Strategic Condition Matrix
A-This SBU is one of the biggest and oldest brands of lens photographical lenses in the World. It used to be the biggest supplier of lenses to both professional and amateur photographers, before the growth and current dominance of digital cameras. It needs to invest in a change programme that will downsize its business and give it a new and rejuvenated strategic direction.
Ans: Weak/Aging - Manage for change if the brand can be rejuvenated, or with draw.
B - This SBU manufactures high technology lasers that are used in the manufacture of specialist components for the production of aircraft. It has a number of unique patents as well as a 10 year contract with the World's largest aircraft manufacturer.
Ans: Dominant/Growth - Act offensively and grow business. Be prepared to defend your position from competitors with rival solutions.
C - This SBU is photocopier manufacturer that is currently under increasing attack from budget priced competitors that offer a very similar product and service package with a no frills brand. The SBU is finding it difficult to hold on to market share.
Ans: Tenable/Mature - Try to recapture market share, but may ultimately be doomed so withdrawal may be necessary sooner rather than later.
D - This SBU markets high quality optical equipment for use in laboratories, mainly in schools in Europe and the United States.
Ans: Favourable/Mature - This SBU operates in a niche or narrow segment. It should target and defend educational sectors within its traditional markets.
E - This SBU manufactures and promotes the World's most well know lenses brand. This designer lens is marketed through retails outlets throughout the World and tends to command a premium price not only for precision but also through its association with fashion and celebrity.
Ans: Strong/Embryonic - Embryonic since it is based upon fashion which tends to have short Product Life Cycles (PLC), and so industries are never mature and always rejuvenating.
Shell Directional Policy Matrix A Nine Celled directional Policy Matrix The Shell Directional Policy Matrix is another refinement upon the Boston Matrix. Along the horizontal axis are prospects for sector profitability, and along the vertical axis is a company's competitive capability. As with the GE Business Screen the location of a Strategic Business Unit (SBU) in any cell of the matrix implies different strategic decisions. However decisions often span options and in practice the zones are an irregular shape and do not tend to be accommodated by box shapes. Instead they blend into each other. Each of the zones is described as follows: Leader - major resources are focused upon the SBU. Try harder - could be vulnerable over a longer period of time, but fine for now. Double or quit - gamble on potential major SBU's for the future. Growth - grow the market by focusing just enough resources here. Custodial - just like a cash cow, milk it and do not commit any more resourc...
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