Strategy Classics: BCG Growth-Share Matrix (PowerPoint PPTX Slide Deck)

DESCRIPTION

This product (Strategy Classics: BCG Growth-Share Matrix) is a 24-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

The BCG Growth-Share Matrix is a classic Strategy framework, developed by BCG's founder, Bruce Henderson, in the 1970s. This framework is designed to help with long-term Strategic Planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

The BCG Matrix is extremely popular for Portfolio Management. In fact, in the 70s and 80s, approximately half of the Fortune 500 used this framework when making business investment decisions.

The framework is depicted as a 2x2 matrix, where the 2 axes represent Market Growth and Market Share. On this 2x2, we map the position of each business of a company's portfolio or compare the position of players in one industry.

There are 4 quadrants in the BCG Matrix, each with distinct cash flow characteristics and implications:

1. Cash Cow
2. Dog
3. Question Mark
4. Star

The BCG Matrix helps us assess the competitive position of each business, determine possible cash requirements, and focus our attention on key issues. Note that in today's rapidly changing Digital Age, market share is no longer as direct a predictor to business performance.

This deck also includes slide templates for you to use in your own business presentations.

This comprehensive deck delves into the foundational principles of the BCG Growth-Share Matrix, providing a clear understanding of product cash flow dynamics. It includes detailed scenarios such as Optimum Cash Flow and Disaster Sequence, illustrating how to strategically manage your portfolio. The PPT also offers a six-step approach to performing BCG Matrix Analysis, with illustrative outputs to guide your decision-making process. Tailored templates are provided to facilitate the application of the BCG Matrix in various business contexts, ensuring you can effectively leverage this classic strategy framework.

Source: Best Practices in Growth Strategy, Strategic Planning, BCG Growth Share Matrix PowerPoint Slides: Strategy Classics: BCG Growth-Share Matrix PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting

PPT SLIDE DEEP DIVES

Strategic Investment Framework for Business Growth

This PPT slide presents a framework for understanding the dynamics of business portfolio management through the lens of the BCG Growth-Share Matrix. It categorizes business units into 4 distinct scenarios based on their cash flow and market share. The primary focus is on how to transition "Question Marks" into "Stars" by leveraging resources from "Cash Cows."

The matrix is divided into 4 quadrants: the upper left quadrant represents "Stars," characterized by high growth and large cash flow. The upper right quadrant indicates "Question Marks," which have high growth potential, but modest cash flow. The lower left quadrant depicts "Cash Cows," generating large cash flow with low growth, while the lower right quadrant shows "Pets," which have both low growth and modest cash flow.

The slide emphasizes the need for careful market analysis and strategic investment to nurture Question Marks. By reallocating resources from Cash Cows, businesses can enhance the potential of these Question Marks, aiming to elevate them into the Star category. This approach requires a keen understanding of market dynamics and the ability to identify which Question Marks warrant investment.

The visual representation of the matrix serves as a quick reference for executives to assess their portfolio and make informed decisions. The clear delineation of cash flow and growth prospects allows for a straightforward evaluation of where to focus efforts and resources. This framework can guide strategic discussions and decisions, making it a valuable tool for any organization looking to optimize its business portfolio.

BCG Matrix Analysis: Business Portfolio Overview

This PPT slide presents an illustrative output of the BCG Matrix Analysis, showcasing a company's portfolio of eight businesses categorized into 4 distinct quadrants. Each major business area is detailed with key metrics, including 2018 revenues, three-year business growth percentages, three-year industry growth percentages, and the relative share against the largest competitor.

The Industrial Group is highlighted prominently, with "Tubular steel and ingot moulds" leading in revenue at $986.8 million and a robust growth rate of 16.7%. This segment appears to be performing well, indicating a strong position in the market. The "Component parts" category shows mixed results, with "Connecting devices" lagging in growth at 4.7%, while "Lamp Ballasts" displays a healthier growth rate of 9.2%.

The Chemical Group, however, shows a concerning trend with a negative growth rate of -1.6% for its primary product line. This suggests potential challenges in this area that may require strategic reevaluation.

The Consumer Group reveals significant revenue from "Manufactured consumer products," particularly "Apparel," which boasts a growth rate of 13.3% and a relative share of 2.42 against its largest competitor. The "Beverages" segment stands out with an impressive growth rate of 59.7%, indicating a strong market opportunity.

The accompanying graph visually represents these metrics, plotting industry growth against relative market share. The analysis concludes with a recommendation for the company to consider divestment or repositioning strategies for its underperforming segments, particularly in Chemicals and Connecting Devices. This insight is crucial for decision-makers aiming to optimize their portfolio and drive future growth.