7/31/2019 Copy of Bp2008 Week8 Wegmann 2c

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BCG Charts: How to make them with Excel

For more on what this chart is used for: see marketing courses in "lamswww.epfl.ch" AW 20050327

References:The original artic le in which the BCG chart is described is: A shorter explanation can be found in (page 69):

The Use of Growth Share Matrix in Strategic Planning, Marketing Management - Millennium Edition

Arnoldo Hax & Nicolas Majluf, Philip Kotler

The Institute of Management Science, 1983. Prentice Hall

Goal: compare position of "our company" in the 5 markets M1 .. M5 using a BCG chart

Market MSFr M1 M2 M3 M4 M5

Our Com an 1.00 0.50 1.00 2.00 0.50Com etitor 1 0.50 1.00 0.50 0.50 0.00

Competitor 2 0.25 2.50 0.00 1.00 1.00

Com etitor 3 0.25 0.00 0.00 0.50 0.50

Total 2001 2.00 4.00 1.50 4.00 2.00

Forecast 2003 2.25 4.5 2.5 5.5 3

Note: to give the equation on how to compute a compound growth

Growth / ear 6% 6% 29% 17% 22% =POWER(10;LOG("Market,Forecast 2003"/"Market, Total 2001";10)/2)-1Note: 2 corresponds to 2 years 2003 - 2001)

BCG Chart sim le version

Table 1:Title A B C D E Note: size of com an / bi est of its com etitor

X axis (relative share) 0.71 1.00 1.50 4.00 2.00 =+"Market,OurCompany"/MAX("Market,Competitor1":"Market,Competitor3")

Y axis (market growth) 15% 18% 7% 4% 4%

radius 0.5 1.6 1.8 3.2 0.5

BCG Chart (more elaborate version)

Table 2: A B C D E

0.71 15% 0.5

1.00 18% 1.6

1.50 7% 1.8

4.00 4% 3.2

0.20 4% 0.5

x radius radius radius radius radius

Note:more elaborate bubble chart - showing labels for datapoints

- this chart can be made only with a more complex table

How to do it:1 Select the range C56: M62 (in yellow)

2 Select the Chart Wizard with chart type: bubble chart

3 Select the chart and then in Excel menu:

4 Menu chart / Source Data / Data Series / Name: for eac5 Menu chart / Chart Options... / Data Labels: select Serie

6 Select the x axis in the chart and right click

7 Select in the menu: Format axis / Scale: (x) min 0.1, max

8 Select the y axis in the chart and right click:9 Select in the menu: Format axis /Scale : (y) min 0.1, max

10 Select one bubble in the chart and right click:

11 Select in the menu: Format data series / Options: area of

0%

10%

20%

30%

0.1110

AnnualMarketGrowthRate

Relative Market Share

BCG Matrix

Showing the 5 SBU'S

A

B

C

D

E

1.6

1.8

3.2

0.5

0.5

5

14

0%

10%

20%

30%

40%

0.101.0010.00

0%

5%

10%

15%

20%

25%

0.10 1.00

0.71

1.00

1.50

4.00

2.00

-50%

0%

50%

100%

150%

200%

250%

-0.2

8

22

10