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- Herausgeber: 50Minutes.com
- Kategorie: Fachliteratur
- Serie: Management & Marketing
- Sprache: Englisch
The key to portfolio management!
This book is a practical and accessible guide to understanding and implementing the BCG growth-share matrix, providing you with the essential information and saving time.
In 50 minutes you will be able to:
• Analyze the activities in your business portfolio and identify the role they play in the business as a whole
• Sort these activities into the four categories of the matrix: stars, question marks, cash cows and dogs
• Identify the future market shares and growth to make sure you invest in the right activities
ABOUT 50MINUTES.COM | Management & Marketing
50MINUTES.COM provides the tools to quickly understand the main theories and concepts that shape the economic world of today. Our publications are easy to use and they will save you time. They provide elements of theory and case studies, making them excellent guides to understand key concepts in just a few minutes. In fact, they are the starting point to take action and push your business to the next level.
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Seitenzahl: 26
Veröffentlichungsjahr: 2015
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The BCG growth-share matrix: theories and applications
Key information
Names: BCG growth-share matrix, BCG-matrix, Product Portfolio Matrix, Boston matrix, Boston Consulting Group analysis, portfolio diagram. Its name comes from the Boston Consulting Group, an international strategy consultancy company, which conceptualised the matrix.Uses: It is primarily used by managers who want to observe the relative importance of the activities in their portfolio. It provides advice for the portfolio by encouraging the investment, maintenance or removal of activities.Why is it successful? When used under the right conditions, it allows managers to learn more about their activities and make the best decisions regarding the allocation of resources and skills.Key words: SBU, strategic tool, relative market share, market growth rate, stars, cash cows, question marks, dogs, leader, follower, self-financing, economies of scale, market maturity cycle, GE matrix, Ashridge Portfolio Matrix.Introduction
Nowadays, the need for managers to have a portfolio of varied activities and to be able to manage all their activities as effectively as possible is widely accepted. Indeed, anyone who takes their eye off the development of their business portfolio, even for a moment, will be swiftly punished for their negligence. However, this activity management is not easy, and many companies who believed themselves to be invincible have collapsed as a result of poor market analysis or the overestimation of their strength.
Portfolio management matrices emerged to help these managers by allowing them to better understand the impact of their various SBUs (strategic business unit).
Good to know: SBU
An SBU is a sub-part of a company, to which the manager may decide to allocate or remove resources. The division of a company into SBUs meets an organisational need and provides a better overview of the different departments within the company. Each SBU can be directed in an autonomous and independent manner, depending on the decisions of the company.
History
The Boston Consulting Group was founded by Bruce D. Henderson (1915-1992) in 1963 and quickly grew to become one of the largest strategic consultancy companies in the world, with over 80 offices in almost 50 different countries. BCG works with companies across a wide range of sectors, including energy, healthcare, automotive and telecommunications. One of its main innovations is the creation of the BCG growth-share matrix.
The BCG growth-share matrix was developed during the 1960s, and allows users to determine the relative market share of an activity, as well as evaluate the market growth linked to it. In concrete terms, this means that the matrix allows managers to select profit-generating or high-potential activities, activities in decline, and activities with a high risk of collapsing.
The BCG growth-share matrix emerged at a time when understanding market mechanisms was of major importance. At this time, the decision-making process was central to many questions within the financial community. The context was therefore favourable to the development and use of a matrix that offered a number of tools to make it easier for managers to make decisions about resource allocation. Consequently, it was very well received and was quickly adopted by business leaders.
