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Portfolio Models & Abc Cheese Factory

In:

Submitted By jovie80oz
Words 1636
Pages 7
Jovie Alvarez

ID No. 3109617

Diploma of Marketing (BSB51207)

Competencies:
 

BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit

Case Study 1:
 

Chapter 3 – Portfolio Models (review questions 1-3, page 64) The ABC Cheese Factory – Case Questions (page 65)

BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit

1

Jovie Alvarez

ID No. 3109617

Chapter 3 – Portfolio Models (review questions 1-3, page 64)
1. What is a portfolio model and how is it used? Is a visual tool for diverse companies to review:
– – –

all businesses together; where growth is expected (resources needed); and returns generated (cash produced).

It provides the decision maker with a starting point for decisions regarding:
– – –

strategic business units (SBU) retention or deletion general strategic direction (growth, maintenance, deletion) for each SBU resource allocation/redistribution decisions.

2.

Using the BCG model: a. Draw and label all parts of the model
HIGH 20%

STARS

QUESTION MARKS

MARKET GROWTH
(position in the product category life cyle)
MED. 10%

CASH COWS
LOW 0% 10X 1.0X

DOGS
0.1X

RELATIVE MARKET SHARE
(SBU’s market share compared to the largest competitor in the same market)

BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit

2

Jovie Alvarez

ID No. 3109617

b.

Explain each quadrant in terms of market share and market growth



Cash cows:
– –

Units with high market share in a low (slow) growing industry Units typically generate cash in excess of the amount of cash needed to maintain the business.



Dogs:
– – –

Units with low market share in a mature, low (slow) growing industry. Units typically "break even", generating barely enough cash to maintain

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