- 24 Marks
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)
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