Portfolio matrices are widely used by multidivisional organizations to help identify and select strategies to pursue. A BCG analysis identifies particular divisions that should receive fewer resources than others. It may identify some divisions that need to be divested. This exercise can give you practice developing a BCG Matrix.

Instructions

Step 1 Place the following five column headings at the top of a separate sheet of paper: Divisions, Revenues, Profits, Relative Market Share Position, Industry Growth Rate. Down the far left of your page, list MCD’s geographic divisions. Now turn back to the Cohesion Case and find information to fill in all the cells in your data table from page 30.

Step 2 Complete a BCG Matrix for McDonald’s.

Step 3 Compare your BCG Matrix to other students’ matrices. Discuss any major differences.

Data table from page 30

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EXHIBIT 4 Select Financial Data by Geographic Segment In millions U.S. Europe APMEA (Asia/Pacific/Middle East/Africa) Other Countries & Corporate Total revenues U.S. Europe APMEA Other Countries & Corporate Total operating income U.S. Europe APMEA Other Countries & Corporate Businesses held for sale Discontinued operations Total assets U.S. Europe APMEA Other Countries & Corporate Total capital expenditures U.S. Europe APMEA Other Countries & Corporate 2008 $ 8,078.3 9,922.9 4,230.8 1,290.4 $23,522.4 $ 3,059.7 2,608.0 818.8 (43.6) $ 6,442.9 $10,356.7 10,532.7 4,074.6 3,497.5 $28,461.5 $837.4 864.1 360.6 73.6 $ 2,135.7 $ 400.9 506.3 193.4 107.2 $ 1,207.8 2007 $ 7,905.5 8,926.2 3,598,9 2,356.0 $22,786.6 $ 2,841.9 2,125.4 616.3 (1,704.6) $ 3,879.0 $10,031.8 11,380.4 4,145.3 3,834.2 $29,391.7 $ 805.1 687.4 302.8 97.3 43.7 10.3 $1,946.6 $ 402.7 473.3 178.1 112.6 26.1 21.3 $1,214.1 2006 $ 7,464.1 7,637.7 3,053.5 2,739.9 $20,895.2 $ 2,657.0 1,610.2 364.4 (198.6) S 4,433.0 $ 9,477.4 10,413.9 3,727.6 3,529.4 1,631.5 194.7 $28,974.5 S 774.3 504.9 208.1 85.4 87.0 82.2 $ 1,741.9 $ 390.5 436.4 171.8 110.4 81.8 59.0 $ 1,249.9