PRESENTED BY:INDU BHUSHAN(52)

PRIYA SIROHA(16)

Overview
What are consultants?
Consultants are hired by companies to solve their
problems while creating sustainable value
Industries Served (Example
companies)
Automobile & assembly (GM)
Chemicals (Dupont)
Consumer packaged good (P&G)
Electric power & natural gas (DTE)
Financial services (Washington
Mutual)
Marketing & sales
Metal & mining (ArcelorMittal)
Petroleum (Exxon Mobile)
Pharmaceuticals (Pfizer)
Social/government (WHO)

Specific work done

Increasing market share
Increasing profitability
Evaluate/introduce new
products/services
Marketing/sales
Logistics
Merger/acquisition

Major Consulting Firms

Top tier
McKinsey & Company

Boston Consulting Group (BCG)

Bain & Company
Booz Allen Hamilton

Others
Monitor Group
A.T. Kearney
Mercer Management/Human Resource Consulting
Accenture (technology consulting)
Mercer Oliver Wyman
ZS Associates (medical consulting)

MISSION
We Boston Consulting Group is a global management

consulting firm and the world's leading advisor on

business strategy. We partner with clients in all sectors
and regions to identify their highest-value
opportunities, address their most critical challenges,
and transform their businesses.
We seek to be agents of changefor our clients, our
people, and society broadly.
We are committed to:
Creating competitive advantage through unique
solutions
Building capabilities and mobilizing organizations
Providing unparalleled opportunities for personal growth

VALUES
Integrity:- Integrity means distinguishing right from

wrong and doing the right thing.

Respect for the Individual:-It respects the capacity
and desire for personal growth, as well as the talents
and beliefs of clients, colleagues, alumni, recruits, and
all other people it meets in the course of the work. it
recognizes that respect requires both truthfulness and
empathy.
Diversity:-BCG strives for a diverse workplace. It is
fundamental to our success that it accepts value and
incorporate the contributions of people from a wide
variety of backgrounds.
Clients Come First:-It measures the success by the
clients' success. BCG seeks competitive advantage for
the clients.

VALUES
Value Delivered:-It is committed to creating

value for the clients that returns many

multiples of their investment.
Partnership:-A partnership perspective
guides BCG's relationships both internally and
with clients.
Social Impact:-BCG seeks to have a positive
and lasting impact beyond the business
domain.

 BOSTON CONSULTING GROUP (BCG) MATRIX is

developed by BRUCE HENDERSON of the

BOSTON CONSULTING GROUP IN THE EARLY
1970s.

According to this technique, businesses or

products are classified as low or high

performers depending upon their market
growth rate and relative market share.

Relative Market Share

and Market Growth
To understand the Boston Matrix you
need to understand how market
share and market growth
interrelate.

 Market share is the percentage of the total market

that is being serviced by your company, measured

either in revenue terms or unit volume terms.

RELATIVE MARKET SHARE

RMS =

Business unit sales this year

Leading rival sales this year

The higher your market share, the higher

proportion of the market you control.

MARKET GROWTH
RATE
Market growth is used as a measure of a markets
attractiveness.

MGR = Individual sales

- individual sales
this year
last year
Individual sales last year

Markets experiencing high growth are ones where

the total market share available is expanding, and

theres plenty of opportunity for everyone to make
money.

Four Main Strategies of the BCG

Model
Increase market share
Hold market share
Harvest
Divest

THE BCG GROWTHSHARE

It is a portfolio planning model which is based on
the observation that aMATRIX
companys business units can
be classified in to four categories:
Stars
Question marks
Cash cows
Dogs
It is based on the combination of market growth and

market share relative to the next best competitor.

QUESTION MARKS
High growth , Low market share
Most businesses start of as question marks.
They will absorb great amounts of cash if the

market share remains unchanged.

Why question marks?
Question marks have potential to become star
and eventually cash cow but can also become
a dog.
Investments should be high for question
marks.

STARS
High growth, High market share
Stars are leaders in business.
They also require heavy investment, to

maintain its large market share.

It leads to large amount of cash consumption
and cash generation.
Attempts should be made to hold the market
share

CASH COWS

Low growth , High market share

They generate more cash than required.

They extract the profits by investing as little

cash as possible
They are located in an industry that is mature,
not growing or declining.

DOGS
Low growth, Low market share
Dogs are the cash traps.
Dogs do not have potential to bring in much

cash.
Number of dogs in the company should be
minimized.
Business is situated at a declining stage.

Happy Canner
Who we are?
Privately Owned subsidiary of a large European

Company
35 Year history in Latin America
Produces canned fruits, juices, vegetables, and
meats for 19 Million consumers
Hold at approx 50% market share in Canned Goods
market
Have a strong Brand Name and Brand Loyalty
We Sell to Wholesale Markets
95% of our Sales are attributed to Vegetables, Meat
and Fruit
5% of Sales are from new Dairy Products

Strengths
Long History in Market
Relative stability and profitability of Local

Vegetables
Product market growth increasing

Weaknesses
Cannot Import Cheap Labor
Not allowed to access outside funding
Importing Sugar, Some Fruit and Tin for cans
Meat has supply problems

Opportunities
Newly Opened Dairy Products Division
Considering frozen foods diversification
Firms leaving market

Threats
Inflation driving cost, Government price

ceiling
Hyper Inflation Economy
Eroding profit margin

WHY BCG MATRIX FOR

HAPPY CANNER ?
To assess :
Profiles of products/businesses
The cash demands of products
The development cycles of products
Resource allocation and divestment decision

MAIN STEPS OF BCG

MATRIX
Identifying and dividing a company into SBUs.
Assessing and comparing the prospects of

each SBU according to two criteria :

1. SBUS relative market share.
2. Growth rate of SBUS industry.
Classifying the SBUS on the basis of BCG
matrix.
Developing strategic objectives for each SBU.

BENEFITS
BCG MATRIX is simple and easy to

understand.
It helps you to quickly and simply screen the
opportunities open to you, and helps you think
about how you can make the most of them.
It is used to identify how corporate cash
resources can best be used to maximize a
companys future growth and profitability.

LIMITATIONS
BCG MATRIX uses only two dimensions, Relative

market share and market growth rate.

Problems of getting data on market share and market
growth.
High market share does not mean profits all the time.
Business with low market share can be profitable too.
PRACTICAL USE
MAHINDRA & MAHINDRA
HLL
IES

CONCLUSION
Though BCG MATRIX has its limitations it is
one of the most FAMOUS AND SIMPLE
portfolio planning matrix, used by large
companies having multi-products.

REFERENCES
Philip Kottler(Marketing)
www.bcgindia.com
www.bcg.com
Azhar Kazmi

Questions?