Plotting the Information Each business unit can be portrayed as a circle plotted on the matrix, with the information conveyed as follows: The arrow in the upward left direction indicates that the business unit is projected to gain strength relative to competitors, and that the business unit is in an industry that is projected to become more attractive.
Harvest weak business units in unattractive industries, average business units in unattractive industries, and weak business units in average industries. The following table shows how industry attractiveness and business unit competitive strength will change in 2 years.
For example, within the harvest group the firm would be inclined to quickly divest itself of a weak business in an unattractive industry, whereas it might perform a phased harvest of an average business unit in the same industry. This affects the decisions we make about our investments into one or another business 9 cell industry attractiveness business strength matrix.
Market size is represented by the size of the circle. Further analysis may reveal that investments into some of the business units can considerably improve their competitive positions or that the industry may experience major growth in the future. Strategic Implications Resource allocation recommendations can be made to grow, hold, or harvest a strategic business unit based on its position on the matrix as follows: There are strategy variations within these three groups.
The expected future position of the circle is portrayed by means of an arrow. Rather than serving as the primary tool for resource allocation, portfolio matrices are better suited to displaying a quick synopsis of the strategic business units.
Hold average businesses in average industries, strong businesses in weak industries, and weak business in attractive industies.
Well, the company should consult with the industry analysts to determine whether the industry attractiveness will grow, stay the same or decrease in the future. When all the information is collected you should include it to your existing matrix, by adding the arrows to the circles.
What should companies do with these business units? How to do that? Grow strong business units in attractive industries, average business units in attractive industries, and strong business units in average industries.
While the GE business screen represents an improvement over the more simple BCG growth-share matrix, it still presents a somewhat limited view by not considering interactions among the business units and by neglecting to address the core competencies leading to value creation.
The general rule should be to invest in business units which operate in huge markets and there are not many dominant players in the market, so the investments would help to easily win larger market share. Second, the business units that only make losses should be divested.
It is essential to provide as much resources as possible for BUs so there would be no constraints for them to grow.
You should also discuss with your managers whether your business unit competitive strength will likely increase or decrease in the near future.
The answer is no and the matrix should take that into consideration. The arrows should point to the future position of a business unit.
Market share is shown by using the circle as a pie chart. Companies should invest into the business units that fall into these boxes as they promise the highest returns in the future.
The following is an example of such a representation: This means that the companies should invest into these business units just enough to keep them operating and collect all the cash generated by it.
The tip of the arrow indicates the future position of the center point of the circle.16 9-Cell Industry Attractiveness/Business Strength Matrix Media Networks Parks and High Resorts Industry Attractiveness Consumer Products Studio Entertainment Interactive Low Media Strong Average Weak 17 Business Strength/Competitive Position 9-Cell Industry Attractiveness.
Adidas 9 Cell Industry Attractiveness Business Strength Matrix #2 Adidas in Has Corporate Restructuring Increased Shareholder Value? 1.
What generic corporate strategy is Adidas pursuing? Is this strategy the same for all its business units?
2. 4. What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCo’s business units look like? Summary of 9-cell matrix While some are above others, all of PepsiCo’s business units are relatively attractive. The reason that these brands are so strong is because of their dedication to R&D, their established brand 94%(89).
A 9-Cell Industry Attractiveness/Business Strength Matrix Displaying P&G and Gillette's Business Units; A 9-Cell Industry Attractiveness/Business Strength Matrix Displaying P&G and Gillette's Business Units. Words Feb 8th, 4 Pages. Search Results for '4 what does a 9 cell industry attractiveness business strength matrix displaying sara lee' Case Questions LIST OF CASES: Guidelines for Case Analysis of Cases for Presentation & Discussion Below are some guidelines and suggested questions for you to analyse each of the cases.
The GE matrix generalizes the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business .Download