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Boston Consulting Group Matrix: Presented by
Boston Consulting Group Matrix: Presented by
Boston Consulting Group Matrix: Presented by
MATRIX
PRESENTED BY:
R.RUBAN
INTRODUCTION
To assess :
▪ Profiles of products/businesses
▪ The cash demands of products
▪ The development cycles of products
▪ Resource allocation and divestment
decisions
MAIN STEPS OF BCG MATRIX
◼ Choose the unit
◼ Define the market
◼ Calculate Relative market shares
◼ Calculate market growth rate
◼ Draw Circles on the matrix
BCG MATRIX WITH CASH FLOW
BRUCE HENDERSON
“To be successful, a company should have a portfolio
of products with different growth rates and different
market shares. The portfolio composition is a
function of the balance between cash flows. High
growth products require cash inputs to grow. Low
growth products should generate excess cash. Both
kinds are needed simultaneously.”
BENEFITS
◼ BCG MATRIX is simple and easy to
understand.
◼ It helps you to quickly and simply screen the
opportunities open to you, and helps you
think about how you can make the process of
them.
◼ It is used to identify how corporate cash
resources can best be used to maximize a
company’s future growth and profitability.
LIMITATIONS