MGT 30220 Final: Strategic Management Study Guide Part 34
Strategic Management Study Guide
• Portfolio Analysis:
o BCG Growth-Share Matrix:
▪ Analyzes how much units
contribute to corporate value
creation in one of two ways
• either serve as engines
of revenue growth or
they generate cash
flows for the firm to reinvest or distribute to shareholders
▪ However, does not say anything about how each of these helps a
orporatio to eploit or epad a opa’s resoures ad apailities
▪ Plot each business on framework based on market share and growth
▪ Want to get rid of dogs and want to take money from cash cows in order
to incest in question marks so that you can turn them into stars
o GE/McKinsey 9-Block Matrix
• Tests of Corporate Strategy:
o 1. Attractiveness Test:
▪ are the industries chose for diversification structurally attractive (or
capable of being made so)?
o 2. Cost of Entry Test:
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