Strategic Analysis and Choice

The Boston Matrix is a well known tool for the marketing manager . It was developed by the large US consulting group and is an approach to product portfolio planning . It has two controlling aspect namely relative market share (meaning relative to your competition ) and market growth . You would look at each individual product in your range (or portfolio ) and place it onto the matrix . You would do this for every product in the range . You can then plot the products of your rivals to give relative market share

The aim of this

activity is to investigate product portfolio analysis and in particular to analyze how products are developed and then manipulated to maintain their market share and market profile . The activity will focus on one product - the fast food from McDonalds . This product has become an essential piece of equipment for a whole variety of people from householders to remind them about things that need doing to office workers and to students

The Company primarily operates and franchises McDonald 's restaurants . In addition , the Company operates certain non-McDonald 's brands that are not material to the Company 's overall results . Of the more than 30 ,000 McDonald 's restau-rants in over 100 countries , more than 8 ,000 are operated by the Company , approximately 18 ,000 are operated by franchisees and about 4 ,000 are operated by affiliates under license agreements . Regardless of who operates the restau-rant , the Company generally owns the land and building or secures long-term leases for restaurant sites . This ensures long-term occupancy rights and helps control related costs . Revenues consist of sales by Company-operated restau-rants and fees from restaurants operated by franchisees and affiliates . These fees primarily include rent , service fees and /or royalties that are based on a percent of sales , with specified minimum rent payments . Fees vary by type of site , investment by the Company and local business condi-tions . These fees , along with occupancy and operating rights , are stipulated in franchise agreements that generally have 20-year terms . We manage the business based on geographic segments United States Europe Asia /Pacific , the Middle East and Africa (APMEA Latin America and Canada . In addition , throughout this report we present a segment entitled Other ' that includes non-McDonald 's brands . The U .S . and Europe segments account for approximately 70 of revenues . France , Germany and the United Kingdom account for about 65 of Europe 's revenues Australia , China and Japan (a 50 -owned affiliate accounted for under the equity method ) account for about 45 of APMEA 's revenues and Brazil accounts for about 40 of Latin America 's revenues These seven markets along with the U .S . and Canada are referred to as major markets ' throughout this report and comprise approximately 70 of variety of performance and financial measures including Systemwide sales growth , comparable sales growth Using the BCG Box a company classifies all its SBU 's according to two dimensions

On the horizontal axis : relative market share - this serves as a measure of SBU strength in the market...