![]() ![]() This generated cash then can be used in other business units for further growth of organization. Cash Cows products and units generate more cash inflow with less requirements of investment. How an organization allocates resources to different organization units according to their situation on the BCG growth-share matrix grid shown as follows:Ĭash Cows are those products or business units that have a large market share in a mature and slow growing industry. So the main purpose of BCG matrix to classify the products or organization units on the basis of relative market share and industry growth rate. Graph consist of market growth ate versus market share of a company relative to its competitors. The BCG growth-share matrix represents the various organization units on a graph. Large organizations that have different products or units while making strategic planning face the challenge to allocate their resources among different units. BCG stand for Boston consulting group and this model was developed by Boston consulting group in early 1970’s to facilitate the organizations for managing their product and business portfolio. BCG matrix is a tool used by companies to evaluate their product portfolio and business units for the purpose of developing effective business strategy.
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