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A Consider a company with many SBUs, out of which we will focus on four. Each SBU may be confidently placed in a specific cell of the BCG matrix based on its present market placement. Here is a condensed version of the BCG matrix that depicts these premier SBUs: SBU 1 operates in a rising market, as shown by the fast rate of expansion of that market and the low relative market share held by SBU 1. SBU 2 is a model business unit because of its substantial relative market share and slow but steady pace of expansion. It faces out against rivals in an established market, but captures a sizable enough share that market to make a profit (Madsen, 2017). SBU 3 is a cash cow due to its high profitability and dominant market position. The company likely has a steady flow of cash. The decline in market share and slowing growth rate at SBU 4 indicate that it is a failure. There is no expansion in the market it services, and the company's share of that market is rather low. SBU Market Growth Rate Relative Market Share BCG Matrix Cell SBU 1 High Low Question Mark SBU 2 Low High Star SBU 3 Medium Medium Cash Cow SBU 4 Low Low Dog B "Grid analysis" is used to direct SBU development by providing a framework for conducting unbiased assessments of and ranking SBU candidates. Market attractiveness, competitive position, resource needs, and strategic fit are just few of the factors that go into making a grid or matrix. The most strategically important SBUs may be determined by rating the

various candidates and comparing their scores on a variety of parameters (Nassif, 2008). By visually depicting the relative strengths and weaknesses of each SBU, grid analysis helps businesses make better investment, expansion, and resource allocation choices. Factors to Consider Weight (1-5) SBU 1 Score SBU 2 Score SBU 3 Score SBU 4 Score Market Attractiveness 4 3 2 4 2 Competitive Position 3 2 4 3 2 Resource Requirements 5 2 3 4 1 Strategic Fit 4 3 4 4 2 Total Score 10 13 15 7 C General Electric (GE) is one company with a clear and relevant organisational structure that employs portfolio thinking, in addition to the examples covered in this week's lectures. General Electric has historically overseen a wide range of sectors, including the aviation, healthcare, energy, and financial sectors. Allocating resources across various SBUs has been improved thanks to the BCG matrix and other portfolio analysis techniques. By ranking each SBU according to its significance, they may create a portfolio with a better risk/opportunity balance. Business Unit Industry Portfolio Position Aviation Aerospace Star

Healthcare Healthcare Cash Cow Energy Energy Question Mark Finance Financial Services Dog

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References Madsen, D. O. (2017). Not dead yet: the rise, fall and persistence of the BCG Matrix. Problems and Perspectives in Management , 15 (1), 19–34. https://www.ceeol.com/search/article- detail?id=620077 Nassif. (2008). Power grid analysis benchmarks . https://doi.org/10.1109/aspdac.2008.4483978

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