1. BUSINESS POLICY
Presented To :
Mr. Husnain Manzoor

2. PRESENTED BY
Tehreen Bint Ilyas (FA12-MBT-089)
Mashal Mahmood ( FA12-MBT-113)
Haseeb Baloch (FA12-MBT-031)
Ata ul Hassnain ( FA12-MBT-027)
Fraz Asmat ( FA12-MBT-015)
M.Ubair ( FA12-MBT-063)

3. PURPOSE OF BCG MATRIX
The Boston Consulting Group (BCG) Matrix is a
simple tool to
• Assess a company’s position in terms of its product range.
• Company think about its products and services
• make decisions about which it should keep, which it should let
go and which it should invest in further.

4. STARS
 Stars generate large sums of cash because of their
strong relative market share, but also consume
large amounts of cash because of their high growth
rate.
 If a star can maintain its large market share it will
become a cash cow.

5. CASH COWS
 As a leader in a mature market, cash cows exhibit a
return on assets that is greater than the market
growth rate – so they generate more cash than they
consume.
 They provide the cash required to turn question
marks into market leaders.

6. QUESTION MARK
 Question marks are products that grow rapidly and
as a result consume large amounts of cash
 Because they have low market shares they don’t
generate much cash.
 Produce large net cash consumption.
 A question mark has the potential to gain market
share and become a star, and eventually a cash
cow.

7. DOGS
 Dogs have a low market share and a low growth
rate and neither generate nor consume a large
amount of cash.
 Dogs are cash traps because of the money tied up
in a business that has little potential.

8. BETA
Companies Interestrate ReturnRate
Lipton 20% 21% 1% 0.01
Tetley 8% 21% 13% 0.13
Alokozay 15% 21% 6% 0.06
Supreme 18% 21% 3% 0.03
Tapal 17% 21% 4% 0.04
Beta 0.054

9. USE OF BETA
 It minimizes the market share.
 It also minimizes the risk in the market .

10. ALOKOZAY BCG TABLE
Products IndustryGrowthMarketshare
Tissues 17% 20%
Cookingoil 10% 15%
Tea 25% 30%
Biscuits 8% 10%
Propertyanddeveolpment 20% 25%
Baverages 30% 35%

11. BCG MATRIX OF ALOKOZAY
BCG MATRIX OF ALOKOZAY
30% Industry Growth Rate 8%
35% Baverages
Organic, Question Mark
Market share Stars Tea Inorganic Inorganic
P & D
Tissues
Cows Organic Dogs Defensive
Cooking oil
10% Biscuits

12. STARS
 Beverages and tea of Alokozay are in Stars of BCG
matrix.
 Beverages have industry growth 30% and market
share 35%.
 Tea have Industry growth 25% and market share
20%.
 If a beverages and tea maintain its large market
share it will become a cash cow.
 So Alokozay should use Organic and Inorganic
strategies for betterment.

13. QUESTION MARK
 Alokozay have no product in Question Mark.
 Because Alokozay have no product with low
industry growth and high market share.
 If there is any product in question mark then
company should use Inorganic strategy.

14. COWS
 Product and development and tissues of Alokozay
are in Cows of BCG matrix.
 P&D have industry growth 20% and market share
25%.
 Tissues have Industry growth 17% and market
share 20%.
 P&D and tissues exhibit a return on assets that is
greater than the market growth rate
 So Alokozay should use Organic strategies for
betterment.

15. DOGS
 Cooking oil and biscuits of Alokozay are in Cows of
BCG matrix.
 Cooking oil have industry growth 10% and market
share 15%.
 Tissues have Industry growth 08% and market
share 10%.
 Cooking oil and tissues are cash traps because of
the money tied up in a business that has little
potential.
 So Alokozay should use Deffensive strategies for
betterment.