Question
The following data is taken from a firm with several business units. Using the line of business information and the weightings provided, rate both the
The following data is taken from a firm with several business units. Using the line of business information and the weightings provided, rate both the competitive position and attractiveness of each business unit.
Once you've obtained a score for each, map it onto a 9-cell McKinsey matrix. For clarification, the analyzing the portfolio section will need to be completed separately for each of the 5 business units. The resulting scores will give you graph points to place on a single McKinsey Matrix.
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Line of Business Information Table:
Criteria | Retail | Credit | Insurance | Brokerage | Real Estate |
Section 1: Industry Attractiveness | |||||
Industry growth rate | 4.01% | 4.34% | 12.09% | 13.90% | 4.15% |
Competitive rivarly (rank) | 5 (high rivarly) | 4 | 3 | 2 | 1 |
Section 2: Competitive Position | |||||
Market share (rank) | 1 (big share) | 2 | 4 | 5 (small share) | 3 |
Profitability (ROS) | 1.2% | 11.7% | 4.9% | 4.3% | 8.8% |
Section 3: Portion of Business | |||||
Share of revenue | 52.0 | 5.1 | 35.0 | 4.9 | 3.0 |
Share of profit | 18.0 | 17.8 | 50.2 | 6.2 | 7.8 |
Anaylzing the Portfolio Table:
Rating: 4= Best, 3= Near the top, 2= Average, 1= Poor
Competive Position | |||
Section 1: Key Success Factors | Weight | Rating | Score |
Market share | 0.50 | ||
Profitability (ROS) | 0.50 | ||
Totals | 1.00 | ||
Section 2: Criteria | Weight | Rating | Score |
Industry growth rate | 0.60 | ||
Competitive rivalry | 0.40 | ||
Totals | 1.00 |
How do I put the ratings and map a 9 cell mckinsey matrix for each business unit?
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