CG Matrix
According to the CG Matrix, the electronics category is a question mark characterized by low market share, but potential high growth. In this instance, a decision must be made to invest heavily, sell off or invest nothing and generate whatever cash is possible (CG Matrix). Appliances, on the other hand, are cash cows enjoying high market share, but little growth. ecause growth is low, investments should be kept to a minimum with profit maximization in mind. Portfolio planning methods such as the CG Matrix are intended as guidelines to help managers overcome tendencies to use unstructured judgment, which is prone to distortion by power or emotional factors that lead away from rational profit maximization (rodie and Armstrong, 2003). At the same time, these authors caution that there's little evidence exists to support a causal relationship between market growth and profits, or between market share and profitability
These comments are not…...
mlaBibliography
BCG Matrix. Retrieved September 2, 2005 from Web site: http://www.valuebasedmanagement.net/methods_bcgmatrix.html
Brodie and Armstrong (2003, December 30). Effects on portfolio planning methods on decision making: Experimental Results. Retrieved September 2, 2005 from Web site: http://www.manyworlds.com/exploreCO.aspx?coid=CO12300315184495
Five competitive forces model Porter. Retrieved September 2, 2005 from Web site: http://www.valuebasedmanagement.net/methods_porter_five_forces.html
McKinsey matrix -- GE matrix. Retrieved Sepember 2, 2005 from Web site: http://www.valuebasedmanagement.net/methods_ge_mckinsey.html
BCG Matrix
Strategic Management
The BCG Matrix: An overview and a hypothetical situation
The Boston Consulting Group (BCG) Matrix is an efficient way to visually represent a company's portfolio of goods and services, and provides a way for organizations to evaluate their strategic possibilities. The BCG Matrix classifies a company according to three primary business interests or units (BCG Matrix, 2012, Net MBA). The Matrix is represented in the form of four quadrants: stars, question marks, dogs, and cash cows.
tars,' which are located in the upper left quadrant of the BCG 'box,' are relatively self-explanatory. They are popular goods and services with a large market share. However, the problem with stars is that they are very demanding, cash-wise and time-wise, for the organization (much like 'stars' in real life, hence the name). The organization profits off the branding and positive buzz that stars generate but the stars generate little real cash (BCG Matrix,…...
mlaReferences
BCG Matrix. (2012). Net MBA. Retrieved:
BCG Matrix, an analytic tool designed and named for the Boston Consulting Group, provides insight into corporate strategy regarding a company's operating units and products. The focus of the matrix is on market growth and market share of the organization's product portfolio relative to their largest competitor (NetMBA.com. N.D. PP. 1). Companies should according to the matrix, allocate capital to portfolio investments which are in a fast growing market that could lead to the firm achieving high market share. Represented on the BCG matrix are four types of scenarios, Stars, Cash Cows, Dogs and Question Marks which limn these potential opportunities (NetMBA.com. N.D. PP. 1).
When did the BCG experience-curve begin to have a significant impact on business thinking?
A tenet of the BCG Matrix, the experience curve describes how significant investment in products with high growth rates can lead to high market share. Specifically, as a firm spends more to increase…...
mla"Cash cows are businesses that have a high market share (and are therefore generating lots of cash) but low growth prospects; stars have high growth prospects and a high market share; question marks have high growth prospects but a comparatively low market share; and dogs are low on both growth prospects and market share" (Economist.com. Growth Share Matrix. September 11, 2009. PP. 1).
In predictable and long- set industries, a firm with a high- growth and high- market share product would understandably allocate more cash to continue the cycle. However, returning to the experience curve, technology can be the great equalizer to a firm which has a significant cost advantage. The 1990's were a period of rapid information and technological advancement which allowed competitor firms to achieve cost reductions on their product lines by "creating new experience curves" (NetMBA.com. N.D. PP. 1). The assumed advantage of cost to control market share could quickly evaporate in this environment.
Tangentially, the 1990's saw rapidly merging industries which had previously not existed, most associated with the internet or information technology. Organizations which misjudged the growth prospects and life-cycles of their portfolio may have sold dogs or cows which they believed were at the end of their dominance, heavily invested in stars that were not,
Items such as the potential partner's track record for development efficiency was a definite strength. In contrast, one weakness was the sharing of profits once the product went to market, as well as the fact that our company would not have sole ownership of the product. There was the opportunity to bring the product to market ahead of any potential competitors, plus the opportunity to develop a relationship that could serve both companies well into the future. However, there was the threat that this potential partner had worked in the past with competitors and that issues may arise should the partnership not be successful and the organization work with competitors again in the future. It was determined that the strengths of this partnership outweighed the weaknesses, and most threats could be prevented, so that both of our companies could fully take advantage of the opportunities the partnership afforded.
eferences
None....
