Page 186 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes 8. The axes of the space matrix represent two internal dimensions, namely, ................. and
.................
9. The axes of the space matrix represent two external dimensions, namely, ................. and
.................
10. BCG matrix is also called the .................
11. The BCG matrix helps to determine ................. in a product portfolio.

12. A high growth rate enables the company to ................. its operations.

9.9 Review Questions

1. Suppose you are the head of a garments making firm that has just started its operations in
India. Discuss the process of strategic choice that you are most likely to follow.

2. Conduct an industry analysis for the Indian automobile industry.
3. Analyse the main advantages of portfolio analysis? Why it is a good option for multi-
product organisations?
4. Through examples, prove that some of the underlying assumptions of the BCG matrix
may not hold good for some businesses.
5. Compare and contrast the General Electric Grid and the BCG Matrix?
6. Do you think, BCG Matrix has limited application? Justify your answer.
7. Though BCG matrix can be very helpful in forcing decisions in managing a portfolio of
products, it cannot be employed as the sole means of determining strategies for a portfolio
of products. Do you agree with this statement or not? Why?
8. On the basis of GE Matrix, make an analysis of banking company of your choice.

9. Analyse the main issues which have to be taken care of while formulating a multi business
strategy.
10. Do you think it is possible to sustain over a long run without formulating multi business
strategy? Why/ why not?
Answers: Self Assessment

1. grow 2. BCG matrix
3. business strength, industry attractiveness
4. Stoplight 5. Shell Chemicals, UK
6. business strength 7. weak, tenable, favoured, strong, dominant
8. financial strength, competitive advantage

9. environmental stability, industry strengths
10. Growth share matrix 11. priorities
12. expand

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