UNIVERSITY OF WAH

WAH ENGINEERING COLLEGE

Department of Chemical Engineering
Assignment # 03
Course Title: Engineering Management Course Code: Ch.E-406
Semester: 8th Course Teacher: Mr. Fazeel Ahmad
Total Marks: 20 Time: 1 week (27-2-2021)
Student Name: Muhammad Aqib Muneeb Reg No. Uw-17-che-bsc-020

Assignment Title:

Course Program Learning Domain

Learning Learning
Outcome Outcome

1 BibliographyBibliography
CLO-1 PLO-11 Cognitive
Level (C-2)

Q.1 [10]
a) Explain the BCG matrix with at least two examples having in the following organizations
I) University
2) Industry
3) Restaurant
 Table of Contents
BCG Matrix.....................................................................................................................................1
Definition.....................................................................................................................................1
Understanding the tool.................................................................................................................1
Relative Market Share.................................................................................................................1
Market Growth rate......................................................................................................................1
Dogs.........................................................................................................................................2
Cash Cows...............................................................................................................................2
Stars.........................................................................................................................................2
Question marks........................................................................................................................2
BCG Matrix Advantages:............................................................................................................3
BCG Matrix Disadvantages.........................................................................................................3
Examples of BCG Matrix................................................................................................................4
In Industries.................................................................................................................................4
Unilever Pakistan Limited:......................................................................................................4
2 BibliographyBibliography
Nokia BCG Matrix..................................................................................................................5
In University................................................................................................................................5
In Restaurants..............................................................................................................................6
Bibliography....................................................................................................................................7
 BCG Matrix
Definition
Thei’Bostoni’Consultingi’Groupi’(BCG)i’Growthi’Sharei’Matrixi’isi’ai’planningi’tooli’thati’usesi’graphicali
’representationsi’ofi’ai’company'si’productsi’andi’servicesi’toi’helpi’ai’companyi’decidei’whati’toi’support,i’

sell,i’ori’investi’in.
Thei’matrixi’drawsi’thei’company'si’productsi’asi’ai’four-squarei’matrix.i’Here,i’thei’Y-axis represents
the rate of marketi’growthi’andi’thei’X-
axisi’representsi’thei’marketi’share.i’Developedi’ini’1970i’byi’Boston

Understanding the tool

i’ i’

Thei’BCGi’matrixi’isi’ai’four-quadranti’model:i’thei’abscissai’representsi’thei’marketi’sharei’or relative
market share of a product, service
ori’investment,i’andi’thei’ordinatei’representsi’thei’marketi’growthi’rate.

Relative Market Share

i’ i’

Onei’ofi’thei’parametersi’usedi’toi’measurei’ai’businessi’portfolioi’isi’relativei’marketi’share.i’Ai’higheri’ma
rketi’sharei’fori’ai’companyi’cani’leadi’toi’higheri’profits.
Thisi’isi’becausei’companiesi’thati’producei’morei’productsi’willi’benefiti’fromi’economiesi’ofi’scalei’andi’
3 experiencei’curvesi’andi’generatei’higheri’margins.i’Iti’isi’worthi’noting,i’however, i’thati’somei’companie
BibliographyBibliography
si’cani’stilli’benefiti’fromi’lowi’productioni’volumesi’andi’lowi’marketi’share.

Market Growth rate

i’ i’ i’

Highi’marketi’growthi’meansi’higheri’returnsi’andi’sometimesi’profits,i’buti’iti’alsoi’requiresi’ai’significant
i’cashi’investment i’toi’drivei’furtheri’growth.i’Consequently, i’businessi’unitsi’operatingi’ini’high-

