Question

Analyze the companies: Hasbro, Jakks, and Mattel. Draft a case that includes the data and findings below. Explain each part.

This case was reworded for better clarity. It still includes the same parts.

1. Financial data - P/E, EPS growth, ROI, stock growth, dividend yield
2. Construct a BCG analysis
3. Include revenues, profits, growth
4. Summarize and explain your findings
   • Rank order companies
   • Which i

     Financial Data	Hasbro	Jakks	Mattel
     P/E Ratio	22.98	23.7	N/A
     EPS Growth	3.23	3.23	-0.61
     ROI	19.16%	6.88%	0.53%
     Stock Growth	$ 74.46	74.60$	$10.50
     Dividend Yield	3.67%	3.70%	N/A
     Revenues	5.09 B	594.38 M	4.41B
     Profit Growth	46%	25.85%	-5.62%

     s in the best position for the future

Answer 1

Calculation of Market Share of Companies

Market share = (Revenue of company) / (Total revenue of all companies)

Total Revenue = 5.09B + 0.594B + 4.41B = 10.094 B

Hasbro's market Share = 5.09 * 100/10.094 = 50.42%

Jakks market Share= 0.594 * 100/10.094= 5.89%

Mattel's market Share = 4.41 * 100/10.094 = 43.69%

Profit Growth rate

Harbo = 46% (i.e High Growth rate, High Market share)

Jakks = 25.85% (i.e Higher growth rate, low market share)

Mattel = -5.62% (i.e Low Growth rate, Higher market share)

Now lets study what is BCG Analysis?

BCG analysis is a framework created by Boston cosulting group to classify the business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share).The general purpose of the analysis is to help understand, which brands the firm should invest in and which ones should be divested. The four categories are Star, Question mark, cash cows and poor dogs.

STAR ( High Growth, high Market Share): Stars are the leader in Business. They also require high investments to maintain its high market share. It Leads to large amount of cash consumption and cash generation. Also attempts should be made to hold the market share otherwise the star will become the cash cows.

Question marks (High Growth, Low market share): Mostly projects start as of question marks. They will absorb great amount of cash if remained low. However they have large potential to become star but can also become cash cows and even dog.

CAsh Cows (Low Growth, high market Share): They are foundation companies and often stars of yesterday and generates more cash then required. They extract the profots by investing as little as possible. They are industries that are mature not growing or declining.

From the above discussion we can conclude that Hasbro hols position of star , Jakk holds position of Question mark and Mattel is cash cow in BCG Matrix.