Mid Term ASSIGNMENT

Batch PGDM 2019-21

Academic Session 2019-20

Subject: Strategic Management

Faculty Name: Mr. Atul Kumar (Section A & B) and Dr. Amit Kumar (C & D)

Email Id: atul.kumar@glbimr.org and amit.kumar@gmail.com

Mobile No: 9810264434 (Mr. Atul) and 9991033395 (Dr. Amit)

Mode: Soft Copy (Minimum 6 pages report) by date: 30 March, 2020

Paper Code: PG25 Max Marks: 20

Question 1: You are required to produce a market assessment, Evaluate Corporate
strategy and business strategies and design a plan including recommendations.

ANSWER-
UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete
(RMC) and white cement in India. It is also one of the leading cement producers globally.
UltraTech as a brand embodies 'strength', 'reliability' and 'innovation'. Together, these
attributes inspire engineers to stretch the limits of their imagination to create homes,
buildings and structures that define the new India.
The company has an installed capacity of 62 Million Tonnes Per Annum (MTPA) of grey
cement. UltraTech Cement has 12 integrated plants, 1 clinkerisation plant, 16 grinding units
and 6 bulk terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri
Lanka. UltraTech Cement is also India's largest exporter of cement reaching out to meet the
demand in countries around the Indian Ocean and the Middle East.
In the white cement segment, UltraTech goes to market under the brand name of Birla
White. It has a white cement plant with a capacity of 0.56 MTPA and 2 WallCare putty
plants with a combined capacity of 0.8 MTPA.
With more than 100 Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is the largest
manufacturer of concrete in India. It also has a slew of speciality concretes that meet specific
needs of discerning customers.
Our Building Products business is an innovation hub that offers an array of scientifically
engineered products to cater to new-age constructions. Aerated Autoclaved Concrete (AAC)
blocks are economical, light-weight blocks ideal for high-rise buildings, while Dry Mix
Products include waterproofing, grouting and plastering solutions designed for faster
completion of projects. The retail format of UltraTech Building Solutions offers a wide
range of construction products to the end customers under one roof.
With its significant presence in grey and white cement, concrete, building products and
building solutions, UltraTech is a one-stop shop for all primary construction needs. Its
meteoric rise as the largest cement brand in India reflects the organisation's focus on cutting
edge technology, research and technical services.
UltraTech Cement provides a range of products that cater to the needs of various aspects of
construction, starting from foundation to finish. These include:
Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana
Cement under grey cement
White cement, WallCare putty and white cement based products under Birla White
Ready Mix Concrete and a range of specialty concretes with specific functional properties
under UltraTech Concrete
AAC blocks, waterproofing solutions, grouting solutions and plastering solutions under
UltraTech Building Products
UltraTech’s subsidiaries are Dakshin Cements Limited, Harish Cement Limited, Gotan
Limestone KhaujUdyog Private Limited, Bhagwati Limestone Company Private Limited,
UltraTech Cement Lanka (Pvt.) (Ltd.), UltraTech Cement Middle East Investments Limited,
PT UltraTech Mining Indonesia and PT UltraTech Investments Indonesia.
UltraTech’s parent company, the Aditya Birla Group, is in the league of Fortune 500
companies. It employs a diverse workforce comprising of 120,000 employees, belonging to
42 different nationalities across 36 countries. The Group has been ranked number 4 in the
global 'Top Companies for Leaders' survey and ranked number 1 in Asia Pacific for 2011.
'Top Companies for Leaders' is the most comprehensive study of organisational leadership
in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and
Leadership Advisory firm). The Group has topped the Nielsen's Corporate Image Monitor
2012-13 and emerged as the number 1 corporate, the 'Best in Class'.

CONSUMER BY SEGMENT

  Segmentation -Market segmentation consists of a group of customers who share a

similar set ofneeds and wants. Segmentation refers to divide the customers into
groups on thebasis of some common needs or characteristic.Basis of Segmentation
Geographical Segmentation – It refers dividing the customers on the basis of the place
where they are living various geographic areas consists of region, city, rural and semi
rural area. The purpose of the company for such segmentation is to understand the
needs of people living in different geography. Geographic segmentation is very useful
because needs of the customers are influenced by the geography. Demographic
Segmentation – In Demographic segmentation the market is divided into the groups
on the basis of variables such as age, family size, family life cycle, gender, income,
occupation, education, religion, etc. There are two reasons for using the demographic
segmentation one is that it is easier to measure them while second reason is that
customer’s need and wants are different as per the demographic variable.
Psychographic segmentation – Psychographic segmentation refers to be the division
of the customers on the basis of their life style, status, personality and values.

