What are the different parts of the Boston Consulting Group matrix? Know what happens to growth and profitability in each of the four stages.
• Cash Cow: A business unit that has a large market share in a mature, slow industry. Requires little investment and generate cash that can be used to invest in other business units.
• Star: A business unit that has a large market share in a fast-growing industry. Generate cash, but due to the market growing rapidly, they require investment to maintain their lead. If successful, a star will become a cash cow when the market matures.
• Question Mark: A business unit that has a small market share in a high growth market. These business units require resources to grow market share, but whether they will succeed and become stars is unknown.
• Dog: A business unit that has a small market share in a mature industry. May not require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share.
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Management
- Simultaneous Production and Consumption meaning what?
- Intangibility meaning what?
- What is a product?
- What are the 4 P's of marketing?
- What is a market and what do we mean by exchange?
- What do we mean by the four different types of utility (time, place, possession, and psychological utility)?
- Know some of the major marketing strategy decisions.
- What do we mean that a product becomes a commodity?
- Know the different stages of the strategic planning process (situation analysis and marketing plan).
- What do we mean by organization mission and vision?
- What are the elements of a good mission statement?
- What do we mean by the width of a mission statement?
- What is corporate strategy?
- What is business-unit strategy?
- What is a strategic business unit?
- What do we mean by competitive or differential advantage?
- What is a marketing plan?
- Parts of the marketing plan:
- Why is the executive summary very important?
- What is the purpose and significance of the Marketing plan?
- What is a situation analysis and what are some of the issues to be considered in a situation analysis? (Three key environments)
- What are the challenges in conducting a situation analysis?
- What do we mean by derived demand?
- What are the different competitors that a firm must face?
- What are some of the aspects of the external environment?