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You have been given the BCG matrix on two divisions of your company: the appliance and electronics divisions. It appears that the electronics division can be located in the upper right quadrant of the matrix and the appliance division appears in the lower left quadrant of the matrix. You need to offer a strategic recommendation which includes these four findings:

Include an opinion on how much reliance the company should have on these findings.
What do these findings suggest?
What recommendations would you make?
What other measurements should be used to help reinforce or negate these findings? Support your answer.

Objectives:

* Use effective communication techniques.
* Identify examples of good and bad business practices in the use of strategy design components.
* Research and discuss some of the changes occurring in the way that organizations structure themselves and their work.
* Develop plans to improve business operations.

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Solution Summary

You have been given the BCG matrix on two divisions of your company: the appliance and electronics divisions

Solution Preview

These findings suggest about the relative positioning of the individual business divisions in the overall portfolio of the company and helps in making right strategic decisions about the various divisions. Let us first start with the electronics division, which is in the upper right quadrant or "Question Mark" segment of BCG Matrix. It implies that electronics division is in a rapidly growing industry, yet commands a very small miniscule market share. Hence, organization should try to exploit strong growth and expansion opportunities in the electronics ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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