Step 4: Strategy formulation (cont.)
BCG matrix-used to analyze and communicate corporate strategy
each business in the corporation is plotted on the growth rate of its marketand the relative strength of its competitive positionin that market (market share)
question marks-require substantial investment to improve their position
otherwise divestiture is recommended
stars-require heavy investment, but generate needed revenues
cash cows-generate revenues in excess of their investment needs
used to fund other businesses
dogs-remaining revenues are realized, and then firms are divested