BCG Matrix
Instructions and Sample for the BCG Matrix
Complete the following data table before you start building the BCG Matrix for your case study company. The first two data rows have been filled up for illustration.
Note: If some of your company data are not available to complete this table, make up some numbers so that you eliminate any obstacle to complete the matrix.
Boston Consulting Group Matrix for Procter & Gamble Company (Prepared by: ___________________)
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Company Division |
Revenues ($) |
Percent Revenues (%) |
Profits ($) |
Percent Profits (%) |
Relative Market Share |
Industry Growth Rate (%) |
|
1. Detergent division |
82,500 |
50 (this means that the detergent division’s $82,500 revenue represent 50 percent of the company’s total revenue of $165,000) |
9,945 |
39 (this means that the detergent division’s $9,945 profit represent 39 percent of the company’s total profit of $25,500) |
0.80 (this means that this division dominates 80 percent of the detergent market) |
+15 |
|
2. Shampoo division |
5,000 |
3 |
-500 |
2 (this means that the shampoo division’s loss in profit of -$500 represent 2 percent of the company’s total profit of $25,500) |
0.05 (this means that this division has a share of only 5 percent of the shampoo market) |
-10 |
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3. |
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4. |
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5. |
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TOTAL |
165,000 |
100 |
25,500 |
100 |
- |
- |
The relative size of the shampoo division blue circle represents 3 percent of the company’s total revenue.
The relative size of the detergent division blue circle represents 50 percent of the company’s total revenue.
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RELATIVE MARKET SHARE POSITION |
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High Medium Low 1.00 0.50 0.00 |
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INDUSTRY GROWTH SALES RATE (%) |
High +20
Medium 0
Low -20 |
Detergent
39
Star II
|
Question Mark I |
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Cash Cow III |
Dog IV Shampoo |
After you complete the BCG matrix, select one or more strategy types from the Star quadrant (refer to your book or the image below for the list of strategy types in each quadrant) for the Detergent division and then formulate one or more strategy statements for each selected strategy type. Do the same for the shampoo division and the other company divisions.