This document provides information about the BCG matrix, a portfolio management tool created by The Boston Consulting Group in the 1970s. It summarizes the BCG matrix as follows: 1) The BCG matrix classifies business units based on their relative market share and growth rate, categorizing them as Stars, Cash Cows, Question Marks, or Dogs. 2) Stars have high market share and growth, Cash Cows have high share but low growth, Question Marks have low share but high growth, and Dogs have low share and growth. 3) The matrix is used to evaluate a company's portfolio and determine where to allocate resources for maximum returns. It is a simple and easy to understand tool for

1. PRESENTATION ON BCG MATRIX
BY:-
SUBHASISH BHATTACHARJEE

2. HISTORY OF
 The Boston Consulting Group or BCG is a global
management consulting firm with offices in 41
countries. It is recognized as one of the most
prestigious management consulting firms in the
world.
 The company was formed by Bruce D. Henderson.
 The BCG Matrix was created by The Boston
Consulting Group (BCG) and it became one of the
most well-known portfolio management Decision
Making Tool in the early 1970’s.

3. COMPANY PROFILE
 Type- Partnership
 Industry- Management consulting
 Founded- 1963
 Headquarters-Boston, Massachusetts, United States, 71
offices in 41 countries
 Key people- Hans-Paul Bürkner, President & CEO
 Products- Management consulting services
 Revenue- US$ 2.75 billion (2009)
 Employees- 4,400 (consultants)
 Website- bcg.com

4. ALLOCATION OF
RESOURCES
High market share in a high growth market are
designated as Stars.
High market share in a low growth market are
designed as Cash Cows.
Low market share in a high growth market are
designated as Question Marks or Problem
Children.
Low market share in a low growth market are
designated as Dogs.

5. BCG MATRIX GRAPH

6. Segments in the BCG matrix
 Cash Cows (high market share, low growth) - Keep investments low,
while keeping profits high. Profits and cash generation should be
higher because of low growth.
 Dogs (low market share, low growth) - Liquidate, if they are not
delivering cash. Avoid and reduce the number of these an organization
maintains. Keep an eye out for expensive revival strategies - a dog is
typically always a dog.
 Stars (high market share, high growth) - Invest further in these - they
incur high costs, but they are market leaders and should also generate
lots of cash. Stars may balance on net cash flow, but the organization
should try to maintain market share on this would because rewards are
likely
 Question marks (low market share, but high growth) - These have
poor cash inflow, but have high demands and low returns due to low
market share. Efforts should be made to change market share. If this
isn’t possible, this will likely turn into a dog as growth slows.

7. ADVANTAGES OF BCG
MATRIX
To evaluate balance in the firm’s current portfolio
of Stars, Cash cows, Question marks & Dogs
To decide & prepare for future actions
Applicable for large companies that seeks volume
& experience effects
 It is simple & easy to understand

8. Limitations of BCG Matrix
 BCG matrix classifies businesses as low and high, but
generally businesses can be medium also.
 Market is not clearly defined in this model.
 High market share does not always leads to high
profits. There are high costs also involved with high
market share.
 Growth rate and relative market share are not the only
indicators of profitability. This model ignores and
overlooks other indicators of profitability.