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Suppose you are the head of business strategy at Olivia Inc., a consumer foods company. You feel that the company should adopt a focused strategy

Suppose you are the head of business strategy at Olivia Inc., a consumer foods company. You feel that the company should adopt a focused strategy and shed some of its businessesright now it has six divisions. A tool that you can use to evaluate strategic issues is the growth-share matrix. Suppose the divisions have the following characteristics; evaluate each using the matrix.

Which divisions would you keep, and which ones would you shed? Why? (See the spreadsheet template - Workbook Chapter Six "Growth Share.xls")

Growth Rate Market Share Revenues ($mm)

Division 1

32%

1.50

50

Division 2

15%

0.70

70

Division 3

20%

0.50

150

Division 4

4%

2.00

200

Division 5

24%

0.30

120

Division 6

6%

0.80

100

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