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NotesBusiness ManagementTopic 6.4Constructing and applying the BCG matrix
Back to Business Management Topics
6.4.21 min read

Constructing and applying the BCG matrix

IB Business Management • Unit 6

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Contents

  • How to draw a BCG matrix
  • Marking criteria for BCG questions
  • Applying BCG to make recommendations

✏️ How to draw a BCG matrix

  • Draw a 2×2 grid
  • Label the x-axis: Market share (high on left, low on right)
  • Label the y-axis: Market growth (high on top, low on bottom)
  • Label the four quadrants: Stars (top-left), Question Marks (top-right), Cash Cows (bottom-left), Dogs (bottom-right)
  • Place each product in the correct quadrant based on the case study data
Common mistake: Getting the axes wrong! Market share is horizontal, market growth is vertical. High share is on the LEFT.

🏆 What examiners look for

BCG construction questions are typically worth 4 marks.

  • [2 marks] Correctly labelled matrix (axes and quadrant names)
  • [1 mark] First product correctly classified
  • [1 mark] Second product correctly classified
You MUST use the data from the case study to justify your classification. Don't just guess — explain why each product belongs in its quadrant.

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💡 Using BCG for recommendations

  • Star products → recommend continued investment and marketing support
  • Cash cows → recommend maintaining current approach, use profits to fund growth
  • Question marks → recommend careful evaluation — invest if potential is high, divest if not
  • Dogs → recommend discontinuing or repositioning unless there's a strategic reason to keep them
Exam tip: In 10-mark questions, use BCG classifications to support your recommendation — 'Product X is a Star and should receive priority investment...'

Related Business Management Topics

Continue learning with these related topics from the same unit:

6.1.1What is a SWOT analysis?
6.1.2Using SWOT for strategic decisions
6.1.3Writing SWOT-based recommendations
6.2.1The Ansoff matrix
View all Business Management topics

Improve your exam technique

Command terms, paper structure, and mark-scheme tips for Business Management

IB Exam Questions on Constructing and applying the BCG matrix

Practice with IB-style questions filtered to Topic 6.4.2. Get instant AI feedback on every answer.

Practice Topic 6.4.2 QuestionsBrowse All Business Management Topics

How Constructing and applying the BCG matrix Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to Constructing and applying the BCG matrix.

AO1
Describe

Give a detailed account of processes or features in Constructing and applying the BCG matrix.

AO2
Explain

Give reasons WHY — cause and effect within Constructing and applying the BCG matrix.

AO3
Evaluate

Weigh strengths AND limitations of approaches in Constructing and applying the BCG matrix.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide →

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6.4.1The BCG matrix
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Purpose and structure of a business plan6.5.1

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