Chapter 6

BCG Dogs

- compete in a slow- or no-market-growth industry - businesses are often liquidated, divested, or trimmed down through retrenchment

BCG Cash Cows

- generate cash in excess of their needs - should be managed to maintain their strong position for as long as possible

Two internal dimensions of SPACE Matrix

FP (Financial Position) and CP (Competitive Position)

The Input Stage

EFE, CPM and IFE. Summarizes the basic info needed to formulate strategies

SWOT Matrix

Helps managers develop 4 types of strategies: SO,WO,ST,WT

Internal-External (IE) Matrix

The IE Matrix is based on two key dimensions: the IFE total weighted scores on the x-axis and the EFE total weighted scores on the y-axis

Grand Strategy Matrix

based on two evaluative dimensions: competitive position and market (industry) growth

Major benefit of BCG Matrix

it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions

BCG Matrix

Boston Consulting Group Matrix. - graphically portrays differences among divisions in terms of relative market share position and industry growth rate - allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry growth rate of each division relative to all other divisions in the organization

BCG Question Marks

Organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration, market development, or product development) or to sell them

The Decision Stage

Quantitative Strategic Planning Matrix (QSPM). reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies

SPACE Matrix

Strategic Position and ACtion Evaluation Matrix. four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization

Two external dimensions of SPACE Matrix

SP (Stability position) and IP (Industry Position)

The Matching Stage

SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, Grand Strategy Matrix. Focuses on generating feasible alternative strategies by aligning key external and internal factors.

WO Strategies

aim at improving internal weaknesses by taking advantage of external opportunities

WT Strategies

defensive tactics directed at reducing internal weakness and avoiding external threats

Quantitative Strategic Planning Matrix (QSPM)

objectively indicates which alternative strategies are best

BCG Stars

represent the organization's best long-run opportunities for growth and profitability

SO Strategies

use a firm's internal strengths to take advantage of external opportunities

ST Strategies

use a firm's strengths to avoid or reduce the impact of external threats