- W= BSDW Exam Part B MM-PT 2024-Kgaogelo Sekgota Home Insert Draw Design Layout References Mailings Review View Q Search in Document Share Calibri (Body) ་ 12 ▼ A A▾ Aa EE 1. AaBbCcDdEe AaBbCcDdEe Paste B I U ▼abe X2 X2 A × Office Update To keep up to date with security updates, fixes and improvements, choose Check for Updates. AaBbCcDdEe AaBbCcDdEe AaBbCcDdE List table Normal Question He... Rubric Headi... No Spacing Table Paragr... AaBbCcDdEe 1 AaBbC Heading 1 1.1 AaBbCcD Heading 2 Styles Pane Check for Updates Product segment Market Segment Life insurance LSM 7 - 10 Mature 1.0 Industry life cycle stage Firm[x] RMS Note 1 Ansoff Growth option None Why do you say this? BCG quadrant Why do you say this? Mature market has low growth, and they have high RMS so further penetration is unlikely. Cash Cow High RMS; low market growth LSM 4 - 6 LSM 1 - 3 Shakeout N/AN 1.0 Note 3 N/A Do not answer Retirement savings and LSM 7-10 LSM 4 - 6 Decline 0.8 Mature 0.9 LSM 1 - 3 N/AN Note 3 N/A Do not answer investment (Note 2) Funeral insurance LSM 7-10 Decline Note 4 0.15 LSM 4 - 6 Mature LSM 1-3 Mature 0.3 0 Medical insurance and savings LSM 7 - 10 Mature 0 (Not active) LSM 4 - 6 LSM 1 - 3 Shakeout 0 (Not active) Introduction 0 (Not active) Diversification They are not active in the QM product or demographic segment. This should they choose to play here it would be diversification The market has high potential growth but they have zero RMS. If they were to enter this market it would be a Question Mark Short term insurance (property, cars etc.) Notes LSM 7-10 LSM 4 - 6 LSM 1-3 Mature Shakeout Growth 0.7 0.8 0.05 - early pilots in market 1. Relative Market Share (RMS) is the market share of a firm relative to the market leader. A firm with RMS = 1.0 dis therefore the market leader. Leading competitors would typically have an RMS in the range 0.5 to 1.0. Attackers, new entrants or minor or niche competitors would have RMS in the range 0 to 0.2. 2. Sold via corporate channels - i.e. to medium to large corporates as part of or supplementary to their pension schemes. 3. No market for this product in this demographic segment. 4. Small market in this demographic segment Page 5 of 11 1864 words English (United States) Accessibility: Investigate Focus + 150%

- W= BSDW Exam Part B MM-PT 2024-Kgaogelo Sekgota Home Insert Draw Design Layout References Mailings Review View Q Search in Document Share Calibri (Body) ་ 12 ▼ A A▾ Aa EE 1. AaBbCcDdEe AaBbCcDdEe Paste B I U ▼abe X2 X2 A × Office Update To keep up to date with security updates, fixes and improvements, choose Check for Updates. AaBbCcDdEe AaBbCcDdEe AaBbCcDdE List table Normal Question He... Rubric Headi... No Spacing Table Paragr... AaBbCcDdEe 1 AaBbC Heading 1 1.1 AaBbCcD Heading 2 Styles Pane Check for Updates Product segment Market Segment Life insurance LSM 7 - 10 Mature 1.0 Industry life cycle stage Firm[x] RMS Note 1 Ansoff Growth option None Why do you say this? BCG quadrant Why do you say this? Mature market has low growth, and they have high RMS so further penetration is unlikely. Cash Cow High RMS; low market growth LSM 4 - 6 LSM 1 - 3 Shakeout N/AN 1.0 Note 3 N/A Do not answer Retirement savings and LSM 7-10 LSM 4 - 6 Decline 0.8 Mature 0.9 LSM 1 - 3 N/AN Note 3 N/A Do not answer investment (Note 2) Funeral insurance LSM 7-10 Decline Note 4 0.15 LSM 4 - 6 Mature LSM 1-3 Mature 0.3 0 Medical insurance and savings LSM 7 - 10 Mature 0 (Not active) LSM 4 - 6 LSM 1 - 3 Shakeout 0 (Not active) Introduction 0 (Not active) Diversification They are not active in the QM product or demographic segment. This should they choose to play here it would be diversification The market has high potential growth but they have zero RMS. If they were to enter this market it would be a Question Mark Short term insurance (property, cars etc.) Notes LSM 7-10 LSM 4 - 6 LSM 1-3 Mature Shakeout Growth 0.7 0.8 0.05 - early pilots in market 1. Relative Market Share (RMS) is the market share of a firm relative to the market leader. A firm with RMS = 1.0 dis therefore the market leader. Leading competitors would typically have an RMS in the range 0.5 to 1.0. Attackers, new entrants or minor or niche competitors would have RMS in the range 0 to 0.2. 2. Sold via corporate channels - i.e. to medium to large corporates as part of or supplementary to their pension schemes. 3. No market for this product in this demographic segment. 4. Small market in this demographic segment Page 5 of 11 1864 words English (United States) Accessibility: Investigate Focus + 150%

