BCG Analysis
In term of Boston Consulting Group, there are four types of business. According to the research, it shows that Poh Huat Resources Holding is exists as a question mark in BCG matrix. Question marks represent business units having low relative market share and located in a high growth industry. Hence, Poh Huat Resources Holding should invest huge amount of cash to maintain or gain market share. If successes in gaining a huge market share, then Poh Huat Resources Holding has potential of becoming stars. Opinions on the company’s strategy & operations

Recommendations on strategy
Economics of scale
Innovation or Differentiation strategy
Word of mouth-promotion
-We are now taking steps to migrate the machinery and operations under Poh Huat Furniture Industries (Qingdao) Co Ltd to its sister company, Contempro Furniture (Qingdao) Co Ltd and will operate the business in Qingdao at a much more manageable scale.

-As for our manufacturing operations in China, we continued to suffer operating losses, albeit at a much smaller scale of RM1.36 million, due to lack of economy of scale

Online
We are going to take an aggressive strategic focus on bringing IKEA online. Not only will we reach potential customers in less populated areas but they will catch up to their competitors. The other reason for this strategy is that this is the way IKEA can start to reach a younger demographic. Younger people are more aware of online activities and are more willing to buy online. The older demographic is still a little scared about buying online

We are going to take an aggressive strategic focus on bringing IKEA online. Not only will we reach potential customers in less populated areas but they will catch up to their competitors. The other reason for this strategy is that this is the way IKEA can start to reach a younger demographic. Younger people are more aware of online activities and are more willing to buy online. The older demographic is still a little...

...Directional Policy Matrix
1. Introduction
Many large companies comprise several distinct divisions or strategic business units (SBUs). So one of the challenges facing the parent company of a multi-divisional company is to allocate resources to each division.
So in order to make wise decisions on resource allocation, is there a tool that can assist senior executives determine the direction for each division or SBU?
Actually there are two tools, the BCGmatrix and the Directional Policy Matrix (DPM). We have already looked at the BCGmatrix and its focus upon the company's relative market share and market growth. As we will see below, the DPM also helps companies determine the future commitment levels to particular divisions.
2. The Directional Policy Matrix
This tool employs two variables:
The Business Position (i.e. measures the competitive position and market performance of the company)
The Business Sector Prospects (i.e. is the sector in a growing or declining sector)
McDermott on The Directional Policy Matrix provides a pithy overview of the DPM and includes multiple examples. You should consult this as this will show readily that this is a simple, yet very useful tool to inform company strategic planning.
3. Using the BCGMatrix vs Directional Policy Matrix
The Directional Policy Matrix is a tool...

...The General Electric (GE) Market Attractiveness-Business Position Matrix is one of the best-known directional policy matrices, “which categorises business units into those with good prospects and those with less good prospects” (Johnson, Whittington & Scholes, 2011, p.252). The following two factors is the principal cause for the development of the GE Matrix. In the 20th century, since the blossoming of multi-activity enterprises, corporations have faced the challenge of managing its portfolio of business units effectively (McKinsey & Co, 2008). In addition, the prosperity as well as the over simplicity of the BCGMatrix incited the development of a more comprehensive model (Jobber, 2007). This essay will attempt to describe how to use this tool in marketing strategy planning and discuss its restrictions and necessities.
With the purpose of assisting the US General Electric Company in classifying strategic business units (SBU), McKinsey & Co. developed the GE Matrix, which assesses business units in terms of two criteria: the attractiveness of the industry concerned and the competitive strength of the SBU within that industry (Johnson, Whittington & Scholes, 2011). A SBU is an independent department or organizational unit, small enough to be adjustable and comprehensive enough to run control over most of the parts affecting its long-term achievement. Since strategic business units are more flexible...

...Institute of Technology
MSc COMPUTING SCIENCE
(Information Technology for Strategic Management)
BCG Growth Share Matrix
Research Assignment No. 2
The BCG Growth-Share Matrix
The BCG Growth-Share Matrix is a portfolio planning model that was developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that organisations business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor. Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.
Growth Share Matrix (http://www.netmba.com/strategy/matrix/bcg/)
This framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the...

...BCGMatrix
Opportunity - Threat Analysis
Submitted to: Professor Clyde
By : Parth Mithani
Roll No. 60
F.Y.M.M.S.
Alkesh Dinesh Modi Institute for Financial & Management Studies.
1) The BCGMatrix
The BCG / Growth-Share matrix is a model developed by the Boston Consultancy Group in the early 1970’s.
It is a well known tool for a marketing manager. It is based on the observation that a company’s business units can be classified into four main categories based on combinations of market growth and market share, hence the name growth-share matrix. Market growth represents the industry attractive attractiveness, and market share stands for competitive advantage. This helps the marketing manager allocate resources and is used as an analytical tool in brand marketing, product management, strategic management etc.
The basic idea behind the BCGmatrix is that if a product has a bigger market share, or if the product's market grows faster, it is better for the company.
The 4 segments of the BCGmatrix:₨
₨
?
?
Market Growth
Market Share
Low
High
High
Low
1) Dogs:
These are products with a low growth and a low share of the market. Dogs are the cash traps. They do not generate cash for the company. A marketing manager should get rid of these products.
2) Cash Cows:
These are products with a...

