FIRST OFF DO NOT EVEN LOOK AT THIS IF YOU\'RE NOT GONNA ANSWER IT ALL TIRED OF Y
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Question
FIRST OFF DO NOT EVEN LOOK AT THIS IF YOU'RE NOT GONNA ANSWER IT ALL TIRED OF YOUR CHEGG BS
Applebee’s is the largest casual dining chain in the world with 1,970 locations throughout the United States and nearly 20 other countries worldwide. The menu features beef, chicken, and pork items as well as burgers, pasta, and seafood. The Applebee’s CEO wants to make the restaurant more profitable. The CEO believes that customers will pay for a “tastier menu” which will generate more profits. (Management Information Systems, 13th edition, page 480).
However, Applebee’s must deal with rising costs for labor and restaurant operating expenses such as insurance, taxes and utilities. Transportation and gasoline costs have risen and food products are more expensive. And, today’s consumer is more aware of spending habits.
Questions:
1) From a manager’s perspective (which may be different from the CEO’s perspective), briefly identify the problems identified by the CEO.
2) What problems other than the menu might prevent the restaurant from being more successful?
3) What pieces of data would Applebee’s need to collect to earn more profits?
4) How might you use social media to collect data and information?
5) What kinds of reports would be useful to help your management make decisions on how to improve menus and profitability?
6) How would your team determine the success or failure of this initiative?
Answer all if you can not answer all do not respond
Explanation / Answer
Answer 1:
BCG Matrix is also called as Boston Consulting Group matrix, is a 2 * 2 matrix. It was developed by BCG, USA. It is the most renowned corporate portfolio analysis tool.
BCG matrix help organizations to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates.
Developing BCG matrix
In the first instance, organizations will need data related to the market share and growth rate of your products or services. When scrutinizing or examining the market growth parameter, organizations need to objectively compare themselves to their largest competitor and think in terms of growth over the next three years. If the market is extremely fragmented, however, organizations can use absolute market share instead.
Then draw a BCG matrix. It consist of four-quadrant chart, where market share is shown on the horizontal line (low left, high right) and growth rate along the vertical line (low bottom, high top). The four quadrants are designated "stars" (upper left), "question marks" (upper right), "cash cows" (lower left) and "dogs" (lower right).
Using the matrix to strategize
Once organizations completes the BCG matrix analysis, they became aware where each business unit or product stands. With this organizations can evaluate these business units or services or products objectively. Refer below four potential strategies you can follow based on the results of your BCG matrix analysis:
Shape – Increase investment in a product to increase its market share. For example, you can push a question mark into a star and, finally, a cash cow.
Hold – If you can't invest more into a product, hold it in the same quadrant and leave it be.
Reap – Reduce your investment and try to take out the maximum cash flow from the product, which increases its overall profitability (best for cash cows).
Divest – Release the amount of money already stuck in the business (best for dogs).
Answer 2:
BCG Matrix and Monsanto Products or services.
To explain this answer I would like to evaluate the Mosanto's strategic position in the decade of 1960. Please refer to the BCG matrix given below relevant to it's strategic position in 1960.
In the decade of 1960 firms used to reinvest based on their profitability alone risk overspending on mature business lines while under-funding those in early stages of growth. During this period, Monsanto pursued the prevailing profit center approach. Monsanto initiated the period with the stronger portfolio. Seven of its businesses were facing growth in demand greater than 20 percent. Following a course of reinvesting based principally on proven success and profitability, Monsanto overlooked emerging trends and opportunities. Of fourteen businesses growing at an annual rate of 15 percent or greater, it expanded only three of those businesses faster than demand. It lost ground to competitors in eleven of fourteen growing areas. Monsanto’s debt-to equity ratio stood at 1 much smaller 0.46:1 ratio as compared to other rivals. Through this period growth of Monsanto stagnated. In portfolio management terms, Monsanto overspent on no growth businesses and failed to invest in launching a robust set of new Stars for future profitability. It wasn’t until 1981 and the efforts of CEO Mahoney that Monsanto tackled its portfolio imbalances, leading the company back to a path of strategic growth and more respectable returns on equity.
Current Strategic position of Mosanto:
SWOT Analysis
Strength:
Strong Engineering capabilities, Diversified Operations, Strong Brand portfolio, Healthy Financial Growth, Newly Expanded Growth
Weaknesses:
Involved in environmental law violations, Concentration of distributors in certain pockets had led to efficiency of distribution
Opportunities:
merging Indian Market, Alternates in soyabean, strategic acquisitions and vertical integration of new product development
Threats:
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