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MGT603 GDB Solution

Monday, July 05, 2010 Posted In Edit This

The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.


You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?

Division
Revenues
Profits
Market share
Growth Rate

1
$50,000
$5,000
0.4
+10

2
$70,000
$11,000
0.8
+15

3
$30,000
$8,500
0.6
-20

4
$15,000
$1,000
0.05
-10

Total
$165,000
$25,500

Solution:-

1.question mark
2. star
3. cash cow
4. dog

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