University of Wah,

Department of Chemical Engineering

Document No: UW/Ch.E/AF/REV00
UNIVERSITY OF WAH WAH
ENGINEERING COLLEGE
Department of Chemical Engineering
Assignment # 03

Course Title: Engineering Management

Semester:8th Course Teacher: Mr. Fazeel Ahmad
Total Marks: 10 Time: 1 week (14-11-2023)
Course Code: MGT-401
Student Name: Usman Ali Reg No: UW-20-CHE-BSC-020

Assignment Title:

Course Program Learning Domain

Learning Learning
Outcome Outcome

CLO-2 Cognitive
PLO-11 Level (C-2 , C-3)

Q.1 Explain the importance of BCG matrix with at least two examples having in the

following organizations by managing the organizational resources

1) Industry

2) Restaurant
[10]
Evaluation Rubrics

Contents Marks
References 1
Abstract 1
Table of contents 1
Diagram / Flow chart / Trend /examples 1
Relevant data /asked data 6

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Table of Contents
Abstract: ..................................................................................................................................... 3

Industry: ..................................................................................................................................... 3

1. Technology Industry ....................................................................................................... 3

2. Automobile Industry: ...................................................................................................... 4

Restaurant: ................................................................................................................................. 5

Fast Food Restaurant Chain- McDonald's: ............................................................................ 5

Conclusion:............................................................................................................................. 6

References: ................................................................................................................................. 7

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Abstract:
The BCG Matrix, also known as the Boston Consulting Group Matrix, is a strategic
management tool that helps organizations analyze their product portfolio based on two key
dimensions: market growth rate and market share. The matrix categorizes products into four
quadrants: Stars, Question Marks, Cash Cows, and Dogs. Each quadrant represents a different
strategic implication for managing organizational resources. Let's discuss the importance of the
BCG Matrix with examples in the context of the industry and a restaurant.

It categorizes products into four quadrants: Stars, Cash Cows, Question Marks, and Dogs. Each
quadrant represents a different strategic implication for managing organizational resources.
Let's explore the importance of the BCG matrix in the context of both an industry and a
restaurant.

Industry:
1. Technology Industry
• Stars: Products with high market share in a high-growth market.
• Importance: Organizations should invest resources to maintain and enhance
the market share of these products. This may involve continuous innovation,
marketing efforts, and capacity expansion.
• Cash Cows: Products with high market share in a low-growth market.
• Importance: While the market is not growing significantly, these products
generate a steady income. Managing resources involves optimizing efficiency,
reducing costs, and harvesting profits to reinvest in Stars or Question Marks.

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Implication: Organizations in the technology industry can allocate resources strategically by
investing in new, high-potential products (Stars) and efficiently managing mature, profitable
products (Cash Cows). This ensures a balanced portfolio that aligns with market dynamics.

2. Automobile Industry:
• Stars: Electric vehicles (EVs) in a rapidly growing market.
• Cash Cows: Traditional internal combustion engine (ICE) vehicles.
• Question Marks: Hydrogen-powered vehicles with uncertain market growth.
• Dogs: Outdated models with low market share and growth.

Importance:
• Allocate resources strategically: Invest heavily in developing and marketing
electric vehicles (Stars) to maintain and expand market share.
• Optimize cash flow: Continue to generate profits from traditional vehicles (Cash
Cows) to fund the development of new technologies.
• Manage risk: Carefully evaluate and potentially divest from hydrogen-powered
vehicles (Question Marks) if they don't show potential for growth.
• Streamline operations: Consider phasing out or repositioning outdated models
(Dogs) to focus on more profitable segments.

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Restaurant:
Fast Food Restaurant Chain- McDonald's:
• Stars: New and innovative menu items with high growth potential.
Importance: Allocate resources for marketing, promotion, and quality control to ensure these
products gain and sustain a high market share.
• Cash Cows: Well-established and popular menu items with consistent demand.
Importance: Efficiently manage resources to maintain the quality and availability of these
items. Consider cross-promotions to maximize profits.

Implication: In the restaurant industry, particularly for a fast-food chain, the BCG Matrix
helps in optimizing the menu. By investing in new and trendy offerings (Stars) and efficiently
managing popular, established items (Cash Cows), the restaurant can cater to diverse customer
preferences while ensuring a stable revenue stream.

Importance:
Resource allocation: Invest in marketing and enhancing the high-end, innovative dishes (Stars)
to capture a larger market share in the premium segment.
Cash generation: Continue to offer popular, staple menu items (Cash Cows) to maintain a
steady cash flow that can support innovation.
Risk management: Monitor and adapt the experimental dishes (Question Marks) based on
customer feedback and market trends, potentially scaling up or discontinuing as needed.

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Efficiency improvement: Evaluate and update or remove outdated or unpopular menu items
(Dogs) to streamline operations and focus on more profitable offerings.

Conclusion:

In both examples, the BCG matrix facilitates strategic decision-making by providing a

framework to analyze the relative position of products or services within the organization's
portfolio. This allows for the effective allocation of resources based on the growth potential
and market share of each product or service, leading to a more balanced and sustainable
approach to managing the organization's overall performance.

The BCG Matrix facilitates a strategic approach to resource allocation, ensuring that
organizations invest appropriately in different products or services based on their market
growth and market share. This enables a balanced portfolio that aligns with the overall business
strategy and market conditions.

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References:
https://www.businessnewsdaily.com/5693-bcg-matrix.html

https://www.edrawmind.com/article/best-10-bcg-matrix-examples-for-students.html

https://www.investopedia.com/terms/b/bcg.asp

https://www.fe.training/free-resources/credit/bcg-matrix/