Paper Topic:

strategic analysis and choice

BCG GROWTH -SHARE MATRIX

Introduction

BCG is an acronym which stands for Boston Consulting Group Growth -share matrix . This is a mode which is recommended for all companies to use in the event of marketing and resource allocation . The information collected by experts in business environment indicates that there is no strategic management which appears to be successful without using the BCG growth model . Boston Consulting Group is a model widely used by many multinational and domestic companies as instrument in portfolio management in the event of employing a strong base

to face their competing companies in the industry they are operating . The BCG matrix helps to play as analytical tool where a certain company is faced with problems of constant market growth rate and lack of advancement in general (http /fmcg-marketing .blogspot .com /2007 /11 /bcg-matrix .html

Boston consulting group (BCG ) growth now comes in as a firm which gears its efforts in giving consultation services to other companies in general organization management where need arises . This firm is highly respected in the business industry due to their efficient and effective job . This firm was started in the 1970s as a business firm but today it has the leading level in terms of business schools and executive education Programmes around the world (http /fmcg-marketing .blogspot .com /2007 /11 /bcg-matrix .html

Boston Consulting Group labels

As a management tool Boston Consulting Group-share matrix can be used to classify product portfolio in four businesses types which are based on four graphic lebels .this include stars cash cows question marks and dogs . it also stipulates priorities which should be extended to a companies product portfolio . According to Boston Consulting Group priorities in company 's products portfolio can be given by use of the products portfolio cash usage and cash generational , i .e . input and output . Consequently the model gives the company a high light on how to deal with various product lines . For multinational companies the model acts as an indispensable tool for analytical purpose in this event of evaluating their organizations diversified product lines (http /bankelele .blogspot .com /2007_07_01_archive .html

Market growth and relative market share are the two dimensions in which BCG growth-share matrix can be based on . The two aspects reflect the level in which an organization has excelled in the industry it is operating . Products which are in fast growing market should be highly valued because they bring into the organization the highest profit margin in the organization and this can only be revealed through use of BCG growth-share matrix . Due to correlation between relative market and products cash generation , BCG helps to capture market share of a strategic business unit as well as analyzing how the units in an organization can be well advanced to have a competitive advantage against those of the competitors . The underlying assumption in BCG is that the more an organization is engaged in a particular activity the more they save costs which could have been incurred during the time of trading (http...

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