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Regal Pest Control Co. - Strategic Management Paper (part 1)

Far Eastern University

Nicanor Reyes St, Sampaloc, Manila,

1008 Metro Manila

Institute of Tourism and Hotel Management

A Strategic Management Case Study Plan for

BME1102-SEC 2 STRATEGIC MANAGEMENT

Professor: Mr. Sofronio “Toti” Dulay

Abaya, Shiela Mae

Abella, Denise Jane

Amis, Rina Kyla

An, Janine Carla

Barrueso, April Joy

Bautista, Samantha Mica

Bueta, Nykole Mar Angela

Bulanadi, Edmond Ross

May 2021

TABLE OF CONTENT

I. Executive Summary 3-4

II. Internal Assessment

a. Corporate Profile 4-7

b. Company Vision and Mission7

c. Corporate Officers 7-9

d. Product Line 9-16

e. Internal Factor Evaluation 16-18

III. External Assessment

a. Porter’s Model Analysis19-21

b. External Factor Evaluation Matrix 21-23

c. Competitive Profile Matrix 23-25

d. Key External Factor 25-28

IV. Strategy Formulation

a. Boston Consulting Group Matrix 28-31

b. Strategic Position and Action Evaluation Matrix 31-34

c. Grand Strategy Matrix 34-35

d. Internal – External Matrix 36-37

e. Strength – Weaknesses – Opportunities – Threats Analysis 37-48

f. Quantitative Strategies Planning Matrix 48-51

V. Strategy Recommendation 52-53

VI. Action Plan 53-57

VII. Conclusion 58-60

VIII. Financial Projection 60-62

IX. References 62-67

I. EXECUTIVE SUMMARY

Regal Pest Control Co. is a family-owned and regulated company that has been in the pest management market since 1988. It is a Filipino business duly established as a partnership and registered with the Securities and Exchange Commission, operating under and subject to the laws of the Republic of the Philippines. Regal Pest Control with over thirty (30) years of experience in the pest control business assure all consumers and future consumers their well-developed strategy to achieve the best pest control service. The Regal Pest Control team has earned not only experience but also the reputation of providing customers with the most comprehensive range of services and products.

The major competitors of Regal Pest Control are Entech Philippines and TermaxPro Pest Control Services. Entech Philippines is a total care system business offering clients realistic and long-term solutions for achieving and maintaining safe, sanitary, and balanced conditions of their houses and buildings. TermaxPro has prioritized being a customer-friendly company that offers secure and consistent care. The business exists to provide support to meet the stringent requirements of new commercial companies and homeowners. Regal Pest Control can maintain and improve its market growth in the pest control industry by enhancing the current strategies and creating new strategies to boost the overall performance of the company.

All the different matrices such as IFE, Porter’s Model, EFE, BCG SPACE, GSM, IE, SWOT and QSPM were used, and these matrices showed how Regal Pest Control operates and stayed afloat in the pest control industry and indicated their strong internal position and their strength to achieve all the demands of their target market. But it also showed the things that needed to improve in the company and how it affects the company's competitive position in the market. The recommended strategies that were evident on the matrices for Regal Pest Control are Market Penetration, Market Development, and Product Development. Under these strategies are the action plan needed to improve Regal Pest Control. In the Market Penetration, the action plans needed are Creating an official website, Hire influencers or celebrities, Partnerships with local TV Networks, and Loyalty Card Reward System. Under the Market Development Strategies; New store branches outside Metro Manila and Online reservations and delivery of products. Lastly, the strategies needed under Product Development are Hiring pest control professionals, Investing in new technology, Feedback System, and Partnership with International chemical suppliers.

In using these strategies, Regal Pest Control will strengthen its strengths, take advantage of the opportunities, improve its weaknesses, and avoid future threats that may negatively impact the company. This will be a way for Regal Pest Control to establish its identity and make a solid competitive position in the pest control industry.

