Boston consulting group matrix bcg this technique is particularly useful for multidivisional or multiproduct companies. Based on qualitative research, this paper aims at identifying the causes of rise and fall of the b. This paper critically assesses the boston consulting group bcg matrix and indicates how the matrix can be improved to solve portfolio problems. The boston consulting group bcg is a management consulting firm that helps organizations to make informed decisions from the business point of view. Bcg matrix also known as the growthshare matrix is used by organizations to classify their business units or products into 4 different categories. G matrix is considered the oldest, the simplest and the most known matrix of analysis of the portfolio of activities. Bcg matrix of hul essay example topics, sample papers. The bcg matrix is a business method that was created by the boston consulting group in the 1970s. Using the boston consulting group portfolio matrix to. The growth share matrix was created in 1968 by bcgs founder, bruce henderson. Jun 04, 2014 the boston consulting groups strategy institute is taking a fresh look at some of bcgs classic thinking on strategy to explore its relevance to todays business environment.
Hul1 we meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Mar 05, 2017 the bcg matrix includes four categories, with each category denoting specific features. Bcg matrix is a simple tool and you basically need accurate calculations on the market share and growth rate of your products, service or investment. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. Companys profile owned by the britishdutch company unilever which controls 52% majority stake in hul. Bcg matrix is the term used in the context of management. Aug 05, 2012 this research paper categorize the entire product range of hindustan unilever limited into cash cows, stars, dogs and question marks as per the boston consultancy group bcg matrix. Download as pptx, pdf, txt or read online from scribd. However, recent criticisms have been leveled at their inaccuracy and inability to include flexibility. It is a matrix which helps in decision making and investments. Based on this assessment, the boston matrix helps in the longterm strategic planning of the companys portfolio, as it indicates where to invest, to discontinue or develop products. Hul leads the market share with surf excel with 38%. It was published in one of bcgs short, provocative essays, called perspectives. Bcg matrix can be understood as the growth share model, that reflects growth of business and the market share possessed by the firm.
Boston consulting group ii a business portfolio analysis matrix. Bcg matrix is a useful strategic planning model developed by boston consulting group in 1970s. On the other hand, ge matrix is also termed as multifactor portfolio matrix, which businesses use in making strategic choices for product lines or business units based on. The following section outlines the bcg matrix for britannia industries limited. The bcg matrix growthshare matrix was created in the late 1960s by the founder of the boston consulting group, bruce henderson, as a tool to help his clients with efficient allocation of resources among. As it is growing year on year it comes under question mark catergory. Strategic management in multinational companies case of hilton. The boston consulting group bcg is a renowned organization.
Bcg matrix hindustan unilever limited brand unilever free 30. The boston consulting group bcg growthshare matrix in among the best known of these approaches. The m atrix is established in 1970 by bruce d oolin henderson 1915 1992 for the bcg in boston. Henderson for the boston consulting group in 1970 to help corporations to analyze their business units, that is, their product lines. The bcg matrix market growth high growth, big share high growth, small share market share. Bcg matrix in excel for when you have relatively precise info on market growth rates and shares. Find the typical variations and how to create these templates using powerpoint. It is argued that relative competitive position and growth are the two fundamental parameters which must be considered in. Difference between bcg and ge matrices with comparison. As explained by others, i think the bcg matrix is a way to think about existing products assets and think about their usage strategy going forward. In a matrix organization, the logistics manager has responsibility for the entire logistics systems. It is the most renowned corporate portfolio analysis tool.
The bcg growthshare matrix positions different product lines based on market growth and market share in relation to the main competitor. Such presentation help take prioritizing and deciding what product to be given how much attention and resources. Bcg matrix also referred to as growthshare matrix is a portfolio planning model which is based on the observation that a companys business units can be classified into four categories. Sequences in bcg matrix pic success sequence in bcg matrix the success sequence of bcg matrix happens when a question mark becomes a star and finally it becomes a cash cow. Boston matrix bcg matrix at the end of the 1960s, bruce henderson, founder of the boston consulting group, bcg, developed his portfolio matrix. Home presentation ideas presentation graphics bcg matrix template. Start writing about hul bcg matrix with our best example essay. India with particular reference to hindustan unilever limited hul is.
Study of the bcg matrix for hindustan unilever limited. Feb 15, 2014 if youve taken business class or familiar with management consulting strategies, youve probably come across this tool called a bcg matrix. Study of the bcg matrix for hindustan unilever limited idocpub. Munich personal repec archive strategic management of multinational companies. Henderson for the boston consulting group bcg in 1970 to help companies analyze their business units, product lines or brands it helps the company to analyze where to allocate its resources and is used as an analytical tool in different practice areas as strategy, product management, marketing or.
