Chapter 2 FIGURE 2.1P/E RATIO AND MARKET PERCEPTIONS OF GROWTH FIGURE 2.2LIFE CYCLE S CURVE FIGURE 2.3STRATEGIES FOR GROWTH: THE ANSOFF MATRIX FIGURE 2.4PVGO AND STRATEGIES FOR ACHIEVING THE REQUIRED GROWTH
FIGURE 2.1P/E RATIO AND MARKET PERCEPTIONS OF GROWTH Time Earnings per share Low plc High plc Current eps
FIGURE 2.2LIFE CYCLE S CURVE LaunchGrowth Maturity Decline 0 Sales Time
FIGURE 2.3STRATEGIES FOR GROWTH: THE ANSOFF MATRIX (1) Market penetration (2) Product development (3) Market development (4) Diversification Products ExistingNew Existing Markets
Eps growth based on Quadrants 2-4 of Ansoff matrix FIGURE 2.4PVGO AND STRATEGIES FOR ACHIEVING THE REQUIRED GROWTH Time Share price eps Current eps E 1 P 0 = Value of share that relates to current eps Eps growth based on Quadrant 1 of Ansoff matrix Share price relating to extending the current strategy Share price relating to successfully getting new customers/products P 1 = current share price