Dublin 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 position of a business on the growth-share matrix provides an indication of its cash generation and its cash consumption.
Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born.
The four categories are: o Dogs. Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture. o Question marks. Question marks are growing rapidly and consume large amounts of cash, but because they have low market shares they do not generate much cash. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines.
In Bettie’s analysis of Mexican-American and white girls, she finds that race, gender and class are extremely crucial in the outcomes and futures of these girls. The unmentioned and hidden effects of class, race, and gender provide the explanation for much of the inequality seen between the white middle-class girls and Mexican-American working-class girls. Much of this inequality is itself perpetuated within the school system, both by the faculty and students.
It can be hard for a latina woman to be taken seriously in an education based profession. Stereotypes and unfair inferences are the cause of such hardships. The ethnic studies professor at Washington State University, Carmen R. Lugo-Lugo is no exception. She faces many obstacles a latin professor likely would face while teaching students about ethnic studies. The majority of professors students encounter are often white males. Lugo-Lugo realizes this and makes countless attempts at showing her colleagues and students that she is at their level. She writes many articles about her area of expertise. What she focuses on is society's views of race, sexuality, gender and culture. In the article “A Prostitute, a Servant, and a Customer Service Representative: a Latina in Academia” the author Carmen R. Lugo-Lugo demonstrates usage of ethos, pathos and logos to persuade her audience to be more culturally
Valenzuela utilizes various compilations of research to construct her exceptional argument regarding the issue of subtractive schooling with regards to 2nd generational immigrant students. She thoroughly analyzes and assesses the multitude of differences between 1st generation and 2nd generation students and their affinity for education. She divides the topic into 3 categories and asserts how each one adds to the issue of inadequate education for Mexican/Mexican-American students in the US public school system. Her research is conducted at Seguin (pseudonym) High School in Houston, Texas. She examines the effects of substandard education in regards to the students and their academic performance. She uses quantitative and qualitative research
Tara Yosso’s is a motivational, informational book that gives us an insight and awareness of how the Chicana/o students struggles throughout their education in the American society. Critical Race Counterstories Along the Chicana/Chicano Educational Pipeline, portrays how Latino students have been marginalized in the educational system. Yosso addresses the problems that might be hindering students of color to drop out of school to continue to higher education. She does this research by analyzing various situations that still happen in the K-12 educational system, as in high school, and higher education. Yosso also addresses counterstories to better understand the experiences and struggles Chicanas/os go through in their schooling. Counterstories are important to be able to know what Chicanas/os struggles go through. Also tells about the outcomes that Chicanas/os have overcome when they are in a situation were they ate being underrepresented and how they have been dealing with these unequal educational opportunities. Her book addresses, awareness of how the Chicana/o culture is being underrepresented in the American educational system. It gives an understanding of why the Chicana/o students are leaking out of the educational pipeline. It also shows the obstacles this Latino students have to face to be able to make it through the educational pipeline. Chicana/o students want to continue to higher education they have to transform the educational system and acknowledge this culture to be successful instead of setting them to failure. Furthermore, this critique will analyze the strengths and the weaknesses of Tara Y...
Julius Caesar was born on the 13th day of the month Quintilis (now July) in the year of 100 B.C. His full name was Gaius Julius Caesar, the same as his father's name. Gaius was his given name and Julius was his surname. Caesar was the name of one branch of the Julian family. Its original meaning was "hairy.” Caesar's family was not prominent, but they claimed to be descended from Venus as well as the kings of Alba Langa. In spite of that fiction, Caesar was well connected through his relatives and received some important government assignments during his youth. Julius Caesar was the dictator of Rome from 61-44 BC. At the time of his birth, Rome was still a republic and the empire was only beginning. Caesar made his way to be considered a head of Rome by 62 BC, but many of the senate felt him a dangerous, ambitious man. The senate did their best to keep him out of consulship. He finally became consul in 59 BC. In Caesar, they saw only the threat of a king, a word that was linked with the word “tyrant” that is cruel or unjust rule.