Study of the bcg matrix for hindustan unilever limited request pdf. The bcg matrix is a matrix designed by the boston consulting group back in 1970s. It is based on the combination of market growth and market share relative to the next best competitor. Sep, 2019 reeves martin, senior partner and managing director of the boston consulting group, said that nearly 50 years after its inception, the bcg matrix remains a valuable tool for helping companies. Bcg on hul essay example for free newyorkessays database with more than 65000 college essays for studying. Case of hilton ahsan, lubna and qazi, burhan and syed, shahabuddin hamdard university,karachi, pakistan, signature solutions,dubai, u. Pengertian analisis matriks bcg dan contohnya ilmu. The divisions or products compromise the organisations business portfolio. Bcg on hul 12 december 2016 once you know which businesses stand where in your business portfolio, you also come to know which businesses need investments, which needs harvesting making money, which needs divesting reducing investment and which needs to be completely taken out of the business portfolio.
Its founder, ardeshir godrej, lawyerturnedserial entrepreneur and founder of godrej after series of failed attempts entered into locks with which the company success story started. G matrix, method used in the strategic decisional processes to streamline. To analyse the product portfolio of hul with respect to bcg matrix. May 01, 20 bcg matrix or growthshare matrix is a corporate planning tool, which is used to portray firms brand portfolio or sbus on a quadrant along relative market share axis horizontal axis and speed of market growth vertical axis axis. Many people have trouble in understanding the difference between bcg and ge matrices.
A case study of hindustan unilever limited munich personal. Bcg matrix was a framework originally devised by boston consulting group to strategically measure the potential growth rate of a company within its industry versus its relative market share. Dog bcg matrix dental care growth in dental care industry continues compound at 6. As such, this working paper proposes the use of the family portfolio.
These features help in the classification of the products being manufactured by an organization into cash cows, stars, question marks or dogs. Steph edwards nutton explains how to use the bcg matrix to analyse your companys product portfolio. Introduction the boston consulting group bcg is a renowned organization. The availability and originality of the chart sectors names made it very popular among marketers and managers. In the bcg approach, each of the firms strategic business units sbus in plotted on a twodimensional grid in which the axes are relative. Also known as the boston box or grid, bcg charts are divided into four types of scenarios, stars, cash cows, dogs and question marks. In fact, amazon was a book store before it started electronics. Some of the brands include knorr, peposdent, dove, and axe. The project specifically demands the study of bcg matrix for hindustan unilever limited hul. Sep 20, 2014 to answer this question, the boston consulting group bcg matrix also known as the boston matrix is a very useful marketing tool in understanding portfolio management. Marketing strategy of godrej godrej marketing strategy. Bcg matrix your name here table of contents introduction 3 concept overview 3 functional critique 5 intellectual critique 6 ethical critique 7 political critique 8 conclusion 8 bibliography 9 introduction this paper will attempt to provide a broad critique of the boston consulting group matrix in light of the ideas of hackley 2009.
It is a simple and intuitive tool for portfolio analysis. The continuous development and market introduction of new businesses can play an important role in the future performance of companies. Hul 9 organization structure distribution channel market segment wise penetration products of hul category wise sales growth bcg analysis 5. Fair and lovely the rs 3,000crore skincare market in india, where hul is the leader with an estimated 70 per cent market share,is having a rapid growth. The growth share matrix or boston consulting group. The boston consulting group matrix provides the recommendations for the development of strategic resource allocation and strategy development in the typical multibusiness company.
To highlight and recommend effective strategies for manoeuvring within the bcg. Bcg matrix has four types of scenarios with respect to the market share of the company, cash flow generation and growth rate of the industry in which company is operating. This article, the fourth in the series, examines the growth share matrix, a portfolio management tool developed by bcg founder bruce henderson. In 1931, unilever set up its first indian subsidiary, hindustan vanaspati. As indicated by this method, organizations or items are delegated low or superior workers relying on their market development rate and relative piece of the overall industry. It provides a graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. Boston consulting group bcg matrix is a four celled matrix a 2 2 matrix developed by bcg, usa. The boston consulting groups product portfolio matrix bcg is designed to help you with longterm strategic planning. The bcg matrix is a tool used by organizations to assess the value of the products that they offer in terms of their growth i.
The analysis followed by the said classification has been done using empirical indian market data. While it is easier to assess market growth, what is important is to objectively derive at the market share data. Founded in 1897 the company has been operating in the country since the swadeshi movement. Bcg matrix helps putting products in four different quadrants of graph based on their relative market share and market growth. Full form of bcg matrix is boston consulting group matrix.
Strengthening the portfolio analysis syed ferhat anwar1 sharif rayhan siddique2 shakil huda3 abstract. This business method bases its theory on the life cycle of products. Bcg matrix in the marketing strategy of hul in the bcg matrix, the personal care and oral care segment of the business is stars in the bcg matrix while the home care and packaged food are a question mark due to the presence of a large number of local, national and international players in the market. Bcg matrix on amazoncom 11 on bcg matrix amazon have certain. A difference in market share of 2 to 1 should produce about 20 percent or more differential in pretax cost on value added. How to use the bcg matrix smart insights digital marketing. The bcg matrix explained how does the bcg matrix work. Pdf hindustan unilever limited a study on the marketing concept. Bcg matrix is often used to prioritize which products within company product mix get more funding and attention hul it has 2 dimensions.
