Strategic Planning
Tools
Pre-designed Models for Presentations
Contents
01 – Boston Consulting Group Matrix
02 – General Electric / McKinsey Matrix
03 – SWOT / TOWS Analysis Matrix
04 – Porter’s Generic Competitive Strategies
05 – Porter’s Five Forces Model
06 – Ansoff Matrix
Strategic Planning Tools
01
Boston Consulting Group Matrix
The Growth Share Matrix
Strategic Planning Tools
BOSTON CONSULTING GROUP MATRIX
Stars
Question
Marks
Cash
Cows
Dogs
SHARE
4
GROWTH
THE GROWTH SHARE MATRIX
“
To be successful, a
company should have a
portfolio of products with
different growth rates and
different market shares.
”
-- Bruce Henderson, BCG’s founder
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
GROWTH
5
SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
High
QUESTION MARKS
High
STARS
Low
DOGS
Low
CASH COW
6
SHARE
GROWTH
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
High
QUESTION MARKS
High
STARS
Low
DOGS
Low
CASH COW
7
SHARE
GROWTH
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks
GROWTH
Cash
Cows
8
Dogs
SHARE
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Continue doing the
same things to
maintain the status
quo
Utilize the cash
flow from a Star or
Cash Cow to
reduce the burden
of investment and
maximize profits
9
HOLD
HARVEST
BUILD
Make further
investments, either
to maintain the
market share of
Star, or make a
Question Mark into
a Star
DIVEST
Sell off or withdraw
Dogs so that HR
and financial
capital can be
invested in Star and
Question Mark
products and
business units
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
Stars
Question
Marks
Cash
Cows
Dogs
SHARE
10
GROWTH
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BOSTON CONSULTING GROUP MATRIX
Stars
Question
Marks
Cash
Cows
Dogs
SHARE
11
GROWTH
THE GROWTH SHARE MATRIX
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meis dicta eloquentiam at. Eius
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meis dicta eloquentiam at. Eius
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meis dicta eloquentiam at. Eius
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BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
SHARE
High
Low
High
Stars
Question Marks
Low
Cash Cows
Dogs
GROWTH
12
BOSTON CONSULTING GROUP MATRIX
CASH USE
Stars
Question
Marks
GROWTH
THE GROWTH SHARE MATRIX
Cash
Cows
Dogs
SHARE
13
CASH GENERATION
“
Many “businesses” require
far more cash input than
they can ever generate.
”
-- Bruce Henderson, BCG’s founder
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at />
BOSTON CONSULTING GROUP MATRIX
CASH USE
Stars
Question
Marks
GROWTH
THE GROWTH SHARE MATRIX
Cash
Cows
Dogs
SHARE
14
CASH GENERATION
“
A few businesses generate
far more cash than they
can profitably reinvest.
”
-- Bruce Henderson, BCG’s founder
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at />
BOSTON CONSULTING GROUP MATRIX
Cash
Cows
Dogs
CASH USE
Stars
Question
Marks
GROWTH
THE GROWTH SHARE MATRIX
SHARE
15
CASH GENERATION
“
A few businesses are selfsufficient in cash flow. Over
time they will become
much larger and also large
net generators of cash.
”
-- Bruce Henderson, BCG’s founder
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at />
BOSTON CONSULTING GROUP MATRIX
Cash
Cows
Dogs
CASH USE
Stars
Question
Marks
GROWTH
THE GROWTH SHARE MATRIX
SHARE
16
CASH GENERATION
“
Most businesses, however,
generate very little cash even
thought they use little. The
reported earnings must be
reinvested and probably
always will. These businesses
are “cash traps”.
”
-- Bruce Henderson, BCG’s founder
Source: The Boston Consulting Group, “The Experience Curve – Reviewed”, from www.bcg.com/
accessed at />
BOSTON CONSULTING GROUP MATRIX
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eloquentiam at. Eius forensibus usu cu impetus
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eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus usu
cu impetus tamquam te cum, eu eam
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dicta eloquentiam at. Eius forensibus usu
cu impetus tamquam te cum, eu eam
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eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam
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eloquentiam at. Eius forensibus usu cu impetus
tamquam te cum, eu eam
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dicta eloquentiam at. Eius forensibus usu
cu impetus tamquam te cum, eu eam
Lorem ipsum dolor sit amet, has meis
dicta eloquentiam at. Eius forensibus
usu cu impetus tamquam te cum, eu
SHARE
17
GROWTH
THE GROWTH SHARE MATRIX
BOSTON CONSULTING GROUP MATRIX
HIGH MARKET SHARE
LOW MARKET SHARE
FAST GROWTH MARKET
FAST GROWING MARKET
HIGH MARKET SHARE
LOW MARKET SHARE
SLOW MARKET GROWTH
SLOW SHRINKING MARKET
SHARE
18
GROWTH
THE GROWTH SHARE MATRIX
BOSTON CONSULTING GROUP MATRIX
THE GROWTH SHARE MATRIX
BU #2
BU #1
GROWTH
BU
#4
BU #6
BU #9
BU #5
BU #10
BU
BU #7
#7
SHARE
19
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 1
Question Marks
GROWTH
High
Stars
Cash Cows
Dogs
Low
SHARE
20
High
Low
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 1/3
STARS
•
•
•
•
•
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
CASH COWS
•
•
•
•
•
21
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Relative
Market Share
Market
Growth
Risk Level
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 2/3
QUESTION MARKS
•
•
•
•
•
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
DOGS
•
•
•
•
•
22
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Relative
Market Share
Market
Growth
Risk Level
BOSTON CONSULTING GROUP MATRIX
WORKSHEET 2 – 3/3
Relative Market Share
High
High
M
ar
ke
t
Gr
o
w
th
23
Low
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Entry 6
Entry 7
Entry 8
Entry 9
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Entry 6
Entry 7
Entry 8
Entry 9
STARS
CASH COWS
Low
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Entry 6
Entry 7
Entry 8
Entry 9
Entry 1
Entry 2
Entry 3
Entry 4
Entry 5
Entry 6
Entry 7
Entry 8
Entry 9
QUESTION MARKS
DOGS
02
Invest
Invest
Protect
Invest
Protect
Harvest
Protect
Harvest
Divest
General Electric / McKinsey Matrix
The Multifactor Portfolio Matrix
Strategic Planning Tools
GE / MCKINSEY MATRIX
THE MULTIFACTOR PORTFOLIO MATRIX
Low
Medium
Low
Invest /
Grow
Selectivity
/ Earnings
Harvest /
Divest
BUSINESS STRENGTH
25
MARKET
ATTRACTIVENESS
Medium
High
Strong
“
This matrix provides a
systematic approach for
the multi-business
corporation to prioritize
investments among its
business units.
”
Source: McKinsey, “Enduring Ideas: The GE–McKinsey nine-box matrix”, from www.mckinsey.com/
accessed at />