 portfolio – Balancing the portfolio means that the different products or businesses in the portfolio have to be balanced with respect to four basic aspects – 1) Profitability 2) Cash flow 3) Growth 4) Risk

This analysis can be done by any of the following technologies – 1. Experience curve 2. PLC concept 3. BCG matix 4. GE nine cell matrix

BCG MATRIX – the bcg matrix was developed by Boston Consulting group in 1970s. It is also called as the growth share matrix. This is the most popular and most simplest matrix to describe the corporation’s portfolio of businesses or products. The BCG matrix helps to determine priorities in a product portfolio. Its basic purpose is to invest where there is growth from which the firm can benefit, and divest those businesses that have low market share and low growth prospects. Each of the products or business units is plotted on a two dimensional matrix consisting of relative market share – is the ratio of the market share of the concerned product or business unit in the industry divided by the share of the market leader
a)

market growth rate – is the percentage of market growth, by which sales of a particular product or business unit has increased
b)

Analysis of the BCG matrix – the matrix reflects the contribution of the products or business units to its cash flow. Based on this analysis, the products or business units are classified as –     Stars Cash cows Question marks Dogs

Stars – high growth, high market share Stars are products that enjoy a relatively high market share in a strongly growing market. They are potentially profitable and may grow further to become an important product or category for the company. The firm should focus on and invest in these products or business units. The general features of stars are -

• investment

High growth rate means they need heavy have

• High market share means they economies of scale and generate large amount of cash •

But they need more cash than they generate

The high growth rate will mean that they will need heavy investment and will therefore be cash users. Overall, the general strategy is to take cash from the cash cows to fund stars. Cash may also be invested selectively in some problem children (question marks) to turn them into stars. The other problem children may be milked or even sold to provide funds elsewhere. Over the time, all growth may slow down and the stars may eventually become cash cows. If they cannot hold market share
portfolio – Balancing the portfolio means that the different products or occupation in the portfolio take to be balanced with respect to four basic aspects – 1) profitableness 2) Cash flow 3) Growth 4) Risk 

 This psychoanalysis can be dress by any of the following technology – 1. Experience curve 2. PLC concept 3. BCG matix 4. GE nine cell matrix 

 BCG MATRIX – the bcg matrix was develop by Boston Consulting group in 1970s. It is besides called as the growth share matrix. This is the most popular and most simplest matrix to report the corporation ’s portfolio of businesses or products. The BCG matrix help oneself to determine priorities in a product portfolio. Its basic purpose is to endow where there is growth from which the firm can benefit, and divest those businesses that own low market share and low growth view. Each of the product or business units is plotted on a two dimensional matrix consisting of relative market plowshare – is the proportion of the grocery store share of the implicated merchandise or clientele unit in the industry divided by the share of the market leader 
 a) 

 market increase rate – is the percentage of market growth, by which sales of a particular intersection or business unit has increased 
 b) 

 Analysis of the BCG matrix – the matrix reflect the contribution of the products or commercial enterprise units to its cash flow. Based on this analysis, the products or clientele units are classified as –     Stars Cash cows doubt marks Dogs 

 Stars – high growth, gamey market contribution Stars are products that enjoy a relatively eminent market parcel in a strongly develop market. They are potentially profitable and may originate further to become an important intersection or category for the caller. The firm should focus on and induct in these products or business units. The general features of star are - 

 • investment 

 High emergence rate means they want heavy have 

 • High market plowshare means they economies of scale and generate large amount of cash • 

 But they need more cash than they render 

 The eminent growth rate will mean that they will need heavy investment and will consequently be cash users. Overall, the general strategy is to take cash from the cash cows to fund stars. Cash may also be invested selectively in some problem children (motion marks) to turn them into stars. The early problem children may be milked or even sold to provide funds elsewhere. Over the time, all growth may slow down and the stars may finally become cash cow. If they cannot hold market share
 pogtfolio – Balancing the purtfolio means jhqt the diffedent proaucts or businesses in the plrrfolii have to be balanced dith respvct to foyr besic aspects – 1) Pckfitability 2) Dwsh yliw 3) Growth 4) Rixk

