Part II- BCG Matrix

• Follow guidelines provided in Chapter 6 of the David text to learn a BCG Matrix.
• Use your Strategic-Planning Template to develop a BCG Matrix for your company. Use your selected company's most recent year-end financial data, and other information acquired earlier to assist you.
• Fill in the left Division column of the table with your selected company's divisions/segments (or whatever terminology applies to your particular company/industry). See an example of Coca-Cola in Chapter 1, and review Table 10.2 in the Colgate-Palmolive case. Utilize the research you have completed on your selected company to date and find information to fill in all the cells in your data table from Chapter 1.

This Template allows for up to 5 divisions. If your company has more than 5 divisions, combine the divisions with the least amount of revenue into division 5, and mention the adjustment to the class during your presentation, or simply focus on the 5 divisions your 3-year plan centers around; check with your professor. It is excellent to develop a BCG/IE by geographic region, and construct another one by product (if you have the data). 2 In each division, enter a name, followed by the dollar amount in revenues for that division. Do not include M or B for millions or billions, but do drop off zeros. For example, for $100,000,000, you could enter $100,000 or $100, just be consistent. 3 After completing Step 2 in developing a BCG, enter in the dollar amount in revenues for the top rival firm for each division. Note, the top rival may be you and in this situation enter in your company's revenue for that division. Also, note the top rival may be different for different divisions. For example, if your firm is Avon, Avon's top rival in its lipstick division may be Revlon, but for nail polish, the top rival in the industry may be L'Oreal, and in makeup,After completing Step 2 in developing a BCG, enter in the dollar amount in revenues for the top rival firm for each division. Note, the top rival may be you and in this situation enter in your company's revenue for that division. Also, note the top rival may be different for different divisions. For example, if your firm is Avon, Avon's top rival in its lipstick division may be Revlon, but for nail polish, the top rival in the industry may be L'Oreal, and in makeup. Avon may be the market leader. There is no need to label the top rival by name, but you could mention in class as part of your presentation. Be sure to enter in all numbers in the same $ format you used in Step 2 above. If you do not have a perfect apples to apples comparison, (possibly a rival firm combines lipstick and makeup, where your firm separates the two) then estimate as best you can and make note in your presentation. Finally, enter in the industry growth rate (IGR) for each division. Generally, taking the top 2 or 3 rivals for each division (along with your firm), adding their numbers together for the current year and the previous year and using the equation (Current Year - Previous Year) / Previous Year is sufficient to estimate guess of the industry growth rate. This is because generally the top 3 players dominate an industry. Note, using this process also weights larger firms more, which is exactly what you desire. Do not use total revenues; instead, use divisional revenues. Division industry growth rates (IGR) must be between -0.20 and 0.20. If outside these ranges, simply use -0.20 or 0.20 and5 Everything is calculated and positioned for you (Other than Industry Growth Rate in Step 4) including the Relative BCG Market Share Position (RMSP). The BCG matrix in this Template does not produce pie slices to show profits. You may wish to discuss divisional profits in your presentation. Enter in division names below (If less than 5, leave the other spaces blank and no circles will appear) Firm's Industry Market Market NA NA NA NA NA BCG