ASSIGNMENT

BUSINESS SIMULATION AND GAMES

SUBMITTED TO

Dr. ANURAG TIRUWA

Assistant Professor, RDIAS

SUBMITTED BY:

NAME - RAUNAK SOOD

ENROLLMENT NO. 41115903918
MBA -3RD SEM
MORNING
SECTION-A
 1. Prepare a BCG Growth Matrix for following tables? Also explain what are the
difference in both the table once forming the growth matrix?

Table 1

Market share of
Market Market largest
Products growth share competitor Relative market share

Product1 13% 7% 13% 0.53

Product2 25% 22% 32% 0.68

Product3 4% 41% 25% 1.64

Product4 7% 21% 20% 1.05

Product5 37% 10% 29% 0.34

RELATIVE MARKET SHARE

45%
Question
Stars 40%Marks

Product5
35%

30%

25%
Product2
20%

15%
Product5 Product4 Product1
10%
2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
5%
Cash Cows
0%
MARKET GROWTH
Dogs
-5%
Table 2

Market
share of
Market Market largest Relative market
Products growth share competitor share
Product1 33% 17% 23% 0.73
Product2 55% 32% 12% 2.66
Product3 34% 51% 20% 2.55
Product4 7% 12% 30% 0.40
Product5 6% 11% 21% 0.52
RELATIVE MARKET SHARE

70%
Question
Stars
60%Marks
Product2
50%

40%
Product3
Product1 30%
20%
Product5
10%
3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00-0.50
0%
Cash Cows Dogs
Product4
-10%
MARKET GROWTH

Differences in both the tables

1. In table 1 the market rate and growth share of product 1 is low as comparative to table 2.
2. In table 1 the market rate and growth share of product 2 is low as comparative to table 2.
3. In table 1 the market rate of product 3 is lower than table 2 but the growth share of
product 3 is high as comparative to table 2.
4. In table 1 the market rate is same for product 4 as in table 2 but the growth share is less
than table 2.
5. In table 1 the market rate of product 5 is higher than that of table 2 but the growth share is
less.
 4. Show the results what will happen if Market Growth for product 1 changes
from 3% to 30 %, product 5 7% to 17 %?

When the market growth for product 1 is 3% and that of product 5 is 17%

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 3% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 51% 25% 2.04
Product4 17% 12% 26% 0.46
Product5 7% 15% 28% 0.54
Relative market share

20%
Stars Questio
18% n
Product3 Marks
16%
14% Product4
12%

10%
2.5 2 1.5 1 8% 0.5 0
6%
4% Product5
2%
0%
Product2
Cash
Product1
Cows
Market growth Dogs
When the market growth of product 1 changes from 3% to 30% then and that of product 5
changes from 7% to 17% then,

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 30% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 51% 25% 2.04
Product4 17% 12% 26% 0.46
Product5 17% 15% 28% 0.54
Relative Market share

35%
Stars Question
30% Marks
Product1
25%
Product5
Product3 20%

15%
Product4
10%
2.5 2 1.5 1 0.5 0
5%
Cash
0%
MaCrokwetsgrowth Product2
Dogs

OBSERVATION

Before any change both the product 1 and product 5 is on dog’s quadrant.

While after the changes in both the product b1 shifts to question mark quadrant and product 5
also shifts to question mark quadrant.
Question mark quadrant means that the both products are in high growth market with low growth
market share.

5. Show the results what will happen if Market share for product 3 changes from
51 % to 15 %.

When the market share of product 3 is 51%

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 3% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 51% 25% 2.04
Product4 17% 12% 26% 0.46
Product5 7% 15% 28% 0.54
Relative market share

20%
Stars Questio
18% n
Product3 Marks
16%
14% Product4
12%

10%
5 2 1.5 1 8%
2. 0.5 0
6%
4% Product5
2%
0%
Product2
Cash
Product1
Cows
Market growth Dogs
When the market share of product 3 declined and came to 15%

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 3% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 15% 25% 0.60
Product4 17% 12% 26% 0.46
Product5 7% 15% 28% 0.54
RElative market share

20% Product4
Stars Question
18% Marks
16%
14%
12% Product3

10%
2 1.5 1 8% 0.5 0
6% Product5
4%
2%
Product2
Product1
Cash
0%
CowsMarket Growth
Dogs

When the growth share changes from 51 % to 15 % then the market share for largest competitor
remains same that is 25%. But the relative market share declined from 2.04 to 0.60. Due to this
the product 3 has shifted to question mark quadrant from the star quadrant. Earlier the product
was in high growth market with high market share now the product is in high growth market
with low market share.

