...The Boston Consulting Group (BCG) Matrix Autonomous divisions (or profit centers) of an organization make up what is called a business portfolio. When a firm's divisions compete in different industries, a separate strategy often must be developed for each business. The Boston Consulting Group (BCG) Matrix and the Internal-External (IE) Matrix are designed specifically to enhance a multidivisional firm's efforts to formulate strategies. The BCG Matrix graphically portrays differences among divisions in terms of relative market share position and industry growth rate. The BCG Matrix allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry growth rate of each division relative to all other divisions in the organization. Relative market share position is defined as the ratio of a division's own market share in a particular industry to the market share held by the largest rival firm in that industry. For example, in Table 6-4, the relative market share of Ocean Spray premium non-carbonated beverage is 14.7/40.5 = 0.36 and Sony's market share in the music industry is 16/27 = 0.59, and the new Hilton-Promus hotel company's market share is 290,000/528,896 = 0.55. TABLE 6-4 A. Market Share of Premium Non-carbonated Beverages BRAND MARKET SHARE IN 1999 % CHANGE IN SHARE FROM 1998 Snapple 40.5 % 3.7 96 Ocean Spray 14.7 -2.9 Arizona 13.7 -2.3 Lipton 10.8 -1.3 SoBe 9...
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...BCG Matrix Model BCG Matrix Model The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor. When should I use the BCG matrix model? Each product has its product life cycle, and each stage in product's life-cycle represents a different profile of risk and return. In general, a company should maintain a balanced portfolio of products. Having a balanced product portfolio includes both high-growth products as well as low-growth products. A high-growth product is for example a new one that we are trying to get to some market. It takes some effort and resources to market it, to build distribution channels, and to build sales infrastructure, but it is a product that is expected to bring the gold in the future. An example of this product would be an iPod. A low-growth product is for example an established product known by the market. Characteristics of this product do not change much, customers know what they are getting, and the price...
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...Fachbereich Wirtschaft – Vor- und Nachteile der Marktwachstums-Marktanteils-Matrix der Boston Consulting Group - Hausarbeit im Rahmen des Moduls Schlüsselkompetenzen I - vorgelegt von: Casper Nowakowski Emdenerstraße 34 48155 Münster Matrikel-Nr. 644059 Referent: Dipl.-Betriebsw. Tobias Kesting MBA Abgabedatum: 28.Oktober.2010 Inhaltsverzeichnis Abbildungsverzeichnis Abkürzungsverzeichnis 1. Einleitung 2. Grundlagen der BCG-Matrix 2.1 Rahmenbedingungen und Begriffsdefinition Hintergrund (1) Einsatzort und Herkunft 2.2 Aufbau der BCG-Matrix (2) 3. Kritische Auseinandersetzung mit der BCG-Matrix 3.1 Vorteile (1,5) 3.2 Nachteile (1,5) 4. Fazit Quellenverzeichnis Abbildungsverzeichnis Abkürzungsverzeichnis 1. Einleitung Ende der sechziger Jahre entwickelte die Boston Consulting Group für General Electric ein absatzmarktorientiertes Portfoliokonzept, welches Marktwachstums-Marktanteils-Portfolio oder auch BCG-Matrix genannt wird. Die Portfolio-Analyse im Allgemeinen und die BCG-Matrix im Besonderen sind in der Praxis und Lehre der strategischen Planung schon seit vielen Jahren weit verbreitet. Empirische Studien belegen auch für den deutschsprachigen Raum die dauerhaft hohe Bedeutung für die Praxis, so dass die BCG-Matrix als eine Standardmethode der strategischen Planung bezeichnet werden kann. In der Regel stellen entsprechende Lehrbücher die BCG-Matrix als klassischen, etablierten Ansatz vor. Sie listen nach der Beschreibung des...
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...International Marketing – 3rd Assignment Portfolio Analysis Region 4 (Italy) June 2011 1 Portfolio Analysis – The BCG Matrix The BCG Matrix is a market growth-market share matrix developed by the Boston Consulting Group, which is used to support strategic decisions in order to optimize a business portfolio with regard to new, old, innovative or established products and/or strategic business units (SBU). Its underlying theories are the experience curve as well as the product life cycle. Having classified its strategic business units, a company can develop its individual strategies for each of these SBUs. Future decisions include how to allocate investments on the SBUs, analysis about whether the respective products are still profitable or should be “killed” or given away and last but not least the need for developing new products or SBUs. The findings of the PIMS database (Profit Impact on Market[ing] Strategy) support the BCG matrix . Source: Kotler/Bliemel, Marketing Management, 12th Edition 2007, p. 96-103 Turnover / Profit Product Life Cycle Unit Cost Experience Curve Market Growth Rate Indroduction Growth Maturity Decline Withdrawel ? 2 1 Product Life Cycle of a Successful Product Product Life Cycle of an Unsuccessful Product Relative Market Share 1 Profit 2 Time Cumulative Output ? STAR: SBU with high market share in a growing market Costs of such business units are usually decreasing over time and at a faster rate...
