...Number: 782822 Word Count: 518 Abstract The purpose of this assignment is to work together in a group, organising self and others to produce work to agreed deadlines, the group will aim to engage in debate about strategy from a theoretical and practical standpoint, while Undertaking analysis of a case and generate a critical evaluation. Each member of the group will produce a formal report critically analysing one chosen identified corporate strategy, the report will evaluate and summarise the chosen model reflecting their individual analysis to corporate strategy. The group will then put reports together to make a single portfolio of the different corporate portfolio framework analyses. Along side the written report the group will also work together to produce a presentation which will focus on one chosen corporate strategic model analysed in the report, in this case the group decided to focus on Porters five forces. The group will apply critically apply this framework and critically apply this to a business of the groups choice (in this case Samsung) during the presentation. Corporate strategy 1 Boston Consulting Group Matrix The Boston consulting group matrix (BCG Matrix) is a four cell matrix developed by the Boston Consulting Group in the early 1970’s to manage and asses a business portfolio of products and their potential, “The matrix helps in development of plans which reflects the need of each business unit as well as business as a whole”...
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...Boston Product Matrix The Boston Matrix was developed by the large US consulting group BCG (Boston Consulting Group). This matrix is a powerful tool that assists the firms planning their product portfolio. It has two controlling characteristics: relative market share and market growth as suggested from the figure below. [pic] Figure 5: Boston Corporate Group matrix It has four cells and each cell has its name as follows. • a. Dogs. The products that fall in this cell are the ones with a low share of a low growth market. These products do not generate revenues for the company. Firms should get rid of the products that fall in this cell as they tend to require huge investments from time to time. • b. Cash Cows. In a slow growth market products that hold a high share are represented by the Cash Cows in the BCG matrix. Cash Cows generate revenues more than that is invested in them since they are the leaders in the mature market. Firms can still continue to have them as a part of the portfolio till they eventually become dogs and stop generating revenues. • c. Question Marks (also known as the ‘problem child’). These products have low market shares and do not generate much cash. However, these products are in a rapidly growing stage and thus consume large amounts of cash. A question mark has the capability to gain market share when the market growth slows, and can thus become a star and finally a cash cow. Before making the investment required to grow the market...
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...Comparing the BCG Matrix with the McKinsey 7S model 1 Structure STRUCTURE ........................................................................................................................................ 2 INTRODUCTION ................................................................................................................................. 3 BOSTON CONSULTING GROUP (BCG) GROWTH MATRIX ................................................... 3 COMPOSITION AND FRAMEWORK ....................................................................................................... 3 APPLICATION ....................................................................................................................................... 3 EXAMPLE APPLICATION: JUWI ............................................................................................................ 3 WEAKNESSES AND STRENGTHS OF THE BCG MATRIX ....................................................................... 4 THE MCKINSEY 7S MODEL ............................................................................................................ 5 COMPOSITION AND FRAMEWORK ....................................................................................................... 5 APPLICATION ....................................................................................................................................... 7 EXAMPLE APPLICATION: JUWI ..............................................................
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...Stategic Management Boston Consulting Group Toyota World Corporation Alexander Oktaviandri | 008201100007 Daisy Wijaya Kusuma | 008201100025 Ervy Alvionita | 008201100059 Kenny Samuel | 008201100056 Ricky Dhamaputho | 008201100048 Shao Xian | 008201100119 Accounting 3 LITERATURE REVIEW Boston Consulting Group has three main theories regarding strategic management. They are: * The BCG matrix method * Boston consultant group’s advantage matrix * Experience Curve Effects The BCG matrix method The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product’s market grows the better it is for a company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. STARS(high growth, high market) - Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. -Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. 2. CASH COWS(low growth, high market share) - Profit and cash...
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...General Mills, Intuit, Boston Consulting Group, and Wegmans. Google, Inc. is one of the world’s largest software companies and is considered the king of all Internet search engines. Based in Mountain View, California, Google employs about 47,500 employees in 40 countries around the world. Its key product is its powerful search engine, Google. The company also provide Gmail and recently launched the Chrome Netbook which runs on the ChromeOS operating system. General Mills is one of the world’s largest food companies and leading brands. Well known for its wide variety of cereals (Cheerios, Trix, Lucky Charms), the company also markets many other well-known North American food brands, such as Bettyrocker, Yoplait, Colombo, Totino's, Jeno's, Green Giant, Old El Paso, and Häagen-Dazs. Intuit is software company that produces personal finance and tax software. It most popular products are Quicken and QuickBooks, both of which are easy to use small business accounting software. The company also produces TurboTax tax-filing software, and offers loans (Quicken Loans) and online payroll services. The Boston Consulting Group (BCG) is a global management consulting firm with 81 offices in 45 countries. It is one of the Big Three management consulting firms. The firm advises clients in the private, public, and not-for-profit sectors around the world, including more than two-thirds of the Fortune 500. Considered one of the most prestigious management consulting firms, BCG was ranked...