  Behavioral Segmentation –

 In behavioral segmentation buyers are divided into the groups on the basis of their
knowledge and attitude toward the product. Occasion, benefits, usage rate, buyer
readiness stage, loyalty status and attitude are various behavioral segmentation
elements. About Company: Ultratech is doing market segmentation on the basis of
Geographical Segmentation where the segment is done on basis of rural areas, city
areas, semi rural areas and region.

  Targeting –

Once the firm has decided its market segmentation opportunities it has to decide how
many and which once to target. Marketers are increasingly combining several
variables in efforts to identify smaller, better defined target groups. Steps of Targeting
Evaluation of Target Market Selection of Target Market 1. Evaluation of Target
Market In evaluation of target market segments a firm must look at the following 3
factors: Segment Size and Growth Segment Structural attractiveness Company
Objective
Selection of Target Market After evaluating different segments the company must
decide which and how many segments to serve in target market. Target market is a set
of buyers sharing common needs or characteristic that the company decides to serve.
 Undifferentiated Target Market (Mass Market) Differentiated Target Market
(Strategic Market) Concentrated Target Market (Niche Market) Individual Market
(Micro Market)About Company Ultratech cement is targeting on the basis of
Differentiated Market so that the new varieties of cement can be given to the
customers. This step can get success only if segmentation is done properly.
 Positioning –

Positioning can be defined as the way by which a product has occupied a place inthe
minds of customers related to the competitors.Positioning is the act of designing the
company’s offering and image to occupy adistinctive place in the minds of the target
market.To make the buying decisions easy customers are categorizing the products as
pertheir position in the minds. A product’s positioning is a complex set of
perceptions,impressions and feelings that consumer holds for the product.Basis of
Positioning 1. Product Differentiation 2. Service Differentiation 3. People
Differentiation 4. Image DifferentiationAbout CompanyUltratech uses Product
Differentiation and Image Differentiation as its Brand nameAditya Birla Group itself
has a great reputation in the minds of the people.
  Marketing Research at Ultratech CementMarketing research is a systematic gathering
recording and analysis of data aboutthe problems relating to the marketers of goods
and services. Thus it includesinvestigation of market, segments, and products. The
market research answers thequestions in respect of different markets. The areas of
market research are: Determining the size of both current and also potential market.
Assessing the market brands. Ascertaining the strength and weakness of competitors.
The current contemplated legislations of the government towards the particular
product, including taxation policy Demand and sales forecast

  Research & Development Department –

Research & Development Department is the back-bone of an organization. It helpsthe

organizations in developing new products and means to meet the need ofcustomers in
an effective way. It also shows how open is an organization towardsthe change. In
Ultratech following functions are done by the R & D department: Able to meet
customers enhanced requirements above R & D Able to meet shorter turnaround times
demanded by customer Automated tools helped to meet extra volume of production
and new customer requirements Maintaining leadership as a technologically advanced
supplier Customized Production & Project Management tools development for
customers Able to acquire new projects which involves project management
Providing value added services to the customers and bringing-in additional projects.
Introducing new workflow and systems as per customer’s requirements
 Strategies Adopted by UltraTechPromise- Excellent product quality and customer care
are the hallmark ofUltraTech.Capitalizing the opportunity of the geometric growth in the
housing sectorand the governments thrust on infrastructure.Right decision at right
timeHaving excellent Product in handConstantly striving to improve and capture more
number of market shareTraining to StaffPromotion through moviesSponsorship Opinion
towards MarketingIncrease frequency of advertisements on T.V., radio, internet and
printmedia.Increase Strategic AllianceIncrease visibility by campaign and other
 modes.Increase number of distributors and agentsIncrease number of warehouseHaving
micro-planning in place

2. Suppliers

Ordinary Portland Cement

Ordinary Portland cement is the most commonly used cement for a wide range of
applications. These applications cover ordinary, standard, high strength concretes, masonry
and plastering works, precast concrete products for e.g., blocks, pipes etc., and specialized
works such as precast and prestressed concrete.

