Alecia R.

Higgins (20204872)

UCC Mid Module Test

QUESTION

Portfolio Analysis

 Portfolio analysis has been devised to help bridge the gap between strategy
formulation and strategy implementation. Portfolio analysis involves quantifying
the operational and financial impact of the portfolio.

 It is a study of the performance of specific portfolios under different

circumstances within an organization.

 It helps the marketer to make the hard choices of where to put resources and what
should be deleted.

 Two most common measures used in a portfolio analysis are market growth rate
and relative market share.

Select the product or service portfolio offered by your organization and do the following:

 Explain the how the BCG Matrix operates with portfolio planning.
(5 Marks)
 Illustrate and explain using the BCG diagram how you position the product
portfolio of the organization. Offer sound explanation why you have placed them
there.
(10 Marks)
 Recommend one strategy for each quadrant which will create effective growth?
(5 Marks)
 Recommend a cause related marketing strategy (SDC’S Mandate) for this product
portfolio. Explain in detail how this strategy would work.
(5 Marks)

(Total, 25 Marks)

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1. Explain the how the BCG Matrix operates with portfolio planning.
(5 Marks)

The BCG Matrix or the Boston Growth Share Matrix approach is a simple but effective tool

used for portfolio analysis and planning. The Matrix measures the Market Growth Rate and Relative

Market Share (RMS) of a product portfolio to determine the viability of each product or service being

offered by a company. The Market Growth Rate refers to the percentage of growth in demand for a

particular service or product. While RMS is defined as, “the ratio between the company’s share and the

share of the largest competitor” (Lamb, Hair and McDaniel, 2000, p. 39). In other words, it is the market

share of each product divided by that of the market leader.

The Matrix provides information that can help the firm to make informed decisions as to which

products to divest, where to reallocate resources and increase investments. Overall, the Matrix paints a

picture of where the company is currently in the market and where it needs to go. With the right

strategies and implementation, a company will be able to create growth in product categories where

there little or none.

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2. Illustrate and explain using the BCG diagram how you position the product portfolio of the
organization. Offer sound explanation why you have placed them there.
(10 Marks)

Portfolio Analysis: The Boston Growth-Share (BCG) Matrix Approach

RELATIVE MARKET SHARE

(Cash Generation)
HIGH LOW
STARS QUESTION MARKS
(Cash Usage)Market Growth Rate

HIGH

LEDSP, CRDP, SPGF and SCDP CIGP and PIAN

CASH COWS DOGS

LOW

NONE CESP

Figure 1.1

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The Social Development Commission (SDC) is a Government organization under the Ministry

of Local Government and Rural Development. The Organization currently has seven programmes: the

Strengthening the Participatory Governance Framework Programme (SPGF), Community Research

and Development Planning Programme (CRDP), Local Economic Development Support Programme

(LEDSP), Sports for Community Development Programme (SCDP), Community Incentives & Grants

Programme (CIGP), Parish Inter-Agency Networking Programme (PIAN) and Community Education

Support Programme (CESP). These programmes constitute SDC’s Service Portfolio. Although SDC is a

non-profit Government entity, the BCG Matrix Approach can be used in helping management to identify

which services are viable as opposed to those that are inviable.

As illustrated in Figure 1.1 LEDSP, CRDP, SPGF and SCDP are Stars in the

organization’s service portfolio. Stars have a high relative market share of a high growth market. SDC

is not involved in a competitive market, hence, there is no measure of relative market share.

Nevertheless, SDC has been satisfying the growing demand for the services offered under these

programmes. Most of the monetary resources that flow into SDC from the Government of Jamaica

(GOJ) for programme related activities are invested in the aforementioned programmatic areas because

they add value to the organization by adequately fulfilling the mandate which is to support the

economic, environmental, social, cultural and sport development of communities island-wide.

