ENCARNACION, PM.

BSA204
BGC MATRIX

A successful business needs a good strategy that will help you make good investment decisions
like how and where you would like to spend money. It also helps to provide guidance on project
prioritization and other activities within your organization. Allocate and optimize resources to
make profits that generate above-average returns.

The BGC matrix, or growth share matrix, designed in 1968 by BCG's founder, Bruce Henderson,
is one of the successful methods adopted by nearly half of all Fortune 500 businesses today. It
appeared in one of BCG's publications. The BCG matrix was created to aid in long-term strategic
planning and to assist a company in considering growth potential by analyzing its product
portfolio to choose where to invest, terminate, or develop items. The "Growth/Share Matrix" is
another name for it.

The reasoning behind the growth share matrix is that market leadership leads to higher long-term
returns. Finally, the market leader achieves a self-reinforcing cost advantage that competitors
struggle to match. These high growth rates then indicate which markets have the greatest
potential for expansion.

The Positioning school essentially adopted and copied most of the principles and theories of the
Planning and Designing schools, but with a more extended meaning from them. The positioning
school's basis emphasizes the importance of distinct, significant, futuristic, investigative, and
identifiable techniques. According to the Positioning School, strategies must compete with both
current and future competition.

The positioning tool was created with consultants in mind. They show up with no prior
experience in the industry, evaluate the data, juggle a set of generic techniques on a chart, write a
report, drop an invoice, and depart. The strategy originated from the fact that each of them had
carved out a space in the conceptual marketplace to promote their unique positioning ideas.
During this time, the most effective of the new strategy boutiques and consulting firms
championed market shares. The growth share matrix and the experience curve were the two
strategies that were highlighted.

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The BCG-matrix is a conventional tool for guiding strategy developed by the Boston Consulting
Group. According to Giannakopoules et al. (2014), the Boston Consulting Group was founded in
1968. They are referring to Henderson, one of the Boston Consulting Group's founders. This
page, however, does not provide more detailed information about the Boston Consulting Group.
The positioning school is mentioned in 50% of the articles (2 of the 4) that mention Michael
Porter. Based on this finding, it's tough to say whether Michael Porter is always associated with
the positioning school.

When these findings are combined with the findings from the ten schools of thought discussed
above, it can be concluded that the link between Michael Porter and the positioning school is not
always a common one. Michael Porter is frequently regarded as a "lone wolf" figure or concept.
In both publications that mention it, Porter and his work are referred to as the cornerstone of the
positioning school. This explanation is totally consistent with the theoretical framework's
definition. As a result, there are no distinctions in the way Porter's relationship with the
positioning school is fulfilled.

In articles, The Boston Consulting Group is referred to as a "stand-alone" notion. There is no

mention of a relationship with the positioning school in the paper. As a result, it's safe to say that
the Boston Consulting Group isn't a well-known brand name for a positioning firm. This could
be attributed to the fact that Porter created three of the four strategic management tools used at
the institution.

In the positioning school, strategy is viewed as an analytical process aimed at determining the
organization's competitive posture. There are three fundamental approaches that can be used to
do this. The Boston Consulting Group, or BGC, matrix is a useful tool, and the major actors in
this school are business analysts. Porte is an important contributor. "Only the facts matter," may
be the school's motto.