MATRIXV5 2manual PDF

Version 5.
2 User Manual Revised 05 October 2007
MATRIX V5.2 USER MANUAL
SECTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Appendix 1
SECTION Title Introduction Quick Start The MATRIX V5 User Interface The MATRIX V5 Navigator The MATRIX V5 Menu Bar The MATRIX V5 Toolbar Scenarios Segmentation Matrix Segmentation Map And Advanced Segmentation Ansoff Matrix The Competitors Dialogue The Economic Objectives Data Editor The Market History And Forecast Data Editor The Market Attractiveness Scorecard The Competitive Strength Scorecard The Criterion Scorecard Text Input Life Cycle Analysis Share Analysis Market Attractiveness Analysis Competitive Strength Analysis Boston Matrix Directional Policy Matrix Perceptual Maps Gap Analysis Risk Analysis The MATRIX V5 / Microsoft Excel Interface Alphabetic Index
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Copyright 2007, Market Modelling Limited, Lorrimer Yeat, Endmoor, KENDAL, Cumbria, LA8 0EP, UK Tel +44-(0)1-539-561-258, Fax +44-(0)1-539-561-259, Email support@market-modelling.co.uk
SECTION 1 Introduction
This section contains introductory information about the following Help System / Manual, MATRIX V5 and Market Modelling Limited. Topic No 1.1 1.2 1.3 1.4 1.5 Go to Topic 1.1 Topic Title How To Use This Help System / Manual An Overview Of MATRIX V5.2 Registering MATRIX V5.2 Upgrading Models To MATRIX V5 Standard About Market Modelling Limited
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SECTION 1 Introduction Topic 1.1 - How To Use This Help System / Manual This Help System / Manual has been designed to enable users to work their way step-by-step through the MATRIX V5 Strategic Marketing Software Package. The subject matter, which covers the entire functionality of MATRIX V5, has been broken down into twenty-seven easy-to-follow sections. The topics contained within each section are presented in a logical sequence. Each topic builds upon what has been described before, so it is recommended that users become thoroughly familiar with the contents of a topic before progressing on to the next. If you want to get the most out of MATRIX V5, take your time and do not skip anything, otherwise you may miss an important concept or feature! The Help System / Manual assumes that the software has been successfully installed on to a Personal Computer. It can be used both with the Restricted Version of the software (which has limited functionality), and the Full Licence of the software, both of which can be purchased from Market Modelling Limited. The functions that are subject to such limitations have been clearly identified. The Manual is provided in Microsoft Word format. Users are welcome to obtain print outs if a hard copy is considered easier to work with. Go to Topic 1.2
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SECTION 1 Introduction Topic 1.2 - An Overview Of MATRIX V5.2 MATRIX V5 is a state of the art Windows PC application that will help business strategists to analyse the potential of target markets and develop winning strategies. By using a combination of market history, forecast sales data and real world information, users are able to build realistic and enlightening models for their businesses. The result is a clearer understanding of the marketing environment, a more balanced portfolio of Products and Market Segments, and lower risk business decisions. MATRIX V5 reflects the most recent thinking in marketing, is very powerful and very easy to use. Striking a Balance Markets are becoming increasingly competitive market lifetimes are becoming shorter typically over half of the market is shared by the top two suppliers the costs of market entry can be enormous getting it wrong can be a disaster Executives are now coming under increasing pressure to adopt a more rigorous approach to strategic problems. They need structures to describe their markets. They need a transparent decision making process in which they can frame and win their arguments. And they must be able to point to evidence in support of their strategic proposals. What MATRIX V5 Does This sophisticated application brings together economic objectives, existing product line performance data, market statistics and qualitative data from research campaigns to reach informed decisions about business potential. MATRIX V5 will illustrate: whether objectives can be met, and where gaps exist the most attractive market segments to pursue strengths in relation to key competitors which opportunities merit further cash injection, and which ones are ripe for milking. which opportunities should be retained within the portfolio, and which ones should be divested the optimum Risk / Return portfolio the implications of changing market conditions.
The analysis provides a firm base from which to develop market-winning strategies. Text, data and charts can be exported to strategic plans, spreadsheets and presentations, enabling you to present the facts about your business strategy more effectively and more professionally. Principals All of the principals adopted in MATRIX V5 are well documented in leading textbooks on Strategic Analysis and all of the algorithms and procedures are 100% compliant with industry standards. The authors have been careful to avoid falling into the doctrine of only one guru, thereby giving the user the best of all current thinking in the industry.
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MATRIX V5 Product Specification Supports an unlimited number of Business Models each Business Model supports an unlimited number of Scenarios each Scenario supports an unlimited number of Markets, Segments, Products and Competitors input of data into simple dialogue boxes interface to Microsoft Excel* extensive use of graphical analysis / illustration output of vector graphics to Microsoft PowerPoint* and other compatible presentation packages interface to Microsoft Word* for report / plan generation fully documented on-line help system fully documented Tutorial Model runs under Microsoft Windows 2000* and Windows xp* * All Trademarks Acknowledged Go to Topic 1.3
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SECTION 1 Introduction Topic 1.3 - Registering MATRIX V5.2 To access the full functionality of MATRIX V5.2, you will need to Activate the software with an appropriate Activation Code. This code is dependent upon your computer and we require the matching 'MATRIX V5 Serial Number', which can be accessed as follows: 1. Install MATRIX V5.2 on to your computer. 2. Go to 'Start', 'Programs' and search for the 'MATRIX V5.2 Icon. Passing the cursor over this menu item opens a sub-menu. Select 'Register MATRIX V5.2' sub-menu item. 3. This action will take you to the End User Licence Agreement. If the Agreement is acceptable to you, please click 'I Agree'. 4. This action will take you to the MATRIX V5.2 Registration Screen. 5. Please Email the MATRIX V5.2 Serial Number displayed in the Registration Screen to support@market-modelling.co.uk. Once we have received the Serial Number, we will promptly return to you by Email the corresponding MATRIX V5.2 Activation Code along with further instructions. Go to Topic 1.4
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SECTION 1 Introduction Topic 1.4 - Upgrading Models To MATRIX V5 Standard With the release of MATRIX V5, a number of significant changes have been made to the underlying Microsoft Access database structure. As the model upgrade process is irreversible, we first recommend that you make a backup copy of the corresponding MATRIX.mdb database file. By default, the MATRIX.mdb file is held in C:\Program Files\MATRIX V4.1\Models\MyModel (where MyModel is the name of the model that you wish to upgrade). The backup copy of the database file should of course be pasted into a temporary folder should it be required for further reference. Once you are ready to upgrade the MATRIX V4 model, it should be accessed via File / Open New Model as per normal. If a MATRIX V4 standard model is detected, the following Message Box will appear:
To proceed with the upgrade, click the OK button. Changes will then be made to the database, and the model will soon be ready for use in MATRIX V5. Note however that YOU SHOULD NOT ATTEMPT TO RE-OPEN THIS MODEL WITH MATRIX V4. This Message Box will not reappear. To abandon the procedure, click the Cancel button. In this case the changes will not be made, and you can continue using the model with MATRIX V4. If you attempt to open the model again using MATRIX V5, the Message Box will reappear until you have elected to complete the upgrade. Go to Topic 1.5
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SECTION 1 Introduction Topic 1.5 - About Market Modelling Limited Market Modelling Limited is primarily a software development company that has built up a portfolio of expert-user software applications for the business strategist. Our aims are to help our customer gain focus for his / her enterprise, build presence in the marketplace and optimise the deployment of marketing resource. During early 1997 Market Modelling Limited purchased the Intellectual Property Rights to MatMar, a spreadsheet based decision support tool that handled the Ansoff, Boston and Directional Policy Matrix techniques. The decision was made later in 1997 to extend the capability of MatMar to cover Market Attractiveness, Competitive Strength, Gap Analysis and Risk Analysis, and to redevelop the product using more modern software components. The resultant application was relaunched as MATRIX V3 early in 1998. Since that time, work has continued on MATRIX V3 (MATRIX V4, and more recently on MATRIX V5), resulting in a product and an approach to strategic marketing that sets the standard the world over. Work on Market Mapping Software V1 started early during the year 2000. Market Modelling Limited had discussions with a number of academic and consultant bodies and came to the conclusion that such a mapping application needed to be graphically driven but able to support simple arithmetic algorithms for calculating volumes, percentages, mark-ups etc. The resultant Market Mapping Software V1 package was released during the autumn of 2000. More recent developments have included an extension to the arithmetic functions, support for pictorial mapping and an interface to Microsoft Excel*. The latest version 2 of Market Mapping Software was released in March 2006. The idea of TACTIX V1 as a lower-level planning tool to complement MATRIX had been discussed internally for a number of years. By the spring of 2001, a sufficiently robust model for the application had been developed and programming work commenced in October 2001. TACTIX V1 which for the first time enables the user to produce a marketing driven business plan - was released in the summer of 2002. We are dedicated to the development of software applications for the business strategist. Users of our products range from company employees fulfilling an internal consultancy role to Academics and members of the external consulting community. Our pledge is to continue developing new software applications that support what is accepted as best practice within the industry, and to keep existing products up-to-date with the latest technologies. Market Modelling Limited Lorrimer Yeat, Endmoor, Kendal, Cumbria, LA8 0EP Tel +44-(0)1-539-561-258, Fax +44-(0)1-539-561-259 Email: support@market-modelling.co.uk http://www.market-modelling.co.uk * All trademarks acknowledged Go to SECTION 2
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SECTION 2 Quick Start

This section provides a quick introduction to the scope of the MATRIX V5 application, and helps you to create a simple model. Topic No 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 Go to Topic 2.1 Topic Title Step 1 - Overview Step 2 Economic Objectives Data Step 3 - Define Portfolio Step 4 - The Ansoff Matrix Step 5 - Market Attractiveness Data Step 6 - The Competitors Dialogue Step 7 - Competitive Strength Data Step 8 Market History And Forecast Data Step 9 - Life Cycle Analysis Step 10 Share Analysis Step 11 Market Attractiveness Analysis Step 12 Competitive Strength Analysis Step 13 Boston Matrix Step 14 Directional Policy Matrix Step 15 Perceptual Maps Step 16 Gap Analysis Step 17 Risk Analysis
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SECTION 2 Quick Start Topic 2.1 Step 1 - Overview The following topics provide a 'quick introduction' to the scope of the MATRIX V5 Strategic Marketing software application, and how it works. They are meant to help the 'would be' buyer to decide whether the application fits his or her requirements by providing a quick words and diagrams 'route map' through the application, illustrating the key inputs and outputs. The purpose of MATRIX V5 is to build the well-known strategic 'concepts' that typically feed into a programme of Strategic Analysis. Most of the concepts used in MATRIX V5 are well documented in leading text-books on the subject and individually (or collectively) can help the user assess what elements of the business portfolio are worth retaining for investment, which elements should be managed for cash, or (in a worse case scenario) which elements should be disposed of. MATRIX V5 is NOT a low level marketing planning tool. Strategic analysis tells you 'what you should be doing'; and considers the structure of the markets that you are addressing, your competitive position, which opportunities you should be investing in, where you should be generating cash, the risks and the potential returns. Creating a lower level marketing plan is more creative exercise and considers in much greater depth the question of 'how you should be doing it' that is how your product offering is to be packaged, how to promote your services, how your products should be routed to market and so on. If you are interested in marketing planning then you should certainly take a look at another of our products - TACTIX V1 - which draws together the disparate elements of a tactical marketing plan within a cohesive financial framework. When using MATRIX V5 for the first time, we recommend that you adopt the following simple and logical sequence of operations, namely: Set Economic Objectives (Step 2). Economic Objectives (Revenue and Gross Margin) are set for the business in focus. Define Strategic Content and Scope (Steps 3 to 4). Structure the business into a coherent portfolio of Market, Product and Segment opportunities within the Segmentation Matrix. Plot the resulting Niches on the Ansoff (Growth Vector) Matrix. Marketing Audit (Steps 5 8). Audit each Niche. Market Attractiveness, Competitive Strength, Market History, and Forecast Sales data is managed through a number of 'easy to use' scorecards and data editors. Review Models and Concepts (Steps 9 17). Review the analyses and reconcile your view of the opportunities presented to you. It may be that some business opportunities are less attractive than were at first apparent, so it may be necessary to revise some of the data - or perhaps change your assumptions! MATRIX V5 supports a variety of well-known 'industry standard' analyses, including: Life Cycle Analysis Share Analysis Market Attractiveness Competitive Strength Boston Matrix Directional Policy Matrix Perceptual Maps Gap Analysis Risk Analysis
The HandyMan Example Model: The 'HandyMan' example model supplied with the application represents a detailed analysis of the strategic issues facing HandyMan PLC, a fictional company that manufactures robotic assemblies. The purpose of the example model is to illustrate the wide range of analytical capability supported by MATRIX V5 using some easily recognisable products and markets. Whilst we recognise that not all prospective customers who download our software are involved with robotic assemblies, we hope that Page 11 of 296

the example model will be accepted in the 'illustrative' spirit with which it has been designed. All companies referred to within this example model are fictional; any similarity to any real company is purely coincidental and unintentional. Opening the HandyMan Model:
Assuming that the software has been successfully installed, click the MATRIX V5.2 button (shown above) located on your desktop. You will be taken to the 'Last Model' Dialogue.
Click the 'Open' button. If the application is running in Read Only or Restricted mode, a pop-up reminder provides information, and encourages you to purchase the software. To clear the pop-up display, click the 'OK' button. MATRIX V5 should now be fully opened and the user interface should be displayed as follows:
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You are now ready to progress to the next step (Economic Objectives). Each of the steps supported by MATRIX V5 can be explored in more depth below. All of the diagrams used within the following pages have been extracted from a working version of MATRIX V5. Go to Topic 2.2
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SECTION 2 Quick Start Topic 2.2 Step 2 Set Economic Objectives The Host Companys Economic Objectives are defined using the simple 'Economic Objectives' Data Editor. MATRIX V5 uses known Revenue and Gross Margin data for previous years, and Forecasts of Revenue and Gross Margin for the current, and all future years within the Model Timeframe. Note the year-on-year percentage growths are calculated automatically and displayed within the Data Editor.
To display the Economic Objectives Data Editor, click the Economic Objectives button shown above.
To display the Data Editor exactly as shown above, click the Economic Objectives button. In the example shown above, the Host Company's Revenue Objectives are set to grow by a Compound Annual Growth Rate (CAGR) of 20% from 20,000,000.00 in 2006, to 41,472,000.00 in 2010. The company anticipates its Gross Margin will grow by a CAGR of 15% from 6,000,000.00 in 2006 to 10,494,038.00 in 2010.
The information provided via this Data Editor is used within Gap Analysis (calculation of gap). Go to Topic 2.3
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SECTION 2 Quick Start Topic 2.3 Step 3 The Segmentation Matrix Michael Porter proposed the Segmentation Matrix in his celebrated book Competitive Advantage first published in 1985. In it he proposes that an industry can be arranged as a two dimensional array of Buyers on the X-Axis, and Product' or 'Service Variety on the Y-Axis. MATRIX V5 Strategic Marketing software faithfully builds upon Porter's concept as the backbone of the modelling process, albeit that the nomenclature has changed. On the Z-Axis, the term 'Industry' (reflecting a supply driven model) is now replaced with 'Market' (to reflect a demand driven model), 'Products' (or 'Services') are displayed on the X-Axis, and 'Buyer Types', or more correctly 'Segments' of the market are displayed on the Y-Axis. The resulting Product / Market / Segment opportunities are known as 'Niches'. Users should not become overly concerned about nomenclature at this stage. A considerable amount of flexibility can be applied to the definition of 'Market', 'Product' etc, and notionally, the different axes are interchangeable to suit the modelling exercise. Normally most users do not have a problem defining the Products (or services) they offer; however reaching a consensus of opinion about what Markets, and in particular which Market Segments the business operates generally causes more difficulty. Often such a 'vision' only follows an analysis of the way in which markets are structured through a detailed Market Ecosystem and Value Mapping exercise. The Segmentation Matrix can support an unlimited number of Markets, Products and Segments, but for practical reasons the number of Market, Product and Segment 'entries' should be limited to a manageable number. Remember, 10 of each could potentially generate 1000 Niches, and keeping track of such a large number within the model may prove difficult. Bigger models can be 'nested', and more information about this more advanced approach can be obtained from Market Modelling Limited.
In the example shown above, the host company is addressing three Markets (Europe, North America and the Rest Of World). The selected Market - 'Europe' - has been split into three user-defined Segments (Industrial, Educational and Hobby), addressed by three Products (Metallic Assemblies, Composite Assemblies and Plastic Assemblies). Note that four of the 'Niches' have been defined Closed by the user. The Host Company will NOT be operating in these areas. Data relating to a 'Closed' Niche is not taken into consideration in underlying calculations.
Each Niche is colour coded, the colour being utilised in all of the subsequent analyses. Note, the user has full control over the colour ascribed to each Niche, and also control over the Market, Product and Segment 'labels'. Go to Topic 2.4
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SECTION 2 Quick Start Topic 2.4 Step 4 - The Ansoff Matrix The Ansoff Matrix is one of a number of 'classical marketing concepts' addressed by MATRIX V5. This matrix, which encapsulates the future vision of the company, is one of the most celebrated of all Strategic Modelling tools. It maps the status of each Niche against status both of Product and of Market (Existing or New). The resulting pattern provides a basis for assessing the host company's intended method of growth, and provides a qualitative view of risk.
To display the Ansoff Matrix, click the Ansoff Matrix button shown above.
To display the Matrix exactly as shown above, click the Ansoff Matrix Button. In the example shown above, each colour coded Niche defined within the Segmentation Matrix has been plotted within the appropriate Ansoff Matrix quadrant by simple 'point and click' method - the more recent the Product or Market Segment, the further to the right or bottom of the window respectively. The Host Company intends to grow its business by Market Penetration and Product Expansion. Note the 'pop-up' text that appears when the cursor is passed over each dot on the Ansoff Matrix, providing further information about the Market, Product, Segment and Scenario.
A 'key' can be revealed on the left-hand side of the matrix by clicking and dragging the chart edge. MATRIX V5 is an expert user tool which links the Ansoff Matrix with Gap Analysis to show the company's overall Forecast compared to Objectives. It also reveals the underlying trend of business anticipated from Penetration, Market Expansion, Product Expansion and Diversification strategies. Go to Topic 2.5
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SECTION 2 Quick Start Topic 2.5 Step 5 - Market Attractiveness Data Take an analytical view of your business and decide which Market Attractiveness Factors (MAFs) are important to your organisation. This may mean spending some time with your management and staff discussing what type of organisation you are, and how you wish to evolve: Do you seek high volume / low value markets. Or are your skills better suited to very complex, high value opportunities that only arise a few times each year? How important are market size and market potential to you? Do you need a growing market to fuel a substantial and growing organisation, or is the potential for repeat business from a few critical accounts more important to you? Do you excel in growing markets which may be lucrative, but where there is considerable risk? Or can you make money through the adoption of sound cost-control and management techniques in older, more stable markets?
These deliberations will lead to a list of MAFs, such as 'Market Potential', 'Fit with Core Skills' etc. MATRIX V5 can accommodate an unlimited number of Market Attractiveness Factors via the Market Attractiveness Scorecard shown below, though in practice a model will typically include 5 to 10 at most.
To display the Market Attractiveness Scorecard, click the Market Attractiveness (Data) button shown above.
To display the Scorecard exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix and click the Market Attractiveness (Data) Button. In the example shown above, five Market Attractiveness Factors have been defined. Note that each Market Attractiveness Factor has been explicitly qualified with the 'scale' against which it is to be measured. For example, 'Market Potential' is a Value Function to be measured in $, Gross Margin between the years of 2008 and 2010, whereas Fit with Core Skills is a Value Function estimated on a 0 100 Scale. Clearly 'Market Potential' (weighted at 100) is the most important factor, and for the Active Niche achieves a score of 12,014,000.00. 'Competitive Intensity' (weighted at just 20) is the least important factor and for the Active Niche achieves a score of 50. Note that Competitive Intensity is an inverse rating, which reflects the view that the more intense the competition, the less attractive the opportunity.
Score each MAF for each Niche. MATRIX V5 supports both Value Function (i.e. raw), and Direct Rating (e.g. 0 to 100) techniques. A Market Attractiveness Factor may be defined as: 'Conventional', where a higher score corresponds to a more attractive proposition. An example is Profitability (measured in $), where the more profitable the Niche, the more attractive is the opportunity, or 'Inverse', where a higher score corresponds to a less attractive proposition. An example is Cost of Market Entry (measured in $), where the higher the Cost of Market Entry, the less attractive is the opportunity.
Consider the relative importance of each of the different MAFs. Apply high Swing Weights to those MAFs that are most important, and lower Swing Weights to those MAFs that are less important. For example it may be that the potential for Account Development and Repeat Business is much more critical to the success of your business than Market Growth Rate which reflects growth or expansion within the market. Page 17 of 296

