Building the BCG Matrix
Let’s say you have the following final data to a BCG Matrix for company XYZ (with divisions A and B):
Summary Table for Building the BCG Matrix
Percent Revenue | Percent Profits | Relative Market Share (%) | Industry Revenue Growth Rate (%) | |
Firm XYZ’s Division A | 67 | 75 | 50 | -10 (minus 10) |
Firm XYZ’s Division B | 33 | 25 | 67 | 20 |
Answer the following 6 questions with either “A” or “B” here (Number each of your answers):
Which division (A or B) would show a smaller circle in the BCG Matrix?
Which division would show a larger pie slice?
Which division would be placed on the left side of the other?
Which division would be placed above the other?
Which division would sit exactly between the Cash Cow quadrant and the Dog quadrant?
Which division would you select to implement a more aggressive growth strategy?