BCG GROWTH

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BCG Growth

The BCG Matrix and the GE/McKinsey Model are among the most popular tools of strategic planning. The BCG Matrix denotes a planning instrument that examines the position of an enterprise’s brand portfolio and its potential. It categorizes a corporation’s business unit into four sub-divisions informed by its share versus market growth relative to close rivals. The GE/McKinsey Model refers to a strategy tool that systematically determines which business units need more investment. It has nine cells, providing an enhanced vision concerning the placement of business units. Determining resource allocation, analyzing business news, and future forecasting are reasons why both models are feasible in the healthcare and marketing industries.

Both models can be used in healthcare to create strategic plans as they determine resource allocation efforts. According to BCG (2020), planning instruments let organizations identify business units where they should invest more or pull their resource out. McKinsey (2008) postulates that the GE/McKinsey Model highlights strategic consequences, and helps corporations to prioritize areas of investment. In healthcare departments, using these models informs management teams to invest in long-term care equipment, for example, diagnostic laboratories that cater to Alzheimer's facilities, rehabilitation centers, and nursing homes. All of these shows that these models identify business units that can attain maximum profit function both in the short and long-run augmenting market share and growth. Not only does the GE/McKinsey Model and the BCG Matrix determine resource allocation in healthcare organizations, but they also analyze business trends.

In healthcare, management teams can apply both strategic models in examining market share by scrutinizing corporate news...