Remember, a Market Attractiveness exercise uncovers your view of what you want from an ideal business opportunity, and how each of the Niches in your portfolio 'measures up' against the ideal! The information provided via the Market Attractiveness Scorecard is used within the following analyses: Market Attractiveness Directional Policy Matrix (Position on 'Relative Market Attractiveness' Axis) Risk Analysis (Position on 'Risk' axis)
Go to Topic 2.6
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SECTION 2 Quick Start Topic 2.6 Step 6 - The Competitors Dialogue Competitors are managed via a simple 'Competitors Dialogue shown below. MATRIX V5 supports an unlimited number of competitors, though in most cases users will typically consider up to five 'Key Competitors within each Niche.
To display the Competitors Data Editor, click the Competitors button shown above.
To display the Dialogue exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix, and click the Competitors button. In the example shown above, the Name of the Host Company is 'HandyMan PLC'. The company has two main competitors operating within the Niche, 'Budget Assemblies Ltd' and 'EngineerIT Ltd'.
Each Competitor is colour coded, the colour being utilised in all of the subsequent analyses. Please note, the user has full control over the colour ascribed to the Host Company and to each competitor. The user also has control over the Host Company Name, the Competitor Name, and whether the Competitor is 'mapped to (i.e. operates within) the Niche in focus. Go to Topic 2.7
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SECTION 2 Quick Start Topic 2.7 Step 7 - Competitive Strength Data Start with the market! Base your Critical Success Factors (CSFs) around what your prospective customers value and what they need! Are they looking for a long-term relationship with one supplier, or do they 'shop around' and make a decision on which supplier is offering the best deal on the day? Do cultural issues influence prospective customers, or are local trading conditions likely to count against you? Are your customers interested in product design, or quality of service and prepared to pay a premium, or do they buy on price alone?
Once defined, CSFs such as 'Product Design', 'Service & Support Capability' etc are then entered into MATRIX V5 via the Competitive Strength scorecard. The scorecard can accommodate an unlimited number of CSFs, though in practice a typical Niche will utilise perhaps 4 or 5 at most. Note, as different Niches will be driven by different needs and wants, CSFs may be different from Niche to Niche.
To display the Competitive Strength Scorecard, click the Competitive Strength (Data) button shown above.
To display the Scorecard exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix and click the Competitive Strength (Data) Button. In the example shown above, three Critical Success Factors have been defined for the Niche in focus. Clearly 'Product Design' and Service & Support Capability (both weighted at 100) are the most important factors, whilst 'Price' (weighted at 20) is the least important factor.
Now consider the relative importance of each of the different CSFs. For example it may be that Product Design and Service & Support Capability are much more important to your potential market than Price. Apply high Swing Weights to those CSFs that are most important, and lower Swing Weights to those CSFs that are less important. Each CSF then requires further expansion into Criteria, which are scored and weighted as appropriate within the underlying Criterion Scorecard.
To display the Criterion Scorecard, select the required CSF within the Competitive Strength Scorecard, and then click the Criteria button shown above.
In the example shown above the 'Product Design' CSF has been broken down into four Criteria, namely 'MTBF Benchmarks', 'Precision Engineering', 'Quality of Materials ', and 'Documentation'. Note that each Criterion has been explicitly qualified with the 'scale' against which it is to be measured. For example 'MTBF Benchmarks' is a Value Function to be measured in months, whereas Precision Engineering is a Direct Rating estimated on a 0 - 100 Scale. Clearly 'MTBF Benchmarks' and Precision
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Engineering, both weighted at 100, are the most important Criteria. The strongest supplier against MTBF Benchmarks is EngineerIT Ltd who achieves a Value Function of 18 months. Budget Assemblies Ltd, which is the weakest supplier against this criterion, achieves a Value Function of 10 months. The host company (HandyMan PLC) achieves an intermediate Value Function of 15 months. 'Documentation' (weighted at just 30) is the least important criterion.
MATRIX V5 supports both Value Function (i.e. raw), and Direct Rating (e.g. 0 to 100) techniques. A Criterion may be defined as: 'Conventional', where a higher score corresponds to a more competitive proposition. An example is Mean Time Between Faults (MTBF measured in Months), where the longer the time, the more competitive is the product, or 'Inverse', where a higher score corresponds to a 'less attractive' proposition. An example is Price (measured in $), where the higher the sales price, the less competitive is the supplier.
Remember, the Competitive Strength exercise uncovers the market's view of what it wants from an ideal supplier, and how each of the competitors acting within the market 'measures up' against the ideal! The information provided via the Competitive Strength and Criterion Scorecards are used within the following analyses: Competitive Strengths & Weaknesses Analysis Directional Policy Matrix (Position on 'Relative Competitive Strength' Axis) Risk Analysis (Position on 'Risk' axis)
Go to Topic 2.8
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SECTION 2 Quick Start Topic 2.8 Step 8 Market History And Forecast Data The 'Market History And Forecast' Data Editor enables input of market history and forecast information into MATRIX V5 software. Data typically includes: The rate of growth of the market, (or its rate of contraction) The performance of your company relative to growth (or contraction) of the market The performance of key competitors
To display the Market History And Forecast Data Editor, click the Market History And Forecast button shown above.
To display the Data Editor exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix and click the Market History And Forecast Button. In the example shown above, the Niche is approaching the mature phase of its life cycle. Sales Volumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will maintain its position within the Niche, with Sales Volumes increasing from 2,250 units in 2006 to 4,000 units in 2010. Budget Assemblies Ltd is anticipated to be one of the losers, with Sales Volumes expected to fall from a high of 3,000 units in 2006, to 2,650 units in 2010. It is anticipated that the Average Unit Price (paid by the Niche) will fall from $1,280.00 in 2006 to $1,060.00 in 2010. The Gross Margin enjoyed by HandyMan PLC will similarly erode from 50% of Sales Price in 2006 to 32% of Sales Price in 2010.
Be realistic! The temptation is always to describe a healthy growing business, or increased share of the market. Yet sometimes there is no basis for such optimism and the real driver is the desire to 'talk up' one's chances of success. If the market has over recent years been in steady decline, but you predict year-on-year improvements to sales, then someone is bound to ask what gives you cause for such optimism! The information provided via this Data Editor is used within the following analyses: Life Cycle Analysis (Niche, Host and Competitor Growth profiles) Share Analysis (Niche, Host and Competitor Shares) Boston Matrix (Position on 'Market Growth' and 'Market Share' axes, and size of bubbles) Directional Policy Matrix (Size of pies and pie slices) Perceptual Maps (Optional) (Size of bubbles, pies and pie slices) Gap Analysis (plot of polygons and in calculation of gap) Risk Analysis (Position on 'Return' axis)
Go to Topic 2.9
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SECTION 2 Quick Start Topic 2.9 Step 9 - Life Cycle Analysis
To display the Life Cycle Analysis Chart, click the Life Cycle Analysis button shown above, then make appropriate selections within the resulting Select Life Cycle Analysis Dialogue. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Life Cycle Analysis Dialogue: 1. Scope: Select HandyMan PLC, Key Competitors and Niche 2. Data: Select Volume 3. Sum: Select Niche / Market In Focus 4. Format: Select Curve, and tick the Points Tick Box Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The Niche is approaching the mature phase of its life cycle. Sales Volumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will improve its position within the Niche, with Sales Volumes increasing from 2,250 units in 2006 to 4,000 units in 2009. Budget Assemblies Ltd is anticipated to be one of the losers, with Sales Volumes expected to fall from a high of 3,000 units in 2006, to 2,650 units in 2010.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the plotted chart provide on-screen information about the Niche, Supplier, and Volume / Revenue / Gross Margin and other relevant information. The chart can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Life-Cycle Analysis Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting 'Life Cycle Analysis' charts. Tabs on the 'Select Life Cycle Analysis' Dialogue give the user choice in the format and detail of the plot. Page 23 of 296
For example, the ability to see the Host Companys performance juxtaposed to Niche and Key Competitor performance provides useful information about whether: the Host Company is growing faster, the same as, or slower than the overall Niche, the Host Company is growing faster, the same as, or slower than Key Competitors, key Competitors are growing faster, the same as, or slower than the overall Niche.
Go to Topic 2.10
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SECTION 2 Quick Start Topic 2.10 Step 10 - Share Analysis
To display the Share Analysis Chart, click the Share Analysis button shown above, then make appropriate selections within the resulting Select Share Analysis Dialogue. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Share Analysis Dialogue: 1.1 Host: Select HandyMan PLC split by Niche 2. Data: Select Revenue 3. Time: Drop Down Start Year 2006, and End Year 2010 Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above (Host Company business split by Market Niche). The largest Niche by Revenue is for Metallic Assemblies sold to the Rest of World Industrial Segment, whereas the smallest Niche by Revenue is for Plastic Assemblies sold to the European Hobby Segment.
Note that Niches are ordered anti-clockwise in order of magnitude, the largest starting at 3 O'clock. A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the chart provide on-screen information about the Niche, Supplier, Share and other relevant information. The chart can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / 'Copy to Clipboard' function. The Select Share Analysis Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting 'Share Analysis' Charts. Tabs on the 'Select Share Analysis' Dialogue enable data to be sliced and diced in many dimensions.
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Examples include: Share analysis for the Host Company, which displays the proportion of the Host Companys business from each colour coded Niche. Niches are displayed in order of size, the largest appearing first (shown below). Share analysis for each Key Competitor The Niche, Product, Segment, Market, Group or Scenario in focus analysed by Supplier.
Go to Topic 2.11
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SECTION 2 Quick Start Topic 2.11 Step 11 Market Attractiveness
To display the Market Attractiveness Chart, click the Market Attractiveness Analysis button shown above, then make appropriate selections within the Select Market Attractiveness Dialogue. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Market Attractiveness Dialogue: 1. Plot: Select Comparative 2. View: Select Overview Also, tick the View Key Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. The light green (Composite Assemblies / Europe / Industrial) Niche is the most attractive, whereas the teal (Plastic Assemblies / North America / Hobby) Niche is the least attractive.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the graph provide on-screen information about the Niche, Market Attractiveness Scores and other relevant information. The chart can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Market Attractiveness Dialogue:
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MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting 'Market Attractiveness' charts. Tabs on the 'Select Market Attractiveness' Dialogue give the user choice in the format and detail of the plot.
Examples include: Comparative i.e. a summary Column chart, which compares the overall attractiveness of all Niches. Each Niche is colour coded and displayed in order of attractiveness, the most attractive appearing first. Profile i.e. a line chart that illustrates the performance of each Niche against the required Market Attractiveness Factors. Strengths & Weaknesses i.e. a bar chart, which shows the inherent Strengths and Weaknesses of the Niche in focus. Market Attractiveness Factors are displayed in order of strength of performance, the strongest appearing first. A text description of the Market Attractiveness Factor is displayed adjacent to each bar.
Go to Topic 2.12
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SECTION 2 Quick Start Topic 2.12 Step 12 - Competitive Strength
To display the Competitive Strength Chart, click the Competitive Strength Analysis button shown above, then make appropriate selections within the Select Competitive Strength Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Competitive Strength Dialogue: 1. Plot: Select Strengths & Weaknesses, and HandyMan PLC 2. View: Select Overview, and Analysis by Criterion Clicking the Plot button reveals the example shown above (Competitive Strengths and Weaknesses for the Host). The company is in a strong position ranking amongst the best for Precision Engineering, Speed of Initial Response, Technical Knowledge of Engineer, and Typical Engineer Call-out Time. However its Typical Unit Price, which is more expensive than its key competitors, is considered to be a weakness.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the graph provide on-screen information about the Niche, Competitive Strength Scores and other relevant information. The chart can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function.
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The Select Competitive Strength Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting 'Competitive Strength' Charts. Tabs on the 'Select Competitive Strength' Dialogue give the user choice in the format and detail of the plot.
Examples include: Comparative i.e. a summary Column chart, which compares the competitiveness of all Suppliers within each Niche. Each Supplier is colour coded and displayed in order of competitiveness, the most competitive appearing first. Profile i.e. a line chart that illustrates the performance of each Supplier against the required Critical Success Factors. Strengths & Weaknesses i.e. a bar chart, which shows the inherent Strengths and Weaknesses of the Supplier in focus. Critical Success Factors (or Criteria) are displayed in order of strength of performance, the strongest appearing first. A text description of the Critical Success Factor (or Criterion) is displayed adjacent to each bar.
Go to Topic 2.13
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SECTION 2 Quick Start Topic 2.13 Step 13 The Boston Matrix
To display the Boston Matrix, click the Boston Matrix button shown above, then make appropriate selections within the Select Boston Matrix Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Boston Matrix Dialogue: 1. Plot: Select Summary and Scenario In Focus 2. Scope: Select HandyMan PLC. Tick the Use Niche Colours Tick Box 3. Data: Select Revenue 4. Sum: Select Niche 5. Time: Drop Down Start Year 2008, and End Year 2010 6. X-Axis: Select Normal Log Scale (0.1x to 10x Biggest Competitor) and tick the View X-Axis Scale Tick Box 7. Y-Axis: Select the Fixed Growth Scale (+ / - 100%), set the Offset Y-Axis Norm by (%) Text Box to 20 and tick the View Y-Axis Scale Tick Box Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. We see a well-balanced portfolio, with several opportunities for investment in the Question Mark and Star categories. Amongst these, the Composite Assembly Niches appear to be conveniently grouped together and poised for future growth. The large Cash Cows associated with Metallic Assemblies will be generating profits to fuel future growth, and the company will imminently withdraw from the two small Plastic Assembly Niches located within the 'Dog' quadrant.
Each bubble represents a Niche (over a given period of time). The colour of the bubble matches the colour of the Niche in the Segmentation Matrix. The (horizontal) X-Axis is defined as Relative Market Share which is plotted on a reversed log scale, set by default to the range 10x to 0.1x. The (vertical) Y-Axis is defined as Market Growth Rate which is plotted on a conventional scale, set by default to the range -30% to +30%.
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The diameter of each Bubble is directly proportional to the Volume or Revenue accruing to the Niche. Corresponding data was entered via the Market History And Forecast Data Editor. For Step plots, arrows clearly show the trend by joining plots for the same Niche for successive years.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the matrix provide on-screen information about the Niche, Growth, Share and other relevant information. The matrix can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Boston Matrix Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting the Boston Matrix. Tabs on the 'Select Boston Matrix' Dialogue give the user choice in the format and detail of the plot.
Examples include: Summary, Step-by-step, or Movie plots Plots for the Host Company, Key Competitors. The ability to alter the timescale of the plot Plots by Niche, Product, Segment, Market, Group or Scenario The ability to adjust the X-Axis and Y-Axis scales
Go to Topic 2.14
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SECTION 2 Quick Start Topic 2.14 Step 14 The Directional Policy Matrix
To display the Directional Policy Matrix, click the Directional Policy Matrix button shown above, then make appropriate selections within the Select Directional Policy Matrix Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings the following settings are required on the Select Directional Policy Matrix Dialogue: 1. Plot: Select Scenario In Focus. Ensure the Equalise Pie Dimensions Tick Box remains blank 2. Scope: Select Ideal / Threshold. Tick the Use Niche Colours Tick Box 3. Data: Select Revenue 4. Time: Drop Down Start Year 2006 and End Year 2010 5. Axes: Ensure the Reverse X-Axis, View X-Axis Scale and View Y-Axis Scale Tick Boxes remain blank. Tick the View Sector Captions Tick Box. Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The three Composite Assemblies Niches (Europe / Industrial, North America / Industrial, and Rest Of World / Industrial) are worthy of serious investment. The various Metallic Assemblies Niches also appear to be well placed. The company should be concerned about its relatively poor position with 'Plastic Assemblies. Note in particular the two Niches stemming from the Hobby Segment which the Host Company finds to be both unattractive, and areas in which it lacks a competitive offer. As suggested by the matrix, it will imminently divest these opportunities.
Each pie represents a Market (Niche). The colour of the pie matches the colour of the Niche in the Segmentation Matrix. Relative Market Attractiveness is calculated from the Scores and Weights entered in the Market Attractiveness Scorecard. Plots are positioned on the Y-Axis. Relative Competitive Strength is calculated from the Scores and Weights entered in the Competitive Strength and Criterion Scorecards. Plots are positioned on the X-Axis. The diameter of each Pie is directly proportional to the Volume or Revenue accruing to the Niche. Corresponding data was entered via the Market History And Forecast Data Editor. Page 33 of 296

The Angle of the Pie Slice is directly proportional to the Host Companys share. Corresponding data was entered via the Market History And Forecast Data Editor. Connectors link equivalent Niches for two different Scenarios.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the matrix provide on-screen information about the Niche, Volume (or Revenue), Market Attractiveness, Competitive Strength, and other relevant information. The matrix can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Directional Policy Matrix Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting the Directional Policy Matrix. Tabs on the 'Select Directional Policy Matrix' Dialogue give the user choice in the format and detail of the plot.
Examples include: Plots for the Scenario in Focus, Superimposing one Scenario upon another or or stepping from one Scenario to another. Ideal / Threshold Plot, or Best / Worst Plot the ability to alter the timescale of the plot
Go to Topic 2.15
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SECTION 2 Quick Start Topic 2.15 Step 15 - Perceptual Maps
To display the Directional Policy Matrix, click the Perceptual Map button shown above, then make appropriate selections within the Select Perceptual Map Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Perceptual Map Dialogue: 1. Plot: Select X-Axis Plot (Competitive Strength) Product Design, and Y-Axis Plot (Competitive Strength) Price 2. Format: Select Bubble 3. Scope: Select HandyMan PLC / All Niches. Tick the Use Niche Colours Tick Box 4. Data: Select Revenue 5. Time: Drop Down Start Year 2006 and End Year 2010 6. Axes: Ensure the Reverse X-Axis Tick Box remains blank. Tick the View X-Axis Scale and View Y-Axis Scale Tick Boxes. Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The opportunities in which the company is likely to be most competitive are those in which it is able to offer a strong Product Design at a strong (i.e. inexpensive) Price. The three Composite Assembly Niches are conveniently grouped together and show modest Product Design at a strong Price. The two Industrial / Metallic Assembly Niches show a strong Product Design at a relatively weak (i.e. expensive) Price. Further evidence of HandyMans misaligned strategy is shown by the two Hobby Niches, where an excellent Product Design is offered at the weakest (i.e. most expensive) Price.
Each bubble represents a Niche. The colour of the bubble matches the colour of the Niche in the Segmentation Matrix. Underlying data for each axis (Critical Success Factor) is entered via the Criterion Scorecard. There are no limits to the number of different 'Critical Success Factors' and supporting Criteria that can be created. Where Bubble format has been selected, the diameter of each bubble is directly proportional to the Volume or Revenue accruing to the Supplier. Corresponding data was entered via the Market History And Forecast Data Editor. Page 35 of 296

Where Pie format has been selected, the diameter of each pie is directly proportional to the Volume or Revenue accruing to the Niche. Corresponding data was entered via the Market History And Forecast Data Editor. Where Pie format has been selected, the Angle of the pie slice is directly proportional to the Suppliers share. Corresponding data was entered via the Market History And Forecast Data Editor.
A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the map provide on-screen information about the Niche, Volume (or Revenue), positions on the two axes, and other relevant information. The map can also be copied and pasted into a compatible graphics or presentation package by means of the RightHand Mouse Click / Copy to Clipboard function. The Select Perceptual Map Dialogue: MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting Perceptual Maps. Tabs on the 'Select Perceptual Map' Dialogue give the user choice in the format and detail of the plot.
Examples include: The ability to plot any Market Attractiveness Factor, or Overall Market Attractiveness against any Critical Success Factor, or Overall Competitive Strength Volume or Revenue Plots The ability to plot Spots, Bubbles (which reflect Supplier performance) or Pies (which reflect Market performance and Supplier performance) Plots for the Host Company, Key Competitors, or the Active Niche.
Go to Topic 2.16
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SECTION 2 Quick Start Topic 2.16 Step 16 - Gap Analysis
To display the Gap Analysis Chart, click the Gap Analysis button shown above, and then make appropriate selections within the Select Gap Analysis Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Perceptual Map Dialogue: 1. Sum: Select By Niche 2. Data: Select Revenue Also, tick the View Key Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. As a consequence of its late entry into the market with Composite Assemblies the Host Company is showing a negative gap by Revenue during the period 2006 to 2009. However, the company should take some comfort from the positive gap emerging in 2010 - that is, performance is expected to exceed objectives by a considerable extent.
By summing the Forecasts for each Niche, it is possible to see whether the business is on target to meet its Economic Objectives, or whether it is likely to suffer a shortfall. Such a comparison may raise issues about the viability of a portfolio. For example if there is a negative gap between the Objectives and the summed Forecasts (i.e. the Objectives are higher than the summed Forecasts). Then either: The Economic Objective needs to be revised downwards, or The portfolio needs to be expanded with additional Niches so that the gap can be bridged, or The portfolio needs to be fundamentally re-thought, or The Forecast for all, some or one of the Niches within the portfolio needs to be revised upwards such that the overall Forecast improves.
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Of course it is possible to undertake combinations of such actions to bridge the gap. A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor over the vertical gaps provide on-screen information about the Gap for each year, and other relevant information. The chart can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Gap Analysis Dialogue MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting Gap Analysis. Tabs on the 'Select Gap Analysis' Dialogue give the user choice in the format and detail of the plot.
Examples include: Plots by Niche, Product, Segment, Market, Group or Ansoff Quadrant Plots by Revenue or Gross Margin
Go to Topic 2.17
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SECTION 2 Quick Start Topic 2.17 Step 17 - Risk Analysis
To display the Risk Analysis Chart, click the Risk Analysis button shown above, and then make appropriate selections within the Select Risk Analysis Dialogue*. Finally, click the Plot button located towards the base of the Dialogue.
To display the chart exactly as shown above, the following settings are required on the Select Risk Analysis Dialogue: 1. Permutation: Tick all of the Niche Select Tick Boxes. 2. Time: Drop Down Start Year 2006 and End Year 2010 Also, tick the View Permutation Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. The Risk Analysis Chart confirms the proposition that by dropping both Niches associated with the Hobby Segment, HandyMan PLC will be able to achieve virtually 100% Return, whilst reducing Risk to just a fraction of its original value. This Permutation lies on the efficient frontier and cannot therefore be improved upon.
Relative Risk is plotted on the (horizontal) X-Axis; Relative Return is plotted on the (vertical) Y-Axis. Broadly, the concept is that Risk is inversely proportional both to the relative Attractiveness of all of the Niches within the Permutation, and to the Host Companys Competitive Strength. Risk will increase in line with the number of Niches included within the Permutation. Return is related to Gross Margin over the chosen time period (thereby reflecting the importance of Profitability), and also generally increases with the number of Niches. Often there is no right or wrong answer about which Permutation to adopt, but the strategist may gain a valuable insight into which are more and less appropriate choices. For example, if two Permutations carry roughly the same Risk, but one carries a significantly higher Return, then it becomes the obvious Permutation to adopt.
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A 'key' can be revealed on the left-hand side of the chart by clicking and dragging the chart edge. Hotspots, accessed by moving the cursor to the red Portfolio in Focus marker, and the black Frontier Markers provide on-screen information about the contents of the Permutation, and Risk and Return Scores. The map can also be copied and pasted into a compatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy to Clipboard function. The Select Risk Analysis Dialogue Tabs on the 'Select Risk Analysis' Dialogue give the user choice in the format and detail of the plot.
The user can thereby adjust the permutation and the timescale of the plot. Go to SECTION 3
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SECTION 3 The MATRIX V5 User Interface

