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Hi Gromit,
I required some assistance regarding the BCG matrix. I understand the limitations of BCG matrix for portfolio analysis but why J,S and W recommended that BCG matrix is more appropriate to be applied to SBU rather than individual products in a company’s portfolio. Accompanying this along with what implications will it have when applied to a SBU will be very useful.
Thank you
The JSW assertion that BCG is more applicable to SBUs than products is not relevant to this paper: too theoretical.
When BCG is applied to a SBU, it indicates what you should think about doing with it:
Problem child: build or divest
Star: defend your leading position
Cash cow: harvest. Control costs and ‘milk the cow’ for profit.
Dog: divest.
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