Portland Pozzolana Cement

Portland Pozzolana cement is ordinary Portland cement intimately blended or interground

with pozzolanic materials such as fly ash, calcined clay, rice husk ash etc.

Portland cement clinker is either interground or intimately blended with specified quantities
of gypsum and pozzolanic materials to produce Portland Pozzolana cement. Pozzolanas by
themselves do not have cementitious properties but reacts with calcium hydroxide in the
presence of moisture at normal temperature to form compounds having cementitious
properties. The concrete produced by using Portland Pozzolana cement has high ultimate
strength, is more durable, resists wet cracking, thermal cracking and has a high degree of
cohesion and workability in concrete and mortar.

Ultratech Premium

Before building their dream home, UltraTech is conscious of each and every home builder’s
expectation of expertise and perfection. UltraTech Premium is the latest revolutionary
offering from the house of UltraTech. With an optimum blend of high-reactive silica and
slag, it provides durability, strength and protection for your home. From the toughest of
weather conditions to corrosion and even shrinkage cracks, UltraTech Premium has you
covered. The distribution of its highly engineered particles adds true value to the concrete,
making it denser and impermeable.

Cement complying with European and Sri Lankan standard specifications

UltraTech's bulk cement terminal is located at Colombo in Sri Lanka. Cement is received by
specially-engineered, self-discharging bulk cement carriers. It is then discharged at the port in
road bowsers which transport cement 10 km from the port to the terminal. Cement is stored in
4 x 7500 T cement concrete silos. A sophisticated bulk cement terminal (which subscribes to
all environmental norms) dispatches cement in bulk form to RMC and asbestos plants. The
terminal also has a modern Italian make Ventomatic packer to pack cement in 50 kg paper
bags to service customers on the island.

With its sharp focus on cement, the Aditya Birla Group has always believed that like
arrangements between countries in different parts of the world for regional cooperation, the
group too should be present in adjacent countries with facilities to qualify as a local producer
of cement. Two of the countries adjacent to India have limited deposits of limestone, the
basic raw material for cement. This position compels the two to be dependent on import, for
their domestic construction activity. It was in this context that a joint venture bulk cement
terminal was established in Colombo, Sri Lanka.

Gujarat cement Works (GCW) has a captive jetty engineered for exports. Accordingly, for
the past five years, bulk cement has been exported from GCW to UltraTech cement Lanka
(Pvt.) Ltd., the group's joint venture (JV) in Sri Lanka.

UltraTech cement has been meeting the cement requirements of Sri Lanka by supplying good
quality products. The company's customer base has recognized the quality and service levels
backed with a field force to market cement along with qualified engineers in the technical cell
who render technical advice to customers at the site.

This recognition has enabled the company to achieve a substantial market share in a fiercely
competitive market teeming with multinational competitors including two of the largest
manufacturers in the world. In this competitive environment, the company's customer base
has given it brand equity and acknowledged it as a premium quality cement supplier in the
island.

2. Distributors by type of chain

3. Mechanics of Distribution Channels of Sector

4. Companies invariably hire agents or transport cements to own or government

warehouses either via roadway or railways. Incase of exports, cement reaches the
nearest port via roadways or railways and is then transferred to the importing
country. Domestically, from agents or warehouses the cement is transported to the
dealers/distributors and
5. in turn to sub dealers who finally sell it to the end users. There may or may not
be physical ownership of goods. In the second case, dealers and sub dealers take
order from buyers and place it to the companies, co ordinate and monitor the timely
dispatch of said orders,

6.
7. ENERGY AND TRANSPORT REQUIREMENTS

8. The cement industry is dependent on three major infrastructural sectors of the

economy: coal, power and transport. The inputs from these three sectors account for
roughly 50% of the cost of cement. Both the availability and the cost of these inputs
have a vital bearing on the fortunes of the cement players. All these sectors are
largely in the State sector, and, historically cement companies have had virtually no
control on the cost or availability of these inputs. Hence, the industry response has
largely been in the form of achieving efficiency gains and finding alternatives
(captive power, use of waterways). One additional external influencer of the cement
industry performance is the taxes and levies imposed by the Central and State
Governments. These together account for around 30% of the selling price of cement
in the Indian context.