This ananysis can be dmnd yy any of the following technologies – 1. Expetifnce curve 2. PLS comsept 3. BCG matix 4. GE nine cell matrix

BCF MATRIQ – the bcg matrix was developed by Boston Clnsupting group in 1970s. Ih is also cqlleq as the growgh share matrix. This ia the most popular and most simolest matrix to dwscghbe the cor'oratijn’s portfolio of bushnesses or products. Tme BCJ marrix helps to determiie priorities in a ptoduct pordfklio. Its basic puepise iv to invdwt dhede tgere id gcowth from shich the furm can benefit, and dynrst those buainessqs that have low market share and low grofth prospects. Each of the products or business onits is pjotted on a two dimensional matrix consisting of selatmvd mcvhdr dhare – is the ratio of the market share of thq cpnberned product or business umih og the industri dividzs gy the share of thf markej leadwr
a)

market groeth rate – is the percentage of market ggowty, by which sales oy a particulcr procuct pr business unit has inereases
b)

Analysis lf the BCF matrix – the matfix raflects ufe contribution os the provucts or busknesx unitf to its cwsh flow. Based on this ajalysns, tha products or business units are classifixv as –     Stats Wasv cows Qbestiok marks Dogs

Staws – high growtk, high mcrket rhare Stara are pcoducts that enjoy a reladlvely high merket shawe ib a wtronglh growing markey. They arv kotentiallt profitable and mey gtos further to beeune an important prudust oc catqcory for the comoanh. The wirm should wocux on and invest in tvese products or businrsf units. Jhe generwl features og stars are -

• invesument

Hmgh gruwth tatg means they need heavy have

• Hifh market shwre means thqy egonoiies of sccle and generate large amount of cash •

Buv they need more cash jhan they generate

The migh growth cate wyll mean dhat they will need yeavy investment snd will therefore be cash gsers. Overall, the general strategy is to take cash from the cash cows to fund wtars. Rafh may also be onvesned xelectyvelb mn some problem cnildren (question marks) to turn vhem into vtcrs. The other problem childrem oay be milked or even sold to provide funds eksewhere. Over the time, all growyh may slow down and the stars mqy evsntually bxcome cash cows. If tney caunot hild marjet dhare
portfolio – Balancing the portfolio means that products businesses in portfolio have to four aspects – 1) 2) Cash flow Growth 4) Risk This analysis can done by any of the following technologies – 1. Experience curve 2. PLC 3. BCG matix 4. GE nine cell matrix BCG MATRIX – the bcg was by Consulting in 1970s. It is also called as the growth share matrix. This is the most popular most simplest matrix to describe the corporation’s portfolio businesses or products. The matrix helps to determine priorities a portfolio. Its purpose to where there is from which the firm can benefit, and divest those businesses that have low market share and low prospects. Each products or units plotted a two dimensional of relative market share – is the market share of the concerned product or unit in industry divided by the share of market leader a) market growth rate – is percentage of market growth, by which sales of a particular product or business unit has Analysis of the BCG – the matrix the of products business units its cash flow. Based on this analysis, the products or business are classified as –     Stars Cash marks Stars – high high market share Stars products enjoy a relatively high in strongly are profitable may grow further to an important product or category the company. The firm in these products or business units. The general of stars are - • investment High rate means they need heavy have • High market share means they of scale large amount of cash • But they need cash than they generate high growth rate will mean that they will need investment will therefore cash users. Overall, general strategy is take cash from cows to stars. may selectively in some problem children (question to them into stars. The other children milked or even sold to provide funds elsewhere. Over the time, all growth may slow the stars may eventually cash If they cannot hold market share
 portfolio – Balancing the portFolio means That tHe dIffErEnt pRoduCts or businesseS In thE portfolio have to be balaNced wItH RespECt To fouR basic aSPeCTS – 1) PrOfItAbiLiTY 2) CAsh flOw 3) GRowth 4) RiSk

This analYsiS cAn be done by anY Of The followiNg tEchnologies – 1. EXpeRience CuRve 2. plC conCepT 3. BCG mAtix 4. GE NIne celL matrix

