Strategic Management Unit 3 DB SA final Week - Essay Example

Critique Affiliation Critique According to the first template, Boston Consulting Group Matrix is not reliable because of flowing reasons. To start with, the matrix only deploys two level of dimensions ;( Hubbard, Vetter, 1998) growth as well as share in the assessment of a product’s competitive placement (Hubbard, Vetter, 1998). Another thing that makes the matrix not to be reliable is its lack of much concentration on the crucial variables within the firm but instead put more focus on balancing cash flows (Hubbard, Vetter, 1998). The matrix also gives the cost of leadership a lot of emphasis rather than putting more concentration on the differentiation aspect as a means of competitive advantage (Hubbard, Vetter, 1998). The reliability of the matrix is on decline as a result of the poor correlation between the profitability levels of the market as well as the functionality of market levels (Hubbard, Vetter, 1998). Though the Cadbury yogurt markets are currently operating at high levels due to the their high market shares and yields much profits , but due to the fact that they operate on larger markets they are most likely to consume a lot of cash in return making the matrix to become unreliable(Medicos MBA, 2014).
In the second template, it is shown that though matrix can be reliable up to a certain point, it is not fully sustained since the matrix’s are utilized in the implementation of strategic decisions. There are as well some limitations to the kind of information that the matrix group offers (Medicos, 2012). It becomes very hard to retrieve valuable information as well as data concerning the market share. This matrix is consists of four different quadrants (Medicos, 2012). In the first quadrant is about the Question Mark which shows that the matrix has low relative position in market share (David, 2005). In the other quadrant, a good example is the iPhone which is considered a great product. Though the product holds a high market position, they do not sell at high growth industry at times (McClurg, 2013). The last quadrant, ‘Dogs’, have a low market share, weak internal and external position leading to liquidation (McClurg, 2013).
References
Boundless. (2014). The Purpose of the BGC Matrix. Retrieved March 30, 2014 from https://www.boundless.com/marketing/marketing-strategies-planning/strategic-views/bcg-matrix/
David, F. R. (2005). Strategic Management: Concepts and Case. 3rd ed Pearson/Prentice Hall, 2005.
Hubbard, R., Vetter, D. E., & Little, E. L. (1998). Replication in strategic management: Scientific testing for validity, generalizability, and usefulness. Strategic Management Journal, 19(3), 243-254.
McClurg, C. (2013) The Boston Consulting Group Matrix of Growth &Fruit. Retrieved March 30, 2014 from
http://www.missionadventures.net/storage/The%20BCG%20Matrix.pdf
Medicos MBA. (2014).Boston Consulting Group (BCG) matrix. Retrieved March 30, 2014 from
http://medicosmba.com/admin/classes/strategic-marketing/boston-consulting-group-bcg-matrix/
MedicosMBA. (2012). Boston Consulting Group Matrix. Retrieved March 30, 2014 from http://medicosmba.com/admin/classes/strategic-marketing/boston-consulting-group-bcg Read More