The-definition.com

Definition

BCG matrix

A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. The BCG matrix-was developed by Boston Consulting Group and introduced the idea that an organization’s various businesses could be evaluated using a 22 matrix to identify which ones offered high potential and which were draining organizational resources.

Share it:  Cite

More from this Section

  • Classical view
    The view that management’s only social responsibility is to maximize profits, is called ...
  • Polycentric Orientation
    The culture of the country in which the strategy is to implemented is allowed to dominate ...
  • Norming stage
    The norming stage is one in which close relationships develop and the group becomes cohesive. ...
  • Declining industry
    An industry in which the trend of total sales as an indicator of total demand for an industry’s ...
  • Clarifying strategic intent
    Leaders clear sense of where they want to lead their company and what they expected to ...