Portfolio Management – NBC Institute

MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

Question

Zidat Bottling Company has five different products: Zidat Cola, Zidat Orange, Zidat Apple, Zidat Bitters, and Zidat Water. Faced with economic recession in the country, the company consulted you as an expert in business strategic management to advise it on the usefulness of the Boston Consulting Group (BCG) matrix in its efforts to enhance the company’s overall profitability.

i. Discuss the different categories into which Zidat’s products can be grouped and specify how the company should treat each of the product groups in accordance with the specifications of the BCG matrix. (8 Marks)

ii. Discuss the limitations of the BCG matrix. (11 Marks)

iii. Advise the company on whether or not it should adopt the matrix in analyzing the competitive strength of its products to enhance overall profitability. (5 Marks)

Answer

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Tags: Boston Consulting Group Matrix, Business Strategy, Portfolio Management, Product Strategy
Level: Level 2

Topic: Strategic Planning Process
Series: MAY 2018

AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

Question

a) Crown Limited has a mixture of investment portfolios, stock A and Stock B. The historical performance return on the stocks are as follows:

Year	Stock A Return (%)	Stock B Return (%)
2010	-10	-3
2011	18	21
2012	39	44
2013	14	4
2014	33	28

Required:
i) Calculate the average rate of return for each stock during the period of 2010 to 2014. (3 marks)
ii) Calculate the average return on the portfolio during the period if Crown Limited held 50% each of stock A and stock B. (3 marks)
iii) Calculate the return of the portfolio using the standard deviation approach. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Average Returns, Investment Portfolio, Portfolio Management, Standard Deviation, Stock Returns
Level: Level 3

Topic: Discounted cash flow techniques, Sources of finance and cost of capital
Series: MAY 2016

MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

Question

ii. Discuss the limitations of the BCG matrix. (11 Marks)

iii. Advise the company on whether or not it should adopt the matrix in analyzing the competitive strength of its products to enhance overall profitability. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Boston Consulting Group Matrix, Business Strategy, Portfolio Management, Product Strategy
Level: Level 2

Topic: Strategic Planning Process
Series: MAY 2018

AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

Question

a) Crown Limited has a mixture of investment portfolios, stock A and Stock B. The historical performance return on the stocks are as follows:

Year	Stock A Return (%)	Stock B Return (%)
2010	-10	-3
2011	18	21
2012	39	44
2013	14	4
2014	33	28

Answer

Find Related Questions by Tags, levels, etc.

Tags: Average Returns, Investment Portfolio, Portfolio Management, Standard Deviation, Stock Returns
Level: Level 3

Topic: Discounted cash flow techniques, Sources of finance and cost of capital
Series: MAY 2016

Question Tag: Portfolio Management

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MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

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MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

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AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

You're reporting an error for "AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital"

MGE – May 2018 – L2 – Q1a – Strategic Planning Process

Application of the BCG Matrix for product categorization and strategy development for Zidat Bottling Company.

You're reporting an error for "MGE – May 2018 – L2 – Q1a – Strategic Planning Process"

AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital

Calculate the average rate of return for two stocks and analyze portfolio return using different methods.

You're reporting an error for "AFM – May 2016 – L3 – Q1a – Discounted cash flow techniques, Sources of finance and cost of capital"

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