Star bcg matrix example

In contrast, market penetration in static, or declining, markets can be much more difficult to achieve. This alternative may be appropriate in two situations: However, dogs can negatively affect how investors judge the management of a company and it is suggested that these product lines be sold off.

These products will need a lot of investment to retain their position, to support further growth as well as to maintain its lead over competing products. Practical use[ edit ] "To be successful, a company should have a portfolio of products with different growth rates and different market shares.

Project productivity is the correct measure for prioritizing independent projects so as to identify value-maximizing project portfolios. As BCG stated in Low growth products should generate excess cash. The main benefits are cost control, quality management, resource allocation, and reporting.

Cost cutting and 2. Thus, a productivity index could be defined as: That's why mutual preferential independence is needed. This investment is however, not likely to yield too much return investment. Over brands fall within its umbrella and are as widespread as bottled water and pet food. Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume.

The theory behind the matrix assumes, therefore, that a higher growth rate is indicative of accompanying demands on investment. Loosely speaking, project management is sometimes described as "the collection of processes and practices required to do things right," while PPM emphasizes "the process and practices needed to do the right things.

As such, it can be helpful to establish and enumerate the criteria that should be systematically addressed when considering a project proposal. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram.

Dogs are generally considered cash traps because businesses have money tied up in them, even though they are bringing back basically nothing in return. The return in investment is enormous.

These tasks may then be further broken down into more detailed activities, as in a work breakdown structure WBS. There is an underlying assumption that the business units are operating in isolation in relation to each other. One or both of these tools will be employed more extensively in turnaround situations, because the problems are deeper there than in retrenchment situations.

The project manager may be considered a professional in the field of project management. This generally results in the same amount of money coming in that is going out. Projects vary greatly in size and complexity, typically involve activities outside the routine operations of an organization, and often draw on resources from different parts of the organization for the duration of the project.

Taking over a competitor can have obvious benefits, leading eventually towards achieving a monopoly. Comparing the two can reveal hidden insights that power more growth for your company. There is an almost mesmeric inevitability about the whole process.

Technical Terms Used in Project Portfolio Management (Continued)

Online industry reports can be used to find the rate of growth for the industry. Although there are variations, most approaches to probability encoding are multi-step and use recognized techniques for reducing errors and bias in judgments.

This is particularly true for bigger organizations, which have acquired dominant market share. Disclaimer: This work has been submitted by a student. This is not an example of the work written by our professional academic writers.

You can view samples of our professional work here. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays. Figure 1: BCG Matrix. Example: Samsung’s Product Portfolio.

Samsung is a conglomerate consisting of multiple strategic business units (SBUs) with a diverse set of products. Samsung sells phones, cameras, TVs, microwaves, refrigerators, laundry machines, and even chemicals and insurances.

BCG matrix focus on optimum return on investment Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

If you continue browsing the site, you agree to the use of cookies on this website. What is the BCG Matrix?

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

It's also known as the Growth/Share Matrix. Strategic Management > BCG Matrix.

BCG Matrix Example for Apple

The BCG Growth-Share Matrix. The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in. BCG Matrix helps business to analyze growth opportunities by reviewing the market growth and market share of products and further help in deciding where to invest, to discontinue or develop products.

BCG Model puts each of a firm’s businesses into one of four categories.

Star bcg matrix example
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