=+Suppose that during 2015, the market for portable music players grew 3%. All decreases in the selling price of the Mini and increases in market share (i.e. sales increases greater than 3%) are the result of CPAL’s strategic actions.

Chapter 15: Strategy, balanced scorecard and strategic profitability analysis 615 M15_HORN3377_02_LT_C15.indd 615 2/09/13 3:56 PM Required Calculate how much of the change in operating profit from 2014 to 2015 is due to the industry market-size factor, product differentiation and cost leadership. How does this relate to CPAL’s strategy and its success in implementation? Explain.