Posted by : Anonymous Tuesday, 8 January 2013

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. NestlĂ©’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 understan

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