The BCG Matrix: Campus Gymnastics

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Question 1 1.1 The BCG Matrix is still viable and usable in today’s world and is still a significant tool used by businesses. The BCG Matrix looks at the impact an investment will have on the company. The BCG Matrix works on two axis, Namely the vertical and horizontal axis. The vertical axis will indicate the growth rate and the horizontal represents the market share. The matrix assumes that a company must focus on its mature markets and form a strong competitive position in the market ultimately leading to the generating of cash flow. Once a company has claimed a competitive position in the mature market they can use the funds that are generated from this sector to fund other investments…show more content…
They can also place an add in all school newspapers as well as the local newspaper which will reach the community and the people most likely to join Campus Gymnastics. They also need to advertise their other ancillary services they offer in these adverts to increase awareness of the activities. They also have a major advantage when they host the Gauteng Classic and Soweto Invitational as they can directly target their customers with little or no effort by advertising at these events. Seeing as Campus Gymnastics does not have a lot of business during school hours they can hire out their facilities to Yoga, Pilates instructors and also to dance groups which will bring in extra income as well as possible clients for Campus Gymnastics itself. They can also State that during the expansion they are going to add a gym to the facility which will target gymnasts and dancers already involved with the company and also those people who live nearby that would like to keep in shape but don’t want to join conventional gyms because of price and over population. Objectives Through increasing the product range they appeal to a larger number of potential consumers and also target a number of different target markets. Once they have these different target markets aware of what they offer positive word of mouth will spread…show more content…
This has many unethical issues that Jane is linked to personally as well as simple business ethics. Jane comes from a family that is not well off and therefore falls under the minority so she knows and understands what the people in this environment want and need. Targeting the minority is not illegal in today’s business world however it is seen as unethical which is clearly visible when it comes to Anystate using the minority to push sales even though they may not be able to afford it. Ethics plays a large role in today’s business environment and if a company shows bad ethical practice it can bring the company down and ultimately end in its closure. Anystate are targeting the minority to push sales as they have found that they are the people who are purchasing their product the most. This is unethical because Anystate are aware that majority of the members in the minority do not have spare money lying around that they can spend on playing the lottery every week hoping that they will win a lot of money that will change their lives. The odds of winning are 1 in 24 million thereby showing that the number of people who will lose money they greatly need is much larger than that of the single person who is lucky enough to benefit from the lottery. Anystate are going after a volatile market who are driven by emotion and the desperate need for money and
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