SWOT AND BCG MATRIX
Purpose Portfolio matrices are widely used by multidivisional organizations to help identify and select strategies to pursue.
Overview
You will begin by creating a SWOT and a BCG matrix.
Challenge
- For the SWOT
- Follow Steps 1-2 of the Learning Exercise 6A in your text. (Note: These are individual exercises and not a group exercise. This differs from your text.)
- Then, prepare a SWOT Matrix for the Coca-Cola Company.
- For the BCG (Learning Exercise 6C)
- Use the information in the Learning Exercise in your text to prepare a BCG matrix for the Coca-Cola Company locating each division where you believe it represents its position relative to market share and growth.
- When complete with both exercises (6A & 6C)
- Write a short narrative (one page or less) of your key conclusions from:
- (1) your SWOT analysis of the Coca-Cola Company,
- (2) your BCG work on the Coca-Cola Company. In addition, include your conclusions on the Coca-Cola Company as a result of its position in the BCG and the results of SWOT.
- Write a short narrative (one page or less) of your key conclusions from:
- Make clear recommendations for the Coca-Cola Company based on integrating the work from the above models.
EXERCISE 6A SWOT Matrix is the most widely used of all strategic planning tools and techniques because it is conceptually simple and lends itself readily to discussion among executives and managers. The SWOT Matrix is effective in formulating strategies because it clearly matches a firm’s internal strengths and weaknesses with the firm’s external opportunities and threats to generate feasible strategies that should be considered. This exercise gives you practice in performing SWOT analysis for a large corporation. Instructions Step 1
Join with two other students in class. Together, develop a SWOT Matrix for Coca-Cola. Follow guidelines provided in the chapter, including notation (for example, S4, T3) at the end of each strategy. Include two strategies in each of the four (SO, ST, WT, WO) quadrants. Be specific regarding your strategies, avoiding generic terms such as forward integration. Use the Cohesion Case, your answers to Assurance-of-Learning Exercise 1B on page 38, and the company’s most recent quarterly report as given at the corporate website.
Step 2
Turn in your team-developed SWOT Matrix to your professor for a classwork grade. Note: Feel free to list factors and strategies vertically on a page rather than necessarily fitting everything into a nine-cell array.
EXERCISE 6C Develop a BCG Matrix for Coca-Cola
Purpose Portfolio matrices are widely used by multidivisional organizations to help identify and select strategies to pursue. A BCG analysis identifies particular divisions that should receive fewer resources than others. It may identify some divisions that need to be divested. This exercise can give you practice in developing a BCG Matrix. Instructions Step 1
Place the following five column headings at the top of a separate sheet of paper: Divisions, Revenues, Profits, Relative Market Share Position, Industry Growth Rate. Down the far left of your page, list Coca-Cola’s divisions/segments as given on pages 30-31. Now turn back to the Cohesion Case and find information to fill in all the cells in your data table from page 31.
Step 2 Step 3
Based on Coca-Cola’s year-end 2017 segment data given in the Cohesion Case, complete a BCG Matrix for the company.
Compare your BCG Matrix to other students’ matrices. Discuss any major differences
Answer preview Purpose Portfolio matrices are widely used by multidivisional organizations to help identify and select strategies to pursue.
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