SWOT
The BCG index was designed to help managers determine how departments were performing in their company (NetMBA, 2002). The matrix is a simple calculation that labels the departments as a star, question mark, cash cow or dog. These designations have specific meanings as to the market position and cash flow. The company in question has had two departments analyzed using the BCG matrix. The question is to the efficacy of this analysis.
The two quadrants that the analysis came up with were those for the question mark (upper right) and the other is in the cash cow quadrant (lower left). The electronics department was rated as the question mark and the appliance division was a cash cow. The findings suggest, according to the BCG chart, that electronics is a department that consumes a lot of cash because it is growing rapidly, but it has small market share. This means that…...
mlaReferences
Marketing Teacher. (2011). SWOT analysis Apple. Retrieved from http://www.marketingteacher.com/SWOT/apple-SWOT.html
NetMBA. (2002). The BCG growth-share matrix. NetMBA. Retrieved from
3. Limitation of individual model - synergies obtained by combining strategic analyses models
All analysis models presented in the previous chapter represent useful but not exhaustive methods of deciding the future of a company or its products.
As there is no perfect model, the joint usage of them might bring most value to the company.
Ansoff analysis generally assumes that diversification will bring higher returns when higher levels of risks are undertaken (diversifying the market and/or the product), should not be practically used by itself, as it does not say anything about a company's capacity of venturing in new markets or sustaining the development of new products, as it also does not say anything about the acceptance of the new product on the existent market and/or of the existent products on new markets.
Therefore, other analysis that will take into consideration both internal and external variables of a company (like SWOT analysis) will be…...
mlaReferences
Adams, J. (2005), Analyze your Company using SWOTs, Supply House Times, Vol. 48, Issue 7, p. 26-28
Ansoff, I.H. (1957), Strategies for diversification, Harvard Business Review, Vol. 35, No. 2, p. 113-124
Ansoff, I.H. (1989), Corporate Strategy, Rev. Ed., Penguin, Harmondsworth
Bennett, a.R. (1994), Business Planning: Can the Health Service Move from Strategy into Action?, Journal of Management in Medicine, Vol. 8, No. 2
AB Inbev's BCG ansoff analysis strategic options. Please avoid marketing product, specific strategic groth a company. In addition I summarise merger advantages/benefits/opportunities disadvantages challenges sussccessful inits bid buy S
Anheuser-Busch InBev: Market analysis
Anheuser-Busch InBev, is the largest brewing company in the United States, boasting some of the most successful brands of alcohol on the market in its portfolio. The BCG Growth-Share Matrix categorizes all business units according to market share and potential for market growth as cash cows, stars, question marks, and dogs, in relation to their largest competitor. 'Cash cows' generate a stable cash flow but are relatively mature in the market. A good example of this would be Anheuser-Busch's Budweiser brand. The Budweiser Clydesdales are some of the most famous brand icons in the world, and Budweiser is widely regarded as the world's most popular beer. Anheuser has strategically emphasized its 'cash cows' in its marketing mix, relying…...
mlaReferences
Ansoff Matrix. 2011. Tutor2U. [online] Available at:
[June 7, 2011]http://www.tutor2u.net/business/strategy/ansoff_matrix.htm
BCG Matrix. 2011. Net MBA. [online] Available at:
/ [June 7, 2011]http://www.netmba.com/strategy/matrix/bcg
GE-McKinsey Matrix
The GE matrix is a very important toll in business and organizational level strategy (Berries and Hoare,2008). The tool was developed by McKinsey for General Electric due to the fact that Boston Consulting Group matrix showed signs of inflexibility when it comes to taking into account the broader aspect of issues. The GE matrix tool is very important in cross-referencing market attractiveness as well as business position by means of three very important criteria for- high, medium and low.
The market attractiveness takes into account variables that relates to the market itself such as the market growth rate, size of market, number as well as size of competitors, barriers to market entry, profit margins as well as the technological implications of the given market. The business position criterion on the other hand examines the business strength as well as weaknesses in various areas. These include the position of an organization…...
mlaReferences
Berris, J and Hoare, S (2008).White & Case implements McKinsey-inspired strategy. Lawyer, Vol. 22 Issue 42
Ward, D (2005). An Overview of Strategy Development Models and the Ward-Rivani Model
Successful Strategy Execution
The Balanced Scorecard
A balanced scorecard is balanced precisely because it considers three major areas of performance: 1) The relationship between the company and the customer; 2) the key internal processes of the company; and 3) the learning and growth of the company. The dynamics that make the balanced scorecard a highly functional tool is that it enables linkage to be constructed between the short-term activities of the company to its long-term objectives. These linkages are established by the following: 1) translating and operationalizing the vision; 2) communicating and linking the day-to-day work of individuals with the overall company strategy; 3) business planning that interlocks the budgeting processes with long-term strategic planning in an integrated whole, and 4) feedback and learning enables a company to examine inferences, assumptions, and outcomes in order to adjust theories and decisions based on cause and effect relationships.
