business” (kotler & Armstrong‚ 2007). Based on the SBU’s the company uses a portfolio planning method to establish the positioning and attractiveness of their products. The best known portfolio planning method used is the Boston Consulting group (BCG) approach. The BCG approach is a growth share matrix used to categorize the company’s SBU’s into four categories based on their growth rate and market share to help the firm in understanding which brands the firm should invest‚ divest ‚ hold or harvest. The
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value of debt/ D+E))+ After tax rate of cost of equity(market value of equity/D+E)) Cost of Debt Floating rate debt is considered short-term debt‚ so the 1 year government interest rate is used to calculate the cost of debt for all divisions and Marriott as a whole. (6.90%). For fixed debt the long term rate would be a better estimate. We could consider the returns on 30 year Government Bonds in April 1988‚ (8.95%). Floating Debt (40%) - 6‚9% Fixed Debt (60%) - 8‚95% Total debt = 40%*6‚9% + 60%*8
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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 in need of cash inputs and low-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
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training‚ and the elimination of laboratory manipulation after sampling (Marriott and Gravani 2006). On the other hand‚ the disadvantages of this method are the spreading of the colonies and applicable to only limited to low levels of surface contaminants. 2.1.2 Swab Method The Swab method is among the most Reproducible Methods used to determine the population of microorganisms present on equipment or food products (Marriott and Gravani 2006). It may be used to assess the amount of contamination
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QUESTION 1 In a BCG Matrix‚ all divisions are called question marks‚ stars‚ cash cows or dogs. Define each of these terms. Question Marks division is Quadrant I have a low relative market share position‚ yet they compete in a high-growth industry. Generally these firms’ cash needs are high and their cash generation is low. These businesses are called question marks because the organization must decide whether to strengthen them by pursuing an intensive strategy (market penetration‚ market development
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TRANSCOM FOOD LIMITED Transcom group started its journey in 1885 through tea plantations. This diversified business house now has interests in many segments in the industrial and service sectors in Bangladesh. Some of the brands managed by the group include: Pepsi‚ 7-Up‚ Mirinda‚ KFC‚ Pizza Hut‚ Phillips N.V‚ Whirlpool‚ Maybeline‚ Garnier‚ Heinz‚ Frito-Lay‚ Lindt‚ Servier‚ Novo-Nordisk. Other aspects of the business include: Pharmaceuticals (Eskayef Bangladesh Ltd. www.skfbd.com) Newspapers (Prothom
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2.1 BCG Matrix Analysis The Boston Consulting Group’s growth-share matrix is the model of analysing the company’s portfolio of SBUs. The following figure plots the position of Virgin’s SBUs. 2.2 Implications of BCG Matrix Analysis on strategy development Portfolio analysis has three uses. First‚ a business can assess the balance of its portfolio… Second‚ the portfolio provides a framework for strategic market planning… Third‚ each SBU should have a clear objective appropriate to its portfolio
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Economic Analysis of the United States Hotel Industry Background Information Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times‚ and has influenced the development of the economy since the founding of this country. According to the American Hotel and Lodging Association‚ in the year 1900‚ there were fewer than 10‚000 hotels in the US which provided 750‚000 to 850‚000 rooms. The 2004 figures show that
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Hilton’s suppliers The touches that make Hilton Worldwide. Their supply management professionals in corporate offices and their six regional offices negotiate and implement contracts and agreements with suppliers of products and services in three key areas – Food & Beverage (F&B)‚ Guest Rooms and Public Space‚ and Property Operations ------------------------------------------------- Food & Beverage Hilton Supply Management works closely with national and regional food and beverage
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Hiring temporary foreign workers has positive and negative aspects. On the positive side‚ employers can find solution for workload fluctuations such as maternity and disability leave‚ vacation‚ special projects‚ seasonal periods‚ and employee shortages. In addition‚ temporary foreign workers can bring diversity to an organization‚ which can lead to diverse skills‚ an extensive range of connections in the community‚ new knowledge and different points of view (Work BC‚ n.d.). On the negative side‚
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