Bcg Growth Share Matrix - 772 Words

Dublin Institute of Technology MSc COMPUTING SCIENCE (Information Technology for Strategic Management) BCG Growth Share Matrix Research Assignment No. 2 The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model that was developed by Bruce Henderson of the Boston Consulting Group in the early 1970s. It is based on the observation that organisations business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor. Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these†¦show more content†¦The cash cow generates a relatively stable cash flow; its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Under the growth-share matrix model, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the organisations entire business portfolio can be displayed in a single diagram. Reference: Internet Center for Management and Business Administration Inc, 2003, BCG Growth Share Matrix, Available [Online]:Show MoreRelatedThe Bcg Matrix1694 Words   |  7 PagesBCG Matrix Opportunity - Threat Analysis Submitted to: Professor Clyde By : Parth Mithani Roll No. 60 F.Y.M.M.S. Alkesh Dinesh Modi Institute for Financial amp; Management Studies. 1) The BCG Matrix The BCG / Growth-Share matrix is a model developed by the Boston Consultancy Group in the early 1970’s. It is a well known tool for a marketing manager. It is based on the observation that a company’s business units can be classified into four main categories based on combinations of market growthRead MoreBcg Matrix Analysis2570 Words   |  11 PagesBCG Matrix Model BCG Matrix Model The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970s. The BCG model is based on classification of products (and implicitlyRead MoreBcg Paper1921 Words   |  8 PagesManagement BCG Matrix Written by : Afringga Qurani A.S. (008201100114) Dery Apriani S. (008201100033) Firdausi Fananiar (008201100086) Mutmainnah Hauliyah (008201100120) Putri Azizah S. (008201100023) Rizqi Mulia Raya (008201100106) Lecturer : Mr. Irfan Habsjah Class : Accounting 2 President University Jababeka Education Park, Jalan Ki Hajar Dewantara, Cikarang – Bekasi 17550 BCG Matrix Definition of BCG Matrix Boston Consulting Group (BCG) Matrix is a four celled matrix (aRead MoreBcg Matrix Is A Model Developed Via The Boston Consultancy Group1691 Words   |  7 Pagesâ€Æ' BCG Matrix The BCG matrix is a model developed via the Boston Consultancy group within the early 1970’s. It is a good known device for an advertising manager. It s based on the commentary that a company’s business models can be categorized into four important categories centered on combos of market development and market share, for this hence the name growth-share matrix. Market progress represents the industry attractive attractiveness, and market share stands for competitive knowledge. ThisRead Moreadidas bcg2242 Words   |  9 Pagesï » ¿DEFINITION BCG MATRIX Boston Consulting Group (BCG) Matrix is defined by the following authors as follows: Table 1 Definition of BCG Matrix Pearce (2013) David (2012) BCG Matrix is an approach pioneered by the Boston Consulting Group that attempted to help managers â€Å"balance† the flow of cash resources among their various businesses while also identifying their basic strategic purpose within the overall portfolio. It is also known as â€Å"portfolio techniques†. BCG Matrix graphically portraysRead MorePortfolio Analysis5153 Words   |  21 Pagesstay in business. Examining the nature of the product life cycle concept acts as a good introduction to product portfolio models. Several product portfolio models, perhaps the best known of which are the BCG (Boston Consulting Group) matrix, the GE/McKinsey matrix, and the Directional Policy matrix have been adopted by marketers to aid them assess the health of a firm’s product 22 PORTFOLIO ANALYSIS mix. This chapter examines the use and limitations of such models. Portfolio models are usefulRead MoreMarketing Analysis : Bcg And Ansoff Matrices1863 Words   |  8 PagesMarketing Analysis Using BCG and Ansoff Matrices Introduction BCG matrix is also referred to as growth share matrix, Boston matrix, portfolio diagram or product portfolio. BCG matrix is a graph created by Bruce D. Henderson to help corporations analyze their business units and their product lines being created for Boston Consultation Group. The matrix help in the group allocation of resources and is also used as an analytical tool in the product management, brand marketing, strategic managementRead MoreBcg Matrix ( Bcg ) Matrix1409 Words   |  6 Pages(BCG) Matrix. This type of matrix is used to recognize how a company is surviving in different markets. â€Å"The BCG Matrix graphically depicts differences among divisions in terms of relative market share position and industry growth rate† (Jones p. 177). (See Appendix D for and example BCG Matrix). Under Armour has two areas that are a major star for the company. Stars, represent the organizations best opportunities for growth. According to Williams (2015) Under Armour is continuing to seeRead MoreEvaluating A Pharmaceutical Portfolio Using ( Bcg, Eg, And Others )780 Words   |  4 Pages1- The purpose of analyzing a pharmaceutical portfolio using(BCG, EG, and others), and describe the characteristics of a â€Å"Star† products and its role in portfolio. The decisions that the companies make are affected by the problem of resource scarcity. With many opportunities but limited resources, the companies should know what is the best to invest their cash in. Always, there is the question of how and where to invest the cash, it is a real challenge for those who are responsible for allocatingRead MoreAnalyse a Case Study `Change at Whirlpool Coroporationanalyse a Case Study `Change at Whirlpool Coroporation1424 Words   |  6 Pagesthe company . On the other hand , such a change can prove stressful to employees who have got used to working in small-town conditions where their environment is more or less safe Generation of strategic direction (Ansoff matrix Choosing the strategy from Ansoff s matrix , Whirlpool can follow the strategy of Market Penetration for established markets and Market Development for emerging markets In markets like the US where it is well-established , Whirlpool s strategy of brand value creation