Question
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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