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Strategic Management

Submitted to:

Mam Farah Naz

Submitted By:

Farhan Ali Shammas

Roll No:



2nd MS/MBA (2014-2016)

Hailey College of Banking and Finance, Lahore

Question No. 1.What is SWOT Analysis? And who is the founder of SWOT Analysis?
SWOT Analysis:
Over the years there has been growing trend of analyzing the performance of a business. There are
several ways to do this but most widely use tool is SWOT analysis. SWOT stands for Strengths,
Weaknesses, Opportunities and Threats. SW id used to evaluate internal environment of a business and
OT is used to detect potential opportunities and threat in the external Environment.
By using SWOT analysis not only we can analyze a business but also a product or project can be
evaluated. The detail of every aspect of SWOT analysis is as follows:
Internal Analysis:
A business or project can be analyzed internally by applying SW i.e. Strengths and Weaknesses.
Strengths means the competencies which distinguish a firm with others competitors. Or it can be
competitive advantage of business over others
Weaknesses are those flaws in the business or project which other competitors dont have or have not to
that extent. These affect the performance of business and can be detrimental for Strengths of a business

External Anaylsis:
External Analysis of a business comprises of OT i.e. Opportunities and Threats. These two aspects used
to detect positive and negative trends in the environment which outside the business.

Opportunities are favorable outcomes in the uncontrollable sorroundings of a business. By exploring

them a business can improve its performance.
Threats are unfavorable outcomes in the uncontrollable environment of business. These help to pin point
critical areas in environment. By using them an enterprise can reduce the potential disadvantages of
those factors.
Founder of SWOT Analysis:
In 1960s or 70s Albert Humphrey is said to have developed this strategic planning tool using data from
top companies in America at a time. A SWOT analysis helps users to look at the direction of a company,
an organization may wish to opt in the future. A SWOT analysis is helpful tool which in conjunction
with others assists to make informed decisions.

Question No.2: What is BCG Matrix? Who was the founder of BCG Matrix? What are the
uses of BCG Matrix?
BCG Matrix and History:
BCG Matrix was developed by Bruce Henderson of Boston Consulting Matrix, a management
consulting firm, to assist pointing out growth and market share of an enterprise and thereby segregating
it. It helps a business consider growth opportunities by reviewing its portfolio of products to decide
where to invest, to discontinue or develop products.
Market growth serves as a proxy measure for industry attractiveness while market share serves as the
proxy measure of competitive advantage. BCG matrix divides every product into four categories with
respect to their growth and market share. The four categories are: Stars, Cash Cows, Question Marks and
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

Use of Matrix:
Matrix can be used to evaluate each product in the following way:
Dogs: The usual marketing advice is to remove any dogs from your product portfolio as they are a drain
on resources.

Question marks: Named this, as its not known if they will become a star or drop into the dog quadrant.
These products often require significant investment to push them into the star quadrant. The challenge is
that a lot of investment may be required to get a return.
Stars: It can be the market leader though requires ongoing investment to sustain. They generate more
ROI than other product categories.
Cash cows: Milk these products as much as possible without killing the cow. Often mature, these are
well established products.
BCG matrix is a strategic planning tool which helps to make fundamental decisions of invest or divest in
the products.