This section describes the MATRIX V5 User Interface. Topic No 3.1 Go to Topic 3.1 Topic Title The User Interface In MATRIX V5
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SECTION 3 The MATRIX V5 User Interface Topic 3.1 The User Interface in MATRIX V5 Purpose: The interface between MATRIX V5 and the user. Access: The MATRIX V5 User Interface is displayed when a model is opened.
Description: MATRIX V5 is a standard 32 bit Windows* PC application, with an environment that will be familiar to regular PC users. There are five main elements to the user interface as follows: The Title Bar displays MATRIX V5.2 and the name of the Model that is currently in focus. The Menu Bar provides access to all functions within MATRIX V5. See SECTION 5 The Toolbar provides access to commonly-used functions within MATRIX V5. See SECTION 6 The Navigator provides a step-by-step route map through the MATRIX V5 application, which the user may find useful when developing a model for the first time. See SECTION 4 The Segmentation Matrix. This is a critical modelling component within MATRIX V5, which enables the user to manage Markets, Products and Segments and select Niches to input of data and review analysis. The Segmentation Matrix is displayed by default. See SECTION 8
Go to SECTION 4
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SECTION 4 The MATRIX V5 Navigator

This section describes the MATRIX V5 Navigator. Topic No 4.1 Go to Topic 4.1 Topic Title The Navigator In MATRIX V5
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SECTION 4 The MATRIX V5 Navigator Topic 4.1 The Navigator In MATRIX V5 Purpose: To provide a simple Route Map which guides the user step by step through the key stages of model production. Access: The MATRIX V5 Navigator should be displayed whenever a new model is created. If it is not visible, you have already elected to hide the Navigator until further notice. It can be re-displayed via the Menu Bar / View. Select the Navigator menu item.
Action: The Navigator is then displayed with buttons providing shortcuts to: Objectives. Clicking the Objectives button displays the Economic Objectives Data Editor, which enables Economic Objectives (Revenue and Gross Margin) to be keyed into the model. See SECTION 12 Scenarios. Clicking the Scenarios button displays a pop-up menu which enables the user to Add, Duplicate, Remove and Rename Scenarios. The pop-up menu also includes a list of all the Scenarios within the current Model. Selecting a menu item displays the corresponding Scenario. See SECTION 7 Segmentation Matrix. A pop-up menu is displayed which allows the user to Add, Duplicate, Remove and Rename Markets, Products and Segments via the Segmentation Matrix. See SECTION 8
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Ansoff Matrix. Clicking the Ansoff Matrix button displays the Ansoff Matrix. The user can then plot Niches into the four Ansoff Matrix quadrants. Note, on creating a new model, no Niches are plotted on the Ansoff Matrix. See SECTION 10 Competitors. Clicking the Competitors button displays the Competitors Dialogue. The user can now Add, Remove and Rename Competitors into the model, and make different Competitors Active (i.e. operate) within different Niches. See SECTION 11 Market Attractiveness. Clicking the Market Attractiveness button displays the Market Attractiveness Scorecard, which enables the user to Define, Weight and Score Market Attractiveness Factors for the Scenario as necessary. A pop-up menu, displayed by clicking on the Market Attractiveness Scorecard with the RIGHT-HAND mouse button, enables the user to Add, Duplicate, Remove and Rename Market Attractiveness Factors. See SECTION 14 Competitive Strength. Clicking the Competitive Strength button displays the Competitive Strength Scorecard, which enables the user to Define and Weight Critical Success Factors for the Active Niche as necessary. A pop-up menu, displayed by clicking on the Competitive Strength Scorecard with the RIGHT-HAND mouse button, enables the user to Add, Duplicate, Remove and Rename Critical Success Factors as necessary. See SECTION 15 Criteria. If the Competitive Strength Scorecard is currently displayed, then clicking the Criteria button displays the Criterion Scorecard. This contains all of the Criteria which support the selected Critical Success Factor within the Competitive Strength Scorecard. The user can then Define, Weight and Score the Criteria that comprise the Critical Success Factor as necessary. A pop-up menu, displayed by clicking the Criterion Scorecard with the RIGHT-HAND mouse button, enables the user to Add, Duplicate, Remove and Rename Criteria. See SECTION 16 Market History And Forecast. Clicking the Market History And Forecast button displays the Market History And Forecast Data Editor, which enables the user to enter data relating to Volumes, Revenues, Unit Prices and Gross Margins as appropriate. Note that the Market History And Forecast Data Editor corresponds to the Active Niche. See SECTION 13 Export Data. (Note, this function is not available in the Restricted Version of MATRIX V5.) Clicking the Export Data button exports the structure of the model, together with the existing data set to a Microsoft Excel* workbook. The resultant file, MATRIX.xls, is generally used for data preparation. (Note that if data is exported on a second or subsequent occasion, then the contents of the original MATRIX.xls file will be preserved, but the file will be renamed with a time and date stamp; a new MATRIX.xls file will then be generated.) See SECTION 27 Import Data. (Note, this function is not available in the Restricted Version of MATRIX V5.) Clicking the Import Data button opens the Import Data Dialogue. Data can now be imported directly into the model from the underling MATRIX.xls spreadsheet, and any data that currently exists within the model will be overwritten. See SECTION 27 Analyses. Clicking the Analyses button displays a pop-up menu, which provides access to all analyses within MATRIX V5. This includes Life Cycle Analysis, Share Analysis, Market Attractiveness, Competitive Strength, the Boston Matrix, the Directional Policy Matrix, Perceptual Maps, Gap Analysis and Risk Analysis. See SECTIONS 18 - 26 Go to SECTION 5
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SECTION 5 The MATRIX V5 Menu Bar

This section describes the MATRIX V5 Menu Bar. Topic No 5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.9.1 5.9.2 Topic Title The Menu Bar In MATRIX V5 File Menu Open New Model (The Open Model Dialogue / New Model Tab) Open Existing Model (The Open Model Dialogue / Last Model Tab) Open Existing Model (The Open Model Dialogue / Existing Models Tab) Save Save Model As Preferences (The Preferences Dialogue) Export Data Import Data (The Import Data Dialogue) Exit View Menu Scenarios Menu Portfolio Menu Data Menu Text Menu Analysis Menu Help Menu MATRIX V5 Help About MATRIX V5
Go to Topic 5.1
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.1 The Menu Bar In MATRIX V5 Purpose: Enables access all functions within MATRIX V5, spanning model file creation and editing, data entry, text entry, analytical capability and on-line help. Access: The menu bar is always displayed and is located at the top of the screen, immediately beneath the title bar. File Menu To open the File menu, select File. See Topic 5.2 View Menu To open the View menu, select View. See Topic 5.3 Scenarios Menu To open the Scenarios menu, select Scenarios. See Topic 5.4 Segmentation Matrix To open the Segmentation Matrix menu, select Segmentation Matrix. See Topic 5.5 Data Menu To open the Data menu, select Data. See Topic 5.6 Text Menu To open the Text menu, select Text. See Topic 5.7 Analysis Menu To open the Analysis menu, select Analysis. See Topic 5.8 Help Menu To open the Help menu, select Help. See Topic 5.9 Go to Topic 5.2
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2 - File Menu Purpose: Enables a model to be Created, Opened, Saved, and Exported. Also enables various underlying Model Parameters to be changed via Preferences. Access: From the Menu Bar, select File.
Action: Further sub-menu items are presented. Select from: Open New Model To open a New Model, select the Open New Model menu item. See Topic 5.2.1 Open Existing Model To open an Existing Model, select the Open Existing Model menu item. See Topics 5.2.2 and 5.2.3 __ Save To Save a Model, select the Save menu item. See Topic 5.2.4 Save Model As To Save a Model under a different name, select the Save Model As menu item. See Topic 5.2.5 ___ Preferences To open the Preferences Dialogue, select the Preferences menu item. See Topic 5.2.6 ___ Export Data (Note, this function is not available in the Restricted Version of MATRIX V5.) To Export Data, select the Export Data menu item. See Topic 5.2.7 Import Data (Note, this function is not available in the Restricted Version of MATRIX V5.) To Import Data, select the Import Data menu item. See Topic 5.2.8 ___
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Exit To Exit from MATRIX V5, select the Exit menu item. See Topic 5.2.9 Go to Topic 5.2.1
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.1 Open New Model (New Model Tab) Purpose: Enables the creation of a new Model. Access: From the Menu Bar / File, select the Open New Model menu item, or from the Toolbar, click the File New button
Action: The Open Model Dialogue is displayed, with the New Model tab to view. Key in the name of the new Model (e.g. HandyMan) and click the Open button. After completing the Preferences Dialogue (see Topic 5.2.6 ), the Segmentation Matrix is displayed. This contains a single Niche coloured red by default. From this embryonic Segmentation Matrix, you will be able to develop the first Scenario within the Model. Go to Topic 5.2.2
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.2 Open Existing Model (Last Model Tab) Purpose: Enables access to the most recently worked upon Model. Access: When the MATRIX V5 program is loaded, the Open Model Dialogue is displayed with the Last Model tab to view. This tab shows the Name of the last worked upon model in bold typeface, together with the full pathway of the last model.
Action: Click the Open button. The last worked upon Model is now re-opened, with the first Scenario displayed within the Segmentation Matrix. Go to Topic 5.2.3
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.3 Open Existing Model (Existing Models Tab) Purpose: Enables access to an existing Model. Access: From the Menu Bar / File, select the Open Existing Model menu item, or from the Toolbar, click the File Open button
The Open Model Dialogue is displayed with the Existing Models tab to view. This tab lists all models contained within the C:\Program Files\MATRIX V5.2\Models folder. Action: To open a model, double click on the appropriate disk drive, directory and sub-directories until you have drilled down to the location of the model you wish to access. Move the cursor to the name of the model that you wish to edit, and double click the model name to activate the Open button. Click the Open button. The requested model is now opened, and the first Scenario is displayed within the Segmentation Matrix. Note: Models can only be worked upon one at a time. The action of opening one model will cause an earlier model (i.e. one that is currently open) to be unloaded. Go to Topic 5.2.4
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.4 - Save Purpose: Enables changes to model structure and data to be saved. Access: From the Menu Bar / File, select the Save menu item, or from the Toolbar, click the File Save button Action: Any changes since the last Save action have now been saved, as prompted by the Message Box. Note: By default, a message box prompts the user to Save and Backup the current Model every 60 minutes. To save changes to the current Model, click the OK button. A copy of the underlying MATRIX.mdb database will then be held under the file structure C:\Program Files\MATRIX V5.2\Models\MyModel\Backup (where MyModel is the name of the current Model). Alternatively, to continue working on the current Model without saving the changes or generating a Backup, click the Cancel button. The time between backups can be adjusted by the user via File / Preferences. See Topic 5.2.6 Go to Topic 5.2.5
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.5 - Save Model As Purpose: Enables a model to be saved under a new name, thereby creating the basis for different modelling scenarios. Access: From the Menu Bar / File, select the Save Model As menu item. Action: The Save Model As Dialogue will now be displayed. Key in the name of the Model revision, and click either: the OK button to save the model under the new name, or the Cancel button to abandon the procedure.
The model revision may then be opened via the Open Existing Model Data Editor. Go to Topic 5.2.6
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.6 Preferences (The Preferences Dialogue) Purpose: Enables various user-defined Preferences to be incorporated into a Model. Access: The Preferences Dialogue will be displayed automatically when creating a new Model, immediately after the name of the new Model has been confirmed. If a Model has already been created (and is currently being edited), then from the Menu Bar / File, select the Preferences menu item.
Action: Edit Preferences as follows: Model Timeframe: Note, this frame is enabled only during the creation of a New Model. Time Units = Years This option has been disabled in MATRIX V5.2, which only accepts Years as the underlying major Time Unit. Timeframe (Years) The Lifetime of the model in years, as reflected in the Economic Objectives and Revenue Data Editors, the Revenue Graphs, and the Gap Analysis Charts. The default is set to 5 (years). To change the Duration, select the required number of years from the drop-down list box. Note, the minimum Duration is 2 (years), and the maximum Duration is 20 (years). Start Year The year in which the model commences. The default value is the current year according to the computer calendar. Users can set the Start Year up to ten years ahead of, or behind the current year. Page 55 of 296

Small Period Type The user can opt for Quarters (4 per Year) or Months (12 per Year), or Accounting Periods (13 per Year). Start Period Sets commencement of the model to a specific Quarter (Q1 is the default value), Month or Period. Adjust Model Timeframe: Note, this frame is enabled only after a Model has been created. Maintain Current Timeframe. No Change to Time Parameters Add Year to End of Model. Adjusts the Model Timeframe by adding a Year to the end of the Model Add Year to Beginning of Model. Adjusts the Model Timeframe by adding a Year to the beginning of the Model Remove Year from End of Model. Adjusts the Model Timeframe by removing a Year from the end of the Model Remove Year from Beginning of Model. Adjusts the Model Timeframe by removing a Year from the beginning of the Model Shift Timeframe Forwards 1 Year. Adjusts the Model Timeframe by shifting the Timeframe forwards one year. That is a Year is added to the beginning of the model and removed from the end of the Model. Shift Timeframe Backwards 1 Year. Adjusts the Model Timeframe by shifting the Timeframe backwards one year. That is, a Year is removed from the beginning of the model and added to the end of the Model. Input and Analyses: Volume Only: Enables input of, and analysis by Volume data only Revenue Only: Enables input of, and analysis by Revenue data only Volume and Revenue: Enables input of, and analysis by Volume and Revenue data. Volume and Revenue are treated as independent parameters. Volume, Unit Price and Gross Margin: Enables input of Volume, Unit Price and Gross Margin data. Note, analysis can be by Volume, Revenue, or Gross Margin, but all Revenues are calculated by multiplying Volumes and corresponding Unit Prices. Gross Margins are calculated by multiplying Calculated Revenues and corresponding percentage Gross Margins. Revenue and Gross Margin: Enables input and analysis by Revenue and Gross Margin data. Note Gross Margins are calculated by multiplying Revenues and corresponding percentage Gross Margins. Autosum Market History And Forecast: May be used in special circumstances when the Volumes and Revenues of the Host Company and all Key Competitors are known for every Niche and for every Year. Clicking the Autosum Market History And Forecast tick box (such that the tick is displayed) makes the Volume (or Revenue) of the Niche equal to the sum of the Volumes (or Revenues) of the Host Company and Key Competitors. Time is thus saved in determining the Niche Volume (or Revenue). By default, Autosum Market History And Forecast is NOT checked, and the balance of Niche (Host + Competitors) is normally displayed as Others within the Market History And Forecast Data Editor. Treat Equal MAF Scores: The dilemma is what to do if all Scores (across the range of Niches) for a given Market Attractiveness Factor are equal. MATRIX V5 handles this problem as follows: Optimistic. All scores are normalised to 100 Pessimistic. All scores are normalised to 0 Neutral. All scores are normalised to 50
Treat Equal Criterion Scores: The dilemma is what to do if all Scores (across the range of Suppliers) for a given Criterion are equal. MATRIX V5 handles this problem as follows: Optimistic. All scores are normalised to 100 Pessimistic. All scores are normalised to 0 Page 56 of 296

