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    Developing Strategic For Growth and Downsizing

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    Muhammad Salman

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    © All Rights Reserved
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    Developing Strategic For Growth and Downsizing

    Uploaded by

    Muhammad Salman
    15 views1 page

    Original Title

    Developing strategic for growth and downsizing

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    15 views1 page

    Developing Strategic For Growth and Downsizing

    Uploaded by

    Muhammad Salman

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Developing strategic for growth and downsizing:

    a. BCG Matrix

    The first step is identifying the strategic business units (SBU) that are vital to the company. The
    well-known model of the Boston Consulting Group (BCG) sorts the SBUs into a growth-share
    matrix, leading to four types of SBUs:

    1. Stars: high growth and high share units, in need of investment.


    2. Cash cows: low-growth, high share units, producing cash.
    3. Question marks: low-share units, in high-growth markets. Require cash, but can turn out
    to be unprofitable.
    4. Dogs: low-growth, low-share units, which are not very profitable .

    b. Market Expansion Grid

     The product/market expansion grid is a portfolio-planning tool for identifying company


    growth opportunities through:

     Market penetration: company growth by increasing sales of current products to


    current market segments without changing the product.
     Market development: company growth by identifying and developing new market
    segments for current company products.
     Product development: company growth by offering modified or new products to
    current market segments.
     Diversification: company growth through starting up or acquiring businesses outside
    the company’s current products and markets.

    Companies also need strategies for downsizing, which means reducing the business portfolio
    by eliminating products or business units that are not profitable or that no longer fit the
    company’s overall strategy.

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