A BCG Matrix, or Boston Consulting Group Matrix, is a diagram that is organized in such a way as to allow you to approach company growth in a variety of ways. Rather than focusing on the company as a whole it allows you realistically plan your finances in a more diverse way using symbols and focusing on investments.

Typical Uses

It is best to use a BCG Matrix when you do want a general financial growth plan but would like to focus on many different aspects of your company at once. It allows you to pay specific attention to all of your company needs.

Best Practices

• Create your diagram. Create a 2x2 box grid. Place a title or goal on the top.
• Create categories. Place a star in the upper left box, a cow in the lower left box, a question mark in the upper right box, and a dog in the lower right box. The star represents high growth and high market share, the cow represents low growth and high market share, the dogs represent low growth and low market share, and the question marks represent high growth and low market share.
• Label. Near the bottom left corner of the grid draw an arrow going upwards and another going to the right. Next to the top left box write "High Growth Rate" and next to the bottom left box write "Low Growth Rate". Beneath the bottom left box write "High Growth Rate" and beneath the bottom right write "Low Growth Rate".
• Identify finances. Decide which areas of your business fit in to each of the categories you've just made on your diagram and fill them in where they belong.
• Draw conclusions. Using this diagram decide how further money should be spent in the company.