit that has a small market share in a mature industry. A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.Resources are allocated to business units according to where they are situated on the grid as follows:
This would not be the first time they pulled cash out
Just in January 2016, Follett Stock paid dividend twice. I think family is pulling cash out...