BCG matrix on two divisions
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I have been given the 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 which includes these four findings:
1. Include an opinion on how much reliance the company should have on these findings
2. What do these findings suggest?
3. What recommendations would you make?
4. What other measurements should be used to help reinforce or negate these findings? Support your answer.
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Solution Summary
I have been given the 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 which includes these four findings:
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1. Include an opinion on how much reliance the company should have on these findings
Even though BCG matrix is a very comprehensive methodology for evaluating the business attractiveness of various divisions, the findings should always be supported by other methodologies or tools. Hence, complete reliance on the findings without conducting further research or analysis of the issue may not be a good idea. The organization should evaluate the positioning and condition of the different divisions by conducting other types of analysis as well.
2. What do these findings suggest?
The findings suggest that the electronic division is in the question mark segment and the appliance division is in the cash cow segment. The question market segment ...
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- MBA, Rochester Institute of Technology
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