Neutral. All scores are normalised to 50
Currency Symbol: The selected Currency Symbol will be used throughout the Model and will be shown in the Life Cycle Analysis Graphs and the Gap Analysis Charts. The default currency symbol is (Sterling). To change the currency symbol, key the required symbol into the text box. Automatic Backup: Enables the user to toggle the Automatic Backup facility on and off, and also to adjust the time period between backups. The time period must be between 1 and 180 minutes. Chart: Note, this frame is enabled only after a Model has been created. Background: To change the Background Colour attributed to all Charts, Matrices and Graphs, click the Background colour box with the right-hand mouse button. The Color Dialogue is now displayed.
Move the cursor to the required colour and click to select. Alternatively click the Define Custom Colours button and move the cursor to the required colour. Click to select. Further changes can be made by altering the Hue, Sat, Lum, Red, Green and Blue values, or by sliding the arrow to the right of the vertical colour selector up and down. Click the Add to Custom Colors button and the OK button to confirm the colour selection, or the Cancel button to abandon the procedure. Assuming OK has been clicked, note that the Background colour box now displays the new colour, as do all charts, matrices and graphs as they are opened. Foreground: Repeat the Background procedure to change the Foreground Colour attributed to all Charts, Matrices and Graphs. Shadow: Click the Shadow tick box to display the Drop Shadow for all graphs, matrices and charts. Click a second time to clear the tick box, and toggle the Drop Shadow off. Click OK to confirm the new Preferences, or Cancel to abandon the procedure. Go to Topic 5.2.7
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.7 - Export Data (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To enable the generation of a Microsoft Excel Workbook (MATRIX.xls) which is a mirror image of the model that has been created in MATRIX V5. Access: From the Menu Bar / File, select the Export Model Structure menu item, or from the Toolbar, click the Export Model Structure button, or from the Navigator, click the Export Model Structure button. Action: A Message Box confirms that data is to be exported. Assuming that the OK button has been clicked, the structure of the model, together with the existing data set is exported to a Microsoft Excel* workbook. The resultant file, MATRIX.xls, is generally used for data preparation. (Note that if data is exported on a second or subsequent occasion, then the contents of the original MATRIX.xls file will be preserved, but the file will be renamed with a time and date stamp; a new MATRIX.xls file will then be generated.) Go to Topic 5.2.8
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.8 - Import Data (The Import Data Dialogue) (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To import of data from the underling Microsoft Excel workbook (MATRIX.xls). Access: From the Menu Bar / File, select the Import Data menu item, or from the Toolbar, click the Import Data button, or from the Navigator, click the Import Data button
The Import Data Dialogue is displayed. Action: To import data directly into MATRIX V5: Click the appropriate tick boxes from the list shown to the right of the Import Data Dialogue to select the required worksheets / data tables on an individual basis. Depending upon the mode of Input and Analysis (as noted within the Preferences Dialogue), options will include Objectives, Unit Price, Gross Margin (%), Volume, Revenue, Market Attractiveness, Competitive Strength and specific Critical Success Factors. To de-select a worksheet from import, click a second time on the worksheet title to remove the tick. Click the Select All button to select all worksheets for import. Click the Deselect All button to de-select all worksheets from import. Click the Import button to complete the data import procedure Close the Import Data Dialogue to abandon the data import procedure.
Extensive validation will be performed on each worksheet prior to import. Should a validation error be encountered then the location of the error (i.e. worksheet) will be displayed on a Message Box. Review the data within the offending worksheet and make corrections as appropriate. Once the validation has been successfully completed, a Message box informs the user that the data set has successfully passed Validation. Importing data will permanently overwrite selected data held within the underlying Model database. Click the OK button to proceed with import, or Cancel to abandon the procedure.
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Notes: If there is evidence that not all data has been imported, or an error condition occurs, then: 1. create a new MATRIX.xls workbook through the Export Data routine. 2. cut and paste data and formulae from the original (now date and time stamped) MATRIX.xls workbook into the newly created MATRIX.xls workbook. Double check that formulae are still appropriate, and if necessary (due to the changed structure of the workbook), modify the formulae. 3. attempt once again to import data. Go to Topic 5.2.9
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.2.9 - Exit Purpose: Unloads current Model and closes the MATRIX V5 application. Access: From the Menu Bar / File, select the Exit Menu Item, or click the x button in the top right-hand corner of the screen. Action: MATRIX V5 will automatically close down. Go to Topic 5.3
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.3 - View Menu Purpose: Enables access to various functions in MATRIX V5 so that they can either be displayed or hidden from view. Access: From the Menu Bar, select View.
Action: Further menu items are presented. Select from: Toolbar To view, (or temporarily remove from view) the Toolbar, select the Toolbar menu item. See SECTION 6 Navigator To view (or temporarily remove from view) the Navigator, select the Navigator menu item. See SECTION 4 Segmentation Map To view (or temporarily remove from view) the Advanced Segmentation Utility, select the Segmentation Map menu item. See SECTION 9 Ansoff Matrix To view (or temporarily remove from view) the Ansoff Matrix, select the Ansoff Matrix menu item. See SECTION 10 Competitors To view (or temporarily remove from view) the Competitors Dialogue, select the Competitors menu item. See SECTION 11 Go to Topic 5.4
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.4 - Scenarios Menu Purpose: Enables Scenarios to be managed within MATRIX V5. Access: From the Menu Bar, select Scenarios.
Action: Further menu items are presented. Select from: Add New Scenario (Note, this function is not available in the Restricted Version of MATRIX V5.) To add a New Scenario into the Model, select the Add New Scenario menu item. See Topic 7.3 Duplicate Scenario (Note, this function is not available in the Restricted Version of MATRIX V5.) To Duplicate a Scenario within the Model, select the Duplicate Scenario menu item, and then select the name of the Scenario to be duplicated from the pop-up sub-menu. See Topic 7.4 Remove Scenario In Focus (Note, this function is not available in the Restricted Version of MATRIX V5.) To remove the Scenario in focus, select the Remove Scenario In Focus menu item. See Topic 7.5 Change Scenario Name To change the Scenario Name, select the Change Scenario Name menu item. See Topic 7.6 __ List of Scenarios within the Model To bring a specific Scenario into focus, select the appropriate Scenario Name from the list located at the base of the menu. See Topic 7.2 Go to Topic 5.5
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.5 - Segmentation Matrix Menu Purpose: Manages Markets, Segments and Products within the portfolio. Access: From the Menu Bar, select Segmentation Matrix.
Action: Further menu items are presented. Select from: Change Niche Colour To change the colour ascribed to a Niche, select the Change Niche Colour menu item. See Topic 8.3 ___ Open Niche To change the status of a Niche from Closed to Open, select the Open Niche menu item. See Topic 8.4 Close Niche To change the status of a Niche from Open to Closed, select the Close Niche menu item. See Topic 8.4 ___ Market Add New Market To add a new Market into the Scenario, select the Market menu item, and then select the Add New Market menu item from the pop-up sub-menu. See Topic 8.5.1 Duplicate Market To duplicate an existing Market into a Scenario, select the Market menu item, and then select the Duplicate Market menu item from the pop-up sub-menu. See Topic 8.5.2 Duplicate All Markets To duplicate all existing Markets into a Scenario, select the Market menu item, and then select the Duplicate All Markets menu item from the pop-up sub-menu. See Topic 8.5.3 Remove Market In Focus To remove a Market from a Scenario, select the Market menu item, and then select the Remove Market In Focus menu item from the pop-up sub-menu. See Topic 8.5.4
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Change Market Name To change the Name of a Market, select the Market menu item, and then select the Change Market Name menu item from the pop-up sub-menu. See Topic 8.5.5 ___ Open Entire Market To change the status of all Niches in a Market to Open, select the Open Entire Market menu item. See Topic 8.5.6 Segment Add New Segment To add a new Segment into the Market, select the Segment menu item, and then select the Add New Segment menu item from the pop-up sub-menu. See Topic 8.6.1 Duplicate Segment To duplicate an existing Segment into a Market, select the Segment menu item, and then select the Duplicate Segment menu item from the pop-up sub-menu. See Topic 8.6.2 Duplicate All Segments To duplicate all existing Segments into a Market, select the Segment menu item, and then select the Duplicate All Segments menu item from the pop-up sub-menu. See Topic 8.6.3 Remove Segment In Focus To remove a Segment from a Market, select the Segment menu item, and then select the Remove Segment In Focus menu item from the pop-up sub-menu. See Topic 8.6.4 Change Segment Name To change the Name of a Segment, select the Segment menu item, and then select the Change Segment Name menu item from the pop-up sub-menu. See Topic 8.6.5 ___ Open Segment Row To change the status of all Niches in a Segment Row to Open, select the Open Segment Row menu item. See Topic 8.6.6 Close Segment Row To change the status of all Niches in a Segment Row to Closed, select the Close Segment Row menu item. See Topic 8.6.6 Product Add New Product To add a new Product into the Market, select the Product menu item, and then select the Add New Product menu item from the pop-up sub-menu. See Topic 8.7.1 Duplicate Product To duplicate an existing Product into a Market, select the Product menu item, and then select the Duplicate Product menu item from the pop-up sub-menu. See Topic 8.7.2 Duplicate All Products To duplicate all existing Products into a Market, select the Product menu item, and then select the Duplicate All Products menu item from the pop-up sub-menu. See Topic 8.7.3 Remove Product In Focus To remove a Product from a Market, select the Product menu item, and then select the Remove Product In Focus menu item from the pop-up sub-menu. See Topic 8.7.4
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Change Product Name To change the Name of a Product, select the Product menu item, and then select the Change Product Name menu item from the pop-up sub-menu. See Topic 8.7.5 ___ Open Product Column To change the status of all Niches in a Product Column to Open, select the Open Product Column menu item. See Topic 8.7.6 Close Product Column To change the status of all Niches in a Product Column to Closed, select the Close Product Column menu item. See Topic 8.7.6 Go to Topic 5.6
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.6 - Data Menu Purpose: Enables the input of numeric data into the model. Access: From the Menu Bar, select Data.
Action: Further menu items are presented. Select from: Economic Objectives To open the Economic Objectives Data Editor, select the Economic Objectives menu item. See SECTION 12 ___ Market History And Forecast To open the Market History And Forecast Data Editor, select the Market History And Forecast menu item. See SECTION 13 Market Attractiveness To open the Market Attractiveness Scorecard, select the Market Attractiveness menu item. See SECTION 14 Competitive Strength To open the Competitive Strength Scorecard, select the Competitive Strength menu item. See SECTION 15 Criteria To open the Criterion Scorecard for a specific Critical Success Factor, select the Criteria menu item. See SECTION 16 ___ Link To open the Link Data Editor, select the Link menu item. See Topic 9.5 Go to Topic 5.7
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.7 - Text Menu Purpose: Opens up the MATRIX.doc document in Microsoft Word for the collection of notes and the development of an embryonic Strategic Plan. Access: From the Menu Bar, select Text.
Action: Further menu items are presented. Select from: Economic Objectives To open the MATRIX.doc document at Economic Objectives, select the Economic Objectives menu item. See Topic 17.2 ___ Scenarios To open the MATRIX.doc document at Scenarios, select the Scenarios menu item. See Topic 17.3 Segmentation Matrix To open the MATRIX.doc document at Segmentation Matrix, select the Segmentation Matrix menu item. See Topic 17.4 Ansoff Matrix To open the MATRIX.doc document at Ansoff Matrix, select the Ansoff Matrix menu item. See Topic 17.5 ___ Market History And Forecast To open the MATRIX.doc document at Market History And Forecast, select the Market History And Forecast menu item. See Topic 17.6
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Market Attractiveness (Data) To open the MATRIX.doc document at Market Attractiveness (Data), select the Market Attractiveness (Data) menu item. See Topic 17.7 Competitive Strength (Data) To open the MATRIX.doc document at Competitive Strength (Data), select the Competitive Strength (Data) menu item. See Topic 17.8 ___ Life Cycle Analysis To open the MATRIX.doc document at Life Cycle Analysis, select the Life Cycle Analysis menu item. See Topic 17.9 Share Analysis To open the MATRIX.doc document at Share Analysis, select the Share Analysis menu item. See Topic 17.10 Market Attractiveness (Analysis) To open the MATRIX.doc document at Market Attractiveness (Analysis), select the Market Attractiveness (Analysis) menu item. See Topic 17.11 Competitive Strength (Analysis) To open the MATRIX.doc document at Competitive Strength (Analysis), select the Competitive Strength (Analysis) menu item. See Topic 17.12 Boston Matrix To open the MATRIX.doc document at Boston Matrix, select the Boston Matrix menu item. See Topic 17.13 Directional Policy Matrix To open the MATRIX.doc document at Directional Policy Matrix, select the Directional Policy Matrix menu item. See Topic 17.14 Perceptual Maps To open the MATRIX.doc document at Perceptual Maps, select the Perceptual Maps menu item. See Topic 17.15 Gap Analysis To open the MATRIX.doc document at Gap Analysis, select the Gap Analysis menu item. See Topic 17.16 Risk Analysis To open the MATRIX.doc document at Risk Analysis, select the Risk Analysis menu item. See Topic 17.17 Go to Topic 5.8
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.8 - Analysis Menu Purpose: Plots graphs, matrices and charts, which rigorously illustrate the status of each Niche and the overall balance of opportunity and risk within the Scenario. Access: From the Menu Bar, select Analysis.
Action: Further menu items are presented. Select from: Life Cycle Analysis To open a Life Cycle Analysis Chart, select the Life Cycle Analysis menu item. See SECTION 18 Share Analysis To open a Share Analysis Chart, select the Share Analysis menu item. See SECTION 19 ___ Market Attractiveness To open a Market Attractiveness Graph, select the Market Attractiveness menu item. See SECTION 20 Competitive Strength To open a Competitive Strength Graph, select the Competitive Strength menu item. See SECTION 21 ___ Boston Matrix To open the Boston Matrix, select the Boston Matrix menu item. See SECTION 22 Directional Policy Matrix To open the Directional Policy Matrix, select the Directional Policy Matrix menu item. See SECTION 23 Perceptual Map To open a Perceptual Map, select the Perceptual Map menu item. See SECTION 24 ___ Gap Analysis To open the Gap Analysis chart, select the Gap Analysis menu item. See SECTION 25
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Risk Analysis To open the Risk Analysis chart, select the Risk Analysis menu item. See SECTION 26 Go to Topic 5.9
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SECTION 5 The MATRIX V5 Menu Bar SECTION 5.9 Help Menu Purpose: Enables access to the Help functions within MATRIX V5. Access: From the Menu Bar, select Help.
Action: Further menu items are presented. Select from: MATRIX V5 Help To open MATRIX V5 Help, select the MATRIX V5 Help menu item. See Topic 5.9.1 About MATRIX V5 To open the About MATRIX V5 information panel, select the About MATRIX V5 menu item. See Topic 5.9.2 Go to Topic 5.9.1
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.9.1 MATRIX V5 Help Purpose: To provide on-line information about the functionality of MATRIX V5, supporting background information, and hints and tips to the strategist. Access: From the Menu Bar / Help, select the MATRIX V5 Help menu item, or From the Toolbar, click the MATRIX V5 Help button With any Graph, Matrix or Chart, or Dialogue in focus, click F1 Action: The on-line HTML Help system is displayed at the required topic. Go to Topic 5.9.2
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SECTION 5 The MATRIX V5 Menu Bar Topic 5.9.2 - About MATRIX V5 Purpose: To provide information about the current release of MATRIX V5. Access: From the Menu Bar / Help, select the About MATRIX V5 menu item.
Action: Details about the current release of MATRIX V5 will appear, along with a copyright message and the name, address and contact points for Market Modelling Limited. For further information about MATRIX V5 or other Market Modelling Limited products, contact Customer Support. Go to SECTION 6
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SECTION 6 The MATRIX V5 Toolbar

This section describes the MATRIX V5 Toolbar Topic No 6.1 Go to Topic 6.1 Topic Title The Toolbar in MATRIX V5
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SECTION 6 - The MATRIX V5 Tool Bar Topic 6.1 The Toolbar In MATRIX V5 Purpose: Enables access to common functions within MATRIX V5, including model creation, model structuring and data entry, analyses and on-line help. Access: The MATRIX V5 Toolbar is located beneath the MATRIX V5 Menu Bar. If the MATRIX V5 Toolbar is not visible then from the Menu Bar / View, click the Toolbar Menu Item. Button Name File - New File - Open File - Save Scenarios Segmentation Matrix Segmentation Map Ansoff Matrix Competitors Economic Objectives Market History And Forecast Market Attractiveness (Data) Competitive Strength (Data) Criteria Link Text Life Cycle Analysis Share Analysis Market Attractiveness Analysis Competitive Strength Analysis Boston Matrix Directional Policy Matrix Perceptual Map Gap Analysis Risk Analysis Purpose Opens a New Model. See Topic 5.2.1 Opens an Existing Model. See Topics 5.2.2 and 5.2.3 Saves a Model. See Topic 5.2.4 Displays a pop-up menu, which lists all Scenarios within the Current Model. See SECTION 7 Manages the Segmentation Matrix. See SECTION 8 Displays / Hides the Segmentation Map. See SECTION 9 Displays / Hides the Ansoff Matrix. See SECTION 10 Displays / Hides the Competitors Dialogue. See SECTION 11 Displays the Economic Objectives Data Editor. See SECTION 12 Displays the Market History And Forecast Data Editor. See SECTION 13 Displays the Market Attractiveness Scorecard. See SECTION 14 Displays the Competitive Strength Scorecard. See SECTION 15 Displays the Criterion Scorecard. See SECTION 16 Displays the Link Data Editor used within the Advanced Segmentation Module. See Topic 9.4 Displays the MATRIX.doc document in Microsoft Word for input of supporting notes and text. See SECTION 17 Displays the Select Life Cycle Analysis Dialogue, and thence the Life Cycle Analysis Chart. See SECTION 18 Displays the Select Share Analysis Dialogue, and thence the Share Analysis Chart. See SECTION 19 Displays the Select Market Attractiveness Analysis Dialogue, and thence the Market Attractiveness Charts. See SECTION 20 Displays the Select Competitive Strength Analysis Dialogue, and thence the Competitive Strength Charts. See SECTION 21 Displays the Select Boston Matrix Dialogue, and thence the Boston Matrix. See SECTION 22 Displays the Select Directional Policy Matrix Dialogue, and thence the Directional Policy Matrix. See SECTION 23 Displays the Select Perceptual Map Dialogue, and thence the Perceptual Map. See SECTION 24 Displays the Select Gap Analysis Dialogue, and thence the Gap Analysis Chart. See SECTION 25 Displays the Select Risk Analysis Dialogue, and thence the Risk Analysis Chart. See SECTION 26 Page 76 of 296

Exports the model structure and current data set to Microsoft Excel. See SECTION 27 Opens the Import Data Dialogue and thence imports data from Microsoft Excel. See SECTION 27 Displays the MATRIX V5 Help System. See Topic 5.9.1
Export Data Import Data MATRIX V5 Help Go to SECTION 7
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SECTION 7 Scenarios
This section describes what a Scenario is, and how Scenarios are managed within MATRIX V5. Topic No 7.1 7.2 7.3 7.4 7.5 7.6 Go to Topic 7.1 Topic Title Scenario Planning In MATRIX V5 Accessing A Scenario Within The Model Adding A New Scenario Duplicating A Scenario Removing The Scenario In Focus Changing The Name Of A Scenario
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SECTION 7 Scenarios Topic 7.1 Scenario Planning In MATRIX V5 The Dictionary definition of a Scenario is An imagined sequence of future events. In a business context a Scenario is a vision of what could, or what should happen to a company - a complex synthesis of Objectives to be realised, from Markets (current and potential), with a mix of Products, Skills and Resources (current and future). Typically a Scenario will build upon historical information to generate a vision of how the business is likely to unfold in the future. Even rudimentary plans often allow for three Scenarios, which can be summarised as follows: Expected, i.e. given all we know about a situation we expect the following to happen Best Case, i.e. given all we know about a situation, we may get lucky, and the best that could happen is Worst Case, i.e. given all we know about a situation, everything may go wrong, and the worst that could happen is
However, market lifetimes are becoming shorter, resources inevitably become scarcer, and customers increasingly discerning. Conventional tools for strategic analysis have no way of dealing with such 'visions' within a multifaceted business environment of multiple Distributors, Partners, Channels and Competitors. Scenarios and MATRIX V5: MATRIX V5 tackles this problem head on. It enables the strategist to create and explore a virtually unlimited number of Scenarios, each of which can support changes to the portfolio at the most fundamental level. With MATRIX V5, the user creates a Root Scenario that supports a given range of Markets, Products, Segments, Competitors, Market Attractiveness Factors, Critical Success Factors etc. Once completed with data, this Root Scenario can then be duplicated and amended, or completely revised with new Markets, Products etc to reflect a different, and perhaps a more exciting business proposition. Comparing the different Scenarios by contrasting the analysis generated in each case can lead to important strategic decisions. For example, comparing the two sets of Gap analysis could indicate whether a second portfolio (whilst inherently more risky) is more likely to meet the organisation's underlying Economic Objectives than a more conservative first portfolio. Go to Topic 7.2
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SECTION 7 Scenarios Topic 7.2 Accessing A Scenario Purpose: To bring an Existing Scenario into focus. Access: From the Menu Bar / Scenarios, select the appropriate Scenario Name from the list located at the base of the menu, or from the Toolbar, click the Scenarios button and select the appropriate Scenario Name. Action: The selected Scenario is now brought into focus. Note that the Segmentation Matrix now reflects the Markets, Segments and Products addressed by the selected Scenario, and the Scenario Name is displayed within the Segmentation Matrix Title Bar. Go to Topic 7.3
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SECTION 7 Scenarios Topic 7.3 Adding A New Scenario Purpose: To add a New Scenario into the Model. Access: From the Menu Bar / Scenarios, select the Add New Scenario menu item, or from the Navigator, click the Scenarios button and then select the Add New Scenario menu item Action: Using 50 characters or less, key the name of the New Scenario into the Add New Scenario input box. Click OK to confirm addition of the new Scenario into the model. Note that the Segmentation Matrix now reflects the Market, Segment and Product addressed by the new portfolio. Alternatively, click Cancel to abandon the procedure. Elements of a New Scenario: Elements of a New Scenario include: One New Market One New Product One New Segment One New Market Attractiveness Factor One New Critical Success Factor, containing One New Criterion.
It is possible to build the detail of the new Scenario by adding new, or duplicating existing portfolio elements as appropriate. Go to Topic 7.4
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SECTION 7 Scenarios Topic 7.4 Duplicating A Scenario Purpose: Duplicates an Existing Scenario under a new Name within the Model. Thus a Root Scenario can be used as a basis for creating one or a number of alternative Scenarios, each of could represent differing market conditions, or even different business propositions. Access: From the Menu Bar / Scenarios, select the Duplicate Scenario menu item, and then the required Root Scenario from the pop-up menu displayed, or from the Navigator, click the Scenarios button. Then select the Duplicate Scenario menu item, and then the required Root Scenario from the pop-up menu displayed. Action: Using 50 characters or less, key the name of the duplicate Scenario into the Duplicate Scenario input box. Click OK to confirm addition of the duplicate Scenario into the model. Note that the Segmentation Matrix now reflects the Markets, Products and Segments addressed by the duplicate Scenario, and the duplicate Scenario Name is displayed within the Segmentation Matrix Title Bar. Alternatively, click Cancel to abandon the procedure. Note the Duplicate Scenario is identical to the Root Scenario, except for the Name. You can now start to edit the detail of the Duplicate Scenario by adding, duplicating, removing or renaming key modelling elements as appropriate. Go to Topic 7.5
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SECTION 7 Scenarios Topic 7.5 Removing The Scenario In Focus Purpose: Removes a Scenario from the Model Access: First, bring the required Scenario into focus. Then from the Menu Bar / Scenarios, select the Remove Scenario menu item, or from the Navigator, click the Scenarios button, and then select the Remove Scenario menu item.
Action: A first warning appears, stating that all data associated with this Scenario will be PERMANENTLY DELETED. Click OK to proceed with removal of the Scenario from the Model, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, a second message box is displayed with a stronger warning. Once again, click OK to confirm removal of the Scenario from the Model, or Cancel to abandon the procedure. Assuming OK has been clicked, the Scenario, and all supporting data will be removed from the Model in focus. The model now reverts to the first Scenario the name of which is displayed within the Title Bar of the Segmentation Matrix. The Markets, Segments and Products addressed by the first Scenario are displayed within the Segmentation Matrix. Go to Topic 7.6
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SECTION 7 Scenarios Topic 7.6 Changing The Name Of A Scenario Purpose: Changes the Name attributed to a Scenario. Access: First, bring the required Scenario into focus. Then from the Menu Bar / Scenarios, select the Change Scenario Name menu item, or from the Navigator, click the Scenarios button, and then select the Change Scenario Name menu item.
Action: Using 50 characters or less, key the revised name of the Scenario into the Change Scenario Name input box. Click OK to confirm addition of the Duplicate Scenario into the model, in which case the Changed Scenario Name is displayed within the Segmentation Matrix Title Bar, or Cancel to abandon the procedure. Go to SECTION 8
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SECTION 8 Segmentation Matrix

