Skip to main content

MBA Strategic Analysis and Choice You

MBA Strategic Analysis and Choice You are required to critically examine the BCG growth/share matrix for an organisation of your choice.

 

This may be a domestic organisation or a multinational company.

 

It can be a service provider or a manufacturer.

 

The specific question is what are the benefits and limitations of companies using this matrix as a competitive tool, in terms of potential effects on their competitive position and the reaction of competitors.

 

 Use examples from the organisation to demonstrate the benefits and pitfalls of using this approach.

 

You can draw on primary and/or secondary sources of information about the organisation. The client is from Saudi Arabia.

 

 

The Boston Consulting Group developed the growth-share matrix to analyze the problem of resource deployment among the business units or products of multibusiness firms1. The business units or products are analyzed by placing each one in the matrix shown in Exhibit 4-2 according to their (1) expected growth rate (vertical axis), measured by anticipated growth rate in sales, and (2) relative market share (horizontal axis), measured as the unit's share divided by that of its largest competitor. Thus businesses or products in quadrant I with low expected growth rates and low relative market standing are labeled "dogs" or "cash traps." They should be managed to minimize cash flow by retrenchment, divestiture, or even liquidation. These units or products are likely to be characterized by high costs, low quality, less effective marketing procedures, and so on, which would collectively contribute to weak competitive position and low potential for profits.2

Those in quadrant II, with high projected growth rates and low market standing, are interpretive problems. The reason is that although they are operating in markets with expected growth potential, they currently are experiencing competitive disadvantage. Management can invest cash to correct the market weakness so as to take advantage of expected market growth or, if not convinced of their ability to improve market share, it can retrench, divest, or liquidate to minimize the cash drain.


Comments

Post a Comment

Popular posts from this blog

A Comparative Study of Teaching Methodologies Used by the Primary Teachers in Public and Private Schools

Proposal 1.0 Title of the Study The working title of this study is initially drafted as A Comparative Study of Teaching Methodologies Used by the Primary Teachers in Public and Private Schools. 2.0 Provision for Topic Based on the working title provided, there are three topics that the study will explore teaching methodologies, primary level and public and private schools. There is always the comparison between public and private schools based on facilities, class size, budgets, administrative support and of course teaching methods employed, all contribute to the decision where the child should be educated. Primary education, on the other hand, is the first stage of compulsory education which aimed to basic literacy and numeracy. 3.0 Introduction As already mentioned, primary education thrives for basic literacy and numeracy amongst all pupils. This level of education focuses on establishing foundations in science, geography, history and other social sciences. T...
Post a Comment
Read more

The analysis on the external and internal environment of Primark retailing industry

Introduction The omnipresence of global trends and innovations debunk the idea of business monopoly and empire states. Today, the trends are set to maximize the potential of human powers by trivializing simple phenomena in order to fashion complex and subtle effects. In the minds of prominent sociologists and philosophers these trivialization of occurrences brought about by man's deepest desire of uncovering the truth and meaning of life. However, our correspondence and connection with the truth is indirect and diluted which can only be accessible via representations and constructs. Hence, the necessity, though, not necessarily is, of excavating the truth embedded on phenomena became an ordinary human laborious pursuit. Moreover, due to rapid changes on various aspects of human life our reactions vary depending on the way we perceive it, while forming effective and efficient mechanisms become a mechanical elocutionary act. This fact is paralleled with the nature and condition of b...
Post a Comment
Read more

Microfinance Enterprise in the third world economy Research Proposal

            Microfinance has grown from a small program in the 1970s in Bangladesh to a worldwide movement today. Microfinance is basically the small loans that are granted to the third world poor. Such microloans are usually provided through non-profit, humanitarian organizations. These new mechanisms are often referred to as nongovernmental organizations (NGOs) whose focus is on empowering poor families.             The movement to expand financial services for the poor as a grassroots development strategy is a relatively recent phenomenon. Microfinance, which emphasizes granting small loans to the poorest of the poor without requiring collateral, rests upon the notion that the most impoverished people in developing countries typically do not otherwise have access to traditional financial; services, but that they do possess modest survival skills that make them credit-worthy....
Post a Comment
Read more