...Planning
Lesson 12 - Business Portfolios, Boston Consulting Group (BCG) Modal
Hello students! After having an understanding of what an SBU is you also need to now how do the companies select a particular strategy for which they need to analyze their SBUs? There is a matrix given by the Boston Consultancy Group, which can be used by the companies for the purpose of analysis, which will be discussed in this lesson, and also how useful it is.
BCG Model
The BCGMatrix, named after the Boston Consulting Group (BCG), is perhaps the most famous 2x2 matrix. The matrix measures a company’s relative market share on the horizontal axis and its growth rate on the vertical axis.
20% MarketGrowth rate 10%
10x 4x 2x 1.5x 1x 0.5x 0.4x 0.3x 0.2x
0.1x
Relative Market Share
THE GROWTH SHARE MATRIX- the market growth rate on the vertical axis indicates the annual growth rate of the market in which the business operates. It ranges from 0 to 20 percent. A market growth rate above 10 percent is considered high. Relative market share, which is measured on the horizontal axis, refers to the SBU’s market share relative to that of its largest competitor in the segment. A relative market share of 0.1 means that the company’s sales volume is only 10 percent of the leader’s; a relative share of 10 means that the company’s SBU is the leader and has 10 times the...

...Widely used in the practice of strategic choice has received a two-dimensional matrix , developed by the Boston Consulting Group. Therefore, this matrix is a matrix known as " Boston Consulting Group " or BCGmatrix . This matrix allows the company to classify the products in its market share relative to its main competitors and the rate of annual growth in the industry. Matrix enables us to determine which products company occupies a leading position compared to competitors , what is the dynamics of its markets , allows to make the preliminary allocation of financial resources between strategic products. The matrix is based on the well-known premise - the greater the share of goods in the market ( the larger the volume of production ) , the lower the unit costs per unit of output and higher profits as a result of the relative economies of production volumes.
The object of the work is the BCGmatrix . BCGmatrix is made on the entire portfolio , and for each product shall bear the following information:
• The volume of sales in value terms , it appears on the matrix area of a circle ;
• share of the product in the market with respect to the largest competitor, which determines the horizontal position of the circle in the matrix ;
• the growth rate of the market in which...

...business.
1.2 INTRODUCTION OF BCGMATRIX
First and foremost, most of the business owners and the managers would consider the most important logical strategic direction in order to run their business which are growing. They believe that if the business does not grow over the time pass, it is more likely to fail especially for the strategic business units. The growth of the business can be the best direction for the business success but it is not necessarily important for all of the business in the world.
Thus, the portfolio model that is useful in examining the growth of the business success is the BCGmatrix which shows that it is one of the tools that is used by the company in order to compare all the strategic business units (SBUs). It can be evaluated based on the some specific criteria when it can give some indication of the most logical strategic direction to take each of the SBUs and the level of resources that they have to commit. This model has certain uses and advantages in helping the company to run their business and deciding on the marketing decisions and it also even has some of the limitations as well as the method of calculating and analyzing the results for the company.
In addition, BCG Growth-Share Matrix comes from the combination of words of Boston Consulting Group (BCG). In the early 1970’s Bruce Henderson of the Boston Consulting...

...In mathematics, a matrix (plural matrices) is a rectangular array of numbers, symbols, or expressions, arranged in rows and columns.[1][2] The individual items in a matrix are called its elements or entries. An example of a matrix with 2 rows and 3 columns is
Matrices of the same size can be added or subtracted element by element. But the rule for matrix multiplication is that two matrices can be multiplied only when the number of columns in the first equals the number of rows in the second. A major application of matrices is to represent linear transformations, that is, generalizations of linear functions such as f(x) = 4x. For example, the rotation of vectors in three dimensional space is a linear transformation. If R is a rotation matrix and v is a column vector (a matrix with only one column) describing the position of a point in space, the product Rv is a column vector describing the position of that point after a rotation. The product of two matrices is a matrix that represents the composition of two linear transformations. Another application of matrices is in the solution of a system of linear equations. If the matrix is square, it is possible to deduce some of its properties by computing its determinant. For example, a square matrix has an inverse if and only if its determinant is not zero. Eigenvalues and eigenvectors provide insight...