- 15 Marks
PM – May 2018 – L2 – Q7 – Strategic Management Accounting
This question asks for the classification of five products using the BCG matrix and an analysis on how this helps the company in strategic decision-making regarding products and markets.
Question
Adrak Nigeria Limited produces five different products, and sells each product in a
different market.
The management accountant has obtained the following information about
market size and market share for each product which consists of actual data for
each of the last three years and forecasts for the next two years:
In the current year, the market share of the market leader or the nearest competitor
to the company has been estimated as follows:
Market share of market leader or the company‟s nearest competitor
Market for: %
Product 1: 37
Product 2: 26
Product 3: 12
Product 4: 29
Product 5: 20
Required:
a. Using the Boston Consulting Group model, how should each of these
products be classified? (7 1/2 )
b. How will this analysis help the management of the company to make
strategic decisions about its future products and markets („product-market
strategy‟)? (7 1/2 )
/2 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: BCG Matrix, Market Share, Product Classification, Strategic Planning
- Level: Level 2
- Topic: Strategic Management Accounting
- Series: MAY 2018