BCG Matrix
The BCG Matrix classifies business units or products using market growth and relative market share, commonly labelling stars, cash cows, question marks and dogs. It supports portfolio questions about cash generation and investment needs but relies on simplified assumptions about share, cost and market boundaries. Synergies and strategic options may be missed. Use the framework as a prompt for analysis, not an automatic instruction to sell every low-share business.
Worked example
A high-share unit in a low-growth market may generate cash, while a low-share high-growth unit needs a justified choice about further investment.
Common mistake
Market share does not guarantee profitability or cash flow, and a dog may still have valuable links with other activities.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |