BCG Matrix
Boston Consulting Group (BCG) Matrix for TEXSAR (Texas Search and Rescue)
Prepared by:
|
Company Division |
Revenues ($) |
Percent Revenues (%) |
Profits ($) |
Percent Profits (%) |
Relative Market Share |
Industry Growth Rate (%) |
|
1.Central Texas Division |
68,000 |
46 |
6,000 |
29 |
.25 |
10 |
|
2. North Texas Division |
24,000 |
17 |
3,000 |
15 |
.12 |
5 |
|
3. South Central Texas Division |
42,000 |
28 |
7,000 |
34 |
.15 |
7 |
|
4. Gulf Coast Texas Division |
14,000 |
9 |
4,500 |
22 |
.08 |
2 |
|
TOTAL |
148,000 |
100 |
20,5000 |
100 |
- |
- |
The relative size of the Central Texas division green slice represents 29 percent of the company’s total profit.
The relative size of the Central Texas division blue circle represents 46 percent of the company’s total revenue.
|
|
|
RELATIVE MARKET SHARE POSITION |
|
|
|
|
High Medium Low 1.00 0.50 0.00 |
|
|
fCenralINDUSTRY GROWTH SALES RATE (%) |
High +20
Medium 0
Low -20 |
Central Dic
Star II
|
Question Mark II
South Central Central
39
North Texas South Sou
39 Gulf Coast |
|
|
|
Cash Cow III |
Dog IV |
TEXSAR as a whole is a very successful non-profit organization. Using the BCG Matrix, all four divisions placed in the Question Mark quadrant. The Gulf Coast division requires attention and support. As the smallest division in the organization, it is lacking resources and does not generate sufficient revenue. The recommended strategy type for all divisions is Market Development to introduce their services to target markets that cannot be reached effectively or are not yet currently served. In the longer term, additional strategies would help move all divisions to the Star quadrant.
The recommended Market Development strategy statements for TEXSAR are the following:
Strategy Statement 1: Re-allocate resources from the other three divisions to supplement the Gulf Coast division.
Strategy Statement 2: Advertise/promote the TEXSAR Gulf Coast division locally and attempt recruiting new members.
Strategy Statement 3: Leverage top management/leaders from other divisions to support and develop a stronger Gulf Coast division for 6 months until it reaches a stand-alone division status.