=+15-24 KK Analysis of growth, price-recovery and productivity components (continuation of 15-23)

OBJECTIVE 4 Suppose that during 2015, the market for Winslow’s special-purpose machines grew by 3%. All increases in market share (i.e. sales increases greater than 3%) are the result of Winslow’s strategic actions.

Required Calculate how much of the change in operating profit from 2014 to 2015 is due to the industry market-size factor, cost leadership and product differentiation. How successful has Winslow Ltd been in implementing its strategy? Explain.