Download Instructions: Given the information in the following table, develop a

Instructions:
Given the information in the following table, develop a BCG matrix and a IE matrix, then make suggestions for
strategies each division should pursue from BCG matrix perspective and from a IE matrix perspective.

Davisson 1 is placed in cell VI that suggests the hold and maintain strategy. In this case, tactical
strategies should focus on market penetration and product development

Division 2 is placed in cell VII that is characterized with the harvest or exit strategy. If costs for reviving
divisions 2 are low, then it should be attempted to regenerate the divisions. In other cases, aggressive
cost management is a way to play the end game.

Divisions 3 is placed in cell II that suggest a grow and build strategy. This means intensive and
aggressive tactical strategies. The strategies should focus on market penetration, market development,
and product development. In a operational perspective, a backward integration, forward integration,
and horizontal integration should also be considered.

Divisions 1 is question mark, which are growing rapidly and consume large amounts of cash, but
because they have low market shares they do not generate much cash. Division1 must be analyzed
carefully in order to determine whether it is worth the investment required to grow market share.
Division 1 has the potential to gain market share and become a star, and eventually a cash cow when
the market growth slows. However, If Division 1 does not succeed in becoming the market leader it will
be reduce into a dog when the market growth declines.

Division 2 is a stars/ question mark, it generate large amounts of cash because of its strong relative
market share, but also consume large amount of cash because of their high growth rate; therefore the
cash is each direction approximately nets out. Division 2 must be analyzed carefully in order to
determine how to decrease Divisions 2 from consuming large amounts of cash due to its high growth
rate. If a star can maintain its large market share, it will become a cash cow when the market growth
rate declines.

Divisions 3 is a cash cows in which it is a leaders in mature market, that display a return on assets that
is greater than the market growth rate, and thus generate more cash than they consume. Division 3
should be “taken possession of “, extracting the profits and investing as little cash as possible.