This section describes the Segmentation Matrix, and how Markets, Segments and Products are managed within MATRIX V5. Topic No 8.1 8.2 8.3 8.4 8.5 8.5.1 8.5.2 8.5.3 8.5.4 8.5.5 8.5.6 8.6 8.6.1 8.6.2 8.6.3 8.6.4 8.6.5 8.6.6 8.6.7 8.7 8.7.1 8.7.2 8.7.3 8.7.4 8.7.5 8.7.6 8.7.7 Go to Topic 8.1 Topic Title A Background To The Segmentation Matrix The Segmentation Matrix In MATRIX V5 Changing The Colour Attributed To A Niche Changing The Status Of An Individual Niche Managing Markets Adding A New Market Duplicating A Market Duplicating All Markets Removing The Market In Focus Changing The Name Of A Market Changing The Status Of All Niches In The Market To Open Managing Segments Adding A New Segment Duplicating A Segment Duplicating All Segments Removing The Segment In Focus Changing The Name Of A Segment Changing The Status Of A Segment Row Changing The Position Of A Segment Row Managing Products Adding A New Product Duplicating A Product Duplicating All Products Removing The Product In Focus Changing The Name Of A Product Changing The Status Of A Product Column Changing The Position Of A Product Column
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SECTION 8 - The Segmentation Matrix Topic 8.1 A Background To The Segmentation Matrix Michael Porter proposed the Segmentation Matrix in his celebrated book Competitive Advantage first published in 1985. In it he proposes that an industry can be arranged as a two dimensional array of Buyers on the X-Axis, and Product' or 'Service Variety on the Y-Axis.
Normally most users do not have a problem defining the Products, Services, or Capabilities that they offer; however, understanding the characteristics that distinguishes one type of Buyer from another generally causes more difficulty. Often such a vision only follows a detailed analysis of the way in which markets are structured through a detailed Market Ecosystem and Value Mapping exercise. Note that one of the cells in the Segmentation Matrix shown above is labelled as 'Null' indicating that no activity, competitive or otherwise, takes place in this segment of the market. Once completed, the segmentation matrix provides a firm foundation upon which to study opportunity Attractiveness, since the potential offered by each segment is likely to vary due to differing market sizes, levels of competitive activity, ease of access etc. It also provides a firm foundation upon which to study Competitive Positioning, since the value drivers within each segment could be different, and indeed competitors may well change from one segment to another. For these exercises Porter's Five Forces and Value Chain Analysis may respectively provide useful techniques Go to Topic 8.2
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SECTION 8 - The Segmentation Matrix Topic 8.2 The Segmentation Matrix In MATRIX V5 Purpose: Displays the portfolio (i.e. Market / Product / Segment) structure of the Scenario in focus, and enables the management of Markets, Products and Segments within the portfolio.
To display the matrix exactly as shown above, open the HandyMan demonstration model. In the example shown above, the host company is addressing three Markets (Europe, North America and the Rest Of World). The selected Market - 'Europe' - has been split into three user-defined Segments (Industrial, Educational and Hobby) addressed by three Products (Metallic Assemblies, Composite Assemblies and Plastic Assemblies). Note that four of the 'Niches' have been defined 'Closed' by the user. The Host Company will NOT be operating in these areas. Data relating to a 'Closed' Niche is not taken into consideration in underlying calculations.
Access: The Segmentation Matrix is displayed by default as the MATRIX V5 application is loaded. Content: Markets are displayed on the tabs above the Grid. In the above example there are three markets (namely Europe, North America, and Rest Of World). Products are displayed on the X-Axis of the Grid. In the above example there are three Products (namely Metallic Assemblies, Composite Assemblies, and Plastic Assemblies) Segments are displayed on the Y-Axis of the Grid. In the above example there are two Segments (namely Industrial, and Hobby) A cell formed by the intersection of a Market, Product and a Segment defines a Niche. Open, Active and Closed Status: The Segmentation Matrix enables the status of each Niche to be defined as Open, Active or Closed. An Open Niche is either currently being pursued, or could potentially be pursued at some future date. That is, there are no trade embargoes, and the opportunity has not been ruled out by internal policy. All data related to Open Niches is included in the underlying analyses. Closed Niches are opportunities that have been permanently excluded from the portfolio. For example a small company with limited resources will find global expansion beyond their reach, and are therefore likely to focus their attentions on a narrow geographic area; all areas falling outside of this narrow band will be deemed Closed. Where trade embargoes are placed on companies for political reasons (e.g. the sales of arms to specific countries) then the Niche would also be considered as Closed. Any data entered for business opportunities that are deemed Closed will be excluded from the underlying analyses. The Active segment is a special case of Open segment, which enables the user: to input data relating to the Niche into the corresponding data editor or scorecard to review Niche specific analysis, for example Competitive Strength.
Flexibility: Changes can readily be made to the Segmentation Matrix. The colour attributed to a Niche can be changed, and its status can be altered from Closed to Open (and vice versa). Any Open Niche can Page 87 of 296

be made Active, simply by clicking on it. New Products, Markets and Segments can be included in the portfolio, and old ones deleted. The positions of Product Columns can be changed on the X-Axis, as can the positions of Segment Rows on the Y-Axis. Go to Topic 8.3
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SECTION 8 The Segmentation Matrix Topic 8.3 Changing The Colour Attributed To A Niche Purpose: To change the colour attributed to a Niche. Access: First, ensure that the required Niche is selected (i.e. made Active). This is achieved by clicking on the required Niche within the Segmentation Matrix. Note that the required Niche is now bordered in White. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Change Niche Colour menu item, or from the Menu Bar / Segmentation Matrix, select the Change Niche Colour menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Change Niche Colour menu item.
The Color Dialogue is now displayed.
Action: To change the colour attributed to a Niche, move the cursor to the required colour and click to select. Alternatively click the Define Custom Colours button and move the cursor to the required colour. Click to select. Further changes can be made by altering the Hue, Sat, Lum, Red, Green and Blue values, or by sliding the arrow to the right of the vertical colour selector up and down. Click the Add to Custom Colors button and the OK button to confirm the colour selection, or the Cancel button to abandon the procedure. Assuming OK has been clicked, note that the Niche now displays the new colour within the Segmentation Matrix. Hints and Tips: 1. Further help about the Color Dialogue is available directly within the colour editor via the ? button. Go to Topic 8.4
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SECTION 8 The Segmentation Matrix Topic 8.4 Changing The Status Of An Individual Niche Purpose: To change the status of a Market Niche from Open to Closed (and vice versa). Access: First, click the required Niche. Note that the selected Niche is now Active as shown by its white borders. Action: If the Niche you wish to Close is currently Open: With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Close Niche menu item, or from the Menu Bar / Segmentation Matrix, select the Close Niche menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Close Niche menu item.
If the Niche you wish to Open is currently Closed: With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Open Niche menu item, or from the Menu Bar / Segmentation Matrix, select the Open Niche menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Open Niche menu item.
Hints and Tips: 1. Remember that for each Niche that you define as Open, you will require a considerable amount of data relating to historical and forecast performance, the attractiveness of the opportunity and competitive activity. Where possible leave those Niches that are not considered strategic as Closed. Go to Topic 8.5
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SECTION 8 The Segmentation Matrix Topic 8.5 Managing Markets This section describes how New Markets are added into a portfolio, existing Markets are duplicated into a portfolio, Markets are removed from a portfolio, and Markets are renamed. Go to Topic 8.5.1
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SECTION 8 - The Segmentation Matrix Topic 8.5.1 - Adding A New Market (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To add a New Market to the current portfolio. Access: Select any Open status Niche within the Current Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Add New Market, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Add New Market, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Market menu item, and then Add New Market.
Action: Using 50 characters or less, key the name of the New Market into the Add New Market input box. If necessary several words may be used, e.g. Food Manufacturers. Click the OK button to confirm addition of the New Market into the portfolio, or the Cancel button to abandon the procedure. Note that the Name of the New Market is now displayed within the final tab located on the top edge of the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. To improve the visual quality of the Segmentation Matrix, it can be resized manually at this stage by clicking and dragging the edge of the underlying Segmentation Matrix form. Each New Market supports: One New Product One New Segment Market Attractiveness Factors appropriate to the Scenario One New Critical Success Factor, containing One New Criterion.
Go to Topic 8.5.2
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SECTION 8 - The Segmentation Matrix Topic 8.5.2 Duplicating A Market (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To Duplicate an Existing Market (i.e. a Market used in any portfolio other than the current portfolio) into the current portfolio. Access: Select any Open status Niche within the Current Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Duplicate Market, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Duplicate Market, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Market menu item, and then Duplicate Market.
The Duplicate Market Dialogue is displayed. 1. Action: Tick the Market(s) required for duplication from the list provided on the Duplicate Market Dialogue. Note that more than one Market can be selected for duplication. Close the Duplicate Market Dialogue to confirm addition of the duplicate market(s) into the portfolio. Note that the names of the duplicate Market(s) are now displayed in sequence, within tabs located on the top edge of the Segmentation Matrix. To improve the visual quality of the Segmentation Matrix, it can be resized manually at this stage by clicking and dragging the edge of the underlying Segmentation Matrix form. Each newly duplicated Market supports: One new Product One new Segment Market Attractiveness Factors appropriate to the Scenario One new Critical Success Factor, containing One new Criterion.
Note: The Duplicate Market menu item will be disabled if you are working with only one Scenario, or if the current Scenario already supports all of the markets within the Model. Go to Topic 8.5.3
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SECTION 8 - The Segmentation Matrix Topic 8.5.3 Duplicating All Markets (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To duplicate all outstanding Markets (i.e. Markets used in any portfolio other than the current portfolio) into the current portfolio. Access: Select any Open status Niche within the Current Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Duplicate All Markets, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Duplicate All Markets, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Market menu item, and then Duplicate All Markets.
Action: All outstanding Market(s) are now duplicated into the portfolio. Note that the names of the duplicate Market(s) are now displayed in sequence, within tabs located on the top edge of the Segmentation Matrix. To improve the visual quality of the Segmentation Matrix, it can be resized manually at this stage by clicking and dragging the edge of the underlying Segmentation Matrix form. Each newly duplicated Market supports: One new Product One new Segment Market Attractiveness Factors appropriate to the Scenario One new Critical Success Factor, containing One New Criterion.
Note: The Duplicate Market menu item will be disabled if you are working with only one Scenario, or if the current Scenario already supports all of the Markets utilised within the Model. Go to Topic 8.5.4
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SECTION 8 - The Segmentation Matrix Topic 8.5.4 - Removing The Market In Focus (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To remove a Market from the current portfolio. Access: Select the Market to be deleted within the Segmentation Matrix, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Remove Market In Focus, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Remove Market In Focus, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Market menu item, and then Remove Market In Focus.
Action: A first warning appears, stating that all data associated with this Market in this Portfolio will be PERMANENTLY DELETED. Click OK to proceed with removal of the Market from the portfolio, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, a second message box is displayed with a stronger warning. Once again, click OK to confirm removal of the Market from the portfolio, or Cancel to abandon the procedure. Assuming OK has been clicked, the Market, and all supporting data will be removed from the current portfolio. Note that the Segmentation Matrix is now updated to reflect the change (i.e. the relevant Market tab has been removed). Go to Topic 8.5.5
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SECTION 8 - The Segmentation Matrix Topic 8.5.5 - Changing The Name Of A Market Purpose: Renames a Market. Access: Select the Market to be renamed within the Segmentation Matrix, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Change Market Name, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Change Market Name, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Market menu item, and then Change Market Name.
Action: To change the Name of a Market, either amend the current Market Name displayed within the Change Market Name input box, or key in a new Market Name. Use 50 characters or less. If necessary several words may be used, e.g. Health Food Retailers. Click the OK button to confirm the change to the Market Name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that the name of the selected Market has now been modified as required. Go to Topic 8.5.6
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SECTION 8 The Segmentation Matrix Topic 8.5.6 - Changing The Status Of All Niches In The Market To Open Purpose: To change the status of all Niches in the Market to Open. Access: Select the required Market within the Segmentation Matrix, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Market menu item, and then Open Entire Market, or from the Menu Bar / Segmentation Matrix, select the Market menu item, and then Open Entire Market, or from the Navigator, click the Segmentation Matrix button. From the pop-up menu displayed, select the Market menu item, and then Open Entire Market.
Action: Note that all Niches within the Entire Market are now Open and revert to their appropriate colours. Go to Topic 8.6
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SECTION 8 The Segmentation Matrix Topic 8.6 Managing Segments This section describes how new Segments are added into a Market, existing Segments are duplicated into a Market, Segments are removed from a Market, and Segments are renamed. It also describes how Segments are repositioned on the Y-Axis of the Segmentation Matrix. Go to Topic 8.6.1
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SECTION 8 - The Segmentation Matrix Topic 8.6.1 - Adding A New Segment (Note, this function is not available in the Restricted Version of MATRIX V5 if three Segments have already been defined.) Purpose: To add New Segment to the Current Market. Access: Select the Market within the Segmentation Matrix to which the new Segment is to be added, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Segment menu item, and then Add New Segment, or from the Menu Bar / Segmentation Matrix, select the Segment menu item, and then Add New Segment, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Segment menu item, and then Add New Segment.
Action: Using 50 characters or less, key the name of the New Segment into the Add New Segment input box. If necessary several words may be used, e.g. Light Industrial. Click the OK button to confirm addition of the New Segment into the Market, or the Cancel button to abandon the procedure. Note that the Name of the New Segment is now displayed as a row within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Go to Topic 8.6.2
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SECTION 8 - The Segmentation Matrix Topic 8.6.2 Duplicating A Segment (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To Duplicate an Existing Segment (i.e. a Segment used in any Market other than the Current Market) into the Current Market. Access: Select the Market within the Segmentation Matrix to which the Segment is to be duplicated, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Segment menu item, and then Duplicate Segment, or from the Menu Bar / Segmentation Matrix, select the Segment menu item, and then Duplicate Segment, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Segment menu item, and then Duplicate Segment.
The Duplicate Segment Dialogue is displayed. Action: Tick the Segment(s) required for duplication from the list provided on the Duplicate Segment Dialogue. Note that more than one Segment can be selected for duplication. Close the Duplicate Segment Dialogue to confirm addition of the Duplicate Segment(s) into the portfolio. Note that the Names of the duplicate Segment(s) are now displayed in sequence, as rows within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Note: The Duplicate Segment menu item will be disabled if the current Market already supports all of the Segments utilised within the Model. Go to Topic 8.6.3
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SECTION 8 - The Segmentation Matrix Topic 8.6.3 Duplicating All Segments (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To duplicate all outstanding Segments (i.e. Segments used in any Market other than the Current Market) into the Current Market. Access: Select the Market within the Segmentation Matrix to which all outstanding Segments are to be duplicated, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Segment menu item, and then Duplicate All Segments, or from the Menu Bar / Segmentation Matrix, select the Segment menu item, and then Duplicate All Segments, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Segment menu item, and then Duplicate All Segments.
Action: All outstanding Segment(s) are now duplicated into the Market. Note that the Names of the duplicate Segment(s) are now displayed in sequence, as rows within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Note: The Duplicate All Segments menu item will be disabled if the current Market already supports all of the Segments utilised within the Model. Go to Topic 8.6.4
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SECTION 8 - The Segmentation Matrix Topic 8.6.4 - Removing The Segment In Focus Purpose: To remove a Segment from the Current Market. Access: Select the Market within the Segmentation Matrix from which the Segment Row is to be removed, and any Open status Niche within the required Segment Row. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Segment menu item, and then Remove Segment In Focus, or from the Menu Bar / Segmentation Matrix, select the Segment menu item, and then Remove Segment In Focus, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Segment menu item, and then Remove Segment In Focus.
Action: A first warning appears, stating that all data associated with this Segment in this Market will be PERMANENTLY DELETED. Click OK to proceed with removal of the Segment from the Market, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, a second message box is displayed with a stronger warning. Once again, Click OK to confirm removal of the Segment from the Market, or Cancel to abandon the procedure. Assuming OK has been clicked, the Segment, and all supporting data will be removed from the Market in focus. Note that the Segmentation Matrix is now updated to reflect the change (i.e. the relevant Segment Row has been removed). Go to Topic 8.6.5
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SECTION 8 - The Segmentation Matrix Topic 8.6.5 - Changing The Name Of A Segment Purpose: Renames a Segment. Access: From the Segmentation Matrix, select any Open status Niche within the required Segment Row. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Segment menu item, and then Change Segment Name, or from the Menu Bar / Segmentation Matrix, select the Segment menu item, and then Change Segment Name, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Segment menu item, and then Change Segment Name.
Action: To change the Name of a Segment, either amend the current Segment Name displayed within the Change Segment Name input box, or key in a new Segment Name. Use 50 characters or less. If necessary several words may be used, e.g. Light Industrial. Click the OK button to confirm the change to the Segment Name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that the name of the Segment has now been modified as required. Note: The name of the Segment has been changed throughout the whole model. Go to Topic 8.6.6
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SECTION 8 - The Segmentation Matrix Topic 8.6.6 Changing The Status Of A Segment Row Purpose: To change the status of all Niches in a Segment row from Open to Closed, and vice versa. Applies to the Market in focus only. Access: From the Segmentation Matrix, select any Open status Niche within the required Segment Row. To close all Niches within the Segment Row: With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Close Segment Row menu item, or from the Menu Bar / Segmentation Matrix, select the Close Segment Row menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Close Segment Row menu item. All Niches within the Segment Row are now Closed, i.e. displayed in black, with a white Closed legend. To open all remaining Niches within the Segment Row: Remember that an Open status Niche within the required Segment Row must be selected. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Open Segment Row menu item, or from the Menu Bar / Segmentation Matrix, select the Open Segment Row menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Open Segment Row menu item.
All Niches within the Segment Row are now Open and revert to their appropriate colours. Go to Topic 8.6.7
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SECTION 8 The Segmentation Matrix Topic 8.6.7 Changing The Position Of A Segment Row Purpose: To change the position of a Segment Row on the Y-Axis of the Segmentation Matrix. Access: From the required Market within the Segmentation Matrix. Action: Click on the Name of the Segment to be moved, located within the first column of the Segmentation Matrix. WITH THE MOUSE BUTTON STILL DEPRESSED, drag to its new position within the first column of the Segmentation Matrix. Note that the required row will be temporarily highlighted in a darker grey colour. On releasing the mouse button, the Segmentation Matrix will be redrawn with Segment Rows now in the revised order.
Go to Topic 8.7
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SECTION 8 The Segmentation Matrix Topic 8.7 Managing Products This section describes how new Products are added into a Market, existing Products are duplicated into a Market, Products are removed from a Market, and Products are renamed. It also describes how Products are repositioned on the X-Axis of the Segmentation Matrix. Go to Topic 8.7.1
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SECTION 8 The Segmentation Matrix Topic 8.7.1 - Adding A New Product (Note, this function is not available in the Restricted Version of MATRIX V5 if three Products have already been defined.) Purpose: To add New Product to the Current Market. Access: Select the Market within the Segmentation Matrix to which the new Product is to be added, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Product menu item, and then Add New Product, or from the Menu Bar / Segmentation Matrix, select the Product menu item, and then Add New Product, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Product menu item, and then Add New Product.
Action: Using 50 characters or less, key the name of the New Product into the Add New Product input box. If necessary several words may be used, e.g. Metallic Assemblies. Click the OK button to confirm addition of the New Product into the Market, or the Cancel button to abandon the procedure. Note that the Name of the New Product is now displayed as a column within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Go to Topic 8.7.2
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SECTION 8 - The Segmentation Matrix Topic 8.7.2 Duplicating A Product (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To Duplicate an Existing Product (i.e. a Product used in any Market other than the Current Market) into the Current Market. Access: Select the Market within the Segmentation Matrix to which the Product is to be duplicated, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Product menu item, and then Duplicate Product, or from the Menu Bar / Segmentation Matrix, select the Product menu item, and then Duplicate Product, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Product menu item, and then Duplicate Product.
The Duplicate Product Dialogue is displayed. Action: Tick the Product(s) required for Duplication from the list provided on the Duplicate Product Dialogue. Note that more than one Product can be selected for Duplication. Close the Duplicate Product Dialogue to confirm addition of the Duplicate Product(s) into the portfolio. Note that the Names of the Duplicate Product(s) are now displayed in sequence, as columns within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Note: The Duplicate Product menu item will be disabled if the current Market already supports all of the Products utilised within the Model. Go to Topic 8.7.3
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SECTION 8 The Segmentation Matrix Topic 8.7.3 Duplicating All Products (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To duplicate all outstanding Products (i.e. Products used in any Market other than the Current Market) into the Current Market. Access: Select the Market within the Segmentation Matrix to which all outstanding Products are to be duplicated, and any Open status Niche within the required Market. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu will be displayed, select the Product menu item, and then Duplicate All Products, or from the Menu Bar / Segmentation Matrix, select the Product menu item, and then Duplicate All Products, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Product menu item, and then Duplicate All Products.
Action: All outstanding Product(s) are now duplicated into the Market. Note that the Names of the Duplicate Product(s) are now displayed in sequence, as columns within the Segmentation Matrix. Note also that the Segmentation Matrix has been resized to accommodate the change. Note: The Duplicate All Products menu item will be disabled if the current Market already supports all of the Products utilised within the Model. Go to Topic 8.7.4
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SECTION 8 - The Segmentation Matrix Topic 8.7.4 - Removing The Product In Focus Purpose: To remove a Product from the Current Market. Access: Select the Market within the Segmentation Matrix from which the Product Column is to be removed, and any Open status Niche within the required Product Column. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Product menu item, and then Remove Product In Focus, or from the Menu Bar / Segmentation Matrix, select the Product menu item, and then Remove Product In Focus, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Product menu item, and then Remove Product In Focus.
Action: A first warning appears, stating that all data associated with this Product in this Market will be PERMANENTLY DELETED. Click OK to proceed with removal of the Product from the Market, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, a second message box is displayed with a stronger warning. Once again, Click OK to confirm removal of the Product from the Market, or Cancel to abandon the procedure. Assuming OK has been clicked, the Product, and all supporting data will be removed from the Market in focus. Note that the Segmentation Matrix is now updated to reflect the change (i.e. the relevant Product Column has been removed). Go to Topic 8.7.5
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SECTION 8 - The Segmentation Matrix Topic 8.7.5 - Changing The Name Of A Product Purpose: To Rename a Product. Access: From the Segmentation Matrix, select any Open status Niche within the required Product Column. Note that the selected Niche is now Active as shown by its white borders. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Product menu item, and then Change Product Name, or from the Menu Bar / Segmentation Matrix, select the Product menu item, and then Change Product Name, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Product menu item, and then Change Product Name.
Action: To change the Name of a Product, either amend the current Segment Name displayed within the Change Product Name input box, or key in a new Product Name. Use 50 characters or less. If necessary several words may be used, e.g. Metallic Assemblies. Click the OK button to confirm the change to the Product Name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that the name of the selected Product has now been modified as required. Note: The name of the Product has been changed throughout the whole model. Go to Topic 8.7.6
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SECTION 8 The Segmentation Matrix Topic 8.7.6 - Changing The Status Of A Product Column Purpose: To change the status of all Niches in a Product column from Open to Closed, and vice versa. Applies to the Market in focus only. Access: From the Segmentation Matrix, select any Open status Niche within the required Product Column. To close all Niches within the Product Column: With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Close Product Column menu item, or from the Menu Bar / Segmentation Matrix, select the Close Product Column menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Close Product Column menu item. All Niches within the Product Column are now Closed, i.e. displayed in black, with a white Closed legend. To open all remaining Niches within the Product Column: Remember that an Open status Niche within the required Product Column must be selected. With the cursor hovering over the Segmentation Matrix grid, click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Open Product Column menu item, or from the Menu Bar / Segmentation Matrix, select the Open Product Column menu item, or from the Navigator, click the Segmentation Matrix button. A pop-up menu will be displayed. Select the Open Product Column menu item.
All Niches within the Product Column are now Open and revert to their appropriate colours. Go to Topic 8.7.7
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SECTION 8 The Segmentation Matrix Topic 8.7.7 Changing The Position Of A Product Column Purpose: To change the position of a Product Column on the X-Axis of the Segmentation Matrix. Access: From the required Market within the Segmentation Matrix. Action: Click on the Name of the Product to be moved, located within the first row of the Segmentation Matrix. WITH THE MOUSE BUTTON STILL DEPRESSED, drag to its new position within the first row of the Segmentation Matrix. Note that the required column will be temporarily highlighted in a darker grey colour. On releasing the mouse button, the Segmentation Matrix will be redrawn with Product Columns now in the revised order.
Go to SECTION 9
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SECTION 9 Segmentation Map And Advanced Segmentation