9.
10.
11.
12.
 13.

14. The shortage in domestic coal production coupled with the poor quality has
resulted in cement companies resorting to importing coal, or going in for open
market purchase of coal, or using alternative fuel such as lignite or pet coke.

15. Use of imported coal has become an essential feature of the Indian cement
industry and has shown a rising trend during the last few years.

16. Competitors For UltraTech Cement Ltd.

Company Current Book P/E Market
Price Value Ratio Cap
(Rs. Cr.)
OCL India Ltd. 307.75 195.06 17.89 1,751.10
Prism Cement Ltd. 75.70 20.03 0.00 3,810.41
Sagar Cements Ltd. 310.50 138.52 0.00 539.90
ACC Ltd. 1,463.05 416.33 25.09 27,498.03
Ambuja Cements Ltd. 222.15 61.24 26.58 34,411.05
J K Lakshmi Cement
382.05 110.75 48.34 4,495.58
Ltd.
J K Cement Ltd. 651.20 251.47 46.93 4,553.66
Heidelberg Cement
88.65 36.77 0.00 2,008.93
India Ltd.
Gujarat Sidhee Cement 30.70 34.25 0.00 130.19
 Ltd.
Orient Cement Ltd. 141.15 40.45 28.63 2,891.72

PESTEL OF ULTRATECH

Political Factors that Impact Ultratech Corporation A

The political factors that may impact the profitability or chances of survival of the company
are quite diverse. The political risks vary from sudden changes in existing political regimes to
civil unrest to major decisions taken by the government. In cases of possible multinationals,
one may also include political factors that take place/ affect not only the host country but also
all countries that contain business operations, or that may engage in trade with Ultratech
Corporation A
To properly appraise the extent of the overall systematic political risk that Ultratech
Corporation A may be exposed to, the following factors should be considered before taking
part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption,
as the resulting repercussions may lead to possible impeachments or resignations of
high level government employees.
 The laws that the country enforces, especially with regards to business, such as
contract law, as they dictate what Ultratech Corporation A is and is not allowed to do.
Some countries, for example, prohibit alcohol or have certain conditions that must be
fulfilled, while some government systems have inefficient amounts of red tape that
discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a
country that has no policies for IP protection would mean that entrepreneurs may find
it too risky to invest in Ultratech Corporation A
 The trade barriers that the host country has would protect Ultratech Corporation A;
however, trade barriers that countries with potential trade partners would harm
companies by preventing potential exports.
 A high level of taxation would demotivate companies like Ultratech Corporation A
from maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment from
ventures.
 A low minimum wage would mean higher profits and, thus, higher chances of
survival for Ultratech Corporation A

Economic Factors that Impact Ultratech Corporation A

Economic factors are all those that pertain to the economy of the country that Ultratech
Corporation A, such as changes in the inflation rate, the foreign exchange rate, the interest
rate, the gross domestic product, and the current stage of the economic cycle. These factors,
and their resulting impact on aggregate demand, aggregate investment and the business
climate, in general, have the potential to make a company highly profitable, or extremely
likely to incur a loss. The economic factors in the PESTEL analysis are macroeconomic.
The economic factors that Ultratech Corporation A may be sensitive to, and in turn should
consider before investing may include the following:

 The economic system that is currently operational in the sector in question- whether it
is a monopoly, an oligopoly, or something similar to a perfect competition economic
system.
 The rate of GDP growth in the country will affect how fast Ultratech Corporation A is
expected to grow in the near future.
 The interest rates in the country would affect how much individuals are willing to
borrow and invest. Higher rates would result in greater investments that would mean
more growth for Ultratech Corporation A
 However efficiently the financial markets operate also impact how well Ultratech
Corporation A can raise capital at a fair price, keeping in mind the demand and
supply.
 The exchange rate of the country Ultratech Corporation A operates in would impact
the profitability of Ultratech Corporation A, particularly if Ultratech Corporation A
engages in international trade. The stability of the currency is also important- an
unstable currency discourages international investors.
 A high level of unemployment in the country would mean there is a greater supply of
jobs than demand, meaning people would be willing to work for a lower wage, which
would lower the costs of Ultratech Corporation A