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...1 of 6 ANZMAC 2009 Adjusting the BCG Matrix for the Recession Avichai Shuv-Ami, The College of Management aviami@colman.ac.il Abstract The idea of the BCG matrix is that managers are able to evaluate their businesses using objective criteria and to develop strategies suitable to the business' particular situation. The BCG matrix can be used for portfolio analysis in times of economic crisis, but adjustments must be made. The first adjustment involves adding two more criteria – profit margins and cash flows. The second adjustment involves redefining the breaking points between the high and low of the relative market share and market growth rate averages of the industry and/or the company. The third adjustment is to add two more strategies – freeze and cut. Using all these adjustments provides better flexibility for BCG matrix analysis in a shrinking economy and recession. 1 ANZMAC 2009 Page 2 of 6 Adjusting the BCG Matrix for the Recession Introduction The BCG matrix has been used in the real world in a variety of ways for such business analysis tasks as analyzing value, business strategy toward customers, segmentation (Dibb 1995) and brand portfolio analysis. As a result of the current financial crisis, which has affected strategic market planning decisions, businesses and practitioners are using the BCG (Boston Consulting Group) matrix in a flexible manner. This paper provides several adjustments to the BCG matrix in order to adjust it to the current economic...
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...Dog The Regular Coca Cola brand can be classified as a cash cow which has low growth and high market share generating high profit and cash. This can be attributed to the brands long period presence in the market as the flagship brand for Coca-Cola which has earned a significant market share but whose sales growth are low due to its maturity in the market. Due to the low growth, investments should be low and keep profits high. Diet Coke can be classified as a star in the BCG matrix with high growth and high market share. This can be attributed to its introduction into the market when the health concern over soft drinks was high and consumers needed a brand which would cater for their needs hence the high sales growth and market share. (Kotler & Armstrong 2011) Complementing the BCG matrix analysis is the product life cycle in which the two brands falls in different stages which requires different marketing strategies with Regular coca cola being at maturity stage while Diet coke is at growth stage. Regular Coca Cola At maturity stage, growth of sales has started diminishing with competition of similar carbonated drinks and the primary objective should be defending the market share while maximizing profit. (Kotler & Armstrong 2011) At this stage: Product features need to be enhanced to differentiate the product from that of competitors. Pricing need to be lowered because of the new competition. Distribution need to be more intensive and incentives may be used to encourage...
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...BCG-MATRIX Inhalt 1. Vorwort 3 2. Ziel und Zweck der BCG-Matrix 3 3. Die BCG-Matrix – Ein Portfolioanalyse-Instrument 4 4. Theoretische Fundierung 5 5. Aufbau der Matrix 7 6. Durchführung der BCG-Matrix-Analyse 8 6.1 Schritt 1: Abgrenzung der Geschäftseinheiten 8 6.2 Schritt 2: Beurteilung der Marktattraktivität 8 6.3 Schritt 3: Beurteilung der Position der Geschäftseinheit 9 6.4 Schritt 4: Beurteilung der Leistung der Geschäftseinheit 9 6.5 Schritt 5: Analyse anhand der 4-Felder-Matrix 11 6.5.1 Question Marks 11 6.5.2 Stars 12 6.5.3 Cash Cows 13 6.5.4 (poor) Dogs 13 7. Wie können Unternehmen vom BCG-Konzept profitieren? 14 8. Vor- und Nachteile der BCG-Matrix 15 8.1 Vorteile 15 8.2 Nachteile 16 9. Allgemeine Kritik betreffend der Anwendbarkeit der Portfolioanalyse im heutigen Businessumfeld 17 10. Schlusswort 18 11. Abbildungsverzeichnis 19 12. Literaturverzeichnis 20 Vorwort Die Geschichte lehrt, dass in der Mitte des 20. Jahrhunderts sich immer mehr und mehr Unternehmen einer, mit konventionellen Mitteln, kaum mehr beherrschbaren Komplexität in der Unternehmensführung gegenübergestellt sahen. Schneller wachsende Märkte, die aufkommende Globalisierung und der immer stärker werdende Konkurrenzkampf waren mitunter Gründe dafür. Eine Vielzahl an strategischen Planungsinstrumenten wurde zur Unterstützung im Umgang mit dieser Komplexität konzipiert. Speziell die Portfolio-Konzepte, welche an Markowitzs finanztheoretische Portefeuille-Theorie...
