tanveer hussain farrukh kaleem arslan ali rizwana tabussum rubila qayyum
DESCRIPTION
Tanveer Hussain Farrukh Kaleem Arslan Ali Rizwana Tabussum Rubila Qayyum. BCG Growth Share Matrix. What is BCG growth-share matrix. A MODEL Provides guidance for recourse allocation Most widely used Management instrument Portfolio Management. Introduction. - PowerPoint PPT PresentationTRANSCRIPT
Tanveer Hussain
Farrukh Kaleem
Arslan Ali
Rizwana Tabussum
Rubila Qayyum
BCG Growth Share Matrix
What is BCG growth-share matrix
A MODEL Provides guidance for recourse allocation Most widely used Management
instrument Portfolio Management
Introduction
Boston Consulting Group (BCG) A general management consulting firm highly
respected in Business Strategy consulting.
How to develop BCG Matrix?
Relative Market Share = SBU Sales this Year
leading Rival’s sales this year
Market Growth Rate = Industry sales this year – Industry sales last year
Industry sales last year
Strategies to Pursue
Build Hold Harvest Digest
Build
Market share needs to be increased to strengthen its position
Short-term earnings are deliberately sacrifice to gain long-term profits.
Suited to Question Marks if they want to become Stars
Hold
To maintain the current share position Used by Cash Cows to generate large
amount of cash.
Harvest
To increase the short-term cash-flow Suited for weak cash cows and for question
marks.
Divest
Get rid from the particular product line. Best suited for Question Marks
Where to find Information for BCG
Company’s annual reports Specialized research organizations
Limitations
Product positioning and strong Brand name is not mentioned
BCG only focuses on net cash consumption All SBUs are independent but this is rarely
realistic The relationship between cash-flow and
market share may be weak
Limitations
Growth share matrix is based on the assumption …
Market Growth is not the only factor …
Thank you