Social Factors that Impact Ultratech Corporation A

The social factors that impact Ultratech Corporation A are a direct reflection of the society
that Ultratech Corporation A operates in, and encompasses culture, belief, attitudes and
values that the majority of the population may hold as a community. The impact of social
factors is not only important for the operational aspect of Ultratech Corporation A, but also
on the marketing aspect of the organization. A thorough understanding of the customers, their
lifestyle, level of education and beliefs in a society, or segment of society, would help design
both the products and marketing messages that would lead to a venture becoming a success.
The social factors that affect Ultratech Corporation A and should be included in the social
aspect of the PESTEL analysis include the following:

 The demographics of the population, meaning their respective ages and genders,
vastly impact whether or not a certain product may be marketed to them. Makeup is
mostly catered to women, so targeting a majority male population would be less
population than targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: Ultratech
Corporation A would be unable to promote a premium product to the general public if
the majority of the population was a lower class; rather, they would have to rely on
very niche marketing.
 To some extent, the differences in educational background between the marketers and
the target market may make it difficult to relate to and draw in the target market
effectively. Ultratech Corporation A should be very careful not to lose the connection
to the target market's interests and priorities.
 Ultratech Corporation A needs to be fully aware of what level of health standards,
reactions to harassment claims and importance of environmental protection prevail in
the industry as a whole, and thus are expected from any company as they are seen as
the norm.
Technological Factors that Impact Ultratech Corporation A
Technology can rapidly dismantle the price structure and competitive landscape of an
industry in a very short amount of time. It thus becomes extremely important to constantly
and consistently innovate, not only for the sake of maximizing possible profits and becoming
a market leader, but also to prevent obsolescence in the near future. There are multiple
instances of innovative products completely redesigning the norm for an entire industry: Uber
and Lyft dominate the taxi cab industry; smartphones have left other phones an unviable
option for most et cetera.
The technological factors that may influence Ultratech Corporation A may include the
following:

 The recent technological developments and breakthroughs made by competitors, as

mentioned above. If Ultratech Corporation A encounters a new technology that is
gaining popularity in the industry in question, it is important to monitor the level of
popularity and how quickly it is growing and disrupting its competitors’ revenues.
This would translate to the level of urgency required to adequately respond to the
innovation, either by matching the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the
industry, leading to other firms copying the technological processes/ features of
Ultratech Corporation A
 How much an improvement of technology would improve/ transform what the
product initially offers. If this improvement is drastic, then other firms in the industry
suffer more heavily.
 The impact of the technology on the costs that most companies in the industry are
subject to have the potential to increase or reduce the resulting profits greatly. If these
profits are great in number, they may be reinvested into the research and development
department, where future technological innovations would further raise the level of
profits, and so on, ensuring sustainable profits over a long period of time.

Environmental Factors that Impact Ultratech Corporation A

Different industries hold different standards of environmental protection in their head as the
norm. This norm then dictates what every company should aim for, in the least, to prevent
becoming the target of pressure groups and boycotts due to a lack of environmental
conscientiousness. A company in the textile industry, for example, is not expected to incur
the same level of pollution and environmental degradation as an oil company. The new
consumer, armed with the interest and the knowledge it carries, prefers to give its business to
companies it views as more ethical, particularly about the environment in the wake of global
warming.
The environmental factors that may significantly impact Ultratech Corporation A include:

 The current weather conditions may significantly impact the ability of Ultratech
Corporation A to manage the transportation of both the resources and the finished
product. This, in turn, would affect the delivery dates of the final product in the case
of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming,
warm winter clothes have much less of a market.
  Those companies that produce extremely large amounts of waste may be required by
law to manage their environmental habits. This may include pollution fines and
quotas, which may place a financial strain on Ultratech Corporation A
 If Ultratech Corporation A should (knowingly or unknowingly) contribute to the
further endangerment of an already endangered species may face not only the
consequences from the law but also face a backlash from the general public who may
then boycott Ultratech Corporation A in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it often
receives support not only from the government but also from its customer base, who
may be willing to pay a premium price for the products that Ultratech Corporation A
may produce.

