Fundamentals of Management, 8th ed

portfolio

management

techniques

Methods that

diversified

organizations use to

determine in which

businesses to

engage and how to

manage these

businesses to

maximize corporate

performance

BCG (Boston

Consulting Group)

matrix

A framework for

evaluating

businesses relative

to the growth rate of

their market and the

organization’s share

of the market

Chapter 3: Planning and Strategic Management

7 9

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The matrix suggests that fast-growing markets in which an organization has the highest

market share are more attractive business opportunities than slow-growing markets in

which an organization has small market share. Dividing market growth and market share

into two categories (low and high) creates the simple matrix shown in Figure 3.4.