CS Professional · Strategic Management and Corporate Finance · Managing the Multi-Business Firm and Analyzing Strategic Edge
A diversified Indian group uses a tool that places each of its business units on a grid of market growth rate and relative market share to decide which units to invest in, hold or divest. This tool is the:
The tool is the BCG growth-share matrix. It plots business units by market growth rate and relative market share, classifying them as stars, cash cows, question marks or dogs, so that management can decide where to invest, hold or divest in a multi-business firm.
- ABCG growth-share matrixCorrect
- BAnsoff product-market matrix
- CPorter's five forces model
- DBalanced scorecard
Explanation
The BCG matrix classifies business units by market growth and relative market share into stars, cash cows, question marks and dogs to guide portfolio decisions. Ansoff addresses growth options through products and markets. Five forces analyses industry structure, and the balanced scorecard measures performance across perspectives.
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