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Related questions

Question

The Ansoff Matrix and the BCG matrix provide some tools for thinking about strategic growth and managing a portfolio of business units/products/projects

A large South Afircan insurance company, which we will term ‘Firm[x]’, participates in a number of financial services segments in South Africa. The product segments where they currently play or are considering playing are summarised in the table below, along with the industry life cycle phase of each product-market segment, and Firm[x]’s market position, as described by its relative market share.

Fill in each of the yellow shaded cells in the following table, as follows:

In the column labelled ‘Ansoff growth option’ describe which of the quadrants of the Ansoff Matrix best describes where the firm currently operates for that particular product in the particular market segment.
For any instance which fall in the “existing product; exisiting market” quadrant, decide whether there is a real growth opportunity based on whether the market is growing or not (in which case growth would be by means of ‘market growth’) and Firm[x]’s relative position (i.e. are they an incumbent or an attacker?), in which case growth may or may not be possible by ‘market penetration’. If neither of these apply enter “none”.
In the column labelled BCG quadrant insert whether the product-market segment described by each row is a Cash Cow, Star, Question Mark (QM) or Dog.

Note: the green cells are not obligatory, but if you feel the answer alongside in the yellow cell may be ambiguous motivate your answer in these cells.

The blue shaded cells provide an example of what we are looking for.

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W= BSDW Exam Part B MM-PT 2024-Kgaogelo Sekgota
Home
Insert
Draw
Design
Layout
References Mailings Review
View
Q Search in Document
Share
Calibri (Body)
་ 12
▼
A A▾
Aa
EE
1. AaBbCcDdEe AaBbCcDdEe
Paste
B I U
▼abe X2 X2 A
× Office Update To keep up to date with security updates, fixes and improvements, choose Check for Updates.
AaBbCcDdEe
AaBbCcDdEe
AaBbCcDdE
List table
Normal
Question He...
Rubric Headi...
No Spacing
Table Paragr...
AaBbCcDdEe 1 AaBbC
Heading 1
1.1 AaBbCcD
Heading 2
Styles
Pane
Check for Updates
Product
segment
Market
Segment
Life
insurance
LSM 7 - 10
Mature
1.0
Industry life
cycle stage
Firm[x]
RMS Note 1
Ansoff
Growth
option
None
Why do you say this?
BCG
quadrant
Why do you say this?
Mature market has low growth,
and they have high RMS so
further penetration is unlikely.
Cash Cow
High RMS; low market growth
LSM 4 - 6
LSM 1 - 3
Shakeout
N/AN
1.0
Note 3
N/A
Do not answer
Retirement
savings
and
LSM 7-10
LSM 4 - 6
Decline
0.8
Mature
0.9
LSM 1 - 3
N/AN
Note 3
N/A
Do not answer
investment
(Note 2)
Funeral
insurance
LSM 7-10
Decline Note 4
0.15
LSM 4 - 6
Mature
LSM 1-3
Mature
0.3
0
Medical
insurance
and
savings
LSM 7 - 10
Mature
0 (Not active)
LSM 4 - 6
LSM 1 - 3
Shakeout
0 (Not active)
Introduction
0 (Not active)
Diversification They are not active in the
QM
product or demographic
segment. This should they
choose to play here it would be
diversification
The market has high potential
growth but they have zero RMS. If
they were to enter this market it
would be a Question Mark
Short term
insurance
(property,
cars etc.)
Notes
LSM 7-10
LSM 4 - 6
LSM 1-3
Mature
Shakeout
Growth
0.7
0.8
0.05 - early
pilots in market
1. Relative Market Share (RMS) is the market share of a firm relative to the market leader. A firm with RMS = 1.0 dis therefore the market leader. Leading competitors would typically
have an RMS in the range 0.5 to 1.0. Attackers, new entrants or minor or niche competitors would have RMS in the range 0 to 0.2.
2. Sold via corporate channels - i.e. to medium to large corporates as part of or supplementary to their pension schemes.
3. No market for this product in this demographic segment.
4. Small market in this demographic segment
Page 5 of 11
1864 words
English (United States)
Accessibility: Investigate
Focus
+ 150%

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