Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Alternative Image Description

Actions

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Credit Portfolio Management

Authors: Arik Ben Do, Lev Dynkin, Jay Hyman, Bruce D. Phelps

1st Edition

1118117697, 978-1118117699

More Books

Students also viewed these General Management questions

Question

How do cultures and social communities shape communication?

Answered: 1 week ago