Beruflich Dokumente
Kultur Dokumente
Enumerate and define the Boston Consulting Group’s growth share matrix SBU
analysis”.
Cash Cow. It is the source and provides funding for the whole company. It has a high
market share but a low market growth. It is dependent compared to the other growth
share matrix that needs funding from the cash cow to be able to develop.
Star. It has the biggest chance to develop because it has a high projected growth rate and
high relative market share. If it develops, it will become cash cow. The only thing is, it
still needs funding from cash cow for its growth.
Question Mark. It has a less certain relative market share so it is very risky. On the other
hand, it has a high projected growth. if it will develop, it may turn into star. Just like star,
it also needs funding from cash cow to be able to grow.
Dog. It has a low growth rate and market share in strategic business units. This means
that the company have to let this go since it has the least chance to grow and develop.
Though it can generate cash to maintain themselves, it will not always contribute to the
company’s funds.
Swot Analysis.
4.What are the steps of strategic market planning in order?
1. Defining the company mission. There are few things to consider in defining the
company mission such as what business, the target customer, customer’s value
and what should the business be. Thus, it should be motivating and meaningful so
that there is a purpose for the organization as well accomplishment.
2. Setting company objectives and goals. It should be specific. Thus, tangible and
achievable for the whole organization.
3. Designing the business portfolio. It has to be evaluated through portfolio
analysis the Growth Share Matrix. In this way, the company can identify the
strategic business unit that are attractive and which ones are not so that the
company can allocate their funds well.
4. Planning marketing and other functional strategies. It is the part where the
company has to coordinate with the internal department to create a value chain in
designing, producing, marketing, delivering and supporting the firm products.
5.True or false. Product diversification means selling businesses outside the company’s
current markets and products.
True.