Bcg matrix template variations presentation process. Hul marked the initiation of marketing branded fast moving consumer goods fmcg. The bcg growthshare matrix is a powerful strategic tool which allows managers to identify the stars, cash cows, question marks and. The growth share matrix or product portfolio boston. These units typically break even, generating barely enough cash to maintain the businesss market share.
Bcg matrix hindustan unilever limited free download as powerpoint presentation. Managing directors report for ea games 166 downloads 15 pages 3,529 words add in library click this icon and make it bookmark in your library to refer it later. Also known as a growthshare matrix, the bcg matrix was. They introduced the growthshare matrix which is a designing and a planning tool that prepares graphical representations on the basis of a companys products and services. The boston consulting group bcg matrix is a portfolio management tool created in 1970 by bruce henderson. Bcg growthshare matrix strategic management insight.
It describes the growth rates and market shares for the products carried by j. Bcg matrix of nestle bcg matrix analysis of nestle. The growthshare matrix aka the product portfolio matrix, boston box, bcgmatrix, boston matrix, boston consulting group analysis, portfolio diagram is a chart that was created by bruce d. The bcg matrix also known as the boston consulting group analysis, the growthshare matrix, the boston box or product portfolio matrix is a tool used in corporate strategy to analyse business units or product lines based on two variables. This research paper categorize the entire product range of hindustan unilever limited into cash cows, stars, dogs and question marks as per the boston. Though owning a breakeven unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company.
It divides a market on the basis of its relative growth rate and market share and comes up with 4 quadrants cash cow, stars, question marks and dogs. We welcome your feedback and look for more tools surrounding medicare part a, medicare advantage, pbj and 5 star. This is equivalent to 525 percent and more aftertax diffe. The bcg matrix depends on the item life cycle hypothesis that can be utilized to figure out what needs ought to be given in the item arrangement of a specialty unit. The bcg model is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. The bcg growth share matrix was evolved in the early 1970s by bruce henderson, founder of the boston consulting group, to help corporations make investment and disinvestment decisions related to their business units or product portfolios. The bcg matrix, also known as the boston growthshare matrix, is a tool to assess a companys current product portfolio. Bcg metrix data tools are available to our clients and friends and other providers in snf longterm care.
These tools are for your use and are designed to assist in analysis and strategic planning. Using the model, an organization can determine which products are a worthwhile investment of company money and employee time and effort. This is also known as the growth market share matrix by plotting these factors it is possible to identify which products or brandsunits a company should invest further in, and which products it. The matrix is established in 1970 by bruce doolin henderson 19151992 for the bcg in. Industry is growing but tide needs to invest hugely to become the market leader. The composition of the portfolio can be critical tothe growth and success of the company. The growth share matrix is directly derived from the experience curve. In the pdf file you will find a real life example of proposal for consulting project devoted to performance improvement. The project specifically demands the study of bcg matrix for hindustan unilever limited. The extended technique incorporates situation arising out of. Mar 19, 2018 this is the marketing strategy of godrej.
Study of the bcg matrix for hindustan unilever limited 6nq826ez61nw. The growth share matrix is a diagram of the normal relationship of cash use and cash genera tion. Bcg matrix, business organizations, business improvement. This document was uploaded by user and they confirmed that they have the permission to share it. Study of the bcg matrix for hindustan unilever limited by. Pengertian analisis matriks bcg dan contohnya matriks bcg atau bcg matrix adalah alat analisis bisnis yang digunakan untuk membantu perusahaan dalam mempertimbangkan peluang pertumbuhan dengan perencanaan strategis jangka panjang dan meninjau portofolio produk perusahaan tersebut agar dapat mengambil keputusan untuk berinvestasi, mengembangkan atau menghentikan produknya.
Expanding the bcg concept abstract the use of portfolio matrices has been of great popularity since their first outing in the 1960s. To ensure longterm value creation, a company should have a portfolio of products that contains both highgrowth products in need of cash inputs and lowgrowth products that generate a lot of cash. The experience curve is the means of measuring probable competitive cost differentials. The bcg matrix for hindastan unilever limitedhul products is food brands, personal care brands, and home care brands. E, federal urdu university for arts,science and technology,karachi,pakistan 5 september 2014 online at. The premise of the bcg matrix is that all products or brands can be classified as one of the following categories, based on its market share and market growth. The purpose of the matrix is to enable companies to ensure longterm revenues by balancing products requiring investment with products that should be managed for remaining profits. Using the boston consulting group portfolio matrix to analyze. Bcg matrix boston consulting group bcg matrix is a four celled matrix developed by bcg, usa. This research paper categorize the entire product range of hindustan unilever limited into cash cows, stars, dogs and question marks as per the boston consultancy group bcg matrix.
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