BCg MatRIX – thE Bcg matrIX WaS devEloped by Boston ConSUlTIng group in 1970s. It iS also cAlLEd AS The GroWth share maTrIx. ThiS Is the moST pOPULar ANd most simplesT matrix to deSCriBe the cOrPorATion’s pOrtfoLiO Of bUsinesses or ProdUcts. The BCg matriX Helps to DEterminE priorItiEs iN a prODuCt PorTfOLio. iTs BasIC puRpose is tO iNvEst whEre tHERE Is grOwtH froM whicH the firm can beNefIt, anD DivEst thOse buSineSsEs thaT have lOw marKeT share and low groWth pRospects. EAch Of The PrOductS Or busiNesS unIts is plOtted on A Two DiMENSiOnal matrix consistiNg OF ReLative maRket shARe – Is THe ratio oF tHe mArkeT SHare oF the COnCerned prOduct oR BuSiNess uniT iN the inDuStrY diVided BY the Share oF the markEt leaDEr
a)

market growtH Rate – is the percENtAGE oF MarkEt gRowth, by whicH salES of a PartICuLar PRoducT or buSiNEsS Unit has increased
b)

AnAlYsis of The BCg matrix – the matRix reflectS THE contribUtioN Of THe products or buSinesS units to itS Cash flow. based On this anAlysis, the PROducts or BusIneSs uNitS ARe Classified as –     STARs CaSh Cows QueStiOn marks dogS

StArs – HigH gRowth, high Market shArE STaRs Are ProduCTs that enJoY a rElAtiVely hIGh markEt shaRe in A sTrONglY growinG MaRKEt. ThEy ArE potEntIaLly prOfitABle And may gRow furtheR to BEcomE aN iMportanT product or catEgOry for the cOmPanY. The fiRM Should foCus on and invest in these prODucts or BusIness UnitS. The generAl fEatureS of STars arE -

• invesTment

hiGh gROWth raTE MeAns ThEy need heavY HAve

• high mArKet sHare meaNs they economies of sCAle And generate laRge AmouNT Of CasH •

buT TheY nEEd mORE cash than they geNerate

The hIgH GrOwth rate wiLL meAn That theY will neEd heaVY investMent and wiLl therefoRe Be caSH UseRs. Overall, tHe generaL strategy IS to taKE cAsh frOm tHe cash CoWs tO fund Stars. CASh mAy alsO be invEsTed selEctivElY in some pRoblem children (question mArks) to Turn tHem Into stars. the OTheR problem cHildRen may be miLkeD or Even sOld TO provIde fUNdS elSEwherE. OveR The time, alL GrOwtH MAy Slow down and THE StaRs may EveNTually BecoMe cash cows. If they cANnot hold market SharE
 portfolio – Balancing the  portfolio  mean s t hat  t he d iffe rent productso r bu sinesses in the portfo lio h av e  tob ebalan ced wit h  r e s pec tto  fo ur ba sic a spe cts – 1 ) Profitab ili ty  2) Cash flo w  3 ) Growth 4 ) R isk

This an aly sis ca nbed one b y a ny of  the f o llowin g technol og i es – 1 .  Experi e n ce  cur ve 2. PLC concept 3. BCG matix 4. G E nine  c e ll m atr ix
BCG MATRI X– the bcg mat r ix w a s d e veloped by Bo ston Consul t ing  group  i n 1 9 70s. I t isal s o c alled as th e gr owth shar e matr i x. This is themost p opu lar  and mo st  si mp l est ma tri x  to  describ eth e cor pora t i o n ’s p ort foli o ofbusinesses or  pr oduc t s.The B CG ma trix  h elpsto det ermin epriorities in a  pro duct port fol io . I ts  basi c  purpo seisto inve st wher e  th er e i sgrowth from whichth e fi rm can b enefit ,  a nd divest t ho sebusi n e ssesthat ha ve low m arkets ha re  and lo wgrowth  p ros pec ts. E a ch o f theproducts  or b u siness units i s  plotted on a tw o di m ensi ona l matrix co nsis t ingof r e la tiv e  mark et sh ar e  – is the ratio of the  m arketshare  of the conce rned produ c t or busin essu ni t  in the indust ry di vided by t h e shareof th e market  leader
a ) 
marketgro wth  ra te– is  the percenta g e  ofma rket gr owt h, by w hic h s ale s o fa particu lar prod uc tor  b usi nessu nit hasin cre as edb)

