4. Portfolio Analysis (20 points) Precision Cutting Tools (PCT) is a manufacturer of industrial tools. PCT's product portfolio mainly comprises a) large metal cutting tools for boring/stamping machines b) computer controlled equipment for tool and die shops, and e) hydraulic jacks for automobiles. The following tables show the market growth and market share, customer satisfaction levels and purchase intentions for each product. Hint: What analysis tool have we used that utilizes the information highlighted above in BOLD As a manager responsible for PCT's product strategy, you have to decide how to allocate resources across the product portfolio. Please note that it is not easy for PCT to enter a completely new market now. Explain your decision for each product. Use as much data as possible from the tables for your answers, Please note that if you want, you can use data across tables for an answer Large metalcutting tools for boring/stamping machines 2014 2015 2016 2017 2018 Estimate Total Units 32.3 45.6 Sold in Industry (million) Average Unit Price (S) for 2019 5.5 15.3 44.4 68 67 52 51 46 Industry Players Market Share Customer Satisfaction Scores on a scale from 1 (very low) to 5 (very higb) Purchase Intention Scores on a scale of 1(very low) to 5 (very higb) PCT ABC Corp Specialized Casting Prairie Casting No brand companies 46% 15% 3292 2% 5% 5 5 4 4 2 3 2 4.1) Explain your strategy for this PCT product (5 points) 7 Computer controlled equipment for tool and die shops Hydraulic jacks for automobiles 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Estimate for 2019 15.24 for 2019 59.2 2.6 4.8 6.3 11.3 22.4 10.6 20.8 32.6 16.4 16,3 Total Units Sold in Industry (million) Average Unit Price (S) Total Units Sold in Industry (million) Average Unit Price (5) 106 104 10.3 101 92 92 54 53 51 50 50 48 Industry Players Market Share Industry Players Market Share Customer Satisfaction Scores on a scale from 1 (very low) to 5 (very high) 4 1 2 4 Customer Satisfaction Scores on a scale from I (very low) to 5 (very higb) 5 Purchase Intention Scores on a scale of 1(very low) to 5 (very high) 4 1 2 3 2 3 1 | ADCT Corp Specialized Casting Sper Molding Tool Supplies Premier Casting No brand companies 8% 15% 26% 18% 12% 14% 7% 1 PCT BA Holdings Motor Equipment Inc Tool Supplies No brand companies Purchase Intention Scores on a scale of 1(very low) to 5 (very hieb) 5 2 5 5 5 7% 79% 39% 17% 30% 5 5 5 3 1 4.3) Explain your strategy for this PCT product (5 points) 4.2) Explain your strategy for this PCT product (5 points) 4.4) Please summarize in 2-3 lines the overall resource allocation strategy for PCT. (5 points) 4. Portfolio Analysis (20 points) Precision Cutting Tools (PCT) is a manufacturer of industrial tools. PCT's product portfolio mainly comprises a) large metal cutting tools for boring/stamping machines b) computer controlled equipment for tool and die shops, and e) hydraulic jacks for automobiles. The following tables show the market growth and market share, customer satisfaction levels and purchase intentions for each product. Hint: What analysis tool have we used that utilizes the information highlighted above in BOLD As a manager responsible for PCT's product strategy, you have to decide how to allocate resources across the product portfolio. Please note that it is not easy for PCT to enter a completely new market now. Explain your decision for each product. Use as much data as possible from the tables for your answers, Please note that if you want, you can use data across tables for an answer Large metalcutting tools for boring/stamping machines 2014 2015 2016 2017 2018 Estimate Total Units 32.3 45.6 Sold in Industry (million) Average Unit Price (S) for 2019 5.5 15.3 44.4 68 67 52 51 46 Industry Players Market Share Customer Satisfaction Scores on a scale from 1 (very low) to 5 (very higb) Purchase Intention Scores on a scale of 1(very low) to 5 (very higb) PCT ABC Corp Specialized Casting Prairie Casting No brand companies 46% 15% 3292 2% 5% 5 5 4 4 2 3 2 4.1) Explain your strategy for this PCT product (5 points) 7 Computer controlled equipment for tool and die shops Hydraulic jacks for automobiles 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Estimate for 2019 15.24 for 2019 59.2 2.6 4.8 6.3 11.3 22.4 10.6 20.8 32.6 16.4 16,3 Total Units Sold in Industry (million) Average Unit Price (S) Total Units Sold in Industry (million) Average Unit Price (5) 106 104 10.3 101 92 92 54 53 51 50 50 48 Industry Players Market Share Industry Players Market Share Customer Satisfaction Scores on a scale from 1 (very low) to 5 (very high) 4 1 2 4 Customer Satisfaction Scores on a scale from I (very low) to 5 (very higb) 5 Purchase Intention Scores on a scale of 1(very low) to 5 (very high) 4 1 2 3 2 3 1 | ADCT Corp Specialized Casting Sper Molding Tool Supplies Premier Casting No brand companies 8% 15% 26% 18% 12% 14% 7% 1 PCT BA Holdings Motor Equipment Inc Tool Supplies No brand companies Purchase Intention Scores on a scale of 1(very low) to 5 (very hieb) 5 2 5 5 5 7% 79% 39% 17% 30% 5 5 5 3 1 4.3) Explain your strategy for this PCT product (5 points) 4.2) Explain your strategy for this PCT product (5 points) 4.4) Please summarize in 2-3 lines the overall resource allocation strategy for PCT. (5 points)