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...Nike BCG Matrix Nike Corporation is a Fortune 500 company, founded in 1964 and listed on the NYSE as NKE. Headquartered in Beaverton, Oregon, Nike is a proven leader in the sports equipment, apparel and athletic shoe industries. As of 2013, Nike employees more than 44,000 people worldwide. The brand portfolio, in addition to a wide variety of Nike premium products for leisure and sports activities, includes: Cole Haan, Converse, Umbro, Ltd., Hurley and Nike Golf. Nike contracts with more than 800 retail outlets globally, promoting exclusive lunarite foam and flywire technology in brand items. Annual sales exceed $30 billion. The business income is heavily dependent on the shoe market and an overseas workforce. Nike is known as a fashion brand, worn by individuals for many occasions outside of sports activities. However, with its mission to bring innovation and inspiration to all athletes throughout the world, Nike has a strong presence in world championship sports competitions, celebrity and community sponsorships as well as numerous athletic wear eShops. On the BCG Matrix, based on an economic index rating, Nike is considered a Cash Cow. The Nike BCG Matrix also indicates that the company portfolio is established and can benefit from economies of scale, which means mass output or expansion with lower production costs and a bigger is better philosophy. Nike has over 765 factories and 1,000,000 employees worldwide. Only 40 of these factories are in the United States and some...
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...Нов Български университет Магистърска програма „Бизнес администрация“ Цветелина Иванова Гудева Фак.№ F66452 Самостоятелна работа по Мениджмънт МВАМ 022/037 PESTE анализ и BCG – матрица на фирма „Кенди“ ООД Съдържание: I. Кратка характеристика на фирмата II. Стратегически анализ на факторите на външната макросреда и влиянието, което те оказват върху отрасъла и бизнеса – PESTE 1. Политически и глобални фактори 2. Икономически фактори 3. Социални идемографски фактори 1. Качество на живот 4. Технологични фактори 5. Екология III. BCG – матрица 1. Анализ на BCG - матрица IV. Обобщение V. Литература I. Кратка характеристика на фирмата Фирма КЕНДИ ООД основана през 1992г. Правната ѝ форма е дружество с ограничена отговорност, с основен капитал 5000 лв. Тя се занимава с производството на безалкохолни напитки STEP, витамини SUPRAVIT, бульони CHEF'S BEST, подправки, фиксове и сухи супи PICANTINA и подсладители KENDY. В настоящия проект ще бъде разгледана дейността на фирмата от гледна точка на разтворимите безалкохолни напитки. II. Стратегически анализ на факторите на външната макросреда и влиянието, което те оказват върху отрасъла и бизнеса- PESTE PESTE анализът разглежда...
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...Cassie Cage GP210: American Government Instructor: Jonathan Dolen Dec. 11, 2015 Week 2 Assignment: The Nine Members of the United States are; 1.) Karan, Elena 2.) Alito, Samuel A., Jr. 3.) Roberts, John G., Jr. 4.) Breyer, Stephen G. 5.Sotomayor, Sonia M. 6.) Ginsburg, Ruth Bader 7.) Thomas, Clarence 8.) Kennedy, Anthony M. 9.) Scalia, Antonin 2. The Defense of Marriage Act (DOMA) enacted in 1996 states that, for the purposes of Federal Law, the words “marriage” and “spouse “ refer to legal unions between one man and one woman., Since some states have allowed same sex marriages. The Federal Government ruled DOMA unconstitutional under the 5th Amendment. According to the article, Edith Windsor and Thea Syper were married in Toronto, Canada. They moved to New York where the stated recognized same sex marriages. Thea Syper died and left her estate to her spouse Edith Windsor. However, the Federal Government taxed the estate for $363,000 due to their marriage not being recognized by Federal Law, had the marriage been recognized the estate would have qualified for a marital exemption and not taxes exposed. 3. The District Court held thhat DOMA. Was unconstitutional . The U. S. Supreme Court of Appeals for the Second District Affirmed. This case impacts the lives, of Americans due to some Americans do not agree with same sex marriages and does not care to see it. Christians that believe that God made marriage for a man and a woman will not like it. This Case impacts Americans...
