1. BCG/PORTFOLIO MATRIX

3. It was first propounded by Bruce Henderson of the Boston Consulting Group in the early 1970’s.

4. It is also known as BCG matrix , Boston Consulting Group Matrix, BCG Growth-Share Matrix or Matrix Quadrants.

8. The size of the circle represent the dollar volume of each business.

9. Thus we can see that circles 5 and 6 are the two largest business.

12. The Growth share matrix has been divided into four cells each indicating a different type of business.QUESTION MARK STARS CASH COWS DOGS

14. These are businesses that operate in high-growth markets but have low relative market share.

15. They require a lot of cash because the company has to spend money on plant, machinery and personnel's to keep up with the fast-growing market and also to overtake the market leaders.

17. They are the market leaders in high growth market.

18. They need not produce a positive cash flow for the company.

20. They have a falling growth rate but still they have the largest relative market share.

21. They produce a lot of cash for the company.

22. The company need not finance them much due to the low growth rate.

24. They have a weak market share in low growth markets.

25. They neither generate nor consume large sums of money.