growthi’industriesi’arei’usersi’ofi’cash.
Ai’highi’growthi’marketi’meansi’higheri’revenuesi’andi’sometimesi’profits,i’buti’iti’alsoi’requiresi’ai’loti’ofi’
cashi’toi’bei’usedi’asi’ani’investmenti’toi’stimulatei’furtheri’growth.i’Thus,i’businessi’unitsi’operatingi’ini’hi
gh-growthi’industriesi’arei’usersi’ofi’fundsi’andi’willi’receivei’ai’returni’oni’investmenti’onlyi’ifi’they are
expected to increase or maintain market share in the future.
These are divided into four quadrants:
Dogs
Business units with slow growth or declining market share are considered “losers”. These sectors
are usually breakeven (they do not create or consume large amounts of capital) and are unlikely
to generate enough capital to maintain
ai’company'si’marketi’share.i’Therefore,i’thesei’businessesi’arei’noti’soi’interestingi’toi’investors.i’Sincei’t
hese business units still include funds that can be used in high potential sectors, Dogs could be
sold or liquidated.
 Cash Cows
The cash cow is the most profitable brand and should be milked to make as much money as
possible. Bulls' money should be invested in stars to support their continued growth.
Accordingi’toi’thei’growthi’sharei’matrix,i’companiesi’shouldi’noti’investi’ini’cashi’cowsi’toi’promotei’gro
wth,i’buti’cani’onlyi’supporti’themi’toi’maintaini’theiri’currenti’marketi’share.i’Again,i’thisi’isi’noti’alwaysi’t
hei’case.i’Cashi’cowsi’arei’usuallyi’largei’companiesi’ori’SBUsi’thati’may be introducing new products
or new processes that could be a rising star. Without the support of a cash cow, they would be
powerless.
Stars
The star has a higher market share and higher growth rates. They
mayi’bringi’somei’profit,i’buti’growthi’comesi’ati’thei’expensei’ofi’money,i’andi’alli’thisi’requiresi’money.i’
Let'si’hopei’thei’starsi’becomei’cashi’cows.
Questioni’marks
Thei’questioni’marki’(ori’thei’childi’ini’question)i’isi’ai’companyi’withi’ai’lowi’sharei’ini’ai’fasti’growingi’mar
ket.i’Theyi’havei’thei’potentiali’toi’gaini’marketi’sharei’andi’eventuallyi’becomei’starsi’(marketi’leaders).i’
Questioni’marksi’mayi’noti’alwaysi’bei’successful.i’Eveni’ifi’theyi’makei’ai’bigi’investment,i’theyi’arei’unli
kelyi’toi’gaini’marketi’sharei’andi’endi’upi’becomingi’dogs.i’Hence,i’theyi’needi’toi’bei’examinedi’veryi’care
fullyi’toi’determinei’ifi’theyi’arei’worthi’thei’investment.

4 BibliographyBibliography

Figure
1:

Graphical Representation of BCG Matrix

 BCG Matrix Advantages:
i i

TheiadvantagesiofitheiBostoniMatrixiinclude:
 Thisiisianiadvancediwayitoiviewitheicapabilitiesiofieachiproductiiniyouriportfolio.
 Thisiallowsiyouitoithinkiaboutihowitoiallocateilimitediresourcesitoiyouriinvestmentiportfolioii
niorderitoimaximizeilong-termireturns.
 Showsiifiyouriinvestmentiportfolioiisibalanced.iForiexample,iifiyouihaveitooifewiproductsiiniy
ourigroceryiportfolio,iyouimayibeiinidangeriofiputtingialliyourieggsiinioneibasket.
 Theitooliisiveryieasyitoiuseiandiunderstand.