This section describes the Segmentation Map and Advanced Segmentation using MATRIX V5. Topic No 9.1 9.2 9.3 9.3.1 9.3.2 9.3.3 9.3.4 9.4 9.4.1 9.4.2 9.4.3 Go to Topic 9.1 Topic Title A Background To Advanced Segmentation The Segmentation Map In MATRIX V5 Groups Adding A New Group Removing The Group In Focus Changing The Name of A Group Changing The Colour Attributed To A Group Links Creating A New Link Removing The Link In Focus The Link Data Editor
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SECTION 9 The Advanced Segmentation Module Topic 9.1 - A Background To Advanced Segmentation The following section describes the Segmentation Map and Advanced Segmentation within MATRIX V5. Whilst the logical place for this section follows the Segmentation Matrix (See SECTION 8 ), the Segmentation Map is an advanced feature. It may therefore be more appropriate for the first time user to skip this section, and return to it having completed the rest of the Help System / Manual. Purpose: Over time new information regarding the make-up existing Markets, Products and Segments may come to light. For example, further investigation into the split of sales over (say) three existing geographic markets may result in sufficient data to amortise the model over six newly defined geographic territories. Similarly, it may become apparent that two geographically separate Niches with similar wants and needs should be combined into one new super Niche. Such a revision could potentially bring greater clarity to the scope and direction of the business. Rather than having to recast the model from first principles (along with all of the reformatting and rekeying of data that would be involved), the Segmentation Map enables quick revisions of this nature to be generated in a graphical environment and with minimal effort. The need for rekeying is eliminated, all of the underlying calculations associated with slicing and dicing of data are handled automatically and various analyses are immediately available for review. Limitations: However, whilst the concept is intuitively appealing, it is NOT a magic cure all that can be applied to all analyses. THE INTEGRITY OF THE APPROACH IS MAINTAINED ONLY FOR THOSE ANALYSES BASED SOLELY ON MARKET HISTORY AND FORECAST DATA that is Life Cycle Analysis, Share Analysis, the Boston Matrix, and Gap Analysis. The remaining analyses which depend upon Market Attractiveness and Competitive Strength data namely Market Attractiveness Analysis, Competitive Strengths Analysis, the Directional Policy Matrix, Perceptual Maps and Risk Analysis cannot be handled in this way and necessarily have been excluded. A related issue is that shares of Market History And Forecast data applied via the Link Data Editor relate uniformly across the Niche, the Host Company and listed Competitors. Careful consideration should therefore be given to the effect on model integrity before using this facility. However, in the right circumstances it can be a useful first step in any revision process. If the new vision looks encouraging, the strategist would be wise at that point to recast the model from first principles, and to review all of the required data including elements relating to Market Attractiveness and Competitive Strength. Go to Topic 9.2
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SECTION 9 The Advanced Segmentation Module Topic 9.2 - The Segmentation Map In MATRIX V5 Purpose: The Segmentation Map enables the user to map out a new perspective of the business. It allows the creation of new Groups, and the establishment of Links between existing Niches and the newly defined Groups. Finally, the Segmentation Map enables shares of the Market History And Forecast data associated with each Niche (Volumes, Revenues, Gross Margins) to be mapped to each Group. Access: From the Menu Bar / View, select the Segmentation Map menu item, or from the Toolbar, click the Segmentation Map Button.
To display the map exactly as shown above, open the HandyMan demonstration model and click the Segmentation Map button. Niches within the model have been mapped to Light Industries, Public, Primary Schools, Secondary Schools and Tertiary Colleges and Universities as appropriate. All Closed Status Niches remain linked to the Undefined Group. Note that the % of Market History And Forecast data carried by each link is also displayed.
Action: On opening an unedited Segmentation Map for the first time, default Links exist from all Niches to the black Undefined Group. As new Markets, Products and Segments are added into the Scenario, further default Links are created from resultant Niches to the Undefined Group.
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However the power of the Advanced Segmentation Module becomes apparent as the user creates new Groups upon the Segmentation Map, and revises the Links, which leads to a new perspective of the business. Much of the mapping process is performed by point and click with the mouse button, and supported by completion of the simple Link Data editor. Go to Topic 9.3
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SECTION 9 The Advanced Segmentation Module Topic 9.3 - Groups Groups can be thought of as alternative Segments for the Scenario. Groups do not replace the existing Market Segments (as displayed within the Segmentation Matrix), but are complementary to and concurrent with existing Market Segments. Shares of the Market History And Forecast data associated with each Niche (Volumes, Revenues, Gross Margins) are mapped to each Group. For example, further exploration of sales figures for Plastic Assemblies within the Educational Segment may reveal that in Europe the business is split 50 / 50 split between Primary Schools, and the Secondary Schools. A similar treatment for the Rest Of World Niche may reveal an 80 / 20 split in favour of Secondary Schools. By creating two new Groups, namely Secondary Schools and Primary Schools and applying the necessary Links and Shares from the original products, it is now possible to generate a more detailed, and possibly more revealing user based analysis. Go to Topic 9.3.1
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SECTION 9 The Advanced Segmentation Module Topic 9.3.1 Adding A New Group Purpose: Adds a new Group into the Segmentation Map. Access: From the Segmentation Map, select any existing Group (including the Group labelled Undefined). Now click with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Add New Group menu item. Action: Using 50 characters or less, key the name of the New Group into the Add New Group input box. If necessary several words may be used, e.g. Primary Schools. Click the OK button to confirm addition of the new Group into the model, or the Cancel button to abandon the procedure. A new Group, currently without any supporting Links, is now displayed within the Segmentation Map as a coloured circle. Go to Topic 9.3.2
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SECTION 9 The Advanced Segmentation Module Topic 9.3.2 Removing The Group In Focus Purpose: Removes an existing Group from the Segmentation Map. Access: From the Segmentation Map, select the Group required for removal. Now click with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Remove Group In Focus menu item. Action: A first warning appears, stating that all Links associated with this Group will be PERMANENTLY DELETED. Click OK to proceed with removal of the Group, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, a second message box is displayed with a stronger warning. Once again, Click OK to confirm removal of the Group, or Cancel to abandon the procedure. Assuming OK has been clicked, the Group, and all supporting data will be removed from the model and the Segmentation Map is updated. Note: The Undefined Group cannot be removed. Go to Topic 9.3.3
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SECTION 9 The Advanced Segmentation Module Topic 9.3.3 Changing The Name Of A Group Purpose: Renames a Group. Access: From the Segmentation Map, select the Group that is to be renamed. Now click with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Change Group Name menu item. Action: To change the Name of a Group, either amend the current Group Name displayed within the Change Group Name input box, or key in a new Group Name. Use 50 characters or less. If necessary several words may be used, e.g. Far East. Click the OK button to confirm the change to the Group Name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that the name of the selected Group has now been modified as required. Go to Topic 9.3.4
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SECTION 9 The Advanced Segmentation Module Topic 9.3.4 Changing The Colour Attributed To A Group Purpose: To change the colour attributed to a Group Access: From the Segmentation Map, select the Group that is to be renamed. Now click with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Change Group Colour menu item. The Color Dialogue is now displayed.
Action: To change the colour attributed to a Group, move the cursor to the required colour and click to select. Alternatively click the Define Custom Colours button and move the cursor to the required colour. Click to select. Further changes can be made by altering the Hue, Sat, Lum, Red, Green and Blue values, or by sliding the arrow to the right of the vertical colour selector up and down. Click the Add to Custom Colors button and the OK button to confirm the colour selection, or the Cancel button to abandon the procedure. Assuming OK has been clicked, note the Group now displays the new colour within the Segmentation Map. Hints and Tips: 1. Further help about the Color Dialogue is available directly within the colour editor via the ? button. Go to Topic 9.4
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SECTION 9 The Advanced Segmentation Module Topic 9.4 - Links A Link enables the whole, or a share of the Market History And Forecast data associated with each Niche (Volumes, Revenues, Gross Margins) to be mapped to a Group. Links are represented upon the Segmentation Map as straight black arrows. Each Link will also display the % of the Market History And Forecast data associated with the Niche, and whether the status of the Link is Anchored (in which case the % data is noted with (A)). The drawing rules concerning Links upon the Segmentation Map are: A Niche can have Links to more than one Group. A Group can have Links from more than one Niche A Link between two Niches is not permissible A Link between two Groups is not permissible When a Niche is first Linked to any Group other than the Undefined Group, the link to the Undefined Group is removed. The new Link assumes a 100% Share of all Market History And Forecast data associated with the Niche. When a Niche is Linked once again to the Undefined Group, then all Links from that Niche to all other Groups are removed. The new Link assumes a 100% Share of all Market History And Forecast data associated with the Niche. A Link from a Niche to the Undefined Group cannot be removed (except as stated above). Shares of Niche Value associated with Links to more than one Group are managed via the Link Data Editor.
Go to Topic 9.4.1
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SECTION 9 The Advanced Segmentation Module Topic 9.4.1 Creating A New Link Purpose: To create a Link from a Niche to a Group. Access: First, ensure that the required Niche exists upon the Segmentation Matrix, and the required Group has been created upon the Segmentation Map. Action: From the Segmentation Map, with the left-hand mouse button, select the required source Niche. Note that selection handles appear at the corners and on the edges of the Niche. Move the cursor to the centre of the Niche. Now click with the left hand mouse button (note that the cursor shape changes from a solid arrow to a cross), and drag the resultant line into the destination Group circle. Make sure that the line is dragged fully inside of the Group circle, otherwise the Link will not be established. A line arrow linking the two components now exists. Shares of Niche Value for all Links (excluding Anchored Links) emanating from the source Niche are recalculated. If either component is moved upon the map, the Link stays in tact. Go to Topic 9.4.2
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SECTION 9 The Advanced Segmentation Module Topic 9.4.2 Removing The Link In Focus Purpose: To remove a Niche to Group Link. Access: From the Segmentation Map, ensure that the required Link has been selected. Note that a selection handle appears halfway along the Link. Now click with the RIGHT HAND mouse button. From the popup menu displayed, select the Remove Link In Focus menu item. Action: The Link is now deleted. Shares of Niche Value for all Links (excluding Anchored Links) emanating from the source Niche are recalculated. Go to Topic 9.5
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SECTION 9 The Advanced Segmentation Module Topic 9.5 The Link Data Editor Purpose: The Link Data Editor enables the user to manage the share of Market History And Forecast data supported by each Link from a Niche. All Links from a source Niche are displayed within the Data Editor, with the selected Link highlighted.
To display the data editor exactly as shown above, open the HandyMan demonstration model and click the Segmentation Map button. Now select the Link between the Rest Of World / Plastic Assemblies / Educational Niche and the Secondary Schools Group, and click the Link Button. The data editor shows that 80% of Market History And Forecast data associated with the Niche is mapped to the Secondary Schools Group. This figure is Anchored as it has been edited by the user.
Access: Ensure that the Segmentation Map is displayed, and that the required Link has been selected. From the Menu Bar / Data, select the Link menu item, or with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Define Link menu item. from the Toolbar, click the Link Button.
Action: The Link Data Editor is displayed. The source Niche is described within the Niche column. The destination Group is described within the Group Column. The Share of Market History And Forecast data assocated with the Niche that is supported by the Link is described within the Share (%) Column. Default Shares are calculated pending the number of Links emanating from the Niche, and the values contained within any Anchored Links as described below. However the user can overwrite this field with values of between 0% and 100%, so long as the total share for all Links emanating from a Niche does not exceed 100%. Anchored Share (%) Values: The assumption is that any user defined Share should be fixed, and not be subject to automatic overwriting. Therefore overwriting the Share (%) field with any value of between 0% and 100% automatically Anchors the value. Alternatively the user can Anchor a default value simply by ticking the Anchored tick box. Non Anchored Share (%) Values: Anchored values are fixed, i.e. they are not overwritten when Share percentages are recalculated. The balance, that is 100 sum of all Anchored Shares, is then divided equally amongst the remaining Non-Anchored Links. Note that for any source Niche, one Link must always remain Non-Anchored to act as a buffer for the remaining percentage value. When there is only one Non-Anchored Link, its value cannot be overwitten, and its status cannot be changed to Anchored. In this case, the corresponding Group description and Share (%) value are also distinguished in a lighter grey font colour. Validation Rules Within The Link Data Editor: Validation warnings will occur within the Link Data Editor as follows: Any Share (%) field contains a Null Value (i.e. is left blank). Page 126 of 296

The value of the Share (%) is greater than 100
Note, Integer values only will be accepted into the Share (%) field. Copying Data from the Link Data Editor: Data can be copied from the Link Data Editor, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the selected cell in the Link Data Editor. Then with the RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. Data shown in the Link Data Editor is copied onto the clipboard for further action. NOTE, the status of the Anchored field (either ticked or not ticked) is NOT COPIED to clipboard Note: Percentages entered via the Share % field apply not only to Host Company data for each year (as entered within the Market History And Forecast Data Editor), but also to Niche data and Competitor data. Prior to use, strategists should consider whether this universal approach is acceptable, or whether it causes the integrity of the model to be compromised. If the latter is true, then the Segmentation Map should not be used. Instead, the model should be recast from first principles that is by creating a new Scenario (or even a new model), with new Products and Markets, and with data formulated accurately for each Niche, the Host and Competitors as appropriate. Go to SECTION 10
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SECTION 10 Ansoff Matrix

This section describes what the Ansoff Matrix is, and how Niches are plotted on to the Ansoff Matrix. Topic No 10.1 10.2 10.3 Go to Topic 10.1 Topic Title A Background To The Ansoff Matrix Technique The Ansoff Matrix In MATRIX V5 Plotting Niches On The Ansoff Matrix
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SECTION 10 The Ansoff Matrix Topic 10.1 - A Background To The Ansoff Matrix Technique Introduction: The Ansoff Matrix (also known as the Growth Vector Matrix) takes its name from Professor H. Igor Ansoff who was an eminent management scientist, academic, author on corporate strategy, and originator of the concept. The distribution of portfolio elements within the matrix provides a valuable insight into a companys growth strategy, and underlying risks.
Application of the Ansoff Matrix: The classical way to use the matrix is to develop Objectives for a business, and then establish whether those Objectives can be achieved through competitive exploitation of the current portfolio (i.e. a Penetration strategy). If a gap exists between the Objectives and the Forecast Returns from those current opportunities, then one solution is to lower the Objectives to reflect more modest ambitions for the company. Alternatively, the Objectives can be retained and an active search should begin for new products to sell to existing markets (Product Development Strategy), or for new markets to address with existing products (Market Development Strategy), or for new products to be sold to new markets (Diversification Strategy).
The aim is to progressively narrow the gap between Objectives and Forecast Returns until a suitable portfolio can be devised. However, each type of strategy represents a significant departure for the company, and progressively increased exposure to risk. It should also be noted that Objectives are varied in scope and sometimes conflicting in nature. A company may struggle to see how its longer term Economic Objectives (e.g. Return on Investment) can be satisfied with its current portfolio. Diversifying into new products and markets may provide the necessary long term financial returns but reduce the short term profits that stakeholders may expect, and ultimately draw attention away from what the company considers to be its core strengths. The relationship between Objectives, the Growth Vector as manifest through the Ansoff Matrix, and all other elements of strategy (e.g. Competitive Advantage, Product / Market Scope, and Synergy) is a complex one and demanding of input at the most senior levels of the company. Go to Topic 10.2
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SECTION 10 The Ansoff Matrix Topic 10.2 - The Ansoff Matrix In MATRIX V5 Purpose: Visualises the Growth Strategy for the company, as the user proactively determines whether each Niche within the portfolio represents a new (or existing) Product directed towards a new (or existing) Market. The Ansoff Matrix is linked to Gap Analysis, which in turn gives a rigorous view of Risk underlying the portfolio.
To display the matrix exactly as shown above, open the HandyMan demonstration model and click the Ansoff Matrix button. In the example shown above, each colour coded Niche defined within the Segmentation Matrix has been plotted within the appropriate Ansoff Matrix quadrant by simple 'point and click' method - the more recent the Product or Market Segment, the further to the right or bottom of the window respectively. The Host Company intends to grow its business by Market Penetration and Product Expansion. Note the 'pop-up' text that appears when the cursor is passed over each dot on the Ansoff Matrix, providing further information about the Market, Product, Segment and Scenario.
Access: From the Menu Bar/ View, select the Ansoff Matrix menu item, or from the Toolbar, click the Ansoff Matrix button, or from the Navigator, click the Ansoff Matrix button. Display: A 2 x 2 matrix of four coloured quadrants is displayed. The user then plots the position of each Niche from the Segmentation Matrix into the Ansoff Matrix, thus reflecting the following growth strategies: Penetration (Green Border) i.e. an existing product being directed towards an existing market. This is normally considered to be the lowest risk of all strategies. Product Expansion (Yellow Border) i.e. a new product being directed towards an existing market. Following Penetration, this is normally considered to be the next lowest risk strategy. Market Expansion (Orange Border) i.e. an existing product being directed towards a new market. Following Product Expansion, Market Expansion is normally considered to be the next lowest risk strategy. Page 130 of 296

Diversification (Red Border) i.e. a new product being directed towards a new market. This is normally considered to be the highest risk strategy.
Moving the cursor over each Niche plot on the Ansoff Matrix displays a pop-up window that contains the name of the Market, Segment and Product. Link To Gap Analysis: Reviewing Gap Analysis (by Ansoff Quadrant) will display the proportion of Revenue or Gross Margin that is being derived from each of the four quadrants. If the bulk of the Objective Revenue is not accounted for by Penetration, then the Risk potential implied by the Scenario should be noted. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Ansoff Matrix to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into a compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 10.3
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SECTION 10 The Ansoff Matrix Topic 10.3 - Plotting Niches On The Ansoff Matrix Purpose: To plot Niches on the Ansoff Matrix. Access: Two elements will be required for display, namely the Segmentation Matrix, and the Ansoff Matrix. If the Ansoff Matrix is not currently on display, either: from the Menu Bar / View, select the Ansoff Matrix menu item, or from the Toolbar, click the Ansoff Matrix button, or from the Navigator, click the Ansoff Matrix button
The Ansoff Matrix will now appear, superimposed over the Segmentation Matrix. Positioning a Segment: Drag the Ansoff Matrix to one side. Now select the Niche within the Segmentation Matrix that is to be introduced to the Ansoff Matrix, (thus making it Active). Now select the Ansoff Matrix, and position the cursor as appropriate within the required quadrant. For example if the Niche represents a New Product being sold to a New Market, position the cursor in the Diversification strategy quadrant. Now click once. A coloured plot that represents the Niche will snap to the required position. The process should be repeated until all Open segments have been accounted for. Hints and Tips: 1. An indication of newness may be obtained by positioning the Niches further to the right and further to the bottom of each quadrant. 2. On closer inspection, a New Product being sold into an Existing Market may in fact be better categorized as Diversification. (Critical Success Factors for the New Product may be substantially different from those applying to Existing Products. The assumption that the same purchasing conditions will apply to all Products within the same Market is a trap for the nave.) MATRIX V5 offers total flexibility for the user in plotting the positions of Niches. Go to SECTION 11
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SECTION 11 The Competitors Dialogue

