Direction of Arrows in the BCG Matrix

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Forum 8 Trishit Chatterjee, US Direction of Arrows in the BCG Matrix I wonder if the direction of the arrow between Cash Cow and Star isn't incorrect? I think the Cash Cow (with excess dollars) should fund the star which is cash hungry (high working capital needs). So I think the arrow should flow from the cash cow to the star. X Welcome to the Strategic Portfolio Management forum. The topic being discussed here is: "Direction of Arrows in the BCG Matrix". Log in   Comments Sort by date Sort by rating Rating   6 Jaap de Jonge Editor, Netherlands   Direction of Arrows is OK The arrows are not indicating cash flows, but they represent the direction in which the company should try to move each product. If you would like to add arrows to indicate cash flows, then there would be an arrow: - from cash cow to star - from cash cow to question mark - from dog to star - from dog to question mark.   2 R.C. Natarajan Professor of Marketing, India   The Arrows Shown in the BCG Diagram The arrows show how normally an SBU navigates over time. Normally, in a competitive scenario, a new sbu starts as a "?", fights and becomes a leader and hence a "star". With the plc, the market growth rate falls with saturation and hence the SBU moves to "cash cow". These arrows do not pertain to the funding direction, please note. If we talk about funding direction, your suggestions are perfectly correct.   Leave a comment Share your knowledge or experience

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More on Strategic Portfolio Management: Summary Discussion Topics Example BCG Matrix: Coca Cola & Pepsi Cola 10% Limit in Market Growth in BCG Matrix Company Strategy if Lacking Question Marks? How do I Place my Products / Services in the BCG? Why the Quadrants of BCG Matrix are Named as Star, Dog, Cow, Problem Child 🔥 Modified BCG Matrix 2.0 The BCG Matrix and Synergy Effects BCG Matrix is useless! BCG Matrix Star Strategies and Examples Advantages and Disadvantages of Portfolio Planning Tools Application of BCG Matrix in Forestry Differences Between BCG Matrix and Ansoff Matrix How to Calculate the Relative Market Share in BCG Matrix? BCG Matrix in Emerging or Fragmented Markets BCG Matrix: Can Dogs be More Lucrative than Cash Cows? 👀 Direction of Arrows in the BCG Matrix Distinction Between PLC and BCG Matrix? Assumptions of the BCG Matrix BCG Matrix Question Mark Strategies and Examples The 4 BCG Categories are not Always Stages Cash Cow Strategies and Examples BCG Matrix for Start-ups

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