The following data is taken from a firm with several business units. Using the line of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following data is taken from a firm with several business units. Using the line of business information and the weightings provided, rate both the competitive position and attractiveness of each business unit. Once you've obtained a score for each, map it onto a 9-cell McKinsey matrix. For clarification, the analyzing the portfolio section will need to be completed separately for each of the 5 business units. The resulting scores will give you graph points to place on a single McKinsey Matrix. What are your recommendations for each business unit? Should they be targeted for growth or divested? Justify your answer. (Recommended length 250 words) Alternative Image Description LINE OF BUSINESS INFORMATION Retail Credit Insurance Brekerage Real Estate Industry Attractiveness Industry growth rate Competitive rivalry (rank) Competitive Position Market share (rank) 4.01% 5 (high rivalry) 4.34% 12.09% 13 13.90% 2 (low rivalry) 1 (big share) 5 (small share) 4.3% ALEK.8% 3. Profitability (ROS) Portion of business Share of revenue Share of profit 1.2% 11.7% 4.9% 52.0 18.0 S.1 17.8 35.0 30.2 1 49 62 UZS ANALYZING THE PORTFOLIO COMPETITIVE POSITION INDUSTRY ATTRACTIVENESS Key Success Factors Market share Weight Rating 0.50 Score Criteria Industry growth rate Rating Weight 0.60 Score Profitability (ROS) 0.50 Competitive rivalry 0.40 Totals Rating lest"."Near the top. 2Average" IPoor 1.00 1.00 Week 5 McKinsey Matrix Image Image Overview The image consists of two tables. The first table is titled Line of Business Information. The second is titled Anaylzing the Portfolio. Image Information Line of Business Information Table: Criteria Retail Credit Insurance Brokerage Real Estate Section 1: Industry Attractiveness 4.34% 12.09% Industry growth 4.01% 13.90% 4.15% rate Competitive 5 (high rivarly) 4 rivarly (rank) 3 Section 2: Competitive Position 5 (small share) 3 Market share 1 (big share) 2 (rank) Profitability (ROS) 1.2% 11.7% 4.9% 4.3% 8.8% Section 3: Portion of Business Share of 52.0 5.1 35.0 4.9 3.0 revenue Share of profit 18.0 17.8 50.2 6.2 7.8 Anaylzing the Portfolio Table: Rating: 4= Best, 3= Near the top, 2= Average, 1= Poor Competive Position Section 1: Key Success Weight Rating Score Factors Market share 0.50 Profitability (ROS) 0.50 Totals 1.00 Section 2: Criteria Weight Rating Score Industry growth rate Competitive rivalry Totals 0.60 0.40 1.00 The following data is taken from a firm with several business units. Using the line of business information and the weightings provided, rate both the competitive position and attractiveness of each business unit. Once you've obtained a score for each, map it onto a 9-cell McKinsey matrix. For clarification, the analyzing the portfolio section will need to be completed separately for each of the 5 business units. The resulting scores will give you graph points to place on a single McKinsey Matrix. What are your recommendations for each business unit? Should they be targeted for growth or divested? Justify your answer. (Recommended length 250 words) Alternative Image Description LINE OF BUSINESS INFORMATION Retail Credit Insurance Brekerage Real Estate Industry Attractiveness Industry growth rate Competitive rivalry (rank) Competitive Position Market share (rank) 4.01% 5 (high rivalry) 4.34% 12.09% 13 13.90% 2 (low rivalry) 1 (big share) 5 (small share) 4.3% ALEK.8% 3. Profitability (ROS) Portion of business Share of revenue Share of profit 1.2% 11.7% 4.9% 52.0 18.0 S.1 17.8 35.0 30.2 1 49 62 UZS ANALYZING THE PORTFOLIO COMPETITIVE POSITION INDUSTRY ATTRACTIVENESS Key Success Factors Market share Weight Rating 0.50 Score Criteria Industry growth rate Rating Weight 0.60 Score Profitability (ROS) 0.50 Competitive rivalry 0.40 Totals Rating lest"."Near the top. 2Average" IPoor 1.00 1.00 Week 5 McKinsey Matrix Image Image Overview The image consists of two tables. The first table is titled Line of Business Information. The second is titled Anaylzing the Portfolio. Image Information Line of Business Information Table: Criteria Retail Credit Insurance Brokerage Real Estate Section 1: Industry Attractiveness 4.34% 12.09% Industry growth 4.01% 13.90% 4.15% rate Competitive 5 (high rivarly) 4 rivarly (rank) 3 Section 2: Competitive Position 5 (small share) 3 Market share 1 (big share) 2 (rank) Profitability (ROS) 1.2% 11.7% 4.9% 4.3% 8.8% Section 3: Portion of Business Share of 52.0 5.1 35.0 4.9 3.0 revenue Share of profit 18.0 17.8 50.2 6.2 7.8 Anaylzing the Portfolio Table: Rating: 4= Best, 3= Near the top, 2= Average, 1= Poor Competive Position Section 1: Key Success Weight Rating Score Factors Market share 0.50 Profitability (ROS) 0.50 Totals 1.00 Section 2: Criteria Weight Rating Score Industry growth rate Competitive rivalry Totals 0.60 0.40 1.00
Expert Answer:
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
Students also viewed these finance questions
-
The effects of the coronavirus (COVID-19) will need to be incorporated when preparing financial statements. There are many financial statement areas that will be impacted. Give a brief and critical...
