The Industry Attractiveness

Business Strength Matrix

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Tutorial
For a tutorial on the theoretical
concepts of this model double
click the maroon box
Then click each screen
e theoretical
Industry Attractiveness /Business Strength Matrix
An interactive strategic model for use with Microsoft Excel Designed by P.M. Cooke ©

Using the Model

It is recommended that the model is run using Excels "Full Screen" option to access this
select "View" from the menu bar and select FULL SCREEN

Main Menu
This gives three options:
1. Access to the help system
2. Data entry and production of the Matrix
3.A tutorial on the theoretical concepts of the Matrix
Data Entry
Select the data entry option from the main menu this will access the data entry screen

Entering data - all data entry boxes are dark grey

1. Enter the portfolio member
2. Enter the industry size
3. Enter the weights for each factor listed (the total of the weights
must equal 1) once the correct total value of the weights has been entered
the red warning message will disappear.
4. Enter a rating for each factor on a scale of 1 to 10 for each weighting
Once you have printed the ratings using the command button transfer each set of data using "Tran
From the data entered a total Industry Attractiveness factor will be calculated

Now enter the data for Business Strength - data entry follows the same format

Once you are satisfied with the data entered for a portfolio member "PRINT"
are transferred to the matrix using the "Transfer" command button (the data entry boxes are clea

Repeat this procedure for each portfolio member

To view the summary of the ratings for all portfolio members press the
View Data command button - you will transfer to the Matrix Data sheet
Matrix construction
The matrix rating data is held in columns I to L on the Matrix Data sheet
You may edit this data if required
Once satisfied with the data press the Construct Matrix command button
The matrix rating data is held in columns I to L on the Matrix Data sheet
the data is now transferred into columns A to D and a preview of the Matrix
is shown.
The matrix data summary can be printed using the Print Data command
button
The matrix can be accessed by the View Matrix command button.
The Matrix can be printed from the Matrix sheet using the Print Matrix
command button

N.B. If you require to save a matrix save the file giving it a new name as entering new data
will overwrite a previous matrix
sfer each set of data using "Transfer"

the ratings using the command button - this must be done before the ratings
(the data entry boxes are cleared on transf ready for the next portfolio member
 BUSINESS STRENGTH /
COMPETITIVE POSITION
G.E. INDUSTRY ATTRACTIVENESS
BUSINESS STRENGTH MATRIX
STRONG AVERAGE WEAK
9

HIGH

LONG TERM
INDUSTRY
ATTRACTIVENESS MEDIUM

RED /BLACK - HIGH PRIORITY FOR INVESTMENT

3

RED / GREEN - MEDIUM PRIORITY FOR INVESTMENT

GREEN/ BLACK - LOW PRIORITY FOR INVESTMENT LOW

9 6 3 0
The Industry Attractiveness /Business Strength Matrix
Portfolio Member Bus . Stren. Ind. Att. Indusry
Rating Rating Size
The Industry Attractiveness /Business Strength Matrix
1. Enter weights for each factor N.B. total must equal 1
2. Rate the factors between 1 and 10 and enter in the Rating column (Press "Enter" to calculate "Industry Rating")
3. First PRINT then transfer the Ratings to the matrix data sheet using the command button below
Portfolio Member 4. Enter Portfolio Member Name
Industry Size 5. Enter Industry size in Millions (sales value)
Business Strength Competitive Position Weight Rating Industry Rating
Relative market share 0
Possession of Core Competencies 0
Profit margins relative to competitors 0
Ability to beat/match rivals on products/service 0
Relative cost position 0
Knowledge of customers and markets 0
Technological capabilities 0
Calibre of management 0
Total of Weights Must equal 1 (Column E) 0 Enter rating score 1 to 10 in col
Business Strength Competitive Rating 0

The Industry Attractiveness /Business Strength Matrix

Weighted
Industry /Attractiveness Factor Weight Rating Industry Rating
Market size and projected growth 0
Seasonality and cyclical influences 0
Technological considerations 0
Intensity of competition 0
Emerging opportunities and threats 0
Capital requirements 0
Industry profitability 0
Social political regulatory environ. Factors 0
Total of Weights Must equal 1 (Column E) 0 Enter rating score 1 to 10 in col
Industry /Attractiveness Rating 0

N.B. Ratings may be transferred for up to Command Buttons

a maximum of 20 Portfolio Members ( individually) Print Ratings

Print the ratings for each Portfolio member Transfer Ratings to Matrix
BEFORE transferring the data to the matrix as the
data entry boxes are cleared ready to accept View Matrix input data
data for the next Portfolio Member on transfer of data
"Industry Rating")

rating score 1 to 10 in column F

rating score 1 to 10 in column F