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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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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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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Chapter 1 Overview of Financial Reporting‚ Financial Statement Analysis‚ and Valuation CHAPTER 1 OVERVIEW OF FINANCIAL REPORTING‚ FINANCIAL STATEMENT ANALYSIS‚ AND VALUATION Solutions to Questions‚ Exercises‚ and Problems‚ and Teaching Notes to Cases 1.1 Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows: 1. 2. 3a. 3b. 4a. 4b. 5a. 5b. Timber Tracts: Plant and maintain timber
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FUNCTIONAL REQUIREMENTS Package design must meet five groups of functional criteria: in-home‚ in-store (or warehouse)‚ production‚ distribution and safety‚ and legal. In-home requirements usually dictate that packaging be easy to use and store‚ remind users when and what to repurchase‚ reinforce consumers’ expectations of the product‚ and tell them how to safely and effectively use the product. In addition‚ increasing numbers of consumers expect packaging to be recyclable and environmentally sensitive
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Company has been able to use its packaging and commercials to communicate its quality commitment to consumers. It is its image for quality among consumers that allows the company to keep high prices and profits when compared to major brewers such as Coors‚ Budweiser and Miller. Contract brewing has allowed the company to use extra brewing space among other firms to brew beer. The Boston Beer Company has benefited from such practice in that no capital was required to purchase facilities and equipment
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Cited: Hilary Chura‚ “Coors hikes spending on gay ads‚ March 27‚ 2000 Katherine Sender‚ Business Not Politics: The Making of the Gay Market‚ New York: Columbia University Press‚ 2005‚ 331 pp.‚ "The Dynamics of Brand Legitimacy: An Interpretive Study in the Gay Men ’s Community
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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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Colors are all everywhere and are used everyday. Artists use colors as a tool to make their art more lively. The author F. Scott Fitzgerald‚ used many colors such as gold‚ green‚ and white in his novel to make it more visual Gold in the novel represents old money and wealth. “With Jordan’s slender golden are resting in mine‚ we descended the steps and sauntered about the garden.” Jordans are being golden means that she’s old money‚ while the girls dressed in yellow are new money. Gold means
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