Page 34 - Portfolio Analysis
P. 34

FIGURE 18


                                                                        STAR  QUADRANT

                                                               R & D

                                                                 Production
                                                                  Cash = 10

                                                                           Marketing

                                                                           Distribution
                                                                                =10


                                                                     20 units are injected into the Star Quadrant
                                                                     10 are used to increase distribution whilst
                                                                     10 are used to develop and increase production
















                    STAR
                Cash  Injection    STAR         Problem Child
                10 Units Production
                10 Units Marketing  Cash Generated      80  Cash Generated    20
                               Cash  Used            100  Cash Used           100 High
                                           -  20           -  80

                  Market Growth
                  Rate          Cash Cow           DOG
                               Cash Generated     110 Cash Generated    30
                               Cash  Used               20 Cash  Used            20 Low
                                             + 90          + 10

                                    High             Low
                                         Market Dominance
                                                     Cash Flow
   29   30   31   32   33   34   35   36   37   38   39