-
Nine jobs need to be completed within eight weeks. The number of weeks required to complete each job is given in the file P08_26.xlsx. For example, job 2 requires three weeks. Each job requires 40...
-
Zachary Alexander owns a limousine that will need to be replaced in four years at a cost of $65,000. How much must he put aside each year in a sinking fund at 8% annual interest to purchase the new...
-
The two roots of a quadratic equation ax 2 + bx + c = 0 can be obtained using the following formula: b 2 - 4ac is called the discriminant of the quadratic equation. If it is positive, the equation...
-
Describe three of the federal laws that apply to pension plans.
-
Find the derivative of the function. Simplify where possible. f() = sin 1 (5)
-
6. ETHICS Edgar Bronfman, Jr., dropped out of high school to go to Hollywood and write songs and produce movies. Eventually, he left Hollywood to work in the family business-the Bronfmans owned 36...
-
An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits by center 2. Each Unit of the end item, called a jit-together, requires 3 gadjits and 2...
-
9.Calculate the maturity value of a 120-day, $1,000 face value note dated November 30, 2020 and earning interest at 5.75% simple interest . 10.Superstore Canada signs an invoice for $15,000 with...
-
Tuckered Outfitters plans to market a custom brand of packaged trail mix. The ingredients for the trail mix will include Raisins, Grain, Chocolate Chips, Peanuts, and Almonds costing, respectively,...
-
def break_modules(x,y): return x/y print(break_modules(5,2)) print(break_modules(7,0)) print(break_modules(7,ten)) You have been asked to use a Python try:except block to modify thefunction given to...
-
An effusive molecular beam source produces a beam of molecules with a Maxwell- Boltzmann speed distribution. Such a source may be realized by placing a small pinhole at the end of a tube and using a...
-
Zachary Corporation paid one of its sales representatives $8,500 during the month of March. The rep is paid a base salary plus $14 per unit of product sold. During March, the rep sold 170 units....
-
Fig. P8.1 10 ft D IP 8.1 A W10 x 39 rolled-steel beam supports a load P as shown. Knowing that P = 45 kips, a = 10 in., and 6 = 18 ksi, determine (a) the maximum value of the normal stress 6, in the...
-
Key comparative figures for Apple and Google follow. $ millions Net sales Cost of sales 161,782 163,756 Apple Google Current Year Prior Year Current Year Prior Year $ 260,174 $ 265,595 $ 161,857 $...
-
Find Etotal @ point P O 8 = +4nC 6cm O (Ans: ~80,000 N/C) q = = -4nC
-
4)Accounting has two functions: measurement and reach.Measurement is the measurement of information in determining theresult of the company's business of profit or loss.TrueFalse** we can not co 2...
-
We all experience emotions, but some people disguise their true feelings better than others. Do you think this is a helpful or harmful thing to do? Under what conditions do you think it would be most...
-
Georgia McBeal is trying to save for her retirement. She believes she can earn 10% on average each year on her retirement fund. Assume that at the beginning of each of the next 40 years, Georgia will...
-
Based on Boykin (1985). Thompson Chemicals produces 359 million pounds of the chemical maleic anhydride annually. A total of four reactors are available to produce maleic anhydride. Each reactor can...
-
Westhouser Paper Company in the state of Washington currently has an option to purchase a piece of land with good timber forest on it. It is now May 1. and the current price of the land is $22...
-
Try-Star Leasing Company enters into a contract with LLX Corporation for equipment under lease for a threeyear period. The equipment will have no residual value when the lease term ends and has an...
-
A lessor entered into a 5-year lease appropriately classified as a sales-type lease. The cost of the underlying asset was \(\$ 40,000\) and the fair value of the asset was \(\$ 50,000\). The lease...
-
Using the information from Exercise 17-72, complete the following requirements from the lessor's perspective. Required a. Determine the classification of the lease to Try-Star Leasing Company. b....
Study smarter with the SolutionInn App