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SEMESTER FALL 2012
STRATEGIC MANAGEMENT (MGT-603)
ASSIGNMENT NO. 02
DUE DATE: 09TH JANUARY 2013
MARKS: 25


ASSIGNMENT:
Topic:
“BCG Matrix (Boston Consulting Group)”


Learning Objectives:
 To help students to understand how to analyze the business portfolio of the
company by using BCG matrix.
 To introduce the significance of company’s strategic position in the market.
 To understand how BCG matrix is helpful for the framework of strategic
formulation.
Learning Outcomes:
After completing this assignment, the student will be able;
 To understand how BCG Matrix helps businesses to make better business
portfolio analysis.
 To assess the strategic position of the organization (analysis of SBUs).
 To identify the appropriate strategies for improving the company’s
strategic position.
The case:
Nestle is the world’s leading nutrition, health and wellness company. Its portfolio covers almost every food and beverage category – giving consumers tastier and healthier products. The group’s products included beverages, milk based products, ice creams, noodles, cerelac, chocolate & confectionaries, prepared dishes and pharmaceutical products. Nestle primarily operates in Europe, the Americas, Asia, Aceania and Africa. The group is headquartered in vevey, Switzerland and employee 283,000 people.
Nestle has number of strong points over its competitors such as brand strength, product innovation, good research and development, strong financial position, good market share and low overhead cost while in a market there are various opportunities available for them e.g. expansion, product offerings and global hub etc.
Nestle owns several different strategic business units (SBUs). One unit emphasizes on milk products and nutrition such as “milk pack”, where the firm has a large share in a market that is not growing. Another unit of Nestle produces “Mineral water”, a market that has high share while competing in a fast growing industry. Nestlé’s unit of prepared dishes and cooking aids produces “magi noodles”, where the firm has a low share in a market that is growing rapidly. Finally, Nestle makes “chocolates”, a product with low market share while competing in a mature and slow growing industry.
The requirement:
Q # 01:
Being a strategic decision maker, you are required to identify the Quadrant of the mentioned products of Nestle by using BCG matrix and also suggest appropriate strategies to the company according to selected quadrant.
(20 marks)
Q # 02:
After analyzing above mentioned information, you are required to generate at least five SO strategies. (5 marks)
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL INSTRUCTIONS
Guiding Note:
Your answer should be in;
You are not required to draw the BCG matrix in Question # 01
Just mention the quadrant name in which each product fall i.e. Star, Cash cows, Question mark and Dogs and suggest appropriate strategies.
Each product contains 5 marks: 2 marks for identifying right quadrant with reasoning and 3 marks for suggesting appropriate strategies.
In question # 02 just write down the SO strategies for the company
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:

Make sure to upload the solution file before the due date on VULMS.

Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:

Use the font style “Times New Roman” or “Arial” and font size “12”.

It is advised to compose your document in MS-Word format.

You may also compose your assignment in Open Office format.

Use black and blue font colors only.
REFERENCING GUIDELINES:

Use APA style for referencing and citation. For guidance search “APA reference style” in Google and read various website containing information for better understanding or visit http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:

It is submitted after the due date.

The file you uploaded does not open or is corrupt.

It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.

It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that Post Mid‐Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already
been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

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Replies to This Discussion

in second question, five SO strategies are asked.. SO strategies means Stregth and oppertunities matching strategies. strengths of Nestle mentioned in this case are :

1. Brand strength

2. Product innovation

3. Good research and development

4. Strong financial position

5. Good market share

6. Low overhead cost

and oppertunities are : Expansion, product offering,  global hub..so need to match these strengths and oppertunities....thats the solution of second question..just mention 05 SO strategies. hopefully now u can solve it.... all the

hi

Sana Work for assignment

BCG matrix is an important matrix regarding strategy adopted by firm. Still this matrix concern four strategy

  1. first growth or build strategy enhance market share),
  2. second is hold  strategy (hold existing position),
  3. third Harvesting strategy (no further growth or select other opportunity),
  4. fourth is diversity (sell out the part of business)

•  Cash cows Units with high market share in a slow-growing industry. “milk pack”, where the firm has a large share in a market that is not growing.

These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such  investment would be wasted in an industry with low growth.

 

•  Dogs More charitably called pets, units with low market share in a mature, slow-growing industry. “Chocolates”, a product with low market share while competing in a mature and slow growing industry.

These units typically "break even", generating barely enough cash to maintain the business's market

share. Though owning a break-even unit provides the social benefit of providing jobs and possible

synergies that assist other business units, from an accounting point of view such a unit is worthless,

not generating cash for the company. They depress a profitable company's return on assets ratio,

used by many investors to judge how well a company is being managed. Dogs, it is thought, should

be sold off. 

 

•  Question marks  Units with low market share in a fast-growing industry.  “maggi noodles”, where the firm has a low share in market that is growing rapidly. Such business units

require large amounts of cash to grow their market share. The corporate goal must be to grow the

business to become a star. Otherwise, when the industry matures and growth slows, the unit will

fall down into the dog’s category. 

 

•  Stars Units with a high market share in a fast-growing industry.

“Mineral water”, a market that has high share while competing in a fast growing industry

The hope is that stars become the

next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is

worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become

cash cows if they have been able to maintain their category leadership. 

Q= and also suggest appropriate  strategies to the company according to selected quadrant. 

so strategy
1) The company has great brand strength in the competitors and has the opportunity to introduce new products under its brand name.
Q # 02:

After analyzing above mentioned information, you are required to generate at least five

SO strategies

Strengths are attributes of the organization that are helpful to the achievement of the objective.

Opportunities are external conditions that are helpful to the achievement of the objective.

Strength could be your specialist marketing expertise. An opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products.

SO Strategies: Every firm desires to obtain benefit from its resources such benefit can only be obtained if utilize its strength to take external opportunity. Resources (Assets)an important firm’s strength to get opportunity for external resources. For example the firm enjoying a good financial position which is strength for a firm and externally opportunity to expand business. The strong financial position provides an opportunity to expand the business. The matched strategy is known as SO strategy.

Nestle mentioned strength in this case are:

1. Brand strength

2. Product innovation

3. Good research and development

4. Strong financial position

5. Good market share

6. Low overhead cost

And opportunities are:

Expansion,

Product offering, 

Global hub

Sana Sunny ツ ahannnnnn gud 

Where are the SO strategies for each product?

i have done it :D

waooo asan thi,, 

Excellent work 

thanks sana so nice of you,

1)      The company has great brand strength in the competitors and has the opportunity to introduce new products under its brand name.

2)      The company has the strong financial position and has the great opportunity of business expansion to introduce new products in the new areas.

3)      The company has the good research and development strategy for innovating new products in ready to made food products etc.

4)      The company has low overhead cost and has the great opportunity to introduce global hubs.

5)      The quality of its product is very good it introduce new products easily in any market.

Plz don't copy paste my assignment either i will also get zero marks. Thx!! Just for ur help!

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