Application of BCG Matrix
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I was given a BCG matrix on two divisions of my 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. I need to offer a strategic recommendation based on these findings. I need to include my opinion on how much reliance the company should have on these findings, what these findings suggest, what recommendations I would make, and what other measurements should be used to help reinforce or negate these findings.
My Notes.
I used Able Corporation for my company, to do the Boston Consulting Group Matrix.
The appliance area is located in the Cash Cows portion of the matrix, which is located in the lower left of the quadrant on the matrix.
The electonics divisions of course, is located in the quadrant of the matrix of Question Marks.
From my understanding the Cash Cow divisions positioned in Quadrant 3 compete in a low growth industry. Also they generate cash in excess of their needs.
The Question Marks Quadrant 1 compete in a high growth industry. I found here that the cash needs are high and their cash generation is low.
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This explains the concept and application of BCG matrix elaborated by a practical case study
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I was given a BCG matrix on two divisions of my 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. I need to offer a strategic recommendation based on these findings. I need to include my opinion on how much reliance the company should have on these findings, what these findings suggest, what recommendations I would make, and what other measurements should be used to help reinforce or negate these findings.
My Notes.
I used Able Corporation for my company, to do the Boston Consulting Group Matrix.
The appliance area is located in the Cash Cows portion of the matrix, which is located in the lower left of the quadrant on the matrix.
The electonics divisions of course, is located in the quadrant of the matrix of Question Marks.
From my understanding the Cash Cow divisions positioned in Quadrant 3 compete in a low growth industry. Also they generate cash in excess of their needs.
The Question Marks Quadrant 1 compete in a high growth industry. I found here that the cash needs are high and their cash generation is low.
IMPORTANCE OF STRATEGY IN THE ORGANIZATION
"In the emerging economy, a firm's only advantage is its ability to leverage and utilize its knowledge."
...Larry Prusak, Executive Director - The Institute for Knowledge Management
We are living in an economy of kaleidoscopic change where the only element, which is constant, is change. The industry environment is being influenced by unexpected, multiple changes reducing the period for which organizations can hold on to a competitive advantage. Every sector of industry in every corner of the globe has been affected by this change. There are fundamental questions that all businesses must ask themselves to play a pro-active role in the competitive environment:
? What to change?
? When to change?
? How to change?
? How fast to ...
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