Strategic Recommendations Based on a BCG Matrix of Electronics and Appliances Divisions
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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:
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
The solution explores the concepts of BCG matrices in order to apply these notions to the electronic and appliance divisions mentioned and make recommendations on their future operations. 865 words with references.
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BCG Matrix
Strategic recommendation:
The BCG matrix provides a framework for evaluating the relative performance of businesses in which the organization operates. Organizations dealing with business environment must experience situations where their successes are influenced by both external and internal factors. The company should not largely rely on the findings of the BCG matrix and should consult other measurements before doing anything drastic (Griffin, 2008).
The cash cows are businesses that have a large market share in a market that is not expected to grow substantially and they generate high profits that the organization should use to support the question marks. Slow-growing markets in which an organization has small market share are less attractive than fast-growing markets in which an organization has small market share. The cash cows generate cash to support businesses that are in markets that have greater growth potential (Griffin, 2008).
The question marks are businesses whose future performance is uncertain because they only have a small share of a quickly growing market. The electronics division is likely to have low profits if it is unable to keep up with the market growth. This division is capable of being very profitable if it can capture increasing amounts of this growing market. BCG suggests that organizations should invest carefully in question marks (Griffin, 2008).
What these findings suggest:
The Boston ...
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