Discussion Post: BCG Portfolio Analysis Application
Richard Scott, CEO of XYZ Enterprises, is considering a merger with Empire Inc., which is led by CEO Mickey Thompson. The merger of their two firms will enable the creation of a very large diversified conglomerate, with businesses ranging from office supplies to sporting goods, industrial paints, consumer electronics, video games, and marine engines. Consultants from Boston Consulting Group have advised Scott and Thompson that the merger could create a great deal of value, because the new combined entity can use several lucrative yet mature "cash cows" within Empire Inc. to fund the growth of several promising, but not yet highly profitable, young businesses. Scott and Thompson have decided to seek a second opinion from your consulting firm, International Associates.
Respond to the following questions posed to you by these two CEOs:
1. Could you please explain the BCG matrix to us? What is the logic of this model? What are the model's limitations and weaknesses?
2. Should we be employing the matrix to evaluate this merger? Could we create value in the manner that BCG has described?
The discussion board will be set in Canvas to require students to contribute their own response to the prompt prior to reading what classmates have posted. Each student will submit an initial response posting to reflect on all aspects of the prompt. Conclusions must be defended with evidence in appropriate APA format, which means both in-text and end-of-text citations should be included.
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.