II. INTERNAL ASSESSMENT

a. COMPANY PROFILE

ADDRESS

50 San Roque Street Barangka Ilaya, Mandaluyong City, Philippines

PHONE NUMBER

63 (2) 534-6350

BRANCHES:

18 Mintcor Townhouse, West Service Road, South Super Hi-way, Cupang, Muntinlupa

50 San Roque Street, Barangka Ilaya, Mandaluyong City, Metro Manila, Philippines

Regal Pest Control Co. is a family-owned and operated business that has been in the industry since 1988. The company was established and managed by the former President of Pest Exterminators Association of the Philippines (PEAP) from 1995-1996, Atty. Silverio R. Garing on April 4, 1988, with a total number of 22 employees. Since then, the company was categorized as a Certified Pesticide Applicator/Exterminator. It is a Filipino company, adequately incorporated as a partnership and registered with the Securities and Exchange Commission, existing under and under the laws of the Republic of the Philippines. With over thirty (30) years of experience in the pest control industry, Regal Pest Control is a company that guarantees all the customers their well-developed strategies in ensuring that the customers will receive the best pest control experience.

Over the years, the company developed pest control services that will help eradicate wide-range pest issues in our homes and our office. It is not surprising that our homes are often infected by pests, especially that we are living in a tropical rainforest country. According to Vail et al. (2020), lighting, warm air, rain, and food all attract pests. They seek refuge and safety in dim cavities in floors or enclosed spaces. Many different insects are considered pests in our household, but the most common is called “bugs.” Some of these pests, such as termites, necessitate the use of specialized equipment and expertise to add vast quantities of insecticides to any possible entry points into our household or building.

Regal Pest Control, with the help of its partners like multinational firm’s suppliers and distributors of environment-friendly chemicals for Pest and Termite Control Services, the company developed new technology such as Baiting systems, Fogging Method, Misting Method, Rat Disposal Service, Garden Pest Control, Rat Abatement Maintenance Programme and General Pest Abatement Maintenance Programme for Non-Structural Pest. For Structural Pest, Regal Pest Control provides Termite Proofing Works, Soil Poisoning, Cement Drilling Method, Wood Drenching, Termite Mound Demolition, and Termite Abatement Maintenance Programme, etc. The Regal Pest Control team has gained not only experience but also the prestige of supplying consumers with the widest variety of facilities and products.

OBJECTIVES

According to Michigan Government (n.d.), objectives are specific, time-bound, measurable acts that contribute to the achievement of a company. A company has an advantage if they have their objective clear and precise. This will ensure a clear path towards their success. Setting objectives makes it easy to evaluate a company's results. If objectives are reached, it may be stated that the company did its strategies effectively.

Regal Pest Control's objective is to establish a company that would provide work ethics characterized by honesty, sincerity, and dedication to duty. The company aims to provide a reliable and trustworthy service to the client.

Short-Term Objectives

- To hire capable employees that are willing to learn and grow in the company

- To acquire prominent clients to expand business

- Develop new techniques to enhance service and production

Long-Term Objectives

- Purchase new machineries to increase production

- To expand to other parts of the Philippines by creating more store branches

- Investing in the employees to lessen employee turnovers

b. COMPANY VISION AND MISSION

VISION

To achieve the highest level of Customer Service towards the full satisfaction of our clients and to create a working environment that will promote productivity among themselves.

MISSION

A company that will provide at all times to the General Clientele with reliable, honest, professional and quality service.

c. CORPORATE OFFICERS

GENERAL MANAGER

Silverio R. Garing

ASSISTANT GENERAL MANAGER

Rebecca G. Garing

TREASURER

Vistoria Garing

BOOK KEEPER

Jackelyn Serrano

ACCOUNT EXECUTIVE

Ronaldo Fontanilla

Froilan Cravalho

SECRETARY

Lyra Luz Garing

SERVICE FOREMAN

Edwin Bulanadi

BRANCH MANAGER/ATTENDANT

Frederick Garing

MAIN BRANCH

Address: 50 San Roque Street, Barangka Ilaya, Mandaluyong City, Metro Manila, Philippines

