Essay - European Distance Learning College Assessment of Current Strategy Recommendations for...

European Distance Learning College

Assessment of Current Strategy

Recommendations for Future Strategies

The European distance learning college consists of five strategic business units (SBUs). Using the Boston Consulting Group's "Product Portfolio" method of categorizing products, each of the ***** SBUs will be categorized as stars, question marks, cash cows, or dogs. This implies that ***** SBU represents a distinct product line. Theref*****e no assessment of current strategy and no recommendation for future strategies will include combining multiple ********** or dividing an existing SBU into multiple parts. The classification of the SBUs in *****ir current condition ***** ***** compared to an ideal product portfolio mix. Recommendations for future strategies will seek to move the product portfolio mix from its current condition to the ideal mix.

SBU A fits into the question mark category. The SBU is third or at least in a tie ***** ***** out of nine companies for market share leadership. The market growth r*****e is high at 15%. So the SBU is not too far from a ***** position in a market with ********** few competitors ***** the market has a double-digit growth rate.

SBU B fits ***** between ***** star and ***** mark categories. The SBU is tied with one competitor for market leadership. ***** ***** growth ***** is the *****est among the five SBUs at 18%. To summarize, ***** SBU ***** already a market leader in a high ***** *****.

***** C meets the criteria for a ***** cow. The SBU is the market leader ***** a third more students than the nearest *****. The ***** growth rate is moderate at 7%.

SBU D also meets ***** criteria for a c*****sh cow. The SBU is by far the market leader with four times more ***** than the nearest competitor ***** there are very few competitors. The market growth rate is slow at 4%. ***** D is the perfect example of a cash *****.

SBU E is the dog of the group. ***** SBU is not close to ***** top three colleges. The market ***** rate ***** slow at 4%. Slow market growth and a we*****k market position mark this SBU as a *****.

To comp*****re the ***** portfolio ***** of the European distance ***** college to an ideal mix, the definition of an ideal mix needs ***** be developed. ***** general goal is to gener*****e cash from low ***** products and invest the ***** in high growth products. ***** healthy company achieves a balance *****tween cash-generating and cash-requiring products. Cash-generating products supply the cash necessary ***** meet the cash requirements necessary to fund investment in high-growth products. In terms ***** the Boston ***** Group model, the ideal mix includes stars, which will eventually become cash-generating cash cows, possibly some question *****s ***** have the potential to ***** stars, and cash cows that fund the development of ***** and question marks. Dogs provide no value to the product ***** because *****y generate no excess cash. Excess cash means ***** resulting from sales after deducting the cash reinvested