This document presents a business policy to Mr. Husnain Manzoor on the BCG matrix analysis of Alokozay company's products. It explains the purpose of the BCG matrix is to assess a company's product portfolio. It then analyzes each of Alokozay's products in terms of industry growth rate and market share to categorize them as stars, cash cows, question marks or dogs. It finds that beverages and tea are stars, property and development and tissues are cash cows, and cooking oil and biscuits are dogs. The summary provides recommendations for Alokozay's strategies for each category.

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.