4. Setting Strategic Directions, Growth Strategies Setting Strategic Directions, Growth Strategies Knowing where the organization is at the present time enables managers to set a direction for the firm and allocate resources to move in that direction. Two techniques to aid managers with these decisions are (1) business portfolio analysis, and (2) diversification analysis strategies. In this exercise, we will focus on business portfolio analysis. The Boston Consulting Group (BCG), a nationally known management consulting firm, developed business portfolio analysis. It is a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUS) as though they were a collection of separate investments. The purpose of the tool is to determine the appeal of each SBU or offering and then determine the amount of cash each should receive. This activity is important because roughly 75 percent of the largest U.S. firms have used this analytical tool. The goal of this activity is to perform a simple business portfolio analysis. Roll over each hypothetical product to read about the hypothetical company and its product's sales. Then, place each product under the correct name in the quadrant of the growth-share matrix. Recreational drones High VCRs Skis Market Growth Rate (% per year) Pet beds Low High Low Relative Unit Market Share (share relative to largest competitor) Reset
4. Setting Strategic Directions, Growth Strategies Setting Strategic Directions, Growth Strategies Knowing where the organization is at the present time enables managers to set a direction for the firm and allocate resources to move in that direction. Two techniques to aid managers with these decisions are (1) business portfolio analysis, and (2) diversification analysis strategies. In this exercise, we will focus on business portfolio analysis. The Boston Consulting Group (BCG), a nationally known management consulting firm, developed business portfolio analysis. It is a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUS) as though they were a collection of separate investments. The purpose of the tool is to determine the appeal of each SBU or offering and then determine the amount of cash each should receive. This activity is important because roughly 75 percent of the largest U.S. firms have used this analytical tool. The goal of this activity is to perform a simple business portfolio analysis. Roll over each hypothetical product to read about the hypothetical company and its product's sales. Then, place each product under the correct name in the quadrant of the growth-share matrix. Recreational drones High VCRs Skis Market Growth Rate (% per year) Pet beds Low High Low Relative Unit Market Share (share relative to largest competitor) Reset
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:4. Setting Strategic Directions, Growth Strategies
Setting Strategic Directions, Growth
Strategies
Knowing where the organization is at the present time enables managers to set a direction for the firm and allocate
resources to move in that direction. Two techniques to aid managers with these decisions are (1) business portfolio
analysis, and (2) diversification analysis strategies. In this exercise, we will focus on business portfolio analysis.
The Boston Consulting Group (BCG), a nationally known management consulting firm, developed business portfolio
analysis. It is a technique that managers use to quantify performance measures and growth targets to analyze their
firms' strategic business units (SBUS) as though they were a collection of separate investments. The purpose of the
tool is to determine the appeal of each SBU or offering and then determine the amount of cash each should
receive. This activity is important because roughly 75 percent of the largest U.S. firms have used this analytical tool.
The goal of this activity is to perform a simple business portfolio analysis.
Roll over each hypothetical product to read about the hypothetical company and its product's sales. Then, place
each product under the correct name in the quadrant of the growth-share matrix.
Recreational
drones
High
VCRs
Skis
Market Growth Rate
(% per year)
Pet beds
Low
High
Low
Relative Unit Market Share (share
relative to largest competitor)
Reset
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