EXTERNAL BRANCH

Address: 18 Mintcor Townhouse, West Service Road, South Super Hi-way, Cupang, Muntinlupa

d. PRODUCT LINE AND SERVICES

Pests navigate their way into our households regardless of how meticulous we are about our household chores. Some of these pests cause severe damage to foods, clothes, rugs, and wooden furniture, while others transmit diseases. According to Cranshaw (2011), arthropods that inadvertently invade buildings are among the most common residential/structural pest scenarios, referred to as "nuisance invaders." Pests, such as cockroaches, flies, rats, and other insects, can be a real danger in our homes and company. Pest management in the home is essential all year. Any insect infestations, such as termites, will almost often necessitate the assistance of a reputable pest control operator (Hantsbarger, 1981). That is the reason why hiring a pest control operator is the easiest way to eradicate and minimize the negative effect of these pests. Below you can see the different products and services that Regal Pest Control treatment company provides.

PRODUCTS

Pest and Termite Control Chemicals and Equipment

Probuild

A termiticide is a synthetic version of a flower’s pyrethrum, which exterminates every species of subterranean and dry wood termites through contact and stomach action to restrain them from returning to structures.

Hometrek

A termiticide protects against subterranean termites by forming a liquid barrier that remains in the soil for at least five years.

Optigard Ant Gel

A non-repellent termiticide used for controlling subterranean termites is applied before and after the construction of structures.

Maxxthor Termiticide

It prevents and controls subterranean termite infestations in and around structures. It forms a barrier that will prevent the termites from entering the structure.

Termitrol

It aims to address the root cause of the problem; thus, its target is to eliminate the termite colony. Termitrol is a special kind of termiticide that is non-repellent and has a delayed mode of lethal action which means when termites have contact with the poison, they will not immediately die. Consequently, it enables the poison to be passed on to other termites resulting in the extermination of the whole colony.

Devron

A termiticide injected into the soil creates a constant chemical barrier that blocks termites’ entry points in the structure and terminates termites.

Stedfast

A termiticide that contains alpha-cypermethrin is environment friendly. It is a long-lasting termite control solution that deals with termite infestations and protects structures from future or potential infestations.

Solignum

It is a wood preservative that serves as a safeguard against termites like wood borers and fungi.

Cislin EC

A spray that treats wood surfaces and flushes pests’ residuals.

Resigen

It is a space spray for pests such as mosquitoes, flies, and cockroaches. The solution can be diluted with diesel or kerosine if it will be used outdoors. If it is for indoor treatment, it should be diluted with water.

Solfac

It contains Cyfluthrin which is ideal for treating cockroach, housefly, and mosquito infestation. It can also prevent Malaria.

Crackdown Residual Insecticide AU

It is a general insecticide to control various insects like carpet beetle, silverfish, flea, flies, bird mites, and cockroaches.

Veneers

It is a stone veneer insect repellent. Stone Veneers are very durable. Therefore, they can prevent the entrance of pests into a structure.

Outlook

It is an herbicide that protects crops such as cornfields, cotton, garlic, dry beans, and many more.

Optigard Termite Liquid

It is a bait that attracts ants, and when ingested and shared by ants to the colony, it will lead to complete control.

Solfac WP

It is used as an indoor residual spray for the control of mosquitoes which prevents dengue, malaria, and other diseases carried by mosquitoes.

Novim

It is an insecticide that targets the nervous system of pests. Insects’ exposure to Novim will cause hyper excitation and tremors in their nerves which leads to paralysis and death.

Pervade

It is an insecticide that is lethal to pests. When exposed to this insecticide, pests will experience hyper excitation and tremors in their nerves which leads to convulsions, paralysis, and death.

Deluge

It is one of the most common insecticides that is very effective in controlling household pests such as cockroaches, flies, mosquitoes, ants, etc.

Pesguard

A spray that has the ability to control both flying and crawling pests such as bed bugs, cockroaches, houseflies, mosquitoes, and beetles.