This section describes the Competitors Dialogue, and how Competitors are managed within MATRIX V5. Topic No 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 Go to Topic 11.1 Topic Title The Competitors Dialogue In MATRIX V5 Changing The Name Of The Host Company Changing The Colour Attributed To The Host Company Changing The Name Of A Competitor Changing The Colour Attributed To A Competitor Adding A New Competitor Mapping A Competitor To A Niche Removing The Competitor In Focus
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SECTION 11 The Competitors Dialogue Topic 11.1 - The Competitors Dialogue In MATRIX V5 Purpose: Defines competitors within a Model, and maps Competitors to a Niche. Also enables the Host Company and Competitor details to be modified.
To display the Dialogue exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. Click the Competitors button. In the example shown above, the Name of the Host Company is 'HandyMan PLC'. The company has two main competitors operating within the Niche, 'Budget Assemblies Ltd' and 'EngineerIT Ltd'.
Access: From the Menu Bar / View, select the Competitors Dialogue menu item, or from the Toolbar, click the Competitors Dialogue button, or from the Navigator, click the Competitors button The Competitors Dialogue is now displayed, initially with the Host Company (named Host) displayed in black, and a template Competitor (labelled Competitor 1) displayed in light blue. Action: The user now has the ability to: Change the Name of the Host Company Change the Colour ascribed to the Host Company Change the Name of a competitor Change the Colour ascribed to a competitor. Add a New Competitor to the model Remove an existing competitor from the model Map a Competitor to (and Un-map a Competitor from) a Niche
Go to Topic 11.2
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SECTION 11 The Competitors Dialogue Topic 11.2 - Changing The Name Of The Host Company Purpose: To define the name of the Host Company (i.e. the company for whom the model is being developed). As a new model is created, the name of the Host Company used within the various Scorecards and Charts defaults to Host. In any modelling exercise, it will almost certainly be more preferable to use the actual name of the Host Company. Access: From The Competitors Dialogue, move the cursor to the top row of the Name column. Click once to bring the Host Name into focus. Then either: double click within the Host Name field, to edit directly within the Dialogue, or with the RIGHT HAND mouse button click once. From the pop-up menu displayed, select the Change Host Name menu item. The name of the Host Company will now be highlighted, ready for editing.
Action: To change the name of the Host Company, either amend the existing name within the Dialogue, or key in a new name. Use 50 characters or less. If necessary several words may be used, e.g. HandyMan PLC. On closing the Competitors Dialogue a message box appears asking whether the changes are to be saved. Click the OK button confirm the change to the Host name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that Scorecards and Charts now support the revised Host Name. Go to Topic 11.3
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SECTION 11 The Competitors Dialogue Topic 11.3 - Changing The Colour Attributed To The Host Company Purpose: To change the colour attributed to the Host Company. Access: From the Competitors Dialogue, move the cursor to the top row of the Colour column. Click once to select the Host Colour, then with the RIGHT HAND mouse button, click a second time. The Color Dialogue is now displayed.
Action: To change the colour attributed to the Host Company, move the cursor to the required colour and click to select. Alternatively click the Define Custom Colour button and move the cursor over the required colour. Click to select. Further changes can be made by altering the Hue, Sat, Lum, Red, Green and Blue values, or by sliding the arrow to the right of the vertical colour selector up and down. Click the OK button to register the colour selection (note the new colour of the Host is now displayed within the Competitors Dialogue), or the Cancel button to abandon the procedure. On closing the Competitors Dialogue a message box appears asking whether the changes are to be saved. Click the OK button confirm the change to the Host colour, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that Charts now support the revised Host Colour. Hints and Tips: 1. Further help is available directly within the colour editor via the ? button. Go to Topic 11.4
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SECTION 11 The Competitors Dialogue Topic 11.4 - Changing The Name Of A Competitor Purpose: To define the name of a Competitor. As a new model is created, six template Competitors (labelled Competitor 1 to Competitor 6) are introduced into the model. In any modelling exercise, it will almost certainly be more preferable to use the actual names of Competitors encountered in the market. Access: From the Competitors Dialogue, move the cursor to the required Competitor Name. Click once to bring the Competitor Name into focus. Then either: double click within the Competitor Name field, to edit directly within the Dialogue, or with the RIGHT HAND mouse button click once. From the pop-up menu displayed, select the Change Competitor Name menu item. The name of the Competitor Company will now be highlighted, ready for editing.
Action: To change the name of the Competitor, either amend the existing name within the Dialogue, or key in a new name. Use 50 characters or less. If necessary several words may be used, e.g. Acme Ltd. On closing the Competitors Dialogue a message box appears asking whether the changes are to be saved. Click the OK button confirm the change to the Cancel name, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that Scorecards and Charts now support the revised Competitor Name. Go to Topic 11.5
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SECTION 11 The Competitors Dialogue Topic 11.5 Changing the Colour Attributed To A Competitor Purpose: To change the colour attributed to a Competitor. Access: From the Competitors Dialogue, move the cursor to the required Competitor Colour. Click once to select the Competitor Colour, then with the RIGHT HAND mouse button, click a second time. The Color Dialogue is now displayed.
Action: To change the colour attributed to a Competitor, move the cursor to the required colour and click to select. Alternatively click the Define Custom Colour button and move the cursor over the required colour. Click to select. Further changes can be made by altering the Hue, Sat, Lum, Red, Green and Blue values, or by sliding the arrow to the right of the vertical colour selector up and down. Click the OK button to register the colour selection (note the new colour of the Competitor is now displayed within the Competitors Dialogue), or the Cancel button to abandon the procedure. On closing the Competitors Dialogue a message box appears asking whether the changes are to be saved. Click the OK button confirm the change to the Competitors colour, or the Cancel button to abandon the procedure. Assuming OK has been clicked, notice that Charts now support the revised Host Colour. Hints and Tips: 1. Further help is available directly within the colour editor via the ? button. Go to Topic 11.6
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SECTION 11 The Competitors Dialogue Topic 11.6 - Adding A New Competitor Purpose: To add a new competitor into the model. Access: From the Competitors Dialogue, move the cursor to any row within the Name column. Click once to bring the Host (or Competitor) Name into focus. Then with the RIGHT HAND mouse button click once. From the pop-up menu displayed, select the Add New Competitor menu item. The Add New Competitor input box is now displayed, along with the default Competitor Name, Competitor x (where x is the serial number of the Competitor). Action: Using 50 characters or less, overwrite the default Competitor Name within the Add New Competitor input box. If necessary several words may be used, e.g. Acme Ltd. Click the OK button to confirm addition of the New Competitor into the Model, or the Cancel button to abandon the procedure. Go to Topic 11.7
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SECTION 11 The Competitors Dialogue Topic 11.7 - Mapping A Competitor To A Niche Purpose: To map an existing competitor (i.e. one that has been already been introduced into the model) to a Niche. Access: First, ensure that the required Niche is selected (i.e. Active, as shown by its white borders). Now open the Competitors Dialogue. Action: To map a Competitor to a Niche, scroll to the required Competitor, and click the corresponding tick box in the Map column. A tick mark appears in the box, and corresponding records are added into the database. Note that any Competitor already mapped to the Niche can be similarly un-mapped by clicking the corresponding tick box a second time to remove the tick. On closing the Competitors Dialogue a message box appears asking whether the changes are to be saved. Click the OK button to confirm mapping, or the Cancel button to abandon the procedure. Hints and Tips: 1. It is now possible to modify the Scenario with the Competitors performance (data) via the Market History And Forecast Data Editor, Competitive Strength and Criterion Scorecards. Go to Topic 11.8
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SECTION 11 The Competitors Dialogue Topic 11.8 - Removing The Competitor In Focus Purpose: Removes an existing competitor from the model. Access: From the Competitors Dialogue, move the cursor to the required Competitor Name. Click once to bring the Competitor Name into focus. Then with the RIGHT HAND mouse button click once. From the pop-up menu displayed, select the Remove Competitor In Focus menu item. Action: A first warning appears, stating that all data associated with this Competitor will be PERMANENTLY DELETED. Click OK to proceed with removal of the Competitor from the Model, or Cancel to abandon the procedure. As data will be irrevocably removed from the database, second message box is displayed with a stronger warning. Once again, click OK to confirm removal of the Competitor from the Model, or Cancel to abandon the procedure. Assuming OK has been clicked, the Competitor, and all supporting data will be removed from the Model. Note that the Competitors Dialogue is now updated to reflect the change (i.e. the relevant Competitor Row has been removed). Go to SECTION 12
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SECTION 12 The Economic Objectives Data Editor

This section describes the Economic Objectives Data Editor. Topic No 12.1 12.2 12.3 12.4 12.5 Go to Topic 12.1 Topic Title The Economic Objectives Data Editor In MATRIX V5 Validation Rules Within The Economic Objectives Data Editor Definition Of Objectives Definition Of Revenue Definition Of Gross Margin
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SECTION 12 The Economic Objectives Data Editor Topic 12.1 The Economic Objectives Data Editor In MATRIX V5 Purpose: To input of the Host Companys Revenue and Gross Margin Objectives. Access: From the Menu Bar / Data, select the Economic Objectives menu item, or from the Toolbar, click the Economic Objectives button, or from the Navigator, click the Economic Objectives button.
To display the Data Editor exactly as shown above, click the Economic Objectives button. In the example shown above, the Host Company's Revenue Objectives are set to grow by a Compound Annual Growth Rate (CAGR) of 20% from 20,000,000.00 in 2006, to 41,472,000.00 in 2010. The company anticipates its Gross Margin will grow by a CAGR of 15% from 6,000,000.00 in 2006 to 10,494,038.00 in 2010.
Action: The Economic Objectives Data Editor is displayed, all fields initially being completed with zero values. Key in known Revenues and Gross Margins achieved by the Host Company during historic Years, and the Forecast Revenues and Gross Margins for the current and future Years. Year-on-year percentage growth in Revenue and Gross Margin (calculated automatically from the data provided) are shown in the grey fields below the Revenue and Gross Margin rows respectively. On closing the Economic Objectives Data Editor, a message box appears asking whether the changes to Economic Objectives are to be saved. Click the OK button save the changes, or the Cancel button to abandon the procedure. Validation: A validation warning will occur if for any one Year the value entered for Gross Margin is greater than the value entered for Revenue, or the value entered for Revenue is less than the value entered for Gross Margin. Under such circumstances the model retains the original value of Gross Margin. Copying Data from the Economic Objectives Data Editor: Data can be copied from the Economic Objectives Data Editor, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the Economic Objectives Data Editor. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. All data shown in the Economic Objectives Data Editor is copied onto the clipboard for further action. Hints and Tips: 1. Where different geographic markets are to be compared within the same model it will be necessary for the strategist to adopt a single base currency to work with so that all opportunities are given the same basis for comparison. Go to Topic 12.2
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SECTION 12 The Economic Objectives Data Editor Topic 12.2 Validation Rules Within The Economic Objectives Data Editor Validation warnings will occur within the Economic Objectives Data Editor, if for any one Year: Revenue: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Any Revenue is greater than 9,999,999,999,999.99 Any Revenue is greater than 0.00, but less than 0.01 The Revenue Objective is made less than the Gross Margin Objective. Gross Margin: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Any Gross Margin is greater than 9,999,999,999,999.99 Any Gross Margin is greater than 0.00, but less than 0.01 The Gross Margin Objective is made greater than the Revenue Objective. Go to Topic 12.3
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SECTION 12 The Economic Objectives Data Editor Topic 12.3 Definition Of Objectives Objectives define the overall economic performance targets set for the Host Company in order to achieve its plans for growth, profit and dividend (or otherwise) as laid out by the Companys Directors. MATRIX V5 concentrates on two such financial performance indicators, namely the Objective Revenue and the Objective Gross Margin. These Objectives are keyed into the Economic Objectives Data Editor for the Model Timeframe. Go to Topic 12.4
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SECTION 12 The Economic Objectives Data Editor Topic 12.4 - Definition Of Revenue Revenue is income from a business venture. Within in the context of the Economic Objectives Data Editor, Achieved Revenue is the total income achieved by the Host Company during the past. Objective Revenue is the total income required by the Host Company in the future to achieve its plans for growth, profit and dividend. Within in the context of the Market History And Forecast Data Editor, Achieved Revenue is the income achieved by the Niche, the Host Company and key Competitors during the past. Forecast Revenue is the income expected from the Niche, the Host Company and key Competitors in the future.
Go to Topic 12.5
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SECTION 12 The Economic Objectives Data Editor Topic 12.5 - Definition Of Gross Margin Gross Margin = (Sales Price Cost of Raw Materials). Within in the context of the Economic Objectives Data Editor, Achieved Gross Margin is the total Gross Margin achieved by the Host Company during the past. Objective Gross Margin is the total Gross Margin required by the Host Company in the future to achieve its plans for growth, profit and dividend. Within in the context of the Market History And Forecast Data Editor, Achieved Gross Margin is the Gross Margin achieved by the Host Company (defined as a percentage of Revenue) during the past. Forecast Gross Margin is the Gross Margin expected by the Host Company (defined as a percentage of Revenue) in the future.
Gross Margin is a measure of the amount of money an operation has to work with after allowing for the costs of raw materials. Sales Costs, Variable costs, Fixed Overheads and Profit all have to be covered by Gross Margin, but nevertheless it is still a useful first guide to profitability of a sale or a market. If there are no bought in costs (e.g. a service industry may not produce a tangible product requiring raw materials) then the business may be considered to operate at a very high Gross Margin. Alternatively, a notional cost may be extracted to allow for labour. Typically Strategists look for Gross Margins of between 50% and 100% of Sales Price. Go to SECTION 13
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SECTION 13 The Market History And Forecast Data Editor

This section describes the Market History And Forecast Data Editor. Topic No 13.1 13.2 13.3 13.4 Go to Topic 13.1 Topic Title The Market History And Forecast Data Editor In MATRIX V5 Definition of Forecast Calculated Data Within The Market History And Forecast Data Editor Validation Rules Within The Market History And Forecast Data Editor
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SECTION 13 The Market History And Forecast Data Editor Topic 13.1 The Market History And Forecast Data Editor In MATRIX V5 Purpose: To enable the input of statistical data relating to: historical performance of the Niche, and Forecasts for the future. historical performance of the Host Company within that Niche, and its Forecasts for the future. historical performance of Key Competitors within that Niche, and Forecasts for the future.
To display the Data Editor exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. Click the Market History And Forecast button. In the example shown above, the Niche is approaching the mature phase of its life cycle. Sales Volumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will maintain its position within the Niche, with Sales Volumes increasing from 2,250 units in 2006 to 4,000 units in 2009. Budget Assemblies Ltd is anticipated to be one of the losers, with Sales Volumes expected to fall from a high of 3,000 units in 2006, to 2,650 units in 2010. It is anticipated that the Average Unit Price (paid by the Niche) will fall from $1,280.00 in 2006 to $1,060.00 in 2010. The Gross Margin enjoyed by HandyMan PLC will similarly erode from 50% of Sales Price in 2006 to 32% of Sales Price in 2010.
Mode of Input: First, ensure that the required mode of Input and Analyses is selected within the Preferences Dialogue. Options include: Volume Only: Enables input of Volume data only into the Market History And Forecast Data Editor. Analysis can be by Volume only. Revenue Only: Enables input of Revenue data only into the Market History And Forecast Data Editor. Analysis can be by Revenue only. Volume and Revenue: Enables input of both Volume and Revenue data into the Market History And Forecast Data Editor. Volume and Revenue are treated as independent metrics, and analysis can be by both Volume and Revenue. Volume, Unit Price and Gross Margin: Enables input of Volume, Unit Price and Gross Margin data into the Market History And Forecast Data Editor. Analysis can be by Volume, Revenue, or Gross Margin, but all Revenues are calculated by multiplying Volumes and corresponding Unit Prices. Gross Margins are calculated by multiplying Calculated Revenues and corresponding percentage Gross Margins. Revenue and Gross Margin (shown above): Enables input of Revenue and Gross Margin data into the Market History And Forecast Data Editor. Analysis can be by Revenue or Gross Margin, but Gross Margins are calculated by multiplying Revenues and corresponding percentage Gross Margins.
Access: First, ensure that the required Niche is selected (i.e. Active, as shown by its white borders). Then: from the Menu Bar / Data, select the Market History And Forecast menu item, or from the Toolbar, click the Market History And Forecast button, or from the Navigator, select the Market History And Forecast button
The Market History And Forecast Data Editor is now displayed in Contracted mode Page 149 of 296

Action: For the Niche, Host Company and Key Competitors, key in the Volumes actually achieved during historic Years and the Forecast Volumes for current and future Years. For the Niche, Host Company and Key Competitors, key in the Revenues actually achieved during historic Years and the Forecast Revenues for current and future Years. Key in the Average Unit Price actually achieved within the Niche during historic Years and the Forecast Average Unit Price for current and future Years. Key in the Percentage Gross Margins actually achieved by the Host Company during historic Years and the Forecast Percentage Gross Margins for current and future Years. On closing the Market History And Forecast Data Editor, a message box appears asking whether the changes to Market History And Forecast are to be saved. Click the OK button save the changes, or the Cancel button to abandon the procedure. Expanded Format: To toggle the Market History And Forecast Data Editor between Contracted and Expanded formats, click the Expand and Contract button located to the top left of the Data Editor. Calculated data such as Shares and Period on Period percentage growth rates are now displayed. Copying Data from the Market History And Forecast Data Editor: Data can be copied from the Market History And Forecast Data Editor, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the Market History And Forecast Data Editor. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. All data shown in the Market History And Forecast Data Editor is copied onto the clipboard for further action. Hints and Tips: 1. Where different geographic markets are to be compared within the same model it will be necessary for the strategist to adopt a single base currency to work with (e.g. , $). MATRIX V5 does not support currency conversions, so this function will need to be handled outside of the model. Likewise if the strategist wishes to undertake Volume related analysis, then the same base unit for volume (e.g. Kg, Tons etc.) will need to be adopted throughout the model. Thus all Niches are given the same basis for comparison. 2. Be realistic! The temptation is always to describe a healthy growing business or increased share of the market. Yet often there is no basis for such optimism other than the desire to talk up ones chances of success. If the market is in steady decline but you predict year on year improvements to sales, someone is bound to ask what gives you cause for such optimism (especially if the historical performance of your company shows otherwise)! Go to Topic 13.2
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SECTION 13 The Market History And Forecast Data Editor Topic 13.2 - Definition Of Forecast The Volume of Sales, or Revenue, expected for the current year and in future years. Forecasts are keyed into the Market History And Forecast Data Editor, and apply to the Niche, the Host Company and key Competitors. Go to Topic 13.3
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SECTION 13 The Market History And Forecast Data Editor Topic 13.3 - Calculated Data Within The Market History And Forecast Data Editor To reduce the amount of effort that is required to complete the Market History And Forecast Data Editor, and increase the management information available, the following calculations are performed automatically. Note that the corresponding fields are displayed in grey within the Market History And Forecast Data Editor, and the Currency Symbol is for illustrative purposes only. Mode of Input and Analyses (under File / Preferences) is Volume Only Niche Volume Growth (%) = (((Niche Volume (given Year, Units) Niche Volume (previous Year, Units)) / Niche Volume (previous Year, Units)) x 100) Host Company Volume Growth (%) = (((Host Company Volume (given Year, Units) Host Company Volume (previous Year, Units)) / Host Company Volume (previous Year, Units)) x 100) Host Company Volume Share (%) = ((Host Company Volume (Units) / Niche Volume (Units)) x 100) Key Competitor Volume Growth (%) = (((Key Competitor Volume (given Year, Units) Key Competitor Volume (previous Year, Units)) / Key Competitor Volume (previous Year, Units)) x 100) Key Competitor Volume Share (%) = ((Key Competitor Volume (Units) / Niche Volume (Units)) x 100) Others Volume (Units) = (Niche Volume (Units) (Host Company Volume (Units) + Key Competitor Volumes (Units))) Others Volume Growth (%) = (((Others Volume (given Year, Units) Others Volume (previous Year, Units)) / Others Volume (previous Year, Units)) x 100) Others Volume Share (%) = ((Others Volume (Units) / Niche Volume (Units)) x 100) Mode of Input and Analyses (under File / Preferences) is Revenue Only Niche Revenue Growth (%) = (((Niche Revenue (given Year, ) Niche Revenue (previous Year, )) / Niche Revenue (previous Year, )) x 100) Host Company Revenue Growth (%) = (((Host Company Revenue (given Year, ) Host Company Revenue (previous Year, )) / Host Company Revenue (previous Year, )) x 100) Host Company Revenue Share (%) = ((Host Company Revenue () / Niche Revenue ()) x 100) Key Competitor Revenue Growth (%) = (((Key Competitor Revenue (given Year, ) Key Competitor Revenue (previous Year, )) / Key Competitor Revenue (previous Year, )) x 100) Key Competitor Revenue Share (%) = ((Key Competitor Revenue () / Niche Revenue ()) x 100) Others Revenue () = (Niche Revenue () (Host Company Revenue ()+ Key Competitor Revenues ())) Others Revenue Growth (%) = (((Others Revenue (given Year, ) Others Revenue (previous Year, )) / Others Revenue (previous Year, )) x 100) Others Revenue Share (%) = ((Others Revenue () / Niche Revenue ()) x 100) Mode of Input and Analyses (under File / Preferences) is Volume and Revenue
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Niche Volume Growth (%) = (((Niche Volume (given Year, Units) Niche Volume (previous Year, Units)) / Niche Volume (previous Year, Units)) x 100) Niche Revenue Growth (%) = (((Niche Revenue (given Year, ) Niche Revenue (previous Year, )) / Niche Revenue (previous Year, )) x 100) Host Company Volume Growth (%) = (((Host Company Volume (given Year, Units) Host Company Volume (previous Year, Units)) / Host Company Volume (previous Year, Units)) x 100) Host Company Volume Share (%) = ((Host Company Volume (Units) / Niche Volume (Units)) x 100) Host Company Revenue Growth (%) = (((Host Company Revenue (given Year, ) Host Company Revenue (previous Year, )) / Host Company Revenue (previous Year, )) x 100) Host Company Revenue Share (%) = ((Host Company Revenue () / Niche Revenue ()) x 100) Key Competitor Volume Growth (%) = (((Key Competitor Volume (given Year, Units) Key Competitor Volume (previous Year, Units)) / Key Competitor Volume (previous Year, Units)) x 100) Key Competitor Volume Share (%) = ((Key Competitor Volume (Units) / Niche Volume (Units)) x 100) Key Competitor Revenue Growth (%) = (((Key Competitor Revenue (given Year, ) Key Competitor Revenue (previous Year, )) / Key Competitor Revenue (previous Year, )) x 100) Key Competitor Revenue Share (%) = ((Key Competitor Revenue () / Niche Revenue ()) x 100) Others Volume (Units) = (Niche Volume (Units) (Host Company Volume (Units) + Key Competitor Volumes (Units))) Others Volume Growth (%) = (((Others Volume (given Year, Units) Others Volume (previous Year, Units)) / Others Volume (previous Year, Units)) x 100) Others Volume Share (%) = ((Others Volume (Units) / Niche Volume (Units)) x 100) Others Revenue () = (Niche Revenue () (Host Company Revenue () + Key Competitor Revenues ())) Others Revenue Growth (%) = (((Others Revenue (given Year, ) Others Revenue (previous Year, )) / Others Revenue (previous Year, )) x 100) Others Revenue Share (%) = ((Others Revenue () / Niche Volume) x 100) Mode of Input and Analyses (under File / Preferences) is Volume, Unit Price and Gross Margin Niche Volume Growth (%) = (((Niche Volume (given Year, Units) Niche Volume (previous Year, Units)) / Niche Volume (previous Year, Units)) x 100) Niche Revenue () = Niche Volume (Units) x Average Unit Price () Niche Revenue Growth (%) = (((Niche Revenue (given Year, ) Niche Revenue (previous Year, )) / Niche Revenue (previous Year, )) x 100) Host Company Volume Growth (%) = (((Host Company Volume (given Year, Units) Host Company Volume (previous Year, Units)) / Host Company Volume (previous Year, Units)) x 100) Host Company Volume Share (%) = ((Host Company Volume (Units) / Niche Volume (Units)) x 100) Page 153 of 296

