Q.No.2. (Marks 10) The Case: Surge Oil Manufacturing (Pvt) Ltd Company has various products,…
Q.No.2. (Marks 10)
The Case:
Surge Oil Manufacturing (Pvt) Ltd Company has various products, Coconut Oil, Extra Virgin Olive Oil, Ghee, Seed Oil, Grapeseed Oil, and Peanut Oil. Surge Oil Manufacturing Company wants to know which business unit currently is more profitable, which business unit will be assuring future, and which business unit will be not a part of Surge in the future.
The Coconut Oil market is growing but not at a high rate, the Seed Oil market is growing at a high rate, Extra Virgin Olive Oil and Grapeseed Oil market is growing but less than the Coconut Oil market growth rate, Ghee market is growing with the high rate and Peanut Oil market is growing with the low rate.
|
Products |
SEED OIL |
PEANUT OIL |
|
Total Market Value |
10,00,000 |
7,00,000 |
|
Surge (Brand) |
3,50,000 |
1,20,000 |
|
Competitor 1 |
80,000 |
50,000 |
|
Competitor 2 |
1,00,000 |
1,25,000 |
|
Competitor 3 |
70,000 |
45,000 |
|
Competitor 4 |
3,40,000 |
1,10,000 |
|
Competitor 5 |
50,000 |
1,15,000 |
|
Competitor 6 |
10,000 |
1,35,000 |
|
Products |
Coconut Oil |
E.V.Olive Oil |
Ghee |
Grapeseed Oil |
|
Total Market Value |
5,00,00 |
13,00,000 |
9,00,000 |
15,50,000 |
|
Surge (Brand) |
50,000 |
3,00,000 |
2,50,000 |
500,000 |
|
Competitor 1 |
45,000 |
1,00,000 |
1,00,000 |
1,00,000 |
|
Competitor 2 |
100,000 |
1,50,000 |
1,50,000 |
50,000 |
|
Competitor 3 |
55,000 |
1,50,000 |
1,00,000 |
1,50,000 |
|
Competitor 4 |
1,50,000 |
3,20,000 |
50,000 |
1,00,000 |
|
Competitor 5 |
50,000 |
1,80,000 |
50,000 |
5,50,000 |
|
Competitor 6 |
50,000 |
1,00,000 |
2,00,000 |
1,00,000 |
Requirements: Using the above Information
Apply the BCG Matrix and find out which business unit is generating excess cash, which business unit is profitable, which business unit is not generating excess cash, which business unit is not profitable, and which business unit is not generating cash.
