Written by :
Afringga Qurani A.S. (008201100114)
Dery Apriani S. (008201100033)
Firdausi Fananiar (008201100086)
Mutmainnah Hauliyah (008201100120)
Putri Azizah S. (008201100023)
Rizqi Mulia Raya (008201100106)
Lecturer : Mr. Irfan Habsjah
Class : Accounting 2
Jababeka Education Park, Jalan Ki Hajar Dewantara, Cikarang – Bekasi 17550
Definition of BCG Matrix
Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA in 1970, to help corporations with analyzing their business units or product lines. This help the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic …show more content…
• The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned that one of the main indicators of cash generation was relative market share, and one which pointed to cash usage was that of market growth rate.
The BCG Matrix and One Size Fits All Strategies
The BCG Method can help you to understand a frequently made strategy mistake :
• Cash Cows Business Units will reach their profit target easily. Their management have an easy job. The executives are often praised anyhow. Even worse, they are often alloed to reinvest substantial cash amounts in their mature business.
• Dogs Business Units are fighting an impossible battle and, even worse, now and then investments are made. These are hopeless attemps to “turn the business around.”
• As a result all Question Marks and Stars receive only mediocre investment funds to achieve a real market dominance and become Cash Cows.
Other Uses and Benefits of BCG Matrixbu
• If a company is able to use the experience curve to its