Assignment on: BCG Matrix

Course Name: Strategic Management

Course Code: MGT4802

Submitted to:
Maj Gen Alauddin M A Wadud ( Retd ), Bir Protik
Professor
Bangladesh University of Professionals

Submitted by: Group 6

Md. Sadman Hossain
2023011011
Lamisa Sadaf
2023011013
Faisal Rizwan Noman
2023011027
Salman Ahmed
2023011059
Humaira Amin Raisa
2023011085
Mahbub-E-Sobhani
2023011113
BBA General -2020
Section A
Table of Contents
About Bashundhara Group:.................................................................................................. 3
Business Industry & Companies of Bashundhara Group:.................................................4
Market Share and Market Growth of Bashundhara Group................................................. 5
BCG Matrix of Bashundhara Group..................................................................................... 6
1. Stars: High Market Growth, High Market Share............................................................. 7
2. Question Marks: High Market Growth, Low Market Share............................................. 8
3. Cash Cows: Low Market Growth, High Market Share....................................................9
4. Dogs: Low Market Growth, Low Market Share.............................................................10
Investment Priority:............................................................................................................. 12
Conclusion:.......................................................................................................................... 13
About Bashundhara Group:
Bashundhara Group is one of the leading and diversified industrial conglomerates in
Bangladesh. Founded in 1987 by Ahmed Akbar Sobhan, the group has grown into a
powerhouse, making its mark in various sectors and contributing significantly to the country's
economic development. With its headquarters in Dhaka, the capital city of Bangladesh,
Bashundhara Group has established itself as a symbol of innovation, quality, and excellence.

Over the years, the group has expanded its operations into multiple industries, including real
estate, cement manufacturing, paper and pulp, steel, food and beverage, power and energy,
media, and more. Its dynamic business model and strong commitment to delivering top-notch
products and services have earned it a distinguished position in the business landscape of
Bangladesh.

Bashundhara Group's success can be attributed to its visionary leadership, strategic planning,
and adherence to ethical business practices. The conglomerate has consistently focused on
sustainability and social responsibility, playing an active role in community development and
environmental conservation.

Headquartered in the bustling capital city of Dhaka, Bashundhara Group has evolved from its
humble beginnings into a multifaceted organization with a wide-ranging portfolio of
businesses. Led by its visionary founder and a team of competent professionals, the group has
navigated through challenges and emerged as a beacon of success in the Bangladeshi
business arena.
Business Industry & Companies of Bashundhara Group:

Bashundhara Group's ascent to prominence has been fueled by its strategic diversification
across various industries. With each venture, the conglomerate has not only achieved
commercial success but also contributed significantly to the overall development of the
nation. The group's key businesses are listed below:

Business Concentration Business Name

Real Estate East West Property Development (Pvt) Ltd.

Bashundhara Paper Mills Ltd.

Meghna Cement Mills Ltd

Bashundhara LP Gas Ltd

Bashundhara Steel Complex Ltd

Bashundhara Industrial Complex Ltd.

Bashundhara Steel and Engineering Ltd.

Manufacturing & Trading
Bashundhara Logistics Ltd.

Bashundhara Foundation.

Bashundhara Dredging Co. Ltd.

Bashundhara Food and Beverage Industries

Ltd.

Bashundhara Cement Industries Ltd.

Bashundhara City Development Ltd.2003

Multi-faceted Shopping Mall &
Bashundhara Convention Centre
RecreationCentre
Bashundhara Technical Institute

East West Media Group Ltd.

Mass Media Enterprise
EWMGL Press Unit
Market Share and Market Growth of Bashundhara Group
Market share refers to the portion of the total market that a particular product or business unit
controls. It is calculated by dividing the company's sales revenue for a specific product or
business unit by the total sales revenue of the entire market. A higher market share indicates
that the product or business unit has a greater presence in the market compared to its
competitors.

Market growth rate, on the other hand, represents the annual percentage change in the total
market size for a specific product or industry. It helps to identify the attractiveness and
potential of the market. High market growth rates suggest that the market is expanding
rapidly, offering opportunities for companies to capitalize on the growing demand.