Through LEDSP, 404 nano to medium size businesses have been established as at December,

2020 (D. Lowe, personal communication, March, 3, 2021). The establishment and operation of these

sustainable businesses would have reduced community unemployment and created income streams for

people to take care of their families. The SPGF is tied to the governance structures under SDC’s

purview. Government structures refer to Community Development Committees (CDCs), Development

Area Committees (DACs) and Parish Development Committees (PDCs). SDC works directly with these

governance structures and put most of its efforts and resources into establishing, maintaining and

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strengthening them, in order to increase their participation in local governance. The demand for the

programme increases as the number of governance structures increase.

The CRDP is essential because data from research done within and on communities is used to

inform planning, discussions and decision making. The data is always current, reliable and valid. This

programme has the manpower required to do extensive research because it involves community

members in the research process. SDC hires community members as data collectors and mappers

because they tend to be au fait with the geographic and socio-cultural dynamics of their space. This

programme is also income generating as data on community profiles are sold to corporations, schools

and individuals on a regular basis.

The SCDP is one of the organization’s long serving programmes which dates back to the

1960s (Social Development Commission, 2021). This programme has been evolving and expanding over

the years. One of the popular activities under the programme is the National T/20 Community Cricket

Competition which has a pull factor. In 2019, Wray and Nephew came on board to both sponsor and

assist with marketing the competition. Hence it was dubbed SDC/Wray & Nephew T/20 Community

Cricket Competition.

Prize monies are usually awarded to winning teams to support their local cricket programmes,

as well as, to execute projects in their respective communities. This is one of the programmes that has

done well to create awareness and build brand loyalty. Although there is a pandemic cricket teams

island-wide (in over 800 communities) are making preparations to support SDC T/20 Community

Cricket 2021/2022.

Cash cows have a high relative market share of a slow growth market. SDC does not have a

programme where the demand for the service is not growing but at the same time there is a significant

return on investment. In other words, it is prospering now but will become irrelevant in future if the

market does not grow.

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Unlike Cash Cows, Question Marks have a low share of a high growth market. CIGP and

PIAN are two areas that have the potential to generate a high return on investment. CIGP funded

projects have the capacity to create jobs, sustainable economic ventures (for example, community

greenhouse and water harvesting projects) and generate income for sustainable community development.

There is a demand for the grants under the programme because many communities are lacking important

facilities and amenities such as community centres with computer labs and internet; clinics; sporting

facilities and the like. SDC has not been able to capitalize on the growing demand because only a few

project proposals have been written. However, the organization’s Community Development Officers are

working assiduously to assist governance structures with the development of feasible and sustainable

projects proposals. As the number of proposals increase, the amount of money invested in the

programme will increase.

The need for the PIAN is increasing as community members are realizing that their queries

and issues can be easily addressed through collaborations between the SDC and other social services

providers. Issues concerning public utilities such as water and light are brought to the table directly in

meetings with representatives from the Jamaica Public Service (JPS) and National Water Commission

(NWC). SDC holds these company representatives accountable until the issues are addressed.

Sometimes the social services providers are genuinely unaware of the issues that exist various

communities. Being that the SDC knows a great deal about the spaces it occupies, it is able to recognize

the issues therein and collaborate (share work plans, resources and ideas) with other agencies to address

them. Currently, the programme is underfunded. As such, it is recommended that the GOJ increases its

monetary investment in this programme so that it will be more effective in “identifying community

priorities and appropriate responses to community needs, as well as, identifying and responding to gaps

in the provision of services at the community level” (Social Development Commission, 2021).

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Dogs have a low growth share of a low growth market. The CESP is best categorized as a

Dog. This programme has not been doing well in fulfilling its objectives which is to develop and support

educational programmes within communities. The main activity under the programme is the community

spelling Bee competition but with the closure of schools due to the pandemic, the organization is

considering to phase out this programme. Another reason is that the partnership or stakeholder support

for CESP is weak. All of SDC’s programmes are executed through partnerships. A programme that does

not have the strong collaborative support of stakeholders will eventually die.