Legal Factors that Impact Ultratech Corporation A

The government institutions and frameworks in a country, while technically also political and
thus subject to whichever political party holds the majority in a government body, are also
legal and thus should be considered in a PESTEL analysis. Often Ultratech Corporation A
policies on their own are not enough to efficiently protect Ultratech Corporation A and its
workers, making Ultratech Corporation A appear an undesirable place of employment that
may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as mentioned earlier, in
place to protect the ideas and patents of companies who are only profiting because of
that information. If there is a likelihood that the data is stolen, then Ultratech
Corporation A will lose its competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and
ensure that everyone in Ultratech Corporation A is treated fairly and given the same
opportunities, regardless of gender, age, disability, ethnicity, religion or sexual
orientation.
 Health and safety laws were created after witnessing the horrible conditions that
employees were forced to work in during and directly after the industrial revolution.
Implementing the proper regulations may be expensive, but Ultratech Corporation A
has to engage in it, not only due to the law but also out of Ultratech Corporation A's
personal feeling of ethical and social responsibility to other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable price for certain
products to keep the customer safe and prevent them for being provided. The
industries this applies to find often their costs elevated.

Ques 2: Explain BCG & Create BCG matrix for the allocated organisation as on 2018-19

BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting
Group, which helps in analysing the position of a strategic business unit and the potential it
has to offer. The matrix consists of 4 classifications that are based on two dimensions. These
first of these dimensions is the industry or market growth. The other of these dimensions is
the relative market share of the strategic business unit. Strategic business units are placed in
one of these 4 classifications. The BCG matrix for ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY will help decide on the
strategies that can be implemented for its strategic business units.
Strategic business units with high market growth rate and high relative market share are
called stars. Businesses should invest in their stars and can implement vertical integration,
market penetration, product development, market development, and horizontal integration
strategies. Strategic business units with high market growth rate and low relative market
share are called question marks. These strategic business units require close considerations
whether the business should continue with them or divest. Strategic business units with low
market growth rate but with high relative market share are called cash cows. The business
should invest in these to maintain their relative market share. Lastly, the strategic business
units with low market growth rate and low relative market share are called dogs. The business
should divest these strategic business units.

BCG Matrix of ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR

BASED SAFETY
The BCG Matrix for ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY will help ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY in implementing the business level strategies for its
business units. The analysis will first identify where the strategic business units of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY
fall within the BCG Matrix for ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY.

Stars

 The financial services strategic business unit is a star in the BCG matrix of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. It operates in a market that shows potential in the future. ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY earns a
significant amount of its income from this SBU. ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY should vertically
integrate by acquiring other firms in the supply chain. This will help it in earning
more profits as this Strategic business unit has potential.
 The Number 1 brand Strategic business unit is a star in the BCG matrix of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY, and this is also the product that generates the greatest sales amongst its
product portfolio. The potential within this market is also high as consumers are
demanding this and similar types of products. ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY should undergo a
product development strategy for this SBU, where it develops innovative features on
this product through research and development. This will help ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY by
attracting more customers and increases its sales.
 The Number 2 brand Strategic business unit is a star in the BCG matrix of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY as ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
 BASED SAFETY has a 20% market share in this category. It also the market leader
in this category. The overall category is expected to grow at 5% in the next 5 years,
which shows that the market growth rate is expected to remain high. ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY should
use its current products to penetrate the market. This could be done by improving its
distributions that will help in reaching out to untapped areas. This will help increase
the sales of ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY.

