1 / 16

Tanveer Hussain Farrukh Kaleem Arslan Ali Rizwana Tabussum Rubila Qayyum

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.

chayton-pereyra
Download Presentation

Tanveer Hussain Farrukh Kaleem Arslan Ali Rizwana Tabussum Rubila Qayyum

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tanveer Hussain Farrukh Kaleem Arslan Ali Rizwana Tabussum Rubila Qayyum

  2. BCG Growth Share Matrix

  3. What is BCG growth-share matrix A MODEL • Provides guidance for recourse allocation • Most widely used Management instrument • Portfolio Management

  4. Introduction Boston Consulting Group (BCG) • A general management consulting firm highly respected in Business Strategy consulting.

  5. 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

  6. Strategies to Pursue • Build • Hold • Harvest • Digest

  7. 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

  8. Hold • To maintain the current share position • Used by Cash Cows to generate large amount of cash.

  9. Harvest • To increase the short-term cash-flow • Suited for weak cash cows and for question marks.

  10. Divest • Get rid from the particular product line. • Best suited for Question Marks

  11. Where to find Information for BCG • Company’s annual reports • Specialized research organizations

  12. 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

  13. Limitations • Growth share matrix is based on the assumption … • Market Growth is not the only factor …

  14. Thank you

More Related