Assignment No.

2 Strategic management (MGT603) Student id : mc090402602 Using BCG Matrix Approach: The businesses and goods that make up the company. (1) Examine its current business portfolio and decide which businesses should receive more or a lesser amount of investment, (2) Develop growth strategies for adding new products and businesses to the portfolio, and deciding when goods and businesses should no longer be retained.

Market Shares High 1.0 Medium .50 Low 0.0

Market Growth Percentage

High

+20 Question Marks I

Medium

Stars II 0

Cash Cows III

Dogs IV

Low

-20

SBU Baby Cart Teddy Bears Toys Baby Blocks

Categories Question Marks Stars Cash cows Dogs

According to the above scenario the BCG Matrix format is that: Vertical Axis = Relative Market Growth Split at 10% by a horizontal line Horizontal Axis = Relative Market Share Split at 1x by a vertical line Creates four quadrants in which individual SBU s are positioned as bubbles Bubble size = Subs total revenue Suggested Strategies for Teddy bear unit: The above stars are as long as the best long run opportunities to the organization for the increase and profitability of the company, and the divisions with the high market share and also high market growth rate. Strategies that can be applied to achieve these results are: Integration Strategies: The Forward integration, backward integration, and horizontal integration and vertical integration strategies. Forward Integration: Forward integration is linked to beat or ownership or to increase control. Backward Integration: Strategy employed to expand profits and gain greater control over production of a product and increase its own and gives the lessen its cost of production. In the backward integration strategy manufacturers and purchasers have require materials from suppliers. Backward integration having the ownership or to increase control. This strategy could have especially appropriate for the current suppliers Horizontal Integration: Acquisitions competitors allow for increased economies of balance and enhanced transfer of income and the strategy having the similar goods and things , When a company expands its business into products that are similar to present lines. And also Horizontal addition refers to a strategy of seeking ownership of or increased control. the most significant trends in strategic management today is the improved use of horizontal integration. Mergers, Intensive Strategies: Market penetration, market development are from time to time referred to as intensive strategies because they require position with existing products and exhaustive efforts to improve the firm. Market Penetration: A market penetration strategy increase market share for present products or services .This strategy is widely used unaccompanied strategies. Market penetration increasing the number of salespersons, increasing advertising expenditures.

Product Development: Product development increased sales and improving or modifying present products or services. Market Development: Market development engage to introducing there products or services into a new geographic areas.