Responsar

It contains beta Cyfluthrin which is able to control insect pests such as houseflies, cockroaches, and mosquitoes.

Vakem

It is a fumigant that is effective in controlling household, public health, and stored product insects such as aphids, caterpillars, thrips, and flies.

Dichlorvos

It is an insecticide that is used to eliminate household and agricultural pests.

Vapona

An insecticide for cattle and livestock premises as it is able to control parasites such as mosquitoes, horse flies, face flies, stable flies, and houseflies.

Racumin Paste

It is a rodenticide that is effective in controlling rodents or rats and mice.

Storm

It is a rodenticide that is very effective in controlling rodents as it is able to kill or eliminate rats.

Icon

It is an environment friendly and non-carcinogenic insecticide that is highly effective in controlling cockroaches, flies, and mosquitoes.

Bosny Rat Glue

It is an adhesive trap to catch rats when they wander across its surface.

· Klerat Wax Block

It is a single feed bait for rodents that is easy to use.

SERVICES

NON-STRUCTURAL ACCOUNT

· General Pest Abatement Maintenance Program (GPAMP)

Designed for the control of cockroaches, mosquitoes, bugs, flies, and other flying and crawling insects that transmit more than 35 communicable diseases to man. The treatment is done by spraying, misting, or brushing.

· Rat Abatement Maintenance Program (RAMP)

Usually placed the rat bait in strategic areas that are safe to humans and where rats normally roam around.

· Fogging Method (FM)

Using a fine pesticide spray (aerosol) which is directed by a blower.

· Misting Method (MM)

Allowing the pesticides to stay suspended in air to kill all flying insects. It will be conducted for external areas including drainages and canal.

· Garden Pest Control (GPC)

Remove mealybugs from plants with strong sprays of water or swabbing with alcohol-dipped cotton swabs.

· Rat Disposal Service (RDS)

Remove dead rats by placing animals in tightly sealed containers for proper disposal and by the use of traps or poisons.

STRUCTURAL ACCOUNT

TERMITE PROOFING WORKS (Under Construction Project)

a) Phase I - Soil Poisoning

By applying 4 liters of the strong chemical called Termiticide solution per square meter of slab foundation. Spraying must be prepared when the foundation bed has remained completed and ready for pouring of concrete.

b) Phase II - Treatment of the building skeletal Framework

It is stated to control pests in or near a structure. Its favorable conditions will make the build-up of pest populations less heavy and leaves a perfectly cleaned skeleton in a small pile.

c) Phase III - Final Treatment

It is important to not clean immediately, Pest control treatments are usually personalized based on your requests. So, you will be told when you can clean again and if there are any areas you should not rinse. Do not do a deep cleaning for at least a week.

TERMITE CONTROL SERVICES

· Soil Poisoning (SP)

Involves treating the soil around your house with a termite insecticide, such as imidacloprid. Woods can also be treated directly if termites are inside. Termite baits are strategically placed around your yard to lure termites in.

· Cement Drilling Method (CDM)

Drilling concrete slabs and injecting chemicals is one of the ways to protect a property from termites. Holes are often drilled around a perimeter to ensure a complete chemical barrier.

· Wood Drenching (WD)

Chemical treatment of the fill material prior to pouring a concrete slab protects wood in the building from termite attack.

· Termite Mound Demolition (TMD)

Search for these termite mounds, destroy them and thoroughly treat the surrounding. This is done by trenching, spraying or injection methods.

· Borer (Bukbok) Abatement Maintenance Program (BAMP)

Proper waste disposal process and sanitation to reduce infestation and use of the correct treatment, chemicals to get rid of wood borers for individual circumstances.

· EXTERRA Termite Interception and Baiting System

Some bait stations are installed below ground out in the yard, while others are placed within the structure in the vicinity of active termite mud tubes.

e. INTERNAL FACTOR EVALUATION MATRIX

According to David and David (2017), this strategy-formulation method outlines and analyses the key strengths and weaknesses in a company's functional areas and provides a foundation for defining and assessing relationships between those areas. The table below shows the strengths and weaknesses of the company Regal Pest Control and how it affects the company's internal structure.