BCG Matrix Disadvantages

i’ i’

Thei’disadvantagesi’ofi’thei’Bostoni’matrixi’include:
 Marketi’growthi’ratesi’cannoti’accuratelyi’measurei’thei’attractivenessi’ofi’ai’marketi’fori’ani’enter
prise.
 Marketi’sharei’cannoti’actuallyi’predicti’howi’muchi’moneyi’ai’producti’willi’make.i’Fori’example
,i’dogsi’mayi’bei’profitable,i’whilei’celebritiesi’mayi’havei’higheri’marketi’sharei’andi’highi’growth
i’rates,i’buti’operatei’ini’ani’industryi’withi’extremelyi’lowi’margins,i’soi’theyi’willi’neveri’bei’partic

ularlyi’profitable.
 Thisi’isi’justi’ai’snapshoti’ofi’thei’currenti’situation.i’Iti’doesi’noti’seemi’toi’bei’foreseeni’whati’willi’h
appeni’ini’thei’future in the market.
5 BibliographyBibliography
Examples of BCG Matrix
In Industries
Unilever Pakistani’Limited:i’
Unileveri’Pakistani’Limitedi’(UPL),i’formerlyi’Leveri’Brothersi’Pakistani’Limited,i’wasi’foundedi’ini’Pa
kistani’ini’1948.i’Thei’cityi’ofi’Rahimi’Yari’Khani’wasi’choseni’asi’thei’sitei’fori’thei’planti’fori’thei’productio
ni’ofi’vegetablei’oils.i’Unileveri’Pakistani’isi’Pakistan'si’largesti’FMCGi’companyi’andi’onei’ofi’thei’largest
i’multinational i’companiesi’operating in the country. There are now six factories throughout the

country. In the mid-1960s, Unilever's headquarters moved from Rahim Yar Khan to Karachi.
Unilever’s Star (High Market Share, High Market Growth)
 Brands mentioned in the star category in the matrix above are the top brands with
significant market share in a fast-growing market - while continued investment is
required as competitors continue to enter the market and innovate. Maintain and improve
your status.
 For
Unilever,i’Fairi’&i’Lovely,i’Walls,i’Rafhani’andi’Sunsilki’arei’thei’topi’brandsi’ini’Pakistan.i’Given
i’thei’currenti’state of affairs, continued investment is still a prerequisite for these brands to

maintain a larger market share. There is no doubt that these market shares can drive
higher market growth.
 Unilever’s Cash Cow (High Market Share, Low Market Growth)
 These are the best products in the industry that reached saturation yesterday.
 For companies like Unilever, this may be the most important product group because they
can generate income with very little additional investment so that profits can be
reinvested in the Stars and Problem Child brand (question mark). Unilever (Gilxose-D),
Pond (Ponds) and Lipton (Lipton) are Unilever's top cash cows, not only keeping their
bottom line, but also their own stars and question marks.
Unilever’s Question marks (Low Market Share, High Market Growth):
 They can be called the breadwinners (stars) of tomorrow. Many relatively young
companies are still in the process of growing their value in the industry, so they need to
get the most out of the success of the Cash Cow brand in order to grow quickly in the
market ahead of their competitors.
 Unilever reinvested surplus income from Surf Excel, Lux, Knorr, Lipton, Ponds and other
products to strengthen the Clear, Dox and Close-up brands.
Unilever’s Dog (Low Market Share, Low Market Growth):
 This is a final product, time has passed and it may not be profitable in the future. Wasting
the resources created by the Star and Cash Cow brands is only needed to keep them in the
6 market. BibliographyBibliography
 Dog Quadrant Tap Toothpaste, Rexona Superior Tea Deodorant, Lifebuoy Shampoo.
They can make enough money to support their lives, but they have little future.
Nokia BCG Matrix
Nokia Corporation is a Finnish multinational telecommunications, information technology and
consumer electronics company founded in 1865. Nokia is headquartered in Espoo, Finland, in
the Greater Helsinki metropolitan area.
Star -- (N series), this product has a huge market share in a fast-growing industry. This product
is well received by buyers. They can make money, but they need a lot of investment to stay
ahead. After the maturity stage, he will become a cash cow for the company.
Question mark The premium series of this product has a low relative market share. They need
to take care to determine if a joint venture is possible. These are the new phones released to the
market. The sales of the premium series are very low, not based on customer needs.

