Economics and management in the field of information and communication technologies

TASHKENT UNIVERSITY OF INFORMATION TECHNOLOGIES

NAMED AFTER MUHAMMAD AL-KHWARIZMI


Department of "Economics and management
in the field of information and
communication technologies"
INDEPENDENT WORK
Principles of management
Topic: Features of Boston model in management

MAP402-2 Bakhodirov Javohir

TASHKENT-2022

PLAN

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  Definition
  
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  The history
  
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  In strategic management
  
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  Features and components
  
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  Advantages and disadvantages
  

Named for the Boston Consulting Group who created it, the BCG matrix is a simple tool to assess a company's position in terms of its product range. It is designed to help you think about your products and services and make decisions about which you should keep, which you should let go and which you should invest in, based on growth and market share.
The BCG matrix is popular conceptual model that's very helpful when you're reviewing your business strategy. It provides a way for companies to review their products and brands based on the product's competitive position, or how it performing compared to competitor products in the market. Plotting your products on the matrix lets you see at a glance which products you should invest in, which to develop and which to discontinue. The BCG matrix was developed over 40 years ago by the Boston Consulting Group, and remains very much alive as a strategic planning tool.
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in.
The matrix plots a company’s offerings in a four-square matrix, with the y-axis representing the rate of market growth and the x-axis representing market share. It was introduced by the Boston Consulting Group in 1970.

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  The BCG growth-share matrix is a tool used internally by management to assess the current state of value of a firm's units or product lines.
  
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  The growth-share matrix aids the company in deciding which products or units to either keep, sell, or invest more in.
  
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  The BCG growth-share matrix contains four distinct categories: "dogs," "cash cows," "stars," and “question marks.”
  

When a company has many different products or even many different lines of business, strategy becomes more complex. The company not only needs to complete a situation analysis for each business, but also needs to determine which businesses warrant focus and investment. The BCG matrix (sometimes called the Growth-Share matrix) was created in 1970 by Bruce Henderson and the Boston Consulting Group to help companies with many businesses or products determine their investment priorities.

The BCG matrix considers two different aspects of a business unit or product:

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   What is the current market share?
   
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   What is the market’s growth potential?