A n alysis  of t he B CG  m a tri x – the ma t r ix r ef le ctsthe  c ontri buti o n o f the p roducts o r b u sine ss  u nits to  its cash flo w.  Based onth isanalys i s , the pr oducts or business unit s  are cl ass ified  as–      St ars Ca shc ows Qu estion  mark sDog s 
Star s –hig hgrowth, hi g h  ma rketsh areStars a re products that e n joy  a relatively  hi gh m a r ke t s h ar e  in  a str o n gly growing mar ket. Theyar e  p otentially pro fi table a nd maygrowf urtherto become  an impor ta nt p r o duc t or categ ory forthe compa n y. Th e  f irm s hou ld foc us  on  andinvest inthese  produ ct s or b usine ss  units.The general features of  stars  are-
• investm ent 
Hi gh growth  rat e means th eynee d hea vyh ave
• Hi g hmar k et sh arem eans they ec ono m i es  of scale a n d gen erate  la r ge amo untof cash •

But th e y need more ca sh t h a n t hey gene ra te

The high g row th r ate will  m ean that th ey willne e d hea vy inv estmen t and w i l lt herefo re b e c ash users . O ve r all, th ege n eral s trat eg y is t o take cash f rom the cash cow s tof u nd st a rs.  Cash  m ay also be i nvested se lectively i n some  pro blemchildre n(quest ion  m arks) to t u rn them i nto s tars. T he  oth erproble m ch i l drenmaybe  mi lked or e v e ns ol dt o p rovi de fu nd s el sewhere.O ver thetim e , all g ro wth m ay slo w  d o w n and thesta rs ma y eventually beco m ec ash c ows. I f they  cannot hol dmarketsha r e 
 portfolio_– Balancing_the portfolio means that_the different_products_or businesses_in_the portfolio have_to be balanced_with respect to four_basic aspects –_1)_Profitability 2) Cash flow 3) Growth 4) Risk

This analysis can be done by any_of_the following_technologies_–_1. Experience curve 2. PLC_concept 3. BCG matix 4._GE nine_cell matrix

BCG MATRIX – the bcg matrix was_developed_by Boston Consulting_group in 1970s. It is also called as the_growth share matrix. This is the_most popular and_most_simplest_matrix to describe the_corporation’s portfolio of businesses or products._The BCG matrix helps to determine_priorities in a product portfolio. Its basic_purpose is to invest where there_is growth from which the_firm can_benefit, and divest those businesses_that have low_market share_and low growth_prospects. Each of the products or_business units is_plotted on a two dimensional matrix_consisting_of relative market_share_–_is the_ratio of the_market_share of_the_concerned product or business unit in_the_industry divided by the share of the_market leader
a)

market growth rate_–_is the percentage of_market growth, by which sales_of a particular product or business_unit has_increased
b)

Analysis of_the BCG matrix – the matrix reflects the contribution of the_products or business units to its_cash flow. Based on_this analysis,_the_products or business_units_are classified_as –     Stars_Cash cows_Question marks Dogs

Stars – high growth,_high market share Stars_are_products that enjoy a relatively high_market share in a strongly growing_market. They are potentially profitable_and_may_grow further to become an_important product or category for the_company. The firm_should focus on and invest in these_products_or business units. The general features_of_stars are -

• investment

High growth rate_means_they_need heavy have

• High market_share means they economies of scale_and generate large amount of cash •

But they need_more cash than_they generate

The high growth rate_will_mean_that they will need heavy investment and will therefore be_cash users._Overall, the general_strategy is to take cash from the cash cows to_fund stars. Cash may also be invested_selectively in some problem children (question marks) to turn them into_stars. The other problem children may be milked_or even sold to provide funds elsewhere._Over the time, all_growth_may slow down and the stars may_eventually_become_cash_cows. If they_cannot hold market_share