Consider the following information about 3 Business Divisions for a company Busi
ID: 367142 • Letter: C
Question
Consider the following information about 3 Business Divisions for a company
Business Divisions: A B C____
Sales(million$): 200 50 150
Profits(million$): 20 15 25
Relative market share: 0.2 0.5 0.8
Industry Growth rate : +0.20 +0.10 -0.10
IFE total weighted Score 1.8 3.5 2.5
EFE total weighted Score 2.6 1.5 3.4
Qn.1 a) Develop a BCG matrix
1b) Suggest suitable strategies for the Business Division A
1c) Suggest suitable strategies for the Business Divisions B
1d) Suggest suitable strategies for the Business Divisions C
Qn.2 a) Develop an IE matrix
2b) Suggest suitable strategies for the Business Division A
2c) Suggest suitable strategies for the Business Divisions B
2d) Suggest suitable strategies for the Business Divisions C
Explanation / Answer
1 a) BCG matrix
1 b) Strategy for Division A - Management needs to understand the profitability of the business, decide on whether to put in more funds or not invest in it at all. If it decides on putting in more funds, it needs to come out with strategies for acquiring more market share.
1 c) Strategy for Division B - Since Division B is a Star , the company needs to keep investing on Division B so that it keeps the high market share in a highly growth market. Every company needs a Star in its business.
1d) Strategy for Division C - These are Cash cows. Hence the company's strategy should be to get more milk from these cows without killing them. Sustained investment not required.
Relative Market Share High Low Market Growth Rate High B A Low CRelated Questions
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