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...GE Matrix The business portfolio is the collection of businesses and products that make up the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities. The company must: (1) Analyse its current business portfolio and decide which businesses should receive more or less investment, and (2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained. The two best-known portfolio planning methods are the Boston Consulting Group Portfolio Matrix and the McKinsey / General Electric Matrix (discussed in this revision note). In both methods, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised. The McKinsey / General Electric Matrix The McKinsey/GE Matrix overcomes a number of the disadvantages of the BCG Box. Firstly, market attractiveness replaces market growth as the dimension of industry attractiveness, and includes a broader range of factors other than just the market growth rate. Secondly, competitive strength replaces market share as the dimension by which the competitive...
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...ON: B.C.G. (Godrej) And G.E (Yamaha) SUBMITTED TO PROF. Shweta Mishra PRESENTED BY: Group no. 6 MEMBER DETAIL ROLL NO. | NAME | SIGNATURE | SDMS036A | DIPIKA JAIN | | SDMS037A | SHRENIK JAIN | | SDMS038A | AISHWARIYA JOGIA | | SDMS039A | SMRUTI JOSHI | | SDMS040A | VISHAL JOSHI | | SDMS041A | POOJA KAPADIA | | SDMS042A | ASIF KHAN | | ACKNOWLEDGEMENT An old Chinese proverb says; When eating your bamboo sprouts, remember the man who planted them. Now that our sprouts are ready to eat, it is time for us to express our deepest gratitude to all those to have made this possible. We wish to express our sincere gratitude to prof. “ ”, who guided and helped us from time to time to successfully conduct this research. We think her directions were the best thing that could happen to us and our project. We would also like to thank our college for letting us use the library. We hope you enjoy reading the report as much as we enjoyed making it. INDEX SR.NO | Topics | Page No. | 1. | B.C.G Matrix | 5 | 2. | Diagram & its Explanation | 6 | 3. | Godrej | 8 | 4. | G.E Matrix | 11 | 5. | Diagram & its Explanation | 12 | 6. | Yamaha | 13 | 7. | Comparison between B.C.G & G.E Matrix | 16 | 8. | Conclusion | 17 | 9. | Bibliography | 18 | B.C.G MATRIXBoston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides...
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...About ITC * The Company was founded in year 1790 by Henry Overton Wills. It’s current headquarter is in Kolkata. * It is the largest producer of Cigarettes in India with maximum brands of all range. * In the list of world most reputable companies ITC position at 95. * ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 9 billion and a turnover of US $ 3 billion. * Rated among the World's Leading Companies by Forbes magazine, ITC ranks third in pre-tax profit among India's private sector corporations.Only Indian FMCG company on Forbes Global 2000 ranking. * ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG products * ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. * ITC's FMCG businesses have one of the largest retail networks in the country, consisting of over 2 million retailers. ITC employs over 31,000 people at more than 60 locations across India * ITC has powerful brands like Wills, John Players, Hotel Grand Maratha, Sunfeast. * ITC have a very successful CRS activity called ‘e-choupal’ ...
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...BCG Matrix Model BCG Matrix Model The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor. When should I use the BCG matrix model? Each product has its product life cycle, and each stage in product's life-cycle represents a different profile of risk and return. In general, a company should maintain a balanced portfolio of products. Having a balanced product portfolio includes both high-growth products as well as low-growth products. A high-growth product is for example a new one that we are trying to get to some market. It takes some effort and resources to market it, to build distribution channels, and to build sales infrastructure, but it is a product that is expected to bring the gold in the future. An example of this product would be an iPod. A low-growth product is for example an established product known by the market. Characteristics of this product do not change much, customers know what they are getting, and the price...
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...the IT strength countries. I didn’t hear about small countries like Cyprus and Montenegro. However there is high Facebook population ratio like 51.19% and 46.59% for each 2. If the CEO of Facebook ask you to improve this chart, what kind of chart will you suggest? (You don't need to draw. Just give us 1 example (or link, if any). I would like to suggest “Age Stratified Sampling”. Searching on google, I found high facebook population ratio (76%) in young generation (age 18~34) although the ratio (5.20%) is low in actual population, 2012. I like to see Age Stratified Sampling circle chart for each country by clicking (Resource: http://www.bloomberg.com/bw/articles/2012-05-31/the-future-of-facebook-is-in-india) 2. BCG Matrix BCG Matrix provides a framework for allocating resources among different business units...
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...Table of Contents Assignment – Part A 3 Section 1: 3 Section 2: 5 Assignment –Part B 7 Section 1: 7 Section 2: 8 References 10 Assignment – Part A Section 1 – Site Breakdown: The SCR website has been entered and reviewed with the following acknowledgement and understanding applicable to the corporate request conducted by Jesse: • The data library includes essential corporate information including personnel records within each subset identified below: o SCR Function and Organizations - This includes senior management, as well as existing groups with assigned personnel and, applicable objectives and missions associated with these groups. o SCR Training Records (2-months) - Shows training data with personnel contact information for past two month time period. o JAD Session Example - Outlines effective utilization and employment of JAD team members through correspondence and brainstorming of techniques and processes for efficiency honing. o Cost - Benefit Summary- Outlines potential impact associated with salaries, training, supplies and misc. in conjunction with earned revenue to establish baseline for potential profit achievements and ROI possibilities. o Sample of Questionnaire Results - Establishes sample questionnaire for students taking courses to include, top classes and applicable rating trends associated with classes achieved by instruction presenters...