Host Company Revenue () = Host Company Volume (Units) x Average Unit Price () Host Company Revenue Growth (%) = (((Host Company Revenue (given Year, ) Host Company Revenue (previous Year, )) / Host Company Revenue (previous Year, )) x 100) Host Company Revenue Share (%) = ((Host Company Revenue () / Niche Revenue ()) x 100) Key Competitor Volume Growth (%) = (((Key Competitor Volume (given Year, Units) Key Competitor Volume (previous Year, Units)) / Key Competitor Volume (previous Year, Units)) x 100) Key Competitor Volume Share (%) = ((Key Competitor Volume (Units) / Niche Volume (Units)) x 100) Key Competitor Revenue () = Key Competitor Volume (Units) x Average Unit Price () Key Competitor Revenue Growth (%) = (((Key Competitor Revenue (given Year, ) Key Competitor Revenue (previous Year, )) / Key Competitor Revenue (previous Year, )) x 100) Key Competitor Revenue Share (%) = ((Key Competitor Revenue () / Niche Revenue ()) x 100) Others Volume (Units) = (Niche Volume (Units) (Host Company Volume (Units) + Key Competitor Volumes (Units))) Others Volume Growth (%) = (((Others Volume (given Year, Units) Others Volume (previous Year, Units)) / Others Volume (previous Year, Units)) x 100) Others Volume Share (%) = ((Others Volume (Units) / Niche Volume (Units)) x 100) Others Revenue () = (Niche Revenue () (Host Company Revenue () + Key Competitor Revenues ())) Others Revenue Growth (%) = (((Others Revenue (given Year, ) Others Revenue (previous Year, )) / Others Revenue (previous Year, )) x 100) Others Revenue Share (%) = ((Others Revenue () / Niche Revenue ()) x 100) Total Gross Margin () = ((Host Volume (Units) x Average Unit Price () x Gross Margin (Units)) / 100) Mode of Input and Analyses (under File / Preferences) is Revenue and Gross Margin Niche Revenue Growth (%) = (((Niche Revenue (given Year, ) Niche Revenue (previous Year, )) / Niche Revenue (previous Year, )) x 100) Host Company Revenue Growth (%) = (((Host Company Revenue (given Year, ) Host Company Revenue (previous Year, )) / Host Company Revenue (previous Year, )) x 100) Host Company Revenue Share (%) = ((Host Company Revenue () / Niche Revenue ()) x 100) Key Competitor Revenue Growth (%) = (((Key Competitor Revenue (given Year, ) Key Competitor Revenue (previous Year, )) / Key Competitor Revenue (previous Year, )) x 100) Key Competitor Revenue Share (%) = ((Key Competitor Revenue () / Niche Revenue ()) x 100) Others Revenue () = (Niche Revenue () (Host Company Revenue () + Key Competitor Revenues ()))
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Others Revenue Growth (%) = (((Others Revenue (given Year, ) Others Revenue (previous Year, )) / Others Revenue (previous Year, )) x 100) Others Revenue Share (%) = ((Others Revenue () / Niche Revenue ()) x 100) Total Gross Margin () = ((Host Revenue () x Gross Margin (Units)) / 100) If Autosum Market History And Forecast has been selected (i.e. ticked), the corresponding Niche Volume and / or Niche Revenue fields are also greyed out, signifying that data will be calculated for these fields. Niche Volume = Host Company Volume + Key Competitor Volumes. Niche Revenue () = Host Company Revenue () + Key Competitor Revenues (). Note, if Autosum Market History And Forecast has been selected part way through modelling a Scenario then Niche Volumes and Revenues will only be updated for those Niches and Years that are addressed after the change to Autosum has been made. Go to Topic 13.4
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SECTION 13 The Market History And Forecast Data Editor Topic 13.4 - Validation Rules Within The Market History And Forecast Data Editor To avoid illogical combinations of data, a number of validation rules have been established within the Market History And Forecast Data Editor as follows: Volume: Validation warnings will occur if for any one Year: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Volume is greater than 999,999,999,999.99 Volume is greater than 0 but less than 0.01 The Volume of the Niche is made less than the Volume of the Host Company. The Volume of the Host Company is made greater than the Volume of the Niche. The Volume of the Niche is made less than the Volume of a Key Competitor. The Volume of a Key Competitor is made greater than the Volume of the Niche The Volume of the Niche is made less than the sum of the Volumes of the Host Company and all Key Competitors. The sum of the Volumes of the Host Company and all Key Competitors is made greater than the Volume of the Niche
If the data is invalid, a validation warning informs the user that the original Volume will be restored. Revenue: Validation warnings will occur if for any one Year: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Revenue is greater than 9,999,999,999,999.99 Revenue is greater than 0.00, but less than 0.01 The Revenue of the Niche is made less than the Revenue of the Host Company. The Revenue of the Host Company is made greater than the Revenue of the Niche. The Revenue of the Niche is made less than the Revenue of a Key Competitor. The Revenue of a Key Competitor is made greater than the Revenue of the Niche The Revenue of the Niche is made less than the sum of the Revenues of the Host Company and all Key Competitors. The sum of the Revenues of the Host Company and all Key Competitors is made greater than the Revenue of the Niche The Revenue for the Niche, Host Company or Key Competitor is less than 0.
The above applies to Revenue data that is calculated as a result of keying a particular Volume, Revenue, Unit Price, or Gross Margin value, as well as to keyed Revenue data. If the data is invalid, a validation warning informs the user that the original value will be restored. Unit Price: Validation warnings will occur if for any one Year: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Unit Price is greater than 9,999,999,999,999.99 Unit Price is greater than 0.00, but less than 0.01
If the data is invalid, a validation warning informs the user that the original Unit Price will be restored. Gross Margin: Validation warnings will occur if for any one Year: Page 156 of 296

The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. Gross Margin (%) is greater than 100. Gross Margin (%) is less than 100 Gross Margin (%) is between 0 and 0.01 Gross Margin (%) is between 0 and 0.01 Calculated Gross Margin is between 0 and 0.01 Calculated Gross Margin is between 0 and 0.01
The above applies to Gross Margin data that is calculated as a result of keying a particular Volume, Revenue, Unit Price or Gross Margin value, as well as to keyed Gross Margin data. If the data is invalid, a validation warning informs the user that the original value will be restored. Go to SECTION 14
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SECTION 14 The Market Attractiveness Scorecard

This section describes the Market Attractiveness Scorecard. Topic No 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 Go to Topic 14.1 Topic Title The Market Attractiveness Scorecard In MATRIX V5 Market Attractiveness Factors Adding A New Market Attractiveness Factor Duplicating A Market Attractiveness Factor Duplicating All Market Attractiveness Factors Removing The Market Attractiveness Factor In Focus Changing The Name Of A Market Attractiveness Factor Changing The Status Of A Market Attractiveness Factor Evaluating Market Attractiveness Validation Rules Within The Market Attractiveness Scorecard
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SECTION 14 The Market Attractiveness Scorecard Topic 14.1 The Market Attractiveness Scorecard In MATRIX V5 Purpose: To define Market Attractiveness Factors (MAFs), i.e. factors that a business opportunity would need to satisfy in order for it to appear attractive to the Host Company. To input Swing Weights and Scores against those MAFs for each Niche.
To display the Scorecard exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. Click the Market Attractiveness (Data) button. In the example shown above, five Market Attractiveness Factors have been defined. Note that each Market Attractiveness Factor has been explicitly qualified with the 'scale' against which it is to be measured. For example, 'Market Potential' is a Value Function to be measured in $, Gross Margin between the years of 2008 and 2010, whereas Fit with Core Skills is a Direct Rating estimated on a 0 100 Scale. Clearly 'Market Potential' (weighted at 100) is the most important factor, and for the Active Niche achieves a score of 12,014,000.00. 'Competitive Intensity' (weighted at just 20) is the least important factor and for the Active Niche achieves a score of 50. Note that Competitive Intensity is an inverse rating, which reflects the view that the more intense the competition, the less attractive the opportunity.
Access: From the Menu Bar / Data, select the Market Attractiveness menu item, or from the Toolbar, click the Market Attractiveness (Data) Button, or from the Navigator, click the Market Attractiveness Button Action: To access a cell on the Market Attractiveness Scorecard, move the cursor to the required cell, and click once. Within the Market Attractiveness Factor column, define the MAFs that a business opportunity needs to satisfy in order for it to be considered attractive to the Host Company. Try to avoid including MAFs where there would be no differentiation in score between all available opportunities. Decide whether each MAF is Conventional (labeled Con within the Status column) or Inverse (labeled Inv within the Status column). With Conventional MAFs, bigger scores reflect more attractive opportunities. Examples are Market Potential, Market Growth Rate, and Market Share. With Inverse MAFs, bigger scores reflect less attractive opportunities. Examples are Cost of Market Entry and Cost of Market Exit. To change the Status of a MAF, double click the required Status field and select either Con, or Inv from the drop-down menus provided. Consider how each opportunity (i.e. Niche) performs against each of the MAFs listed, and apply scores in the Score column. Comparisons should be made for the SAME MAF across different Niches. Therefore a Niche, which is growing rapidly, may score 100 against the Market Growth MAF, whereas a Niche that is growing more slowly may score only 20. A Niche that is in recession may score 0. (Value Functions must of course use actual scores; with Direct Ratings, the most attractive Niche should score 100, the least attractive should score 0, and others should be distributed as appropriate in between). Consider the importance of each MAF, and apply a value in the Swing Weight column of between 0 and 100. Apply the highest weightings to those MAFs that are considered most important. The % Weight for each MAF (shown in the gray % Weight column) is calculated automatically, and is also displayed within the % Weight column as a simple green barchart.
The same set of MAFs will apply across all Niches within a particular Scenario, since these become the yardsticks against which the opportunity potential is measured. Only the scores for each MAF Page 159 of 296

change from Niche to Niche. This approach provides the strategist with a rigorous basis for assessing the attractiveness of different opportunities. Copying Data from the Market Attractiveness Scorecard: Data can be copied from the Market Attractiveness Scorecard, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the Market Attractiveness Scorecard. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. All data shown in the Market Attractiveness Scorecard is copied onto the clipboard for further action. Hints and Tips: 1. It is possible to input Value Functions such as actual Market Size in , or actual Market Growth Rate in %. Alternatively, Direct Ratings which normally range from 0 to 100 can be used. Whilst it is possible to mix the two conventions within the Scorecard, the same convention should be adopted for any one MAF across the different Niches, so that data will calculate correctly throughout. Go to Topic 14.2
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SECTION 14 The Market Attractiveness Scorecard Topic 14.2 - Market Attractiveness Factors Purpose: To provide the basis for comparing the attractiveness of different Niches Scope: Market Attractiveness Factors (MAFs) typically include: Size of a market Growth Rate of a market Potential left within a market The Strategic Importance of a market Barriers relating to Entry Into or Exit From a market Likely Profitability of the venture Fit with the companys Core Skills Whether the market is capable of sustaining Repeat Sales Spare plant Capacity that the market could fulfill Level of Competitive Activity within the market Status of Market Leading suppliers Status of Market Leading buyers Threat (or otherwise) of Substitution products Threat (or otherwise) of Forward Integration by Suppliers Threat (or otherwise) of Backwards Integration by Customers
Go to Topic 14.3
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SECTION 14 The Market Attractiveness Scorecard Topic 14.3 - Adding A New Market Attractiveness Factor Purpose: To add New Market Attractiveness Factor (MAF) into the Scenario. Access: From the Market Attractiveness Scorecard, click any cell within the Market Attractiveness Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Add New Market Attractiveness Factor menu item. The Add New Market Attractiveness Factor input box is now displayed, along with the default MAF Name, Market Attractiveness Factor x (where x is the serial number of the MAF). Action: Using 50 characters or less, overwrite the default MAF Name within the Add New Market Attractiveness Factor input box. If necessary several words may be used, e.g. Market Potential ($GM, Periods 2007 2009). Click the OK button to confirm addition of the MAF into the Scenario, or the Cancel button to abandon the procedure. On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. It is now possible to add performance data relating to the new MAF for each Niche in the Scenario. Go to Topic 14.4
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SECTION 14 The Market Attractiveness Scorecard Topic 14.4 - Duplicating A Market Attractiveness Factor (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To Duplicate an Existing Market Attractiveness Factor, (i.e. a MAF used in any other than the Current Scenario) into the Current Scenario. Access: From the Market Attractiveness Scorecard, click any cell within the Market Attractiveness Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate Market Attractiveness Factor menu item.
The Duplicate Market Attractiveness Factor Dialogue is now displayed. Action: Tick the MAF(s) required for duplication from the list provided on the Duplicate Market Attractiveness Factor Dialogue. Note that more than one MAF can be selected for duplication. Close the Duplicate Market Attractiveness Factor Dialogue to confirm duplication of the MAF(s) into the Scenario. Note that the Names of the duplicate MAF(s) are now displayed in sequence, as rows within the Market Attractiveness Scorecard. Note also that the Market Attractiveness Scorecard has been resized to accommodate the change. On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button to confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate Market Attractiveness Factor menu item will be disabled if the current Scenario already utilises all of the MAFs supported within the Model. Go to Topic 14.5
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SECTION 14 The Market Attractiveness Scorecard Topic 14.5 - Duplicating All Market Attractiveness Factors (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To duplicate all outstanding Market Attractiveness Factors, (i.e. MAFs used in any Scenario other than the Current Scenario) into the Current Scenario. Access: From the Market Attractiveness Scorecard, click any cell within the Market Attractiveness Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate All Market Attractiveness Factors menu item. Action: All outstanding MAFs are now duplicated into the Scenario. Note that the Names of the duplicate MAF(s) are now displayed in sequence, as rows within the Market Attractiveness Scorecard. Note also that the Market Attractiveness Scorecard has been resized to accommodate the change. On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button to confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate All Market Attractiveness Factors menu item will be disabled if the current Scenario already utilises all of the MAFs supported within the Model. Go to Topic 14.6
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SECTION 14 The Market Attractiveness Scorecard Topic 14.6 - Removing The Market Attractiveness Factor In Focus Purpose: To remove a Market Attractiveness Factor (MAF) from the Current Scenario. Access: From the Market Attractiveness Scorecard, click the Name of the Market Attractiveness Factor to be deleted (and note that the corresponding cell is highlighted). Then either: click the delete key, or with the cursor positioned over the selected cell on the MAF Scorecard (the MAF Name), click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Remove Market Attractiveness Factor In Focus menu item.
Action: A warning appears, stating that all data associated with this Market Attractiveness Factor will be PERMANENTLY DELETED. Click OK to proceed with removal of the MAF from the Scenario, or Cancel to abandon the procedure. Assuming OK has been clicked, the MAF, and all supporting data will be removed from the Scenario in focus. On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button to confirm the changes, or the Cancel button to abandon the procedure. Note: MATRIX V5 prevents the removal of all MAFs. At least one MAF must remain for the Scenario in focus, even though it may be effectively disallowed by applying a zero weighting. Go to Topic 14.7
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SECTION 14 The Market Attractiveness Scorecard Topic 14.7 - Changing The Name Of A Market Attractiveness Factor Purpose: To Rename a Market Attractiveness Factor (MAF). Access: From the Market Attractiveness Scorecard, click the Name of the Market Attractiveness Factor to be renamed (and note that the corresponding cell is highlighted). Then either: double click within the Market Attractiveness Factor field, to edit directly within the Dialogue, or with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Change Market Attractiveness Factor Name menu item.
Action: To change the name of the MAF, either amend the existing name within the Dialogue, or key in a new name. Use 50 characters or less. If necessary several words may be used, e.g. Market Potential ($GM, Periods 2007 2009). On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button to confirm the changes, or the Cancel button to abandon the procedure. Go to Topic 14.8
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SECTION 14 The Market Attractiveness Scorecard Topic 14.8 - Changing The Status Of A Market Attractiveness Factor Purpose: To change the Status of a Market Attractiveness Factor (MAF) from Conventional and Inverse, and vice versa. Access: Decide whether each MAF is Conventional (labelled Con within the Status column) or Inverse (labelled Inv within the Status Column). With Conventional MAFs, bigger scores reflect more attractive opportunities. Examples are Market Size, Market Growth Rate, and Market Share. With Inverse MAFs, bigger scores reflect less attractive opportunities. Examples are Cost of Market Entry and Cost of Market Exit. From the Market Attractiveness Scorecard, double click the required Status field. Action: To change the Status, select the appropriate Status abbreviation (either Con or Inv) from the dropdown list that is provided. On closing the Market Attractiveness Scorecard, a message box queries whether the change is to be saved. Click the OK button to confirm the changes, or the Cancel button to abandon the procedure. Go to Topic 14.9
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SECTION 14 The Market Attractiveness Scorecard Topic 14.9 Evaluating Market Attractiveness Take an analytical view of your business and decide which Market Attractiveness Factors (MAFs) are important to your organisation. This may mean spending some time with your management and staff discussing what type of organisation you are, and how you wish to evolve: Do you seek high volume / low value markets? Or are your skills better suited to very complex, high value opportunities that only arise a few times each year? How important are market size and market potential to you? Do you need a growing market to fuel a substantial and growing organisation, or is the potential for repeat business from a few critical accounts more important to you? Do you excel in growing markets which may be lucrative, but where there is considerable risk? Or can you make money through the adoption of sound cost-control and management techniques in older, more stable markets?
These deliberations will lead to a list of MAFs, such as 'Market Potential', 'Fit with Core Skills' etc. MATRIX V5 can accommodate an unlimited number of Market Attractiveness Factors via the Market Attractiveness Scorecard, though in practice a scenario will typically include 5 to 10 at most. Score each MAF for each Niche. MATRIX V5 supports both Value Function (i.e. raw), and Direct Rating (e.g. 0 to 100) techniques. A Market Attractiveness Factor may be defined as: 'Conventional', where a higher score corresponds to a more attractive proposition. An example is Profitability where the more profitable the Niche, the more attractive is the opportunity, or 'Inverse', where a higher score corresponds to a less attractive proposition. An example is Cost of Market Entry, where the higher the Cost of Market Entry, the less attractive is the opportunity.
Consider the relative importance of each of the different MAFs. Apply high Swing Weights to those MAFs that are most important, and lower Swing Weights to those MAFs that are less important. For example it may be that the potential for Account Development and Repeat Business is much more critical to the success of your business than Market Growth Rate which reflects growth or expansion within the market. Remember, a Market Attractiveness exercise uncovers your view of what you want from an ideal business opportunity, and how each of the Niches in your portfolio 'measures up' against the ideal! Note: This exercise can never be a precise science! Whilst it is worth spending time considering the issues, and your data and weightings should be as accurate as possible, estimates may be required where precise data is lacking. The aim is to generate a simple picture, which reflects how you and your staff perceive the attractiveness of each business opportunity. Go to Topic 14.10
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SECTION 14 The Market Attractiveness Scorecard Topic 14.10 - Validation Rules Within The Market Attractiveness Scorecard Validation warnings will occur within the Market Attractiveness Scorecard as follows: Name: The field contains a Null Value (i.e. is left blank). The field contains a duplicate Name. Swing Weight: The field contains a Null Value (i.e. is left blank). The Swing Weight is greater than 100 Scores: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. The Score is greater than 999,999,999,999.99 The Score is less than 999,999,999,999.99 The Scores is between 0 and 0.01 The Score is between 0 and 0.01 Notes: 1. Integer values only will be accepted into the Swing Weight field. 2. Decimal values will be accepted into the Scores field. 3. If a negative Score is to be updated with another negative Score, then the original score should be removed from the scorecard first by means of the delete button. (The scorecard will not allow the first negative symbol to be overwritten with a second negative symbol.) Go to SECTION 15
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SECTION 15 The Competitive Strength Scorecard

This section describes the Competitive Strength Scorecard. Topic No 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 Go to Topic 15.1 Topic Title The Competitive Strength Scorecard In MATRIX V5 Critical Success Factors Adding A New Critical Success Factor Duplicating A Critical Success Factor Duplicating All Critical Success Factors Removing The Critical Success Factor In Focus Changing The Name Of A Critical Success Factor Evaluating Competitive Strength Validation Rules Within The Competitive Strength Scorecard
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SECTION 15 The Competitive Strength Scorecard Topic 15.1 The Competitive Strength Scorecard In MATRIX V5 Purpose: To define the Critical Success Factors (CSFs), i.e. factors that a Supplier would need to satisfy in order for it to become competitive. To input Swing Weights against each CSF.
To display the Dialogue exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix, and click the Competitive Strength (Data) button. In the example shown above, three Critical Success Factors have been defined for the Niche in focus. Clearly 'Product Design' and Service & Support Capability (both weighted at 100) are the most important factors, whilst 'Price' (weighted at 20) is the least important factor.
Access: From the Menu Bar / Data, select the Competitive Strength menu item, or from the Toolbar, click the Competitive Strength (Data) Button, or from the Navigator, click the Competitive Strength Button Action: To access a cell on the Competitive Strength Scorecard, move the cursor to the required cell, and click once. Within the Critical Success Factor column, define the CSFs that a Supplier needs to satisfy in order for it to remain competitive within the Niche. Try to avoid including CSFs where there would be no differentiation in score between all available Suppliers. Consider the importance of each CSF, and apply a value in the Swing Weight column of between 0 and 100. Apply the highest weightings to those CSFs that are considered most important. The % Weight for each CSF (shown in the gray % Weight Column) is calculated automatically, and is also displayed within the % Weight column as a simple green barchart. Performance data is calculated from underlying Criteria (defined, scored and weighted in the Criterion Scorecard), and displayed for each CSF under each Supplier heading.
The same set of CSFs will apply across all Suppliers operating within a particular Niche, since these become the yardsticks against which competitive performance is measured. Only the scores for each CSF may change from Supplier to Supplier. This approach provides the strategist with a rigorous basis for assessing the competitiveness of different Suppliers. Copying Data from the Competitive Strength Scorecard: Data can be copied from the