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    Presented By, Sanjay Parmar

    Uploaded by

    Rahul Chandiramani
    The document discusses the Boston Consulting Group (BCG) Growth-Share Matrix, a portfolio planning model that classifies business units into four categories based on their market growth and relative market share: Stars, Question Marks, Cash Cows, and Dogs. Stars have high growth and market share while requiring heavy investment. Cash Cows have low growth but high share and generate cash. Question Marks have high growth but low share and require investment. Dogs have low growth and share and do not generate much cash. The matrix helps assess business unit prospects and allocate resources efficiently.

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    Presented By, Sanjay Parmar

    Uploaded by

    Rahul Chandiramani
    22 views15 pages
    The document discusses the Boston Consulting Group (BCG) Growth-Share Matrix, a portfolio planning model that classifies business units into four categories based on their market growth and relative market share: Stars, Question Marks, Cash Cows, and Dogs. Stars have high growth and market share while requiring heavy investment. Cash Cows have low growth but high share and generate cash. Question Marks have high growth but low share and require investment. Dogs have low growth and share and do not generate much cash. The matrix helps assess business unit prospects and allocate resources efficiently.

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    The document discusses the Boston Consulting Group (BCG) Growth-Share Matrix, a portfolio planning model that classifies business units into four categories based on their market growth and relative market share: Stars, Question Marks, Cash Cows, and Dogs. Stars have high growth and market share while requiring heavy investment. Cash Cows have low growth but high share and generate cash. Question Marks have high growth but low share and require investment. Dogs have low growth and share and do not generate much cash. The matrix helps assess business unit prospects and allocate resources efficiently.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    22 views15 pages

    Presented By, Sanjay Parmar

    Uploaded by

    Rahul Chandiramani
    The document discusses the Boston Consulting Group (BCG) Growth-Share Matrix, a portfolio planning model that classifies business units into four categories based on their market growth and relative market share: Stars, Question Marks, Cash Cows, and Dogs. Stars have high growth and market share while requiring heavy investment. Cash Cows have low growth but high share and generate cash. Question Marks have high growth but low share and require investment. Dogs have low growth and share and do not generate much cash. The matrix helps assess business unit prospects and allocate resources efficiently.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    BOSTON CONSULTING GROUP MATRIX

    Presented by, Sanjay parmar

    THE BCG GROWTH-SHARE MATRIX


    It is a portfolio planning model which is based on the

    observation that a companys business units can be classified in to four categories: Stars Question marks Cash cows Dogs
    It is based on the combination of market growth and

    market share relative to the next best competitor.

    STARS
    High growth, High market share
    Stars are leaders in business.
    They also require heavy investment,

    to maintain

    its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.

    CASH COWS

    Low growth , High market share

    They are foundation of the company and often the

    stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.

    DOGS
    Low growth, Low market share

    Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be

    minimized. Business is situated at a declining stage.

    QUESTION MARKS
    High growth , Low market share
    Most businesses start of as question marks.
    They will absorb great amounts of cash if the

    market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.

    WHY BCG MATRIX ?


    To assess : Profiles of products/businesses The cash demands of products The development cycles of products Resource allocation and divestment decisions

    MAIN STEPS OF BCG MATRIX


    Identifying and dividing a company into SBU.
    Assessing and comparing the prospects of each SBU

    according to two criteria : 1. SBUS relative market share. 2. Growth rate OF SBUS industry. Classifying the SBUS on the basis of BCG matrix. Developing strategic objectives for each SBU.

    BCG MATRIX WITH CASH FLOW

    BENEFITS
    BCG MATRIX is simple and easy to understand.
    It helps you to quickly and simply screen the

    opportunities open to you, and helps you think about how you can make the most of them. It is used to identify how corporate cash resources can best be used to maximize a companys future growth and profitability.

    LIMITATIONS
    BCG MATRIX uses only two dimensions, Relative

    market share and market growth rate. Problems of getting data on market share and market growth. High market share does not mean profits all the time. Business with low market share can be profitable too.

    PRACTICAL USE
    MAHINDRA & MAHINDRA
    HLL IES

    BCG MATRIX

    scorpio

    Jeep

    balero

    Though BCG MATRIX has its limitations it is one of the most FAMOUS AND SIMPLE portfolio planning matrix ,used by large companies having multi-products.

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