Cash Cows

 The supplier management service strategic business unit is a cash cow in the BCG
matrix of ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY. This has been in operation for over decades and has earned
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY a significant amount in revenue. The market share for ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY is high,
but the overall market is declining as companies manage their supplier themselves
rather than outsourcing it. The recommended strategy for ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY is to stop further
investment in this business and keep operating this strategic business unit as long as
its profitable.
 The Number 3 brand strategic business unit is a cash cow in the BCG matrix of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. This is an innovative product that has a market share of 25% in its
category. ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY is also the market leader in this category. The overall category has
been declining slowly in the past few years. ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY has the power to
influence the market as well in this category. It should, therefore, invest in research
and development so that the brand could be innovated. This will help the category
grow and will turn this cash cow into a star. The overall benefit would be an increase
in sales of ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY.
 The international food strategic business unit is a cash cow in the BCG matrix for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. This business unit has a high market share of 30% within its category, but
people are now inclined less towards international food. This change in trends has led
to a decline in the growth rate of the market. The recommended strategy for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY is to invest enough to keep this strategic business unit under operations. If it
no longer remains profitable and turns into a dog, then ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY should divest this
strategic business unit.

Question Marks

 The local foods strategic business unit is a question mark in the BCG matrix for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. The recent trends within the market show that consumers are focusing
 more towards local foods. Therefore, this market is showing a high market growth
rate. However, ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY has a low market share in this segment. The
recommended strategy for ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY is to invest in research and development to come up
with innovative features. This product development strategy will ensure that this
strategic business unit turns into a cash cow and brings profits for the company in the
future.
 The Number 4 brand strategic business unit is a question mark in the BCG matrix for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. This strategic business unit is a part of a market that is rapidly growing.
However, this strategic business unit has been incurring losses in the past few years. It
has also failed in the attempts made at innovation by research and development teams.
The recommended strategy for ULTRATECH CEMENT A TRANSITION
TOWARDS BEHAVIOUR BASED SAFETY is to divest and prevent any future
losses from occurring.
 The confectionery strategic business unit is a question mark in the BCG matrix for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. The confectionery market is an attractive market that is growing over the
years. However, ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY has a low market share in this attractive market.
The low sales are as a result of low reach and poor distribution of ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY in this
segment. The recommended strategy for ULTRATECH CEMENT A TRANSITION
TOWARDS BEHAVIOUR BASED SAFETY is to undergo market penetration,
where it pushes to make its product present on more outlets. This will ensure
increased sales for ULTRATECH CEMENT A TRANSITION TOWARDS
BEHAVIOUR BASED SAFETY and convert this strategic business unit into a cash
cow.
 Dogs

 The plastic bags strategic business unit is a dog in the BCG matrix of ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY. This
strategic business unit has been in the loss for the last 5 years. It also operates in a
market that is declining due to greater environmental concerns. The recommended
strategy for ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY is to divest this strategic business unit and minimise its losses.
 The Number 5 brand strategic business unit is a dog in the BCG matrix for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. This is operating in a market segment that is declining in the past 5 years.
The company also has negative profits for this strategic business unit. However, it is
expected that the market will grow in the future with environmental changes that are
occurring. The recommended strategy for ULTRATECH CEMENT A TRANSITION
TOWARDS BEHAVIOUR BASED SAFETY is to invest in the business enough to
convert into a cash cow. This will ensure profits for ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY if the market starts
growing again in the future.
 The synthetic fibre products strategic business unit is a dog in the BCG matrix of
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. The market for such products has been declining, and as a result of this
 decline, ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR
BASED SAFETY has been facing a loss in the past 3 years. The market share for it is
also less than 5%. The recommended strategy for ULTRATECH CEMENT A
TRANSITION TOWARDS BEHAVIOUR BASED SAFETY is to divest this
strategic business unit to minimise any further losses.
 The artificially flavoured products strategic business unit is a dog in the BCG matrix
for ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY. These products were launched recently, with the prediction that this
segment would grow. However, with increasing health consciousness, people are now
refraining from consumption of artificial flavours. The market is shrinking, and
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY has no significant market share. The recommended strategy for
ULTRATECH CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED
SAFETY is to call back this product.

Some of the strategic business units identified in the BCG matrix for ULTRATECH
CEMENT A TRANSITION TOWARDS BEHAVIOUR BASED SAFETY have the potential
of changing from their current classification. For example, a dog changing to a cash cow.
These have been identified in the BCG matrix of ULTRATECH CEMENT A TRANSITION
TOWARDS BEHAVIOUR BASED SAFETY and recommended strategies to ensure such
change have also been made.

Ques 2: Explain BCG & Create BCG matrix for the allocated organisation as on 2018-19.