The BCG MATRIX

Well BCG matrix is based on the product life cycle theory that can be used to what priorities should be given to products in the portfolios of a business unit
To ensure a long term Value Creation , a Company should have high growth products for cash inputs and slow growth products for large cash Creation
Basically it has two dimensions :
1)Market Share
2)Market Growth

The Basic Idea behind is that , Greater The market share or market growth better is for Product and company
Placing products in the BCG matrix results in 4 categories in a portfolio of a company
1)Stars(=High Growth , High market share)
-Use large amounts of cash and leaders in the business so that they can also generate large amount of cash
- Frequently roughly in balance sheet on net cash flow , However if needed , any attempt should be made to hold share , Because the rewards will be the cash cow if market share is kept
2 Cash Cows(=low growth, high market share)
-Profits and cash generation should be high , and because of the low growth , investments needed should be low , keep profits high
-Foundation of a company
3 Dogs(=low growth , low market share )
-Avoids and minimize the number of dogs in a company
-Beware of expensive ‘turn around plans’
-deliver cash, otherwise liquidate
4 Question Marks(=high growth , Low market share)
-have the worst cash characteristics of all , because high demands and low returns due to low market share
-either invest heavily or sell off or invest nothing and generate whatever cash it can .Increase market share or deliver cash

The BCG matrix can help understand a frequently made strategy mistake :having a one size –fit all approach to strategy ,such as a generic growth target (9% per year ) or a generic return on capital of say 9.5% say for the entire corporation
In Such a Scenario
A) Cash cow Business units will beat there profit target easily ;their management has an easy job and often praised any how .Even worse they are even allowed to reinvest substantial cash amounts in their business units which are mature and not growing any more
B) Dog Business units fight an impossible battle and even worse investment are made and hopeless attempt to turn the business around
C) As a result all (all question markets and star business units get mediocre size investments .In this way they are unable to catch up with the cash cows .These inadequate invested sums of money are a waste of money .Either these SBU’s should get the enough pie to achieve a real market dominance and become a cash cow. Otherwise companies are suggested to disinvest and to get what ever possible cash out of the question marks that were not selected

Well sincere attempt have been poured to Understand the Nitti grit tie’s of Strategies , there are many more and The BCG is among the pioneer among those

Blue Ocean Strategy

Strategy though I never understood it fully, I came across this corporate buzz word quite often .
Red Vs Blue Battle Going on …

Though many argue and deny the fact of exploring the unconquered market space
The Nitti Gritty of This Strategy is exploring which not have been explored before
Following are some points which makes its core value

a> Create uncontested market space
b> Make the competition irrelevant
c> Create and capture new demand
d> Break the value cost trade off
e> Align the whole system of Firms activity in pursuit of differentiation and happiness

Six conventional Boundaries of competition

1> industry
2> Strategy Group
3> Buyer Group
4> Scope of product and service offerings
5> Functional –Emotional orientation of industry
6> Time



4 Action Frameworks for Competing with in to creating Across

1>Eliminate: which actions that company take for granted should be eliminated?
2>Reduce: Which factor will be reduced well below the industry standards?
3>Create: Which factors need to be created that industry never offered?
4>Raise: Which Factor should be raised well above the industry standards?

Hunt still goes on …Questions will be answered pretty soon

Strategy

In my opinion “Strategy” is the most misused word in the world. What is Strategy? Well, I would consider this as a billion dollar question. Is reducing the price strategy? Is increasing number of advertisements strategy? Is launching a much improved product strategy? Is getting into new market strategy? Is increasing the brand equity strategy?... The answer is “Yes and No!”. We have seen all these individual parameters being termed as strategic decision by many corporates today. Are these decisions really strategic? If so, then why are all the companies doing that are not succeeding?Even if we take all the parameters that affect a company or any product ( 4P’s of Kotler,Porters 5 Forces,Jagdish Seths 4 A’s,BCG matrix,GE matrix and what not..!) and if you give all possible combinations and permutations of these parameters and come up with the best combination,is it SURE that your company or product would succeed? Then why the do companies term it as strategic decision, strategic move etc and what does Strategy really mean?I will try some quantitative and qualitative techniques and tools to understand what is strategy?
To put it into simple words ( I am considering about Trade Marking the following Quote  )
“If a company tries and fails it is MISERY;
If a company tries and succeeds it is STRATEGY;
If a company sustains that success it is HISTORY;

Economix

Remember the school bully who would hog the swing? Asking him to get off because it was your turn would invite a punch or two, and not wanting to be part of that predictable future you preferred to play on the slide instead.
Pure Capitalists argure that this is fair. The bully has the right to use his physical strength to his advantage. If you are smaller in size, then too bad. Learn karate or whatever and then fight him. I can't resist saying this.... you might also get a kick out of it!!
The moderate Capitalists argue that the little guy should also get a chance. They favour the teacher intervening to force him off for sometime to let you on.
Is one view fairer than the other? Which situation would you prefer to be in?
What if you were the bully to begin with?But who do you think is in majority here?.... what about the greater good?....is there such a thing?

Options and futures -A Insight

Safe returns and minimal loss --thats what a small investor used to dream when he ventures into stock market .But it requires a painstaking effort to have a zest of the lucrative tools and instruments that is available in market
Here is a little insight into such tools - opiton and futures
Option:--A stock option is a contract that gives to its holder the right but mind you not the obligation to buy or sell shares of the underlying security at a specified price on or before a given date
An investor can reap following benefits from options :
1)Protection of stock holdings from a decline in market price
2Increased income against current stock holdings
3)purchase of stock at a lower price
4)Benefit from the big market move without knowing the direction of move
5)Benefit from the rise and fall of the stock without the cost of actually buying or selling the stock
Futures:-The most speculative and risky of all markets in investment arena is the futures market
Futures contract is basically an agreement between the two parties to commits one party to sell a commodity or security to the other at a given price on a specified future date
Futures even confused with options , but important difference exist between the two instruments , in option the buyer purchases the right and only the writer only takes on the obligation on the other hand in futures both the side holds the obligation , it obligate the buyer to buy and seller to sell at a specified price at a specified date
I hope it will not confuses , any queries are cordially invited
Cautious note : Don't Act fast Do Think before investing

Corporate Covens and Argots

To join a softwere firm is a long cherising dream of a engineering grad in india , sky rocketing pay perks and gllitering work environment that allure a simple middle class lad ,who just want to enjoy every naunces of life
Just when he (atleast I )enters into it he felt thats he is in some kind of exurbia , where here real talent will go in vain under the so called corporate covens and argots , who just want to get there things done at any cost
when did he choosed sitting on that couch watching mind-numbing, spirit crushing game shows, stuffing junk food into his mouth.when did he choosed rotting away at the end of it all, pishing your last in a miserable home, nothing more than an embarrassment to the selfish, fucked up brats you spawned to replace yourself. Choose a future. Choose life... But why would I want to do anything like that?these are the question which keeps on pondering at me ,
He do not know what to do except going office every morning and stultified for the whole day
But my god see the height of optimism which is rambling in each of the office premises , that one day they will own the same kind of firm
One day surely they do , by working as a feral for the so called those potentaters ---which is what argots are supposed to do , to make them believe of there own ideas which is a betokening a great future
above may sound bit distrait thoughts but this is the truth ,which one day will become a reality where return is simply impossible