It can be seen that Bashundhara Group holds the leading position in the paper and printing
industry with 42.6% market share, nearly 24% market share in the LPG market, and 16%
market share in the mass media industry.

As per market growth rate, in FY22, Bashundhara paper's export grew by around 18% to
around Tk119 crore – up from Tk101 crore in the previous year. The local tissue market
doubled within a decade owing to rapid urbanisation, growing per capita income and
increasing hygiene sense among consumers
BCG Matrix of Bashundhara Group

The Boston Consulting Group (BCG) matrix is a strategic planning tool that helps
organizations assess their different product lines based on market growth rate and market
share. It categorizes products into four quadrants: Stars, Question Marks (Problem Child),
Cash Cows, and Dogs. Each quadrant represents a different strategic approach for managing
the product.

The following shows the BCG Matrix for the business units of Bashundhara Group based on
their market share and market growth:

High Low

Relative Market Share

Stars Questions Marks

Bashundhara Paper Mills Ltd Bashundhara Food & Beverage

Bashundhara LP Gas Ltd Bashundhara Convention Center
East West Media Group Ltd. Bashundhara Technical Institute
Market
Growth
Rate Cash Cows Dogs

Bashundhara Logistics Ltd.

Meghna Cement Mills Ltd.
Bashundhara Steel & Engineering Ltd.
East West Property Development (Pvt) Ltd.
Bashundhara Dredging Co. Ltd.

Low
1. Stars: High Market Growth, High Market Share

In the BCG Matrix analysis, the "Star" category is for companies or goods that have a high
market share and work in a market that is growing quickly. Based on what we know,
Bashundhara Paper Mills Ltd, Bashundhara LP Gas Ltd, and East West Media Group Ltd can
all be called Stars.

1. Bashundhara Paper Mills Ltd.

Bashundhara Paper Mills Ltd has become a major player in Bangladesh's paper business,
with a large share of the market and a reputation for making high-quality paper products. The
company has an edge in the market because it has modern production facilities, an efficient
supply chain, and a strong distribution network. Also, Bashundhara Paper Mills Ltd has
always put money into new technologies and environmentally friendly practices, which has
helped it stay a Star. Demand for paper keeps going up because of things like rising literacy
rates, economic growth, and the growth of the packing and printing industries. So, the
company has a good chance of continuing to grow and make money, which fits with the traits
of a Star in the BCG Matrix.

2. Bashundhara LP Gas Ltd.

In Bangladesh, Bashundhara LP Gas Ltd. has become the most important company in the LP
gas market. With a large network of distributors and dealers and a focus on safety and
customer happiness, the company has been able to get a large share of the market. In recent
years, the market for LP gas has grown by a factor of 10 because the government is putting
more emphasis on clean energy sources and people are becoming more aware of the need to
protect the environment. Bashundhara LP Gas Ltd. is ideally set up to meet this demand, and
its ongoing efforts to grow, such as building more storage and distribution infrastructure,
make it even more of a Star in the BCG Matrix.

3. East West Media Group Ltd.

East West Media Group Ltd. has become a well-known media conglomerate in Bangladesh. It
runs a wide range of media sites that reach many different kinds of people. The group's TV
channels, newspapers, and internet platforms have become very popular with consumers,
which has helped it get a large share of the market. Bangladesh's media environment is going
through a digital change, and more and more people are watching and reading news online.
East West Media Group Ltd. has responded to this change by adding more digital services
and putting money into making material that works well on online platforms. Because of this,
the company is set up to take advantage of the growing digital media market, which is why
the BCG Matrix calls it a Star.

The management of the conglomerate continues to put a lot of money and resources into their
growth plans to make the most of the potential of these Stars. They also spend money on
research and development to stay ahead of industry trends and keep their competitive edge.
Strategic marketing efforts, making changes to products, and exploring new markets or
segments all help these businesses grow faster. Bashundhara Paper Mills Ltd, Bashundhara
LP Gas Ltd, and East West Media Group Ltd will likely continue to do well as Stars in the
BCG Matrix because they have a high market share and are in industries that are doing well.
This will help the conglomerate as a whole do well and make money.

