Strategic Analysis and Choice - Essay Example

Once the company’s products have been identified and measured within the matrix it is then possible to determine the following objectives which are the framework for strategic management within an organization. Cash Cows: This part of the matrix represents the products that generate more cash than they require to operate. They will have a high market share, but exist in a low-growth market. As they generate cash they can be utilized in other parts of the business. Problem children (or question marks): These require cash inputs and function in a growing market where their market share should be maintained or increased.

These products have a low market share but need cash subsidies to enable the market to build up and increase and make these products viable profit engines in the future. Stars: This element of the matrix exists in the fast growing market and has high market shares. They are the high achievers, but need constant cash injections in order to sustain the position they are in. After a time they will move into another area of the matrix. But whilst in the position of star they need continual harvesting.

Dogs: Exist in the low growth market and have a low share of the market. They are often seen to have little purpose within an organization except to drain funds and are generally at the stage where they need to be divested or fall into liquidation. The tremendous impact this company has had is largely a result of its continued pursuit of low prices, for the benefit of retailers, manufacturers, the culture of shopping, the shape of our communities, and ensuring wages and employment costs are kept low.

Wal-Mart is the largest company in the history of the world. Americans spend on average $26 million almost every hour at Wal-Mart, every day of the year. Because they sell at such low prices Wal-Mart is estimated to save US shoppers $10 billion a year. Although it must be added