Legend

Rating:

4 - Major Strength 3 - Minor Strength 2 - Minor Weakness 1 - Major Weakness

Internal Factor Evaluation Analysis

In relation to the purpose of the IFE Matrix, the table shows that Regal Pest Control has the two most essential factors in line with their business: Contract completion on time and Financial Stability. It only shows that the Regal Pest Control has an excellent internal structure. On the other hand, the company is also experiencing some weaknesses like lack of company website and lack of modern advertisement mode. It is essential to update and have enough information on their website to allow their customers to know what they can offer and what is new about their services. If this is not handled well, this may be a problem for the company because they may be out of date and will not keep pace with their competitors.

Overall, the Regal Pest Control receives a score of 2.68. Based on IFE Matrix, Regal Pest Control weighted above average, meaning the company has a good standing and a solid internal position. Nevertheless, this also shows that there is still much room for improvement to enhance and fully operate without shortcomings.

III. EXTERNAL ASSESSMENT

Market Position

Since Regal Pest Control is a company that is still finding its way to the competitive market of the pest control business, the basis for the market position that will be used is according to the estimated net income of Regal Pest Control and its competitors.

Company Net Income

Regal Pest Control ₱ 400,168

ENTECH Philippines ₱ 680,560

TermaxPro Pest Control Services ₱ 756,845

Competitors:

ENTECH Philippines

ENTECH Philippines is a Total Care System provider that provides clients with practical and long-term strategies to achieve and preserve clean, sanitary, and healthy environments. Integrated Pest Management (General Pest Management, Termite Management, Other Pests), Professional Cleaning (Disinfecting, Deep Cleaning, Furniture Cleaning), and Environmental Solutions are among the high-quality facilities (Entech Philippines, 2021).

TermaxPro Pest Control Services

TermaxPro Pest Control Services has focused on being a customer-friendly business that provides safe and dependable care. The company is there to provide service and satisfy the strict demands of new commercial enterprises and homeowners. Many of their pest controllers have received extensive training through certified PEAP (Pest Exterminators Association of the Philippines) workshops (TermaxPro Pest Control, 2021).

a. PORTER’S MODEL

According to Bruijil (2018), Porter's Model is built on the principle that a corporate approach can counter opportunities and threats in the organization's external environment. A strategic approach should be based on a thorough understanding of market structures and how they adjust. It is a method for analysing the level of competition in a market and developing competitive strategies.

Porter’s Framework Analysis

Regal Pest Control is already thirty (30) years in service and continues to maintain the pest-free status to where they provide their service and is now competing with ENTECH Philippines and TermaxPro Pest Control Services, which has only a few years in service, but a lot of people knows their company name and patronizing their service.

The business Regal Pest Control is bound to have the threat of new entrants, which are the Dexterminator Pest Control Services, Mapecon, and Pest-Ex Pest Control Services Metro Manila that would challenge their business. Since technology has been changing from time to time, there is a need to scale up within the company to keep abreast with the time, and it is not hard for other companies to come up with the same line of business.

The one who supplies the pest control companies or services is the chemical distributors in the Philippines, which provides chemicals to each pest control company to be used for cleaning and washing out the pests that dwell in areas and facilities.

The substitute products for Regal Pest Control or any pest control services that use chemicals as an active ingredient to kill pests are agricultural netting and cultural control, which is risk-free and has no adverse consequences.

The target market of Regal Pest Control is the sub-urban and urban people in which maintaining clean and safe facilities and areas are their priority, especially that there are a lot of buildings, offices, and restaurants present in the area.

b. EXTERNAL FACTOR EVALUATION MATRIX

An External Factor Evaluation (EFE) Matrix enables strategists to compile and analyse financial, societal, cultural, demographic, environmental, political, governmental, legal, and competitive details that will help the company know if their strategies successfully capitalize on emerging opportunities while minimizing the possible negative impacts of external threats (David & David, 2017).