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...Name: Professors name: Subject: Marketing Date: Take home examination. 1. First we will count the cost of attracting one customer: As the close rate is 20%,to attract one customer we need 5 prospects, the acquisition will be 850/20%= 4250$ Retention per customer = 200/60%= 333,3$ Ongoing service per customer=600*60%=360$ Add on per customer will be 500*90%-25= 425$ Total margin per customer without retention will be the sum of all margins per customer 400+360+425= 1185 Total equity per customer=Total margin without retention- retention per customer=1185-333,3= 851,6$ If retention goes up by 10%, retention per customer will be 200/70%=285$ Total equity per customer will be =400+600*70%+425-285=959$ 2. To find the profit maximizing price we have to count the margin for 1 unit for each price in the table: Price -Variable Product cost=Margin for 1 unit According to the predicted percentage of people who would buy the product we find out the exact number of deals by multiplying the amount of potential customer purchases by the percentage of expected deals. To find the total margin we use the following formula: Number of deals*Margin per unit= Total margin for each price. From the table below we see that the profit maximizing price is 600$ per unit. Price | Would buy | Margin per unit | Number of deals | Total margin | 800 | 0,1 | 450 | 300000 | 135000000 | 750 | 0,2 | 400 | 600000 | 240000000 | 700 | 0,3 | 350 | 900000 | 315000000 | 650 | 0,4 |...
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...published a list of firms deemed the “100 Best Companies to Work for in America” based on their superior employer-employee relations. This relationship represents an intangible asset that may significantly influence future firm performance. In 2014, three of those companies consisted of Google, SAS, and the Boston Consulting Group. These three companies find motivational ways to boost employee motivation and foster group cohesiveness. Google holds the number one spot for best workplace and for good reason. Google currently employs over 42,000 employees (Fortune 100 Best Companies to Work For, 2014). Google gives employees plenty of options when it comes to choosing a team from engineering design to sales operations. Whether building products, growing businesses or helping to keep Google going, we do cool stuff that matters (Google Teams and Roles, 2014). According to Lush (2012), the group is cohesive because members like and are attracted to one another. Some major sources include member similarity and member attractiveness. The more choices an employee has about where they are placed in a company the more motivated they become. When employees are motivated it will help foster group cohesiveness. The second spot for best workplace has been granted to SAS. SAS employs a little over 6,500 employees with a growth rate of 3.6%. We believe in stimulating work, an empowering management philosophy where you are encouraged to take risks and an inspiring work place where creativity thrives...
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...integrity, professional ethics and technical excellence, able to attract and develop young men of outstanding qualifications, and committed to continually raising its stature and influence. And his mission was to make the firm served its clients superbly well. For few years after founded, McKinsey’s growth engine seems to stall for many reason like economic turmoil of the oil crisis and appearance of new focused competitors like Boston Consulting Group (BCG). To solve this problem the committee had result and recommendations. One of the recommendations was to reduce MGM ratio from 7 to 1 and became “T shape” consultant, a firm that supplemented a broad generalist perspective with an in-depth industry or functional specialty. When Ron Daniel has become a Managing director for McKinsey, he faced aggressive challenge from its competitors and McKinsey began to losing its clients. His first move was to more develop its employee skill as a consultant. He also made industry based clientele sectors and leveraging the firm’s functional expertise. He assembled working groups to develop knowledge in two areas, strategy and organization. Fred Gluck wanted to bring an equally stimulating intellectual to McKinsey. He created 15 centers of competence and the role is to help develop consultants and to ensure the continued renewal of the firm. Gluck launched a Knowledge Management project to build a common database of recommendation of clients named Firm Practice Information system (FPIS) and a “yellow-pages”...
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...12/02/2011 Strategy Analysis of H&M | Maissaa BEN TAHRA | Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis | Strategy: Dr Darrell Jaya-Ratnam | Knowledge, Strategy and Business Analysis | REPORT OF STRATEGIC ENVIRONMENT ANALYSIS | There are many external factors affecting the fast fashion industry most importantly in H&M’s case is the transportation cost and price of oil | External factors change in the markets of production. Raw material prices have increased; cotton prices for example almost doubled in 2010. H&M has to adapt to changing conditions but always in accordance with their business concept – to offer customers fashion and quality at the best price. | There is a mix of external shocks in the fast fashion industry: * Economic slowdown * Energy costs (oil price) * Employment level * Change in regulations * Logistics (i.e. shipping time) * Transportation cost and time (H&M owns design but do not own factories therefore it is importing most of its goods from china which results in high transportation costs) * Use of IT * Raw material price fluctuation (e.i: cotton’s price have doubled up in 2010) There is a mix of external shocks in the fast fashion industry: * Economic slowdown * Energy costs (oil price) * Employment level * Change in...
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