Cash cow- level cash cow product that shows the industry has a large market share in a slow-
growing industry. Despite the decline in sales, this situation still exists because they can still
maintain a sufficient number of customers and maintain their profitability with a little marketing
support.
 Dog – N-gage Nokia has a small market share with low growth rates. They don't raise cows and
don't need a lot of money. The company must slow down the production of the product or stop
the production of the product.

In University
The BCG matrix of this model is a series of numbers of universities so that they have a good
understanding of the effectiveness of the program (product) in the market. It identifies feasible,
popular plans and generates income for the school. If demand does not increase rapidly (slow or
no growth in the market), this means that additional investment in capacity or modification is
required. Create products and services to increase revenue and meet customer needs. The
university can use the available sales proceeds to continue selling products in order to obtain
cash (profit) from them. If it doesn't make money or profit, the product loses its core value.
Therefore, the package will need to be modified.
Dogs
Initially, the Huahua Institute of Engineering or the Swedish Academy launched several new
courses. Compared to UET, Lahore Dogs had a smaller market share at the time and operated in
a slow growing market. Usually, since they generate low or negative monetary returns, they are
not worth investing in in the beginning.

7 Cash cows BibliographyBibliography

In the cash cow, we have a strong market share, but market growth is not high. Just as we
provide students with good conditions and conditions, they can get a better education, but we do
not have enough students. For many reasons, for example, university courses are new, so their
merits are very high, or depending on the fact that they are lying on a cash cow, there are other
reasons.
Question Mark

At this university, the demand for students is high, but opportunities are limited and students
cannot be admitted to the university. With their overall quality management at their peak, they
need to focus on investment plans, making them either a star or a dog.
Stars
By that time, the university will be operating at a high pace and maintain a high market share.
They bring in profits and students. By then, they will be able to invest more in other programs
and departments because they want to be a cash cow and generate positive cash flow.

In Restaurants
Cows - Cow is a menu item with above average popularity but unprofitable menu items such as
snacks, cookies, and regular cold drinks. In general, these projects can bring stable profits to
enterprises, but they are not stars, because the size of their contribution is below average.
 Stars - The stars is the most popular and profitable item on the menu. These are usually
homemade delicacies, and because of their high profitability, they are the items on the menu that
you most want to sell. For example, biryani, fast food hamburgers and some other cultural
delicacies.
Question Marks - The question mark is the opposite of a bovine one. These are very lucrative
dishes on the menu, but not very popular. For example, canned cola and some other delicacies
such as Chinese dishes.
A dog is an item that is neither popular nor lucrative when compared to other menu items. You
should seriously consider removing these items from the menu. For example, sweets in a cafe, a
shop in a restaurant.
Dogs - Compared to other menu items, items that are neither popular nor profitable. You should
seriously consider removing these items from the menu. For example, sweets in a cafe, a shop in
a restaurant.

8 The aim is: BibliographyBibliography

“Sell the dogs to fund the question marks-

And try to transform the cows into stars-
before they turn into dogs.”
 Bibliography
Abdullah, R. (2020, April 13). BCG Matrix Assignment 1.docx. Retrieved from Scribd:
https://www.scribd.com/document/456278121/BCG-Matrix-Assignment-1-docx
Jurevicius, O. (2013, May 01). BCG growth-share matrix. Retrieved from Strategic Management
Insgiht: https://strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html
Owusu Afriyie, J. U.-A. (2019, Jan). Application of BCG as a Strategic Planning Tool to Assess
the Sustainability and Growth of University Programs in a Competitive Market Stephen.
Retrieved from Redearchgate:
https://www.researchgate.net/publication/330159517_Application_of_BCG_as_a_Strateg
ic_Planning_Tool_to_Assess_the_Sustainability_and_Growth_of_University_Programs_
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in_a_Competitive_Market
UkEssays. (2015, Jan 1st). Boston Consulting Group Bcg Matrix Marketing Essay. Retrieved
from UKEssays: https://www.ukessays.com/essays/marketing/boston-consulting-group-
bcg-matrix-marketing-essay.php