FAQ
Darden Restaurants
Note that these responses are not official additions to the questions; only explanations of what is required to answer them. Be sure you read the question and understand it fully before answering.
1. B. How should I go about supporting my definition of the market?
For each part of your definition (for example, the geographic area), explain how this is appropriate in terms of being 1) a real market from the customer's view, and 2) includes most (at least 90%) of the company's current business. Repeat for each of the other parts of the definition (at least the customer and product/service and perhaps the position in the chain or distribution method if appropriate).
4. A. How do I go about doing the BCG for the three companies?
You only do the BCG for Darden, not for it's competitors. The question requires only one point to be plotted on the BCG - the total company Darden's. From that, you can do part B: what the theory recommends for Darden. Do not be confused by what is in the book, follow the instructions in the handout and given in class.
4. A. I can't find the market share for Darden. How can I do the BCG?
Review the BCG theory. You do not need the market share, only the sales for Darden and the comparable sales for its largest competitor in the same industry.
4. A. I found a growth rate in Darden's report, can I use it for the BCG?
No. You must find a supportable industry growth rate. One company's assessment is not sufficient. You must either find reputable statistics from an industry source (such as the National Restaurant Association in this case), or document agreement on the industry growth rate from two or more companies in the same industry.
- 07/17/00 -