A BCG matrix, also known as a growth-share matrix, identifies departments and divisions within an organization that should receive fewer resources than others. It may also identify divisions that can be divested.
Every organization needs to communicate clear objectives. Analytical tools like BCG, a Boston Consulting Group evaluation of relative market share position and industry sales growth rate, and grand strategy matrix, a four-block model that recommends strategies based on competitive position and industry market growth, can improve the quality of strategic decisions, but leaders must make these choices. Behavioral, cultural, and political aspects of the process and selection are important to manage. Boards of directors are assuming a more active role in strategy because of legal pressures.