Legend

Rating:

4 - Major Strength 3 - Minor Strength 2 - Minor Weakness 1 - Major Weakness

External Factor Evaluation Analysis

In accordance with the purpose of the EFE, Regal Pest Control showed the opportunities and threats present in the company. Based on the table above, Regal Pest Control earned a cumulative weighted score of 2.65 on the EFE Matrix. The EFE Matrix is focused on an overview of the general climate and these external conditions that impact the sector to determine new opportunities and threats for Regal Pest Control. According to the weighted ratings, the company's response has a significant impact on its existing opportunities and threats in the pest control sector.

There is a series of opportunities like increased demand for Pest Control Services, new agreements that will deal them better pricing of services, and decreased taxes in the external factor matrix. In the threats section, we will see the new competitors who would either be in the same line of business, predicted natural disasters that may lessen the demand for their services, and new laws in this ever-changing time that will require them to have a change in framework.

c. COMPETITIVE PROFILE MATRIX

According to Bhattacharjee and Dey (2015), the Competitive Profile Matrix (CPM) is an analytical method that offers competitive edge information focused on key performance factors and acts as the foundation for an organization's strategy. It also enables the firm's owners to compare their firm to main competitors by using crucial performance factors.

Legend

Rating:

4 - Major Strength 3 - Minor Strength 2 - Minor Weakness 1 - Major Weakness

Competitive Profile Matrix Analysis

In relation to the primary purpose of CPM, which is to know the company's competitive advantage, Regal Pest Control compared to the two (2) present competitors where you can see and evaluate from the table above. Regal Pest Control received a weighted score of 2.96 based on the CPM matrix, while Entech Philippines received a weighted score of 3.67 and TermaxPro Pest Control Services received a weighted score of 3.69. About the fact that TermaxPro Pest Control Services has the highest weighted average, some of its variables have varying ratings and weights.

To keep up in the future, Regal Pest Control should improve their competitive edge and make additional changes for variables that have poor ratings, allocating additional advertisements and investments, especially in advertising, reliable work, and customer loyalty.

d. KEY EXTERNAL FACTOR

Key External Factors

Political

Political factor is the extent wherein the government can intervene or influence the economy, thereby influencing the industry. This is evident during the global pandemic where they had the call which businesses would be open or not. There will be scenarios where the pest industry will be affected, especially with the rules and regulations imposed by the current and future administration. There will be possible problems in the political arrangements in place to deal with growing tensions throughout the transition of power in a post-election period, resulting in an election-related violence that may affect the industry (Alihodžić & Burcher, 2013).

Economic

This is how economic conditions may affect the supply and demand of the industry, therefore, affecting the company. These may also depend on the services which are deemed necessary nowadays. In line with the economy, the activities that are performed are somehow the ones that are in demand. Now that we are in the middle of the pandemic, the economy of the Philippines is deteriorating. In fact, in 2020, the Philippines experienced its highest unemployment and the most significant drop in GDP in history (Lim, 2020). All of the businesses, including the pest industry, were severely affected because of the economic drop in the Philippines. This shows how the economy can affect the business, especially if the world is dealing with a pandemic.

Social

With the social factor, this is how the customer expectations and desires are reflected in changes in the socio-cultural business environment. According to Masovic (2018), culture and society are not actively involved in business activities; they do play an important role in influencing how well the company is handled, on which products are manufactured, and how and by what methods these will be marketed to the development of administrative and organizational practices. A company examines the socio-economic context of a given industry's market in order to fully understand how the consumer needs and wants are formed and what drives them to the store to make a purchase. This just shows how society has a significant impact on the company's products, especially that Regal Pest is a company that produces products. Adults often purchase the pest control industry's products, the reason why Regal Pest Control should examine and come up with strategies that could reach all ages, not just adults.

