BCG Matrix Business Strategy Recommendation, Research Paper Example

Given that the electronics division generates high profit but has lower market share rate, it is suggested that it should be located at the upper right corner of the matrix. This position indicates that the said sector of the business continues to generate high profit but receivers lower rate of growth due to lower market share. In this case, it would be best to invest the current profit of the section in stock to make sure that the growth remains at a higher possibility rather than continuously generating profit without the possibility of attaining growth in the market in the coming years.

On the other end, since the appliance division continues to generate high profit with high market share considered, it is expected that it should be placed on the lower left corner of the matrix. This shall suggest that the concentration on the said branch of the business be continued while its growth is being closely watched as it create profit while it also stands as the foundation of the business in the hope of creating a good and reputable name for the organization in the industry.

To possibly negate the findings herein, it is suggested that a SWOT-TOWS analysis be used to separately measure the performance of the business branches involved herein. This particular measurement shall bring out necessary findings, developments and discoveries that could further evaluate the performance of both branches being observed.

Following these suggestions ought to provide a considerable course of development on the entire operation of the organization especially in relation to which branch of the business performs better and is expected to incur growth in the market. Giving consideration over these matters specifically manifest a better source of management that the organization could depend upon. Utilizing their assets in supporting the appliance branch and creating possibilities to expand the growth of the electronics section shall render the whole organization of a wider source of business development. It would help so much if conditions of development shall be implicated especially in line with the manner by which the operations of the electronics department. It would help so much if the marketing approach applied for this branch be increased hence creating a more convincing call on the market to appreciate what the company offers under the said branch of operation. This will increase the market influence of the said branch and further define its capacity to influence overall organizational growth.

Reference:

Armstrong, J.S. and Roderick J. Brodie (1994). “Effects of portfolio planning methods on decision making: experimental results“. International Journal of Research in Marketing (Science Direct) 11 (1): 73–84.

Armstrong, J.S. and Roderick J. Brodie. (2006). Competitor-oriented Objectives: The Myth of Market Share. International Journal of Business (forthcoming).

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