ANSOFF MATRIX,

BCG MATRIX,
LIFE CYCLE ANALYSIS
CUEVAS, Rieland
REBADOMIA, Chumescene
TAN, Nerick Jason
TAVEROS, Maxine Ann
VENTURA, Cleo Ariana
VILLAHERMOSA, Giah
UY, John
ANSOFFS MATRIX
Product and Growth Matrix
Ansoffs Matrix
Developed by Igor Ansoff

Explains different growth strategies for a company via
existing products and new products, and in existing
markets and new markets

Used after having the SWOT Analysis

Suggests for possible strategies: Market Penetration,
Market Development, Product Development and
Diversification

Different Growth Strategies
Market
Penetration
Product
Development
Market
Development
Diversification
Existing Products New Products
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Market Penetration
Aims
Focus on selling your existing products or services to
existing markets to achieve growth in market share
Risk Low
Profits Low
Approaches
Maintain or increase the market share of current
products
Secure dominance of growth markets
Restructure a mature market by driving out competitors
Increase usage by existing customers
Requires
Detailed market
Competitor intelligence
Market Development
Aims
Focus on selling your existing products or services to
new markets
Risk Moderate
Profits Medium
Approaches
New Geographical Markets
New product dimensions or packaging
New distribution channels
Requires
Detailed market and competitor intelligence
Well-researched market, financial and operational data
Product Development
Aims
Focus on developing new products or services to
existing markets
Risk Moderate
Profits Moderate
Approaches
New product is closely associated with current product
Matches current customers purchasing habits
Reinvents or refreshing existing products
Requires
Research and Development
Assessment of customer needs
Clear path for brand extension
Diversification
Aims
Focus on selling new products or services to new
markets
Risk High
Profits High
Approaches
Honest assessment of risks
Access to capital and willingness to invest
Clear expectation of potential gains
Right balance of risks versus rewards
Types
Forward
Full
Backward
Advantages and Disadvantages

- Useful tool in analyzing the
strategic position of the firm
and set objectives for the way
forward

- sub-divides the options into
four specific strategies that
management could consider for
long term growth

- indicates the level of risk
associated with each strategy
thus encouraging management
to focus carefully on the impact
of any decision made
- Simplistic

- Its main focus tends to be
market potential rather then
the resources required by the
firm to support its chosen
strategy

- usefulness will be very limited
to a firm whose objective is
survival

- No guarantee of success

- Based on forecasts

BCG Matrix
INTRODUCTION
BOSTON COUNSULTING GROUP(BCG)
MATRIX is developed by Bruce
Henderson of the Boston Consulting group
in the early 1970s

Businesses are classified as low or high
performers depending on their relative
market share and their market growth rate
MARKET SHARE
It is the percentage of the total market
thats being serviced by your company,
measured either in revenue terms or unit
volume terms.
RMS= Business unit sales this year
Leading rival sales this year

The higher your market share, the higher
proportion of the market you control

MARKET GROWTH RATE
Used as a measure of a markets
attractiveness
MGR= Individual sales this year- Individual sales last year
Individual Sales Last year

Those with high growth rate are those where the
total market share available is expanding, and
there is plenty of opportunity for everyone to
make money
BCG MATRIX
A portfolio planning model which is based
on the observation that a companys
business units can be classified in to four
categories:
>Stars
>Question marks
>Cash cows
>Dogs
STARS
High growth, high market share
Needs large amounts of cash and are
leaders in the business so they could also
generate large amounts of cash.
CASH COWS
Low growth, High market share
Foundation of the company, usually the
stars of yesterday
Generate more cash than required
Extract profits by investing as little cash as
possible
Located in an industry that is mature

Dogs
Low growth, Low market share
Avoid or minimize the number of dogs in a
company
Do not have potential to bring much cash
Business is situated at a declining stage

Question Marks
High growth, Low market share
Most businesses start of as this
Absorb great amounts of cash if market
share remains low
Have potential to become stars, cash
cows, or dogs
Investments should be high
WHY BCG MATRIX?
To assess:
Profiles of products/businesses
The cash demands of products
The development cycles of products
Resource allocation and divestment
decisions


BENEFITS
Simple and easy to understand
Used to identify corporate cash resources
that can be used to maximize a companys
future growth and profitability

Limitations
Uses only two dimensions
Problems on getting data on market share
and market growth
High market share doesnt mean high
profits all the time
Businesses/products with low market
share can be profitable too
CONCLUSION
Though the BCG matrix has its limitations,
it is one of the most famous and simple
portfolio-planning matrix, used by large
companies having multi-products.
Life Cycle
Analysis
What is LCA?
Looking at a products complete life cycle
From Raw Materials to Final Disposal of the
product.
Examines the environmental impact of a
product by considering the major stages
of a products life.
What is LCA? (Contd)
Major Stages include:
A. Raw Material Acquisition
B. Processing
C. Manufacturing
D. Product Life
E. Waste Management/ End of Life
Historical Perspective
1960s: Coca Cola explores alternative
containers besides the glass bottle.

1970s: Oil embargos in the US create
concerns about energy supplies.
Resources & Environmental Profile Analysis
(REPA)

1974: A new beverage container
comparison and compare different
plastics.

Historical Perspective (Contd)
1980s: Green Movement in Europe
brings focus on emissions and need to
recycle.

1990s: Battle between cloth and
disposable diapers

1992: Energy, Water, and Solid waste

Purpose
1. Calculate products environmental
impact.
2. Identify positive and negative
environmental impact.
3. Opportunities for process or product
improvement.
4. Compare several processes.
5. Quantitatively justify a change in a
process or product.

Life Cycle
Inventory
(LCI)
Life Cycle
Impact
Assessment
(LCIA)
Final Report
LIFE CYCLE ANALYSIS
Life Cycle Inventory (LCI)
process which quantifies all inputs and
outputs of a process or product.

Inputs = Energy and Raw Materials

Outputs = Material Emissions to the
Environment, such as water, air, & solid
waste.
Sample Life Cycle Stages
Inputs
Life Cycle
of Process
or Product
Output
Trees and
Crops
Water
Gas &
Crude Oil
Chemicals
Energy
Capital
Equipment
Raw Material
Processing
Manufacturing
Production
Transportation
Product Life
Maintenance

Airborne
Emissions
Recyclable
Waste
Co-products
Waterborne
Emissions
Landfill Waste
Dumping and
Littering
Life Cycle Impact Assessment (LCIA)
Way to interpret how the processes and
products impact human health and
environment.
Gives a more meaningful basis for comparison.

Step 1: Create a definition and
scope
Consider the following topics when
developing definition and scope:
a. Goal of LCA
b. Audience
c. Production and Process
Information
d. Data Accuracy
e. Result Interpretation and Display
f. Ground Rules
Step 2: Life Cycle Inventory
(LCI)
Consider the following when completing
the LCI:

a. Process Flow
b. Data Gathering
c. Data Inventory
d. Result

Step 3: Life Cycle Impact
Assessment (LCIA)
Consider the following when completing
an LCIA:
a. Impact Categories
b. Result Categorization
c. Impact Comparisons
d. Important Potential Impacts
e. Results
Step 4: Interpret the results and
make recommendations
Consider the following when interpreting
results:
a. Final Results
b. Conclusions
c. Limitations
d. Recommendations
e. Report Information