Unfortunately, when you evaluate Hispanic women most likely they did not go to college, or even graduate high school. There may be many factors that determine their circumstance. For instance, they get pregnant and drop out. There may be a lack of motivation to go to school. They might get married at an early age. Even the nature of the culture may play a role, like making it seem it is okay not to go to college or finish high school. Or sometimes they may not have a role model to encourage them to do better. All these factors may be the cause of this circumstance, but it doesn’t have to always be the excuse. As a high school senior, I have noticed more and more pregnant girls; most of them Hispanic. Many of thes...
In Invisible Man by Ralph Ellison, the unnamed narrator shows us through the use motifs and symbols how racism and sexism negatively affect the social class and individual identity of the oppressed people. Throughout the novel, the African American narrator tells us the story of his journey to find success in life which is sabotaged by the white-dominated society in which he lives in. Along his journey, we are also shown how the patriarchy oppresses all of the women in the novel through the narrator’s encounters with them.
My object of study is Hispanic women experience inequality in education due to the social constructs of subordination of women and Hispanic culture. Historically women have been conditioned with a patriarchal system, which a woman’s domain should be at home, to be a homemaker. The ideology of inferiority can and will justify the deprivation of natural born rights. During the progressive area and women’s rights movement women wanted to be seen as people, they wanted to have rights to own property, negotiate wages, legal documents, access to birth control, and the right to vote, those women who had the voice to deal with these issues were white upper and middle class women. During this time Hispanic women, amongst other minorities, were fighting battles against racism, segregation, exploitation in the work force, access to a good education, and oppression through Hispanic culture. It is not just a struggle to be Hispanic overcoming the inequalities within the education system but to be a Hispanic women within the education system has greater disadvantages. This case study will investigate what forces contribute to the inequality within the education system for Hispanic women in the United States.
This is where the cash flow reaches its peak but also at the point of
Abortion may appear ethical or unethical depending on various viewpoints and circumstances. The fetus is considered a person and bringing it to term may be unethical as the act is considered as murder. In some situations, the mother may require to terminate a pregnancy for her bodily autonomy (Johnston, 2003). In such positions, the resolution to terminate a pregnancy may be argued as the most ethical choice. The mother is also considered to having a reasonable level of ethical responsibility to the fetus, because she did not take enough precaution to ensure avoiding conception (Cline, 2014). The mother’s ethical responsibility to the fetus may not be enough to deprive her choice of abortion; it...
They point out that awareness and understanding of these causes assist companies in avoiding the growth stalls. In addition, the article demonstrates few practices that some companies use to predict and prevent the problem.
The protection enhances the ability of sustaining a business in a competitive marketplace for the long run. A firm should also undergo the DYB strategy to get rid of business units and other resources that do not add value to the company 's performance. It should adopt the GYB strategy, in which it would utilize the business opportunities lying at its disposal to its advantage. As a direct result of these two strategies, the company would gain a substantial competitive edge against rivals, as well as boost its profitability in the long run (Grimm, Lee & Smith, 2010). Knowing that today 's business environment is characterized by heightened competition that has led to extensive gaps between industry leaders and laggards, and that there are greater churns among the industry rivals, the GYB and DYB strategies are essential for any modern company. More importantly, the GYB strategy should be focused towards the increase of
The Boston Consulting Group (BCG) Matrix is used by organisations to analyse whether their performance is either high or low, and indicate their market growth or position on the market, which is similar to the product life cycle, of the introductory, growth, maturity and decline stages.
There are many techniques used to manage cash including, the nature of asset growth, controlling assets, patterns of financing, the financing decision, a decision process and shifts in asset structure. For any company the growth of asset results in a growth in wealth if managed effectively. The typical firm usually forecast the rate of sales to ensure that the production of goods match sales so there is not an overflow if inventory. As a company expands and produces more items they will acquire permanent current assets. Permanent current assets can be described as a constant inventory of items because it is almost impossible to predict the market and the demands of the consumer.
In 1979, Michael Porter recognized this need and proposed a framework which analyses the basic structure that can be extended to every industry. This foundation consisted of five essential factors that summarize the most important characteristic to consider in order to analyze a particular sector's key drivers of success. A strategy can be formulated proposed on growth factors and certainty rather than scenarios and forecasts based on such an