What Can We Learn From The Bolton Consulting Group (BCG) Matrix ( Part 3)

Part 1 &Part 2 refers. This article is about what others can be learned from the BCG Modelling. 

1.0  Part 1 explains how the  BCG model helps to explain the different scenario/strategies at the different stages   

2.0  The firm can avoid any incorrect cash flow pattern within any of the quadrants of the BCG  matrix. 

   Some examples are: 

• In respect of Cash Cow stage,the entity should not allow a net cash deficit to occur   
• To minimize their net new cash generation by Cash Cow and Dog products with the investment requirements of Question marks and Stars. 

 3.0   Enable Head Quarter in a large conglomerate to provide the relevant assistance to its various business units under the different stages of the BCG matrix. This is important since not all business goals apply to all product-market areas or strategic business units regardless of their stage of development. With the BCG model,HQ has a better understanding about profitability,cash flow or growth targets activity of its business units at the different stage of development in the BCG model. HQ can then give the relevant support re:instead of over-investing in business units which are in Cash Cow stage instead helps those business units in the Question mark stage to maximize the change of being developed into Stars or Cash Cows.

• What is The Bolton Consulting Group (BCG) Matrix And Explain The Different Stage Of BCG matrix ( Part 1)
• Basic Explanation Of Strategies At Each Stage/Quadrant Of The Bolton Consulting Group(BCG) Matrix (Part2)