6. Show the results what will happen if Market share of largest competitor of
Product4 changes from 26% to 36 %?

When market share of product 4 is 26%

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 3% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 51% 25% 2.04
Product4 17% 12% 26% 0.46
Product5 7% 15% 28% 0.54
Relative market share

20%
Stars Question
18% Marks
16%
14% Product4
Product3
12%

10%
5 2 1.5 1 8%
2. 0.5 0
6%
4% Product5
2%
0%
Product2
Cash
Product1
Cows Dogs
Market growth
When it changes to 36%

Market
share of Relative
Market Market largest market
Products growth share competitor share
Product1 3% 17% 32% 0.53
Product2 5% 22% 13% 1.69
Product3 14% 51% 25% 0.60
Product4 17% 12% 36% 0.33
Product5 7% 15% 28% 0.54
Relative market share

20%
Stars Product4 Questio n
18% Marks
16%
14%
12% Product3
10%
2 1.5 1 8% 0.5 0
6%
Product5
4%
2%
Product5 0%
Cash Product1

MCoawrkset growth Dogs

 7. What is the formula for Relative market share?

Ans-
Relative market share indexes a firm's or a brand's market share against that of its leading
competitor. Market concentration, a related metric, measures the degree to which a
comparatively small number of firms accounts for a large proportion of the market.

CALCULATION AS FOLLOWS-

1. Subtract the company's market share from 100 to find the percentage of the market
the company does not control. For example, if the company controls 25 percent of the
market, subtract 25 from 100 to get 75 percent of the market the company does not
control.
2. Divide the company's market share by the percentage of the market it does not
control. For this example, divide 25 percent by 75 percent to get 0.3333.
3. Multiply the result by 100 to find the company's relative market share expressed as a
percentage. In this example, multiply 0.3333 by 100 to find the company's relative
share equals 33.33 percent.
 8. Create your own BCG Matrix of your company? There should be a proper
name to a product ? Also expalin in brief the position of each and every
product?

Market
share of
Market Market largest Relative market
Company growth share competitor share
APUN 52% 17% 32% 0.53
COLA
PEPSICO 7% 14% 35% 0.40
RED
BULL 5% 23% 35% 0.65
Relative market share

PARLE
9% 35% 14% 2.50
70% Question
Stars Marks
60%

50% AC COLA APUN C

40%

30%
PAR
20%
PEPS
10%
3 2.5 2 1.5 1 0.5 0 -0.5
0%
Cash Cows -10%RB
Market growth Dogs
 Market
share of
Market Market largest Relative market
Product growth share competitor share
SOFT DRINKS 21% 11% 39% 0.28
PULPY DRINKS
15% 7% 33% 0.21
ENERGY 13% 4% 15% 0.26
DRINKS
FLAVOUR
DRINKS 29% 3% 21% 0.14
Relative market share

Stars 35%
Question
30% Marks
SDFD
25%

20%

15% PD

ED
10%
0.35 0.3 0.25 0.2 0.15 0.1 0.05 0
5%

0%
Cash Cows Market growth Dogs
 9. How I can convert Dogs into Question mark? Expalin it by showing it in
the form of excel BCG Template?

We can make dogs into question marks by relauching them into fast growing market
or their product market suddenly have to grow that can be because of sudden changes
in tastes of consumer or can be any other political or social.

Market share of largest Relative market

Products Market growth Market share
competitor share

Product1 25% 17% 32% 0.53

Product2 5% 22% 13% 1.69

30%

25%

20%

15%

10%
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

5%

0%
 10. How I can convert Stars into Cash Cows ? Expalin it by showing it in the
form of excel BCG Template?

Stars are the business units or products that have the best market shares and generate the
most cash are considered stars. However, because of their high growth rate, stars also
consume large amounts cash. This generally results in the same amount of money coming
in that is going out.

Cash Cows are successful products or services in mature markets.These products and
services consistently generate substantial revenues that can be used to invest in markets
that offer higher growth rates. Products that are described as Cash Cows will typically be
market leaders and be able to provide a return on assets (ROA) that exceeds the market
growth rate.

Market share of largest Relative market

Products Market growth Market share
competitor share

Product1 25% 17% 32% 0.53

Product2 12% 22% 13% 1.69

30%

25%

20%

15%

10%
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0

5%

0%