Analysis of growth, price-recovery, and productivity components (continuation of ©

Exercise 13-19). Suppose that between 2008 and 2009 the market for Meredith’s specialpurpose machines grew at 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Meredith’s strategic actions.

Change in operating income from industry market-size factor, $168,000 F REQUIRED Calculate how much of the change in operating income between 2008 and 2009 is due to industry market-size factors, cost leadership, and product differentiation. How successful has Meredith been in implementing its strategy? Explain.

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