"WE" are at par... BCG Matrix

According to corporate and many recently published surveys it is stated that only 10% of management graduates are employable. What does this statistics mean?

I am also a management student from tier-II B-school. Are we not capable of doing what IIM graduate or top tier B-school graduate can do? Obviously… We are…  The only difference is implementation of theoretical/conceptual knowledge when it comes to practical application.

Every management student knows concept of BCG matrix. Let’s take this challenge… How many of us can draw it in excel and decide star, cash, cash-cow & dog position in analysis???

It’s very simple…  Just 3 steps bubble graph.

Here is an example of BCG Matrix of Direct-to-Home (DTH) industry in india.

Step1:  You should have 2 data points a) Competitor Size i.e. no of subscribers in mn & b) Gross additions i.e. on an avg no of Subscribers added month on month.

Step2: Calculate Market Share, Rest of Market, Relative Market Share, Market Growth.

·         Market Share = Competitor Size / Sum of all competitor’s size
              e.g. For Airtel = 8.4 / Sum(8.4, 4.5, 13.9, 9.7, 7.8, 6.6) = 17%

·         Rest of Market = 1 - Market Share
              e.g. For Airtel = 1-17% = 83%

·         Relative Market Share  = Market Share / Max of all competitor’s market share
              e.g. For Airtel = 17% / Max(17%, 9%, 27%, 19%, 15%, 13%)*100 = 60

·         Market Growth  = Gross adds / Competitor Size
              e.g. For Airtel = 0.15 / 8.4 = 1.79

Step3: Select values in Relative Market Share, Market Growth, Market Share and click on bubble graph (Insert > Other Charts > Bubble)

p.s. I have used it for my semester3 project on equity research on Dish TV.

SPARKLINES

Nowadays, for any organization “DATA” is a key for any strategic decision making, budgeting, campaigning and advertising. Organizations spend crores of rupees to maintain their customer database… be it a bank, financial institution or FMCG company. But having only enough data is not sufficient. It has to be interpreted and analyzed proficiently for making these decisions full proof.

Excel is software which helps us to analyze and interpret this data with graph option. But, sometimes too many graphs in same worksheet or workbook hangs excel or desktop. This can be avoided by using an option of “SPARKLINES”.

“SPARKLINES” is an option which is mini version of “CHARTS” option, which allows us to draw graph in a single cell. A sparkline is a very small chart that is typically drawn without axes or coordinates. It presents the general shape of the variation (typically over time) in some measurement in a simple and highly condensed way. This option is readily available in Excel 2010 version but, to use it in earlier versions you have to enable it through add-in option. Go to Office button(left corner) > Excel Options > Add-Ins > Excel Add-ins > Go… >  Browse (File sparklines.xls) and option will be added automatically.

To draw it select data values and type of sparkline (Column, line).

Lock Copy Formatting

If  you need to apply the same formatting to a number of different cells, you can do so quickly by locking the Copy Formatting tool.

Apply the formatting options that you want to the first cell – for instance, bold red centrally aligned text with a yellow background. Select this cell and double-click the 'Format Painter' button in the Clipboard group of the Home tab.

This is now locked on. Any cell that you click into will take on the formatting of the source cell. Click each cell you want to format in this way and then double-click the 'Format Painter' button to turn the lock off.

Work Smart!!! ;)

Why EXCEL to "Excel"lent

Spreadsheets and Excel in particular – are the most widely used application in business today. Skill levels in Excel vary considerably, but very few possess the skills taught during courses like Advanced excel, MS-CIT, Office coursework but they are not enough to cope up with demanding requirements of corporates.

Excel provides the backbone not only for financial services companies but almost for every sector nowadays. Understanding the power of Excel and learning to design robust, safe and scalable spreadsheets is a critical skill for most businesses. This blog will be helpful to new or existing Excel users and bring them to “Excel”lent level of proficiency in Excel.