Who has the "D"? (Decision esponsibility)
A model…...
mlaReferences
____. (2013, January). CASSIES Gold: EOS reinvents lip balm. Strategy. [Website] Retrieved http://strategyonline.ca/2013/01/28/cassies-gold-eos-reinvents-lip-balm/
Nidd, T. (20111, October 26). ChapStick gets itself in a social media death spiral: A brand's silent war against its Facebook fans. Ad Week. Retreived http://www.adweek.com/adfreak/chapstick-gets-itself-social-media-death-spiral-136097
GE -- McKinsey Matrix 1, 2, with color and Google according to the GE -- McKinsey Matrix
Successful Strategy Execution -- Part I
What are some key differences between BCG and GE portfolio matrices? Please consider an industry in which you have worked, are working, or would like to work when addressing the questions.The key differences between BCG and GE portfolio matrices is their overall usage. Here a BCG matric is used primarily to decide capital allocations decisions. The matrix is also very simple being divided into four segments to based on industry growth and industry market share. Although simplistic, it does provide management with a broad guide on how to properly allocate capital to segments within their business. For example, a high growth market with the business having high market share is considered a Star. Here a majority of capital should be allocated to this business as it provides the highest potential for risk-adjusted profits. In this instance Stars are businesses that earn profits well above the companies cost of capital. An…...
mlaReferences 1. Anderson, C. and Zeithaml, C., 1984. Stage of the Product Life Cycle, Business Strategy, and Business Performance. Academy of Management Journal, 27(1), pp.5-24.
Tesco
Models for Analysis
There are a number of different models by which the company's strategic options can be analyzed. Two of the best are the SOT Matrix and the BCG Matrix. The SOT matrix focuses on the internal strengths and weaknesses of the organization, and its external opportunities and threats. By analyzing these variables, the best strategy for the company can be revealed. Strengths can be used to defend against threats or to take advantage of opportunities. eaknesses can prohibit taking advantage of opportunities, and they can open the company up to competitive threat. So the company will need to understand all of these dynamics in order to determine if it should shore up weaknesses or leverage strengths as the main part of its strategy.
The BCG Matrix holds that there are basically four categories for a company's product/service offerings. These are either cash cows, stars, dogs or question marks. The strategy…...
mlaWorks Cited:
2012 Tesco Annual Report. Retrieved February 27, 2013 fromhttp://www.tescoplc.com/files/reports/ar2012/files/pdf/tesco_annual_report_2012.pdf
Stern, C. & Stak, G. (2013). The BCG Matrix. Value-Based Management.net. Retrieved February 27, 2013 from http://www.valuebasedmanagement.net/methods_bcgmatrix.html
MindTools.com. (2013). SWOT Analysis. MindTools.com. Retrieved February 27, 2013 from http://www.mindtools.com/pages/article/newTMC_05.htm
Google
Introduction and Description of the Company
Organizational Structure
Industry Analysis
Value Proposition
Financial Performance
Figure 1.1 Revenue and Net Income Growth
TOS Strategies
BCG Matrix
Leadership
Alliances
Measures
Google is a highly successful Internet company that makes most of its money through online advertising. It has been able to achieve this success through a combination of leadership and culture. The company's many strengths are in general aligned with the opportunities that exist in the marketplace. As a result, Google has the opportunity to pursue most of its opportunities. The most recommended opportunity to pursue is to take the Android operating system and apply it to the PC industry. It is also recommended that Google addresses the threats that it faces in the political environment, both domestically and in China. It can do this by using its financial clout but also it will need to develop new capabilities in order to effectively manage the political environment.
Introduction and Description of the Company
Google is…...
mlaWorks Cited:
Alexa.com (2012). Top sites. Alexa.com. Retrieved November 26, 2012 from http://www.alexa.com/topsites
Google Form 10-K for the year ended 2011. Retrieved November 26, 2012 from http://www.sec.gov/Archives/edgar/data/1288776/000119312512025336/d260164d10k.htm
Google.com (2012). About Google. Google. Retrieved November 26, 2012 from http://www.google.com/about/
Lee, M. (2012). Google gets some rare good news in China. Business Week. Retrieved November 26, 2012 from http://www.businessweek.com/articles/2012-08-30/google-gets-some-rare-good-news-in-china
There is also an inability to distinguish the product lines from that of the competitors, although the company has succeeded effectively in creating brand recognition for their products. Customer loyalty and brand loyalty of the past cannot always be counted upon to create the necessary profitability for the company.
