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 youve 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.
What are your recommendations for each business unit? Should they be targeted for growth or divested? Justify your answer. (Length 250 words)
Line of Business Information Table: Criteria Retail Brokerage Real Estate Credit Insurance Section 1: Industry Attractiveness 4.34% 12.09% 4.01% 13.90% 4.15% Industry growth rate Competitive rivarly (rank) 5 (high rivarly) 4 3 2 1 Section 2: Competitive Position 2 4 1 (big share) 5 (small share) 3 Market share (rank) Profitability (ROS) 1.2% 11.7% 4.9% 4.3% 8.8% Section 3: Portion of Business 5.1 35.0 4.9 3.0 Share of 52.0 revenue 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 Weight Competive Position Rating Score Section 1: Key Success Factors Market share Profitability (ROS) Totals Section 2: Criteria Industry growth rate Competitive rivalry Totals 0.50 0.50 1.00 Weight 0.60 0.40 1.00 Rating Score Line of Business Information Table: Criteria Retail Brokerage Real Estate Credit Insurance Section 1: Industry Attractiveness 4.34% 12.09% 4.01% 13.90% 4.15% Industry growth rate Competitive rivarly (rank) 5 (high rivarly) 4 3 2 1 Section 2: Competitive Position 2 4 1 (big share) 5 (small share) 3 Market share (rank) Profitability (ROS) 1.2% 11.7% 4.9% 4.3% 8.8% Section 3: Portion of Business 5.1 35.0 4.9 3.0 Share of 52.0 revenue 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 Weight Competive Position Rating Score Section 1: Key Success Factors Market share Profitability (ROS) Totals Section 2: Criteria Industry growth rate Competitive rivalry Totals 0.50 0.50 1.00 Weight 0.60 0.40 1.00 Rating ScoreStep by Step Solution
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