Principles of Business Management Week 4 Assignment
Research a company of your choice and determine which of the four quadrants of the BCG Matrix you feel it fits into. Justify your response using information about the company. Your paper should be a minimum of 500 words.
The requirements below must be met for your paper to be accepted and graded:
Reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) must come from sources such as, scholarly journals found in EBSCOhost, online newspapers such as The Wall Street Journal, government websites, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable.
The reading provided for this assignment:
Principles of Business Management
Week 4a Lecture
Analyzing Market Share / Market Growth Through BCG Matrix
During this lecture, we will discuss market growth and market share through use of BCG Matrix.
The BCG Matrix, also known as the Boston Matrix, provides a useful way for organizations to see the opportunities that are open to it, as well as helping it think where it can best divide its resources so it can maximize its future profits. The BCG Matrix was conceived by the Boston Consulting Group sometime in the early 1970s, and was developed to be a clear and easy way to help organizations decide which areas of their operations they should designate their available resources to such as manpower, cash, and time.
Let’s begin by defining market share. In simple terms, an organization’s market share is the percentage of the overall market that your organization is serving, and is usually measured in terms of cash flow or product volume. Basically, the larger an organizations market share, the larger the segment of the market they control. The matrix presumes that if an organization has a large share of the market they will be making a profit.
Let’s now define market growth. In simple terms, market growth is a measure of a particular market’s appeal. Markets that experience large growth are usually the ones where the overall market is increasing and it is relatively simple for organizations to increase their profits. On the other hand, a low growth market can be a challenge for organizations to increase their market share as well as their profits.
The BCG Matrix was developed with four distinct categories which we will briefly discuss below.
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