The Boston Consulting Group (BCG) is a management consulting firm founded by Bruce Henderson in 1963. Today the Boston based firm is among the largest and most profitable management consulting firms worldwide. BCG has 60 offices in 37 countries.
BCG growth-share matrix
In the 1970s, the BCG created and popularized the "growth-share matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs", and then allocate cash accordingly, moving money from cash cows toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential.
The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management," as the BCG says.
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