DESCRIPTION
Created by Bruce Henderson of the Boston Consulting Group (BCG), the BCG Growth-Share Matrix business framework is used to help an organization analyze and make strategic decisions around its business units, product lines, or individual products.
This document explains the framework in detail. Topics include:
• quadrant definitions
• analysis steps/process
• examples
• template
• tips
This document provides a step-by-step guide to plotting businesses or products on the BCG Growth-Share Matrix. It begins with isolating business segments and determining key metrics such as dollar scale, market share, and market growth rate. The process includes calculating the relative market share (RMS) for each business and placing them accurately on the matrix. This methodical approach ensures that businesses can effectively map out their strategic positions.
The document also offers valuable insights into the expected cash characteristics of each quadrant of the market. It categorizes business units into Stars, Cash Cows, Dogs, and Question Marks, providing typical strategic prescriptions for each. For instance, Stars are recommended to build or hold share, while Dogs may need to withdraw or harvest share. This nuanced guidance helps businesses make informed decisions about resource allocation and strategic focus.
Additionally, the document emphasizes the importance of not relying solely on the BCG Matrix. It advises using this model in conjunction with other analytical tools, such as scenario modeling, to gain a comprehensive understanding of the business landscape. This holistic approach ensures that strategic decisions are well-rounded and robust.
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Source: Best Practices in BCG Growth-Share Matrix, Portfolio Strategy PowerPoint Slides: BCG Growth-Share Matrix PowerPoint (PPT) Presentation, LearnPPT Consulting
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Growth Strategy Frameworks
This bundle contains 6 total documents. See all the documents to the right.
Portfolio Strategy Consulting Frameworks Growth Strategy Change Management BCG Growth-Share Matrix Sales Presentation Development Business Case Example Financial Modeling Business Case Development McKinsey 7-S Organizational Design Pyramid Principle Quality Management & Assurance Consulting Training Cost of Quality Porter's Five Forces Cost Reduction Assessment Breakout Strategy SWOT Soft Skills Chief Strategy Officer Strategy Development Maturity Model
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