The Boston Consulting Group Matrix The BCG (Boston Consulting Group) matrix is a portfolio tool that organizes businesses along two dimensions-business growth rate and market share. Business growth rate pertains to how rapidly the entire industry is growing, Market share defines whether a business unit has a larger or smaller market share than competitors. The BCG model focuses on determining the potential of a firm's existing SBUs to generate cash that the firm can then use to invest in other businesses. The combination of market share and business growth rate provides four categories to judge SBUs within a corporate portfolio. 2. Star. The star has a large market share in a rapidly growing industry. The star is important because it has additional growth potential and profits should be reinvested for future growth and profits. It will generate a positive cash flow as industry matures and market growth slows. b. Cash Cow. The cash cow exists in a mature, slow-growth industry but has a large market share. The cash cow has a positive cash flow and can be milked to feed riskier businesses. c. Question Mark. The question mark exists in a new, rapidly growing industry but only has small market share. The question mark is risky. It could become a star or it could fail. d. Dog. The dog is a poor performer with small market share in a slow-growth industry. A dog provides little profit and may be targeted for divestment or liquidation. 2 of 2 255 words DE C Focus 120% Boston Consulting Group Matrix Market Share Low High High Stars Rapid growth and expansion. Question Marks New ventures. Risky-a few become stars, others are divested. ? Business Growth Rate Cash Cows Milk to finance question marks and stars. Dogs No investment. Keep if some profit. Consider divestment. Low Page 2 of 2 255 words C Focus elle 120% | B I J ah x x A 2A Paragraph Styles Dictate Seni Chapter 8-The BCG Matrix and Walt Disney Company After reading the article on the Boston Consulting Group Matrix found in the Materials folder, please complete this assignment using the worksheet provided. Then, submit your assignment to the Dropbox. Walt Disney Company has four major strategic business units: 1. Movies: Pixar Lucasfilm Marvel Studios Touchstone Disney Plus streaming 2. Theme Parks: Disneyland (California) Walt Disney World (Florida) Disney Paris (France-Euro Disney) Hong Kong Disneyland Resort Shanghai Disney Resort 1 3. Consumer Products: Any shirt, hat, mug, etc., that has Disney or a Disney character on it 4. Television: ABC TV network FOX ESPN International Disney Channel cable network Assignment: 1. Place each of these SBUs-movies, theme parks, consumer products, and television on the BCG matrix category that best fits, based on your knowledge of them. You may want to do additional research. 2. After you have placed each of the SBUs on the BCG matrix, write a one- paragraph explanation of why you placed them in that category. Use the BCG Matrix article in the Materials folder to assist you with this part of the assignment. 1 of 4 491 words Focus 100% 3. Based on your placement of each of the four SBUs, what action would you recommend Disney take with each of the SBUs moving forward. For example, is you placed an SBU in the "star" category, do you keep it there and take no action, or is some other action needed? Write a second paragraph with your thoughts on recommended actions for Disney. 4. Use the worksheet provided on the next page to complete this assignment. You will need to save as a Word document, type on it and submit to the Dropbox in the Assignments folder Below is the Grading Rubric I will be using to grade this assignment. MKT121-Assignment 1: The Walt Disney Company Steps Into the BCG Matrix Grading Rubric Name: Your Points Assignment 1: The Walt Disney Company Steps Into the BCG Matrix: 50 Points Placed Each SBU Into BCG Matrix Category (10 Points) Detailed Explanation of Why You Placed SBU In Each BCG Matrix Category (15 Points) Provided Recommended Next Actions for Each SBU (20 Points) Grammatically and Typographically Error Free (5 Points) TOTAL POINTS FOR ASSIGNMENT 1 COMMENTS: Assignment 1 Worksheet on Next Page 2 of 4 490 words 0% O Focus 10096 Boston Consulting Group Matrix Worksheet Huh Market Share Low Stars-Rapid Growth and expansion. Question Marks-New ventures. Risky-a few become stars, others are divested. 1) 1) BS 2) 2) Cash Cows-Milk finance question marks and stars. Dogs-No investment. Keep if some profit. Consider divestment. 1) 1) 2) 2) Low Part 1: Detailed explanation of why you placed SBU in each BCG matrix category. 1. Movies: 2. Theme Parks 3. Consumer Products 4. Television Part 2: Discuss the actions you recommend Disney take with each SBU moving forward. 1. Movies: 2. Theme Parks 3. Consumer Products 4. Television