This is obvious in the case of P & G. that the marketing strategy that the organization uses for different products differ considerably. The financial culture within an organization also affects the marketing culture in any market. Many established companies in the market spend considerable amount of time identifying the best mediums that can be used to market the products to the customer. Peter Drucker stated that markets are not passive entities beyond the control of the entrepreneur or organization. ather, they are interlinked. They can also be influenced. (Drucker, 1954)
G when establishing manufacturing plants for its products in regional markets…...
mlaReferences
Ansoff, H.I. "Strategies for Diversification." Harvard Business Review 35.5 (1957): 113-24.
Berner, Robert, and William C. Symonds. "Welcome to Procter & Gadget." Business Week 2005: 76-77.
Chandler, Alfred Dupont. Strategy and Structure: Chapters in the History of the Industrial Enterprise. Cambridge,: M.I.T. Press, 1962.
Chuang, Shin-Chieh, and Chia-Ching Tsai. "The Impact of Consumer Product Knowledge on the Effect of Terminology in Advertising." Journal of American Academy of Business 7.1 (2005): 223.
MAKETING PLANNING www.innocentdrinksandfoods..uk pls make uts original... life. Part 1: Identify a selection competitors (minimum 3 competitors) criteria price, quality, brand, level advertising, product range Using strategic positioning tools PLC, BCG matrix perceptual mapping, identify competitive advantage organization Part 2: Identify marketing objectives Ansoff's growth matrix Part 3: Identify a growth strategy Ansoff's growth matrix propose a short-term marketing strategy (marketing mix recommendations) target market.
Marketing planning
Competition and competitive advantage
Based on the nature of the products sold, as well as the means of targeting the customers, Innocent faces severe competition from three distinctive players:
Orchard House Foods Limited
Premier Foods Plc. And Wellness Foods Limited (Hoovers, 2011).
The competition posed by each of these entities is important, but it must also be noticed that each firm is characterized by its own strengths and weaknesses. At the level of Innocent, these are best observed through the lenses of the BCG matrix. The chart below indicates…...
mlaReferences:
Bock, M., 2010, Governance risk management and financial product development in Islamic financial institutions, GRIN Verlag
Daft, K.M., Vershina, N.., 2010, Management, International edition, Cengage Learning EMEA
Kumar, D., 2010, Enterprise growth strategy: vision, planning and execution, Gower Publishing Ltd.
Pooler, J.A., Pooler, J., 2003, Why we shop: emotional rewards and retail strategies, Greenwood Publishing Group
Buyer Power:
etailers are the primary tier of buyers in the television segment of the global consumer electronics market. There are a variety of retailing channels used in this industry. The primary channel of distribution is through electronics retailers, like Best Buy, which comprises 65% of the total market value. Hyper and supermarkets, such as WalMart and Target, make up only 14.4% of the market. Sales via department stores, like Sears, only contributes 3.7% of the market's value. Although they typically don't sell televisions, music, video, books, and stationery retailers do contribute 3.1% of sales for the overall consumer electronics market. Lastly, a variety of other retailers make up 13.8% of the sales in this industry ("Global consumer," 2010) (See Figure 3).
The primary manufacturers in this market segment, like Sony, are often highly valued by retailers, as they provide branded products that retailers' buyers, the end consumers, have come to know…...
mlaReferences
"Global consumer electronics." (May 2010). Datamonitor. Retrieved November 30, 2010, from http://360.datamonitor.com.ezproxy.apollolibrary.com .
Gonsalves, a. (28 Jan 2010). "Samsung 3D TV mass production begins." InformationWeek. Retrieved November 30, 2010, from http://www.informationweek.com/news/personal_tech/TV_theater/showArticle.jhtml?articleID=222600258 ,
"History." (2010). Datamonitor. Retrieved November 30, 2010, from
Introduction
In the ever-changing business landscape, organizations must continuously adapt and evolve their strategies to maintain their competitiveness and achieve long-term success. Developing an effective organizational strategy is crucial for guiding decision-making, aligning resources, and ensuring that the organization achieves its desired outcomes. This literature review explores the key elements that are pivotal in developing an effective organizational strategy.
Environmental Analysis
A thorough understanding of the external environment is essential for crafting an effective strategy. Porter's Five Forces analysis (1980) provides a systematic framework for examining the industry dynamics, including the threat of new entrants, bargaining power of buyers and suppliers, intensity of....
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