Mgt680 Unit 3 Portfolio Analysis

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Unit III DB MGT680 31 July 2012 A BCG Matrix is a method that is used by businesses to determine the life cycle of a product within the organization. The BCG Matrix is a chart that is broken down into four categories. The four categories are Stars, Cash Cows, Dogs and Question Marks. There will be a BCG Matrix for two departments in a company; the two departments are the appliance and electronics. There will also be strategic recommendation for both departments (BCG Matrix, 2012). Stars have a high growth and high share, this category requires an increased investment due to the recurring growth. The cash cows have a low growth and high share, this category requires a low investment and the growth is very slow. The dogs have low growth and…show more content…
Being that the investment in the area is low they should use the cash earned to move the questions mark to the cash cows (BCG Matrix, 2012). They should continue what they are doing in the appliances department but they should consider doing a portfolio analysis for both departments as well. This analysis is similar to the BCG Matrix. The portfolio analysis would allow an organization to analyze the products that is in a business portfolio. A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,

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