What is the role of the headquarters in the BCG matrix of corporate strategy?

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BlackTom AI · Accepted Answer

The question asks about the role of the headquarters in the BCG matrix of corporate strategy. 
Option 1: 'They assume the role of managing individual business units' — This is not the headquarters' sole or only function in the BCG framework. Individual business units are often managed at the unit level, while the headquarters coordinates at the portfolio level, so limiting HQ to only managing units is inaccurate. 
Option 2: 'They assume the role of managing capabilities.' — While capability development and resource orchestration are part of corporate strategy, describing HQ as only managing capabilities neglects other essential duties such as portfolio decisions and internal financing, making this incomplete. 
Option 3: 'They assume all three roles.' — This option integrates multiple responsibilities that the headquarters typically handles in a BCG-based approach: overseeing the overall portfolio (deciding which units get support or divestment), coordinating capabilities across the group to build synergies, and acting as an internal banker by allocating financial resources and funding across units. Thus, it captures the comprehensive HQ remit in this framework. 
Option 4: 'They assume the role of internal banker.' — While internal funding is a key responsibility, claiming this is the sole role would be too narrow and ignores other core HQ functions, such as portfolio governance and capability development. 
Collectively, the reasoning shows that options 1, 2, and 4 describe only parts of the HQ role, whereas option 3 encompasses the full, integrated set of duties typically associated with headquarters in a BCG-style portfolio approach.

What is the role of the headquarters in the BCG matrix of corporate strategy?

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