The BCG matrix accomplishes this by assisting corporate analysts to determine the units that require investment, the amount of investment to be allocated, and the departments or business units that ought to be divested. The BCG matrix makes it easier for organisations to define the different life stages or organisations thus helping them to plan ahead for resources so as to remain in operation. Organisations also go through different stages where there are contrasting amounts of investment that will be required. Each corporation will go through different phases where it earns varying quantities of profit.
Any business organisation operates through different stages of development in different industries and markets. In the BCG matrix, organisations are categorised into cash cows, stars, dogs and question marks. McDonald’s BCG Analysis The BCG matrix is a model that is based on making an assessment on organisations and their products through the observation of the organisations’ business units.
