1. 1 BUILDING A MATRIX IBL ANSWERS

2. DAY 2 2 IBL 1. What is IBL’s relative share for product 1? 1.5:1  Table 5.1 (1,500 divided by 1,000) = 1.5:1

3. DAY 2 3 2. What will IBL’S relative market share be for product 1 in year 3?  Chart 5.4 year 3 sales forecast 1,815  Chart 5.5 company b, year 3 sales forecast 1,562 IBL

4. DAY 2 4 2. What will IBL’S relative market share be for product 1 in year 3? 1.16:1  (1815 divided by 1562) = 1.16:1 IBL

5. DAY 2 5 3. What is annual growth of the market for product 1?  Table 5.3 20%, 22%, and 25% IBL

6. DAY 2 6 4. What will be the total market volume for product 1 in year 3?  Table 5.1 sales as 1,500. Table 5.2 absolute market share of 15%. Market size in year  1 = 1500 x 100 = 10,000 1 15 IBL

7. DAY 2 7 4. What will be the total market volume for product 1 in year 3?  Thus market size for year 3 is found from the % figures in Table 5.3. 10,000 x 22% x 25% = 15,250 IBL

8. DAY 2 8 5. What is absolute market share of IBL’S product 1 in year 3?  Table 5.3, year 3 (1815) divide by answer to question 4 (15,250) = 11.9 IBL

9. DAY 2 9 IBL 6. Is the market growth in current year, high or low, relative to industry average of 10%?  HIGH at 20, 22, 25%

10. DAY 2 10 7. Table 5.1  RMSRMG 1.5:120% 2:19% 0.9:112% 0.6:110% 0.5:1 5% 0.2:1 3% 0.1:1 22%

11. DAY 2 11 20% 10% 0%.250.51 24 10 1 2 3 4 5 6 7 IBL

12. DAY 2 12 8. Table 5.1 contribution  VOLUMESIZE 1,5001.5 1,3001.3 1,0001 900.9 800.8 500.5

13. DAY 2 13 20% 10% 0%.250.51 24 1 2 3 4 5 6 7 IBL

14. DAY 2 14 9. DO YOU THINK PORTFOLIO IS WELL BALANCED? WHY?WHAT DO YOU RECOMMEND? IBL

15. DAY 2 15 20% 10% 0%.250.51 24 10 6 1 RMS 1:16.1 MG 25% 1,815 1 3 4 2 5 6

16. DAY 2 16 12. Are signs ahead good, comparing IBLS product 1 with current situation? IBL

17. DAY 2 17 20% 10% 0%.250.51 24 10 7 1 1 3 4 2 5 6

18. DAY 2 18 13. What is happening to main product? c. Losing market share in a growing market IBL

19. DAY 2 19 20% 10% 0%.250.51 24 10 7 1 1 3 4 2 5 6

20. DAY 2 20 14. What policy should IBL pursue for product 1. D. Hold price increase promotion IBL

21. DAY 2 21 20% 10% 0%.250.51 24 10 7 1 1 3 4 2 5 6

22. DAY 2 22 15. What other products would you invest in?  B. 3 and 7 IBL

23. DAY 2 23 20% 10% 0%.250.51 24 10 1 2 3 4 5 6 7 7 3 1

24. DAY 2 24 16. Which product should you maintain current position?  2, 3, 4, 5, 6 or 7 IBL

25. DAY 2 25 20% 10% 0%.250.51 24 10 1 3 4 5 6 7 7 3 1 2

26. DAY 2 26 17. Which combinations should be managed for cash options  c. 4, 5, 6 IBL

27. DAY 2 27 20% 10% 0%.250.51 24 10 1 2 3 4 5 6 7 4 5 6 1

28. DAY 2 28 IBL TRY TO USE ONLY TEN PRODUCTS  OR USE 20% that account for majority of turnover

29. DAY 2 29 PRODUCT STRATEGIES 1. TARGET FOR DEVELOPMENT 2. DEFEND FROM COMPETITION

30. DAY 2 30 PRODUCT STRATEGIES 3. MAINTAIN WITH MINIMUM RESOURCES? 4. WITHDRAW?

31. DAY 2 31 GROWTH STRATEGIES CURRENT NEW MARKETS PRESENT MARKETS NEW/FUTURE VERTICAL INTEGRATION VERTICAL INTEGRATION GROWTH PROD DEVELOP MARKET DEVELOP DIVERSIFY

32. DAY 2 32 MATRIX DESIGN TARGET KEY SUCCESS FACTORS MUST BE MEASURABLE FUTURE FOCUS

33. DAY 2 33 WHAT IS THE STRATEGY? MARKET GROWTH % P.A. MARKET SHARE % 3 1 2 0 10 20 40

34. DAY 2 34 WHAT IS THE STRATEGY? MARKET ATTRACTIVENESS PRODUCT STRENGTHS 3 1 2 LOWMEDHIGH LOW MED HIGH

35. DAY 2 35 WHAT IS THE STRATEGY? PRICE COMPETITIVENESS QUALITY COMPETITIVENESS 3 1 2 LOWMEDHIGH LOW MED HIGH

36. DAY 2 36 WHAT IS THE STRATEGY? INVESTMENT SALES POTENTIAL SALES POTENTIAL 3 1 2 LOWMEDHIGH LOW MED HIGH

37. DAY 2 37 WHAT IS THE STRATEGY? MARKETING CAPABILITY DEVELOPMENT CAPABILITY 31 2 LOWMEDHIGH LOW MED HIGH

38. DAY 2 38 WHAT IS THE STRATEGY? RETURN ON INVESTMENT LEVEL OF RISK 3 1 2 LOWMEDHIGH LOW MED HIGH