Technological

Technology has the potential to carry out the company's advantages and opportunities. It strengthened the market and industry by developing new products and services, establishing new markets, and increasing company efficiency. Most businesses or companies have a working technology to reach out to the consumers, deliver goods, and provide high-quality services. Consumers can shop for goods and services without leaving their homes. It is much easier to provide online reservations for pest industry products and services with the aid of technology, particularly now that we are in the midst of a pandemic.

Environmental

Environmental aspects are elements of an organization's activities, products, or services that can interact with the environment (Ganguly, n.d). Environmental factors include climate change, availability of non-renewable goods, and eco-friendliness of the products that affect the company's operations or customer demand. It may also affect the consumers' health. For the Regal Pest Control, these may include the chemicals used to perform the job and affect the said company. Many chemical products are hazardous for the company and consumers. There should be strategies to minimize the effects and broaden the options to provide more environmentally-friendly products.

Legal

It comes with the requirements needed in a particular territory or laws to perform the business and may differ from one territory to another, which needs to be considered when businesses are opened. The pandemic has indeed compelled nations all over the world to impose unparalleled lockdowns, forcing companies to close for long periods and imposing restrictions in our daily lives to mitigate and possibly minimize the effect of the pandemic in the Philippines. This is the best example of how legal actions affect the business because everyone is required to follow government restrictions, especially if it is connected to the business.

IV. STRATEGY FORMULATION

a. BOSTON CONSULTING GROUP MATRIX

The BCG Matrix is designed by Bruce D. Henderson of the Boston Consulting Group, a private management consulting firm specializing in strategic planning (Boston Consulting Group, n.d). This matrix serves as an aid for companies or organizations in analysing their business units or product lines which are also called divisions. The BCG Matrix graphically presents the differences among the product lines in terms of their relative market share position and industry growth rate, consequently allowing the organizations to manage their business portfolios in order to formulate suitable strategies for each division (David & David, 2017).

The relative market share is on the graph's x-axis, and the industry growth rate is on the y-axis of the graph. The matrix consists of four quadrants: The Question Marks or Quadrant I, Stars or Quadrant II, Cash Cows or Quadrant III, and Dogs or Quadrant IV. The units situated on the Question Marks Quadrant have a low relative market share, but they compete in a high-growth industry. The units on the Stars Quadrant have a high relative market share and a high industry growth rate which means they represent the companies' best opportunities for growth and profitability. The divisions on the Cash Cows Quadrant have a high relative market share but compete in a low growth industry. Lastly, the divisions on the Dogs Quadrants are weak because they have low relative market share and compete in a slow or no market growth industry (David & David, 2017).

The Regal Pest Control Company divisions are listed in the table above and their revenues and profits. The first division is the Termite Control Services; the second division is the Pest and Termite Control Chemicals and Equipment; the third is the Non-Structural Account and the Structural Account. In the External Assessment, the market position and the net income of Regal Pest Control and its competitors were recorded. With that data, the relative market share was calculated by dividing the profit percentage by the competitor with the highest market share. According to Grand View Research, the industry growth of Pest Control Services is approximately 5%, while the industry growth of Pest Control Products is approximately 4%.

The figure below is the BCG Matrix of Regal Pest Control Company:

Boston Consulting Group Matrix Analysis

Based on the figure above, Division 1 or the Termite Control Services are situated in the stars quadrant because it has the coordinates of (0.85,5). This means that the company may adopt strategies such as forward, backward, or horizontal integration, market penetration, market development, and product development. Next, the second division is the Pest Control Products; though the industry growth rate is not as high as the industry growth rate of pest control services, it is still located at the stars quadrant with division 1. The same set of strategies can be adopted for this division. There are no divisions on the dog's quadrant, which is suitable for the company. Lastly, divisions 3 and 4 or the non-structural account and structural account are both on the question marks quadrant because they have the same relative market share and industry growth rate. Strategies for the divisions in this quadrant would be market penetration, market development, product development, or divestiture.

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