2. Question Marks: High Market Growth, Low Market Share

In the context of the BCG Matrix, question marks (also known as problem children or
wildcats) are high-growth products with a low market share. Question marks are in the early
stages of development, and they require significant investment to increase their market share.
They have the potential to become stars if their market share increases, or they may end up as
dogs if they fail to gain traction in the market.

1. Bashundhara Food & Beverage

Bashundhara Food and Beverage falls into the question mark category due to its recent entry
into a competitive and dynamic market. The food and beverage industry in Bangladesh
experienced significant growth and diversification in the last 10 years. Bashundhara invested
heavily in product development, marketing, and distribution channels to establish its brand
presence and capture market share. However, with established competitors dominating the
industry, Bashundhara Food and Beverage struggles to gain a substantial market share.

2. Bashundhara Convention Center

The convention and event management industry saw both challenges and opportunities since
2021. Due to the pandemic's lingering effects, in-person events faced restrictions and
uncertainties, impacting the convention center's operations. As a result, the Bashundhara
Convention Center could be seen as a question mark due to the uncertainty surrounding the
recovery of the events industry. The center struggled to maintain a high market share or
expand its customer base during a time of reduced demand. To move out of the question mark
category, the company would need to adapt its services, explore hybrid event formats, and
effectively market its value proposition to clients.

3. Bashundhara Technical Institute

Bashundhara Technical Institutes was launched as a response to the growing need for skilled
professionals in Bangladesh. As a relatively new entrant in the market, it faces challenges in
gaining a significant market share due to competition from established technical institutes.
Additionally, the institute's reputation and accreditation impacts its ability to attract students
and secure industry partnerships. To transition from a question mark to a star, the institute
would need to invest in academic excellence, industry partnerships, and extensive marketing
efforts to position themselves as a preferred choice for vocational education.

3. Cash Cows: Low Market Growth, High Market Share

Two potential cash cow businesses in the Bashundhara Group are Meghna Cement Ltd. and
East West Property Development (Pvt) Ltd.

1. Meghna Cement Ltd.

Meghna Cement Ltd. is a subsidiary of the Bashundhara Group and is one of the leading
cement manufacturers in Bangladesh. It operates modern cement manufacturing plants and
produces high-quality cement for construction purposes. The cement industry in Bangladesh
has seen substantial growth due to the country's booming construction sector and
infrastructure development.
As a potential cash cow, MCL likely enjoyed a significant market share and had established
itself as a dominant player in the cement industry. With the country's increasing demand for
cement, especially for large-scale infrastructure projects and real estate developments, MCL's
established presence and well-established brand would have positioned it favorably. Cement
is often considered a staple in construction, and with the right cost management, MCL could
have been generating steady and substantial cash flow.

2. East West Property Development (Pvt) Ltd.:

East West Property Development (Pvt) Ltd. is another subsidiary of the Bashundhara Group
that operates in the real estate sector. The real estate market in Bangladesh has been
experiencing robust growth over the years, with demand for residential and commercial
properties on the rise, particularly in urban centers like Dhaka.
As a cash cow, East West Property Development (Pvt) Ltd. might have had a significant
portfolio of residential and commercial complexes, generating steady rental income and sales
revenue. The real estate industry can be lucrative when managed well, and with the right mix
of properties, prime locations, and effective marketing, this company could have been
contributing substantially to the overall profitability of the Bashundhara Group.

4. Dogs: Low Market Growth, Low Market Share

In the BCG Matrix analysis, "Dogs" are strategic business units (SBUs) that have a small
share of the market in fields with low growth. Dogs usually have a lot of competition and
struggle to make a lot of money, so they are the least desirable investment for a business.
These businesses don't need much money to start up, and they aren't likely to grow in the
future, so they make less money than other SBUs in the portfolio.

