A BCG matrix (TEMPLATE ATTACHED), also known as a growth-share matrix, identifies departments and divisions within an organization that should receive fewer resources than others. It may also identify divisions that can be divested.
Every organization needs to communicate clear objectives. Analytical tools like BCG, a Boston Consulting Group evaluation of relative market share position and industry sales growth rate, and grand strategy matrix, a four-block model that recommends strategies based on competitive position and industry market growth, can improve the quality of strategic decisions, but leaders must make these choices. Behavioral, cultural, and political aspects of the process and selection are important to manage. Boards of directors are assuming a more active role in strategy because of legal pressures.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Evaluate key elements of the strategic planning process.
Assess the key divisions of an organization.
Develop a BCG Matrix of an organization.
RESOURCES:
David, F. R. (2014). Strategic management: A competitive advantage approach, concepts & cases (15th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Morden, T. (2007). Principles of strategic management. Abingdon, Oxon, GBR: Ashgate Publishing Group.
INSTRUCTIONS:
Complete the following:
Select an organization with multiple divisions or product lines to analyze. For example, Apple would likely be considered to have multiple divisions, such as those associated with iTunes, iPods, iPhones, iPads, and Mac computers.
Assess your chosen organization's key divisions. To do this, place five column headings at the top of a worksheet. Title the columns as follows: Divisions, Revenues, Profits, Market Share Position, and Industry Growth Rate. Assess your organization's key divisions in each of these five categories. This information will help provide the foundation necessary to successfully complete a BCG matrix. Submit this worksheet as one of the deliverables for this assessment.