3. Recommend one strategy for each quadrant which will create effective growth?

A typical strategy for the Stars in this portfolio is to maintain existing users/customers and

capture new ones by reinvesting funds to improve service delivery and promotion. Although SDC’s

governance structures are entrenched in over 800 communities, there are still many more communities

across the island that are unaware of the services SDC offers. It is recommended that SDC establishes

strong governance structures in disenfranchised communities, especially, in deep rural Jamaica where

little to no development is taking place. These structures through an able Executive Body and other

stakeholders would serve the purpose of sensitizing residents about the shared and personal benefits to

be derived from engaging in SDC’s programmes, in particular, SPGF, CRDP, LEDSP and SCDP.

Although SDC has no cash cow (s) a tactic that could be used for products in this category is to

re-invest just what is needed to maintain market share until the market grows. Also, reallocate resources

to other product categories where there is a high potential for ROI and a high growth rate.

The strategy for CIGP and PIAN is centered on expanding service delivery to meet the growing

demand for the services being offered. To achieve this objective, it is recommended that more money be

invested into these two areas as there is high potential for growth. For example, funds need to be

invested in training CDC, DAC and PDC members to develop feasible project proposals so that more

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projects will qualify for the grants. Also, for PIAN more monetary resources need to be allocated to

conduct stakeholders meetings periodically to address issues in communities.

The strategy for CESP is to make the programme functional by establishing strong partnerships

with stakeholders in the Education sector and other industries like the Ministry of Education,

HEART/NSTA Trust and Universal Service Fund (USF) to develop and implement sustainable and

impactful community based educational programmes. A good initiative would be to transform every

community centre into a skills training facility equipped with the technology needed to adequately

deliver educational services. Collaborate with HEART/NSTA Trust and other entities to offer one or

two sponsored short certificate programmes (based on the need of the community). If enrollment and

receptivity level is high then SDC and its partners should advance and build the programme until it is

sustainable.

4. Recommend a cause related marketing strategy (SDC’S Mandate) for this product portfolio. Explain
in detail how this strategy would work. (5 Marks)

Cause related marketing helps companies to fulfill their Corporate Social Responsibility

(CSR) while promoting their brand. The SDC has been serving communities in various capacities since

the 1940s but there is still a need to create brand awareness and increase visibility among community

members, especially young people. Most educational institutions have shifted learning online but

unfortunately, not all students have the technology to access Zoom, Google or any other virtual meeting

platforms. In an effort to make a difference, SDC would need to leverage its connections with entities

that can provide the resources needed to assist these students on a national level. The targeted partners

are the Universal Service Fund (USF), Flow Jamaica, Lasco Foundation, Ministry of Labour and Social

Security (MLSS).

Before approaching any of these prospective partners it is important to have a well-planned

proposal. The first step would be to leverage Research Department to gather data on the issue. Then use

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findings to inform the written proposal. The second step involves scheduling and convening meetings

with partners to present the proposal outlining findings, specific requests, mutual benefits and project

costing. Once the proposal is accepted the next step would be to successfully execute plans such as

scheduling days for USF and Flow to set up computer labs and install internet service equipment at

Community Access Points (community centres, churches, sports clubs, etc.), as well as, acquiring and

distributing tablets and laptops at a central location in each community.

The forth step would be to assign governance structures and other community groups identified

(for example, churches, active Citizens’ Associations and Neighbourhood Watches) to manage the

computer labs in each space. Part of the proposal would be to ask Flow to offer a discounted (minimal)

cost for internet service to community groups and students registered on PATH through MLSS. Also, all

equipment donated would be branded with a sticker from the respective sponsors. For example, all

equipment donated by SDC would have the SDC logo attached to them. Overall this cause marketing

strategy, once executed properly, would help to spread brand awareness, increase visibility, as well as,

go as far as creating brand loyalty among young people.

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References

Lamb W. C., Hair H. J., McDaniel C. (2000) Marketing. (5th ed.). South-Western College Publishing.

Social Development Commission (2021). General. https://sdc.gov.jm/led-programme/

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