I.

SWOT ANALYSIS-
Que1 Explain in brief SWOT Analysis Matrix?

Answer-

SWOT analysis, method, or model is a way to analyze competitive position of your company. SWOT
analysis uses so-called SWOT matrix to assess both internal and external aspects of doing your business.
The SWOT framework is a tool for auditing an organization and its environment.

SWOT is the first stage of planning and helps decision makers to focus on key issues. SWOT method is a
key tool for company top officials to formulate strategic plans. Each letter in the word SWOT represents
one strong word: S = strengths, W = weaknesses, O = opportunities, T = threats.
SWOT model analyzes factors that are internal to your business and also factors that affect your
company from outside. Strengths and weaknesses in the SWOT matrix are internal factors.
Opportunities and threats are external factors.

SWOT can be used in conjunction with other tools for strategic planning, such as the Porter's Five-Forces
analysis or the Balanced Scorecard framework. SWOT is a very popular tool in marketing because it is
quick, easy, and intuitive.

Question 2) Explain each element of the SWOT Analysis Matrix?

Answer-

A SWOT analysis is a common strategic business planning tool that involves composing a list of four
elements related to a new business project: strengths, weaknesses, opportunities and threats. According
to Idaho State University, research conducted at the Stanford Research Institute in the 1960s led to the
creation of the SWOT analysis.

Strengths- In a SWOT analysis, strengths describe the core competencies of a business, strategic factors
that may make a certain project more likely to succeed and areas where the business may have
advantages over other similar businesses. For example, if an established cereal company plans to launch
a new product, brand recognition might be listed as a strength. Businesses that are aware of their
strengths are better able to improve and exploit them to their advantage.

Weaknesses- Weaknesses are things that can make a certain project less likely to succeed and areas
where a company is particularly lacking. For instance, a new brand company might be unknown to most
consumers; low brand recognition and lack of customer loyalty could be weaknesses. Once weaknesses
are identified, a business takes steps to lessen the impact or turn them into strengths.

Opportunities- Opportunities are things that have the potential to increase profits, productivity or
benefit a business in some other way. Opportunities include things like changes in government
regulations that make it easier for a business to make profit, unfulfilled consumer need, new markets
and new technology. Recognizing and taking advantage of opportunities are important aspects of
running a successful business.

Threats - Threats are the final element of a SWOT analysis; they have the potential to harm a business.
For instance, if you run the only pizza shop in town, the possibility that a new competitor will open a
shop and take some of your business is a threat. Unfavorable changes to laws, higher taxes and changes
in consumer preferences other possible threats. Identifying a threat helps the business manager to limit
its impact.
II. BCG MATRIX

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 16% 68% 0.24
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 5% 68% 0.07
HUL 2% 68% 16% 2.19
Question 1) Explain in brief BCG Matrix?

Answer-

The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term
strategic planning, to help a business consider growth opportunities by reviewing its portfolio of
products to decide where to invest, to discontinue or develop products. It's also known as the
Growth/Share Matrix.

The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share,
as shown in the diagram below.

1. Dogs: These are products with low growth or market share.

2. Question marks or Problem Child: Products in high growth markets with low market share.

3. Stars: Products in high growth markets with high market share.

4. Cash cows: Products in low growth markets with high market share

Question 2) Explain each quadrants of the BCG Growth Share Matrix?

Answer-

Stars: The business units or products that have the best market share and generate the most cash are
considered stars. Monopolies and first-to-market products are frequently termed stars. However,
because of their high growth rate, stars consume large amounts of cash. This generally results in the
same amount of money coming in that is going out. Stars can eventually become cash cows if they
sustain their success until a time when the market growth rate declines. Companies are advised to
invest in stars.
Cash Cows: Cash cows are the leaders in the marketplace and generate more cash than they consume.
These are business units or products that have a high market share but low growth prospects. According
to Net MBA, cash cows provide the cash required to turn question marks into market leaders, cover the
administrative costs of the company, fund research and development, service the corporate debt, and
pay dividends to shareholders. Companies are advised to invest in cash cows to maintain the current
level of productivity, or to "milk" the gains passively.

