Strategic Management
BCG Matrix
Written by :
Afringga Qurani A.S. (008201100114)
Dery Apriani S. (008201100033)
Firdausi Fananiar (008201100086)
Mutmainnah Hauliyah (008201100120)
Putri Azizah S. (008201100023)
Rizqi Mulia Raya (008201100106)
Lecturer : Mr. Irfan Habsjah
Class : Accounting 2
President University
Jababeka Education Park, Jalan Ki Hajar Dewantara, Cikarang – Bekasi 17550
BCG Matrix
Definition of BCG Matrix
Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA in 1970, to help corporations with analyzing their business units or product lines. This help the company allocate resources and is used as an analytical tool in brand marketing, product
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If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.
• Stars are units with a high market share in a fast-growing industry (High Market Share / High Market Growth). The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, if they have been able to maintain their category leadership stars become cash cows, else they become dogs due to low relative market share.
As a particular industry matures and its growth slows, all business units become either cash cows or dogs. The natural cycle for most business units is that they start as question marks, then turn into stars. Eventually the market stops growing thus the business unit becomes a cash cow. At the end of the cycle the cash cow turns into a dog.
The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell. Managers were supposed to gain perspective from this analysis that allowed them to plan with confidence to use money generated by the cash cows to fund the stars and, possibly, the question marks. As the
The Business Analytics Department has compiled this report based on data supplied by DGHG. The purpose of this report is to use this data to answer several key questions set out by DGHG, along with providing information as to whether the company has been meeting its key performance indicators, as set out in the business plan. The questions this report will primarily address, are as follows:
By analysing those elements stated above, it is likely that the higher authority could evaluate the organisations in terms of its strategic performance level which would definitely lead to a better overall understanding on
Thompson Division tota Costs to Birch Paper = $288, being $400 made up of $280 for materials (linerboard and corrugating medium) and $120 for other costs. However because Thompson sources its materials from Southern division who make a $112 profit on materials, the total Cost to Birch Paper Company is materials $168 + other cost $120 = $288
* Although your team might have high customer satisfaction or a high stock price, your performance in regards to the overall competition is determined via a multi-dimensional scorecard that takes the following criteria into account:
A breakdown of our overall long-term strategy as well as the year-by-year decisions and review will follow in order to assess how well we met investor expectations as well as attempting to beat
The company ended in the last place, and we know that there are areas of opportunities. In spite of this, out of the five performance areas, our weighted average scores were above the investor expected standards for Y2015. On the other hand, we never meet the image rating score of 70, and our EPS fell
20 5. Corporate-level strategy 25 6. How is the effectiveness of the company’s strategies? (ROIC) 26 7. What strategic problems does the company have?
The Boston Matrix is a tool used by marketing managers to make decisions on which products within their portfolio that they should market and under what category on the
2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?
Q.3 Why Superior Improved Profitability during the period January 1 to June 30, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?
The follow information includes an analysis of the decisions made by SunPower’s management over a period of 18 years from 2008 - 2025. These decisions could impact the organizations pricing, marketing, as well as investment strategies. For the company to maximize profits, some objectives had to be met. I would suggest that the following objectives would need to be
This makes the company look good and they can afford to do this from good financial skills. Decisions like this make a good profit in the long run and all in all this is why it is so important to have a good management team.
Part of Fiserv’s business-unit director’s compensation was in relation to the bi-yearly feedbacks of their client’s and this identifies their willing intent to improve and provide better for their products and for the clients. (Mote, Dave n.d.)
The board decided that the company should be judged on its ability to make a profit, gain market share, provide positive ROA and make money for our shareholders with an increasing stock price. Our target was a stock price of $38
The unit’s readings have provided many solutions to the challenges businesses encounter nowadays. To this day, there are many companies that have business plans that concentrate strictly in lowering operating cost, cut budgets as much as possible and overwork workers that already are overworked.