Based on the BCG Matrix, Bashundhara Logistics Ltd., Bashundhara Steel &
Engineering Ltd., and Bashundhara Dredging Co. Ltd. are all Dogs. These three
companies all work in fields that aren't growing very quickly. Bashundhara Logistics Ltd. is
in the logistics business, where there is a lot of competition because the market is full and
demand is stable but not growing quickly. Bashundhara Steel & Engineering Ltd. works in
a steel industry that is stable and growing slowly because of the economy and the way the
industry works. In the dredging industry, where Bashundhara Dredging Co. Ltd. works,
there aren't many chances for growth because demand depends on specific infrastructure
projects and government initiatives.
Dogs also have a small part of the market, and these companies have a hard time getting a lot
of market traction. They have to deal with strong competitors who have bigger market shares.
This makes it hard for them to gain a competitive edge and get more customers.

Dogs are also generally not very profitable and don't have much room to grow their income.
These three companies might not be able to set prices as high as they would like because
there is a lot of competition or because their goods and services are similar to those of other
companies. This could lead to small profit margins.

Also, Dogs often have trouble making their goods or services stand out from those of their
competitors. This makes customers less loyal to the brand and more likely to try something
else. These companies might have trouble because they are using old technology or methods
that make it hard for them to come up with new ideas and adapt to changes in the market.

Lastly, the company often reevaluates Dogs to see if they should be sold or moved in the
market. Bashundhara Logistics Ltd., Bashundhara Steel & Engineering Ltd., and
Bashundhara Dredging Co. Ltd. could make strategic choices like focusing on ways to cut
costs and improve operational efficiency to keep making money, or they could think about
diversifying into more promising business areas.

In the BCG Matrix study, Bashundhara Logistics Ltd., Bashundhara Steel & Engineering
Ltd., and Bashundhara Dredging Co. Ltd. are all examples of Dogs. Their small market
shares in industries with low growth, limited potential for revenue growth, lower profits,
difficulty standing out from the crowd, and low investment needs make them less attractive
investments than other SBUs in the portfolio. As Dogs, these companies need to carefully
evaluate and think about their strategic options to figure out if they can be a part of the
company's overall business plan in the future.
Investment Priority:

Harvest:
With a substantial market share and rapid expansion, Bashundhara Paper Mills, Bashundhara
LP Gas and East West Media Group are standouts in the industry. The company should
continue to invest in these segments to maintain its growth and market dominance, as those
are already performing well.

Build Market Share:

Bashundhara Food and Beverage, Bashundhara Convention Center, Bashundhara Technical
Institution is expected to expand rapidly but currently has a small market share. It should be
prioritized for investment because it is still in its growth phase and has room for substantial
expansion. To raise its share of the market, the corporation needs to put more effort into
advertising and reaching more customers.

Hold:
Meghna Cement Mills Ltd and East West Property Development are considered "Cash Cows"
due to their huge market share and stable sales figures. These items have proven themselves
in the marketplace and provide reliable income but investors may hold. Investment in these
items' upkeep and development should continue, and the firm should look for ways to expand
its market dominance.

Divest:
The market growth and share for Bashundhara Logistics, Bashundhara Steel & Engineering
and Bashundhara Dredging Co are dismal. It's not doing very well and losing ground in the
market. If the market does not improve, the company may need to rethink its commitment to
this area of business and may need to take action such as a reorganization or a divestiture.
Conclusion:
Based on analyzing BCG Matrix and investing priorities of Bashundhara Group, the
conclusion can be drawn that the company has a diverse portfolio of businesses with varying
levels of growth and market share. By using the BCG Matrix, the company can identify
which businesses are in the growth phase, which ones are mature, and which ones may need
strategic adjustments. This allows Bashundhara Group to prioritize investments in
high-growth businesses, while also maintaining and optimizing the performance of mature
businesses. The use of the BCG Matrix provides a structured approach for resource allocation
and strategic decision-making, contributing to the company's overall success and sustainable
growth in the market.