Dogs: Dogs, or pets as they are sometimes referred to, are units or products that have both a low
market share and a low growth rate. They frequently break even, neither earning nor consuming a great
deal of cash. Dogs are generally considered cash traps because businesses have money tied up in them,
even though they are bringing back basically nothing in return. These business units are prime
candidates for divestiture.

Question Marks: These parts of a business have high growth prospects but a low market share. They
consume a lot of cash but bring little in return. In the end, question marks, also known as problem
children, lose money. However, since these business units are growing rapidly, they have the potential
to turn into stars. Companies are advised to invest in question marks if the product has the potential for
growth, or to sell if it does not.

Question 3) Show the results what will happen if Market Growth for Patanjali changes from 23% to 30
%, HUL 2% to 17 %?

Answer-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 30% 16% 68% 0.24
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 5% 68% 0.07
HUL 17% 68% 16% 2.19
When Market growth of Patanjali is changed from 23% to 30%, it doesn’t make any major difference as
still it lies in the question mark quadrant.

When market growth of HUL is changed from 2% to 17%, it shifted from cash cows to stars as its market
growth has been increased.

Question 5) Show the results what will happen if Market share for Procter & Gamble changes from 5%
to 15 %?

Answer-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 16% 68% 0.24
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 15% 68% 0.22
HUL 2% 68% 16% 2.19
There is no major difference when market share of P & G is changed from 5% to 15%, it still remains in
the Dogs quadrant.

Question 6) Show the results what will happen if Market share of largest competitor of HUL changes
from 16% to 36 %?

Answer-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 36% 68% 0.53
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 5% 68% 0.07
HUL 2% 68% 36% 1.89
The largest competitor of HUL in this situation is Patanjali. When its market share is been shifted from
16% to 36% it moves slightly towards star quadrant but remains in the question mark quadrant.

Question 7) What is the formula for Relative market share?

Answer- Relative Market Share = Market share of the company/ Market share of the largest
competitor

Question 8) Create BCG matrix of products of Patanjali.

Answer-

Patanjali has a variety of products in the business like-

 Dant kanti
 Kesh Kanti
 Medicines
 Honey etc.
Question 9) How I can convert Dogs into Question mark? Explain it by showing it in the form of excel
BCG Template?

Answer-

Dogs can be converted into question mark if their market growth is increased. In our example, Dabur
was earlier in the question mark quadrant when it had a market growth of 5%. When I increased its
market growth by 3 times i.e., 15% it shifted to Question mark quadrant.

When Market growth of Dabur is 5%-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 36% 68% 0.53
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 5% 68% 0.07
HUL 2% 68% 36% 1.89
When Market growth of Dabur is 15%-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 16% 68% 0.24
Dabur 15% 11% 68% 0.16
Procter &
Gamble 2% 15% 68% 0.22
HUL 2% 68% 16% 2.19
Question 10) How I can convert Stars into Cash Cows? Explain it by showing in the form of excel BCG
Template?

Answer-

Stars can be converted into cash cows if their market growth is decreased. For example, HUL have a
market growth of 17% with market share of 68%, therefore lies in the star quadrant. When I decreased
its market growth to 2% it shifted to cash cows quadrant. This shows when a company has a high market
share and high growth it lies in the star quadrant but when it has a high market share but low growth it
shifts to cash cows.
When Market growth of HUL is 17%-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 30% 16% 68% 0.24
Dabur 5% 11% 68% 0.16
Procter &
Gamble 2% 5% 68% 0.07
HUL 17% 68% 16% 2.19

When Market Growth of HUL is 2%-

Market share of
Market Market largest Relative
Company growth share competitor market share
Patanjali 23% 16% 68% 0.24
Dabur 15% 11% 68% 0.16
Procter &
Gamble 2% 15% 68% 0.22
HUL 2% 68% 31% 2.19
Business
Simulation &
Games
Assignment

Submitted By:

Vanshita Kumar

MBA Morning A

08815903918