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Strategy Formulation

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You have been given the BCG matrix on two divisions of your company - the appliance and electronics divisions. It appears that the electronics division can be located in the upper right quadrant of the matrix and the appliance division appears in the lower left quadrant of the matrix. You need to offer a strategic recommendation based on these findings. Include an opinion on how much reliance the company should have on these findings, what these findings suggest, what recommendations you would make, and what other measurements should be used to help reinforce or negate these findings. Support your answer.

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Appliance and electronics is the problem child (some analysts name it question marks and some also name it wild cats) division of the company. Problem child is the division with low market share but which operate in higher growth markets. This suggests that division has potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management has to think hard about "problem child" Whether to invest or not. Because its consumes resources and generate little in return. Thus this division absorbs ...

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  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
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