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...Comparing the BCG Matrix with the McKinsey 7S model 1 Structure STRUCTURE ........................................................................................................................................ 2 INTRODUCTION ................................................................................................................................. 3 BOSTON CONSULTING GROUP (BCG) GROWTH MATRIX ................................................... 3 COMPOSITION AND FRAMEWORK ....................................................................................................... 3 APPLICATION ....................................................................................................................................... 3 EXAMPLE APPLICATION: JUWI ............................................................................................................ 3 WEAKNESSES AND STRENGTHS OF THE BCG MATRIX ....................................................................... 4 THE MCKINSEY 7S MODEL ............................................................................................................ 5 COMPOSITION AND FRAMEWORK ....................................................................................................... 5 APPLICATION ....................................................................................................................................... 7 EXAMPLE APPLICATION: JUWI ..............................................................
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...Realities Two-Way Street Ignorance is bliss. This phrase, however comforting, is a provocative statement to the debilitating state of society and the human state of mind; the dual-edged comment is represented in both Plato’s Allegory of the Cave and the Wachoski brother’s The Matrix through universes, similar to our own, where people are in strong states of illusion and ignorance. Both have a character, which is brought to the “light” to realize this false reality and to liberate everyone else to a better reality, the “real” reality. Situations can arise where having knowledge of it can seem detrimental, however, our very existence as human beings is to live a life of bettering ourselves and the species in general through knowledge both good and bad, and the actions that take place from knowledge. People do actions and make decisions based on history from what he has done wrong or from what he has done correctly and on this basis it is a stepping stone that either good or bad having knowledge of the past, complete knowledge, helps to mold the future positively. Although blissful, avoiding reality will never be a positive action with even in modern days something such as Facebook has become our matrix keeping people away from the outside, not personally and physically interacting with others or now having games that are virtually realities allowing someone to be something else but does not benefit the world in any way. The lack of benefit world is where virtual reality does its...
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...1 Eigenvalues And Eigenvectors Aamir Nazir Course:- B.Tech 2nd Year (Civil Engineering) Section:- A Roll No.:- 120107002 System ID:- 2012018068 Subject:- Mathematics Subject Code:- MTH-217 Course Code:- CE-107 Teacher Incharge:- Ms. Archana Prasad 2 Contents 1. Abstract 3 2. Introduction 3-4 3. Eigenvectors and Eigenvalues of a real matrix 4 a. Characteristic Polynomial 7-8 b. Algebraic Multiplicities 8-9 4. Calculation 9 a. Computing Eigenvalues 9 b. Computing Eigen Vectors 10 5. Applications 10 a. Geology and Glaciology 10-11 b. Vibration Analysis 11-12 c. Tensor of Moment of Inertia 12 d. Stress Tensor 12 e. Basic...
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...* 1 Lesson: Linear Models and the Distributive Property Write an Expression Using the Distributive Property over Multiplication Some expressions representing real-world situations can be easily written in the form [[ a bx+c ]]. When solving problems with expressions written in this form, you will use the distributive property over multiplication. Example: You and your friend are selling raffle tickets for the local rotary club. Tickets are sold for $2 each. Your friend has already sold 100 tickets, and you are going to sell the remaining tickets. Write an expression for the total amount made from raffle ticket sales. In this problem, you are comparing two quantities: the number of tickets that you sell and the total amount of money made from ticket sales. In the first row of the table, write the column headings to describe the two quantities. The number of tickets that you sell is measured in tickets and the total amount of money made from ticket sales is measured in dollars. In the second row of the table, write the units used to measure each quantity. The problem states that the tickets are sold for $2 each and your friend has already sold 100 tickets. Use a variable, such as [[x ]], to represent the number of tickets that you sell. You can determine the total amount of money made from ticket sales by multiplying the total number of tickets sold, [[100+x ]], by the cost of each ticket, 2. The expression [[ 2100+x ]] represents the total amount of money made from ticket...
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...Essay PHIL 201 July 7, 2014 Essay After reading these pieces I concluded that the central theme is being awaken from a false reality but each piece differs in the action that follow the awakening. The Matrix is set in a futuristic setting, where the theory of being controlled by a massive computer is a real possibility. What I find most interesting is that Plato actually describes the concept of The Matrix, almost as if Plato’s dialogue was used an inspiration. In The Matrix and Plato’s dialogue, humans are not physically living the life they perceive as “real” but are stationary beings who are forced to live a false reality prescribe to them. This is where René Descartes’ excerpt differs from the previously mentioned. The person is aware of possibility that what he knows as true could be false, that how could we know if what we are living is done consciously or if our existence is but a dream. All of the excerpts also rely on the reasoning that the mind is the sole contributor of our existence and our physical senses only respond to what the mind knows. The differences in the readings is based on the actions or possible outcomes that occur once the awakening has taken place. In The Matrix, Neo decides to act and decides to embark on a journey to discover reality not being controlled by a computer. Plato’s dialogue is different because this is based on a hypothetically theory, so while there is no physically action the questions lies in how would people respond to...
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