Mgt 603 gdb sol

MGT 603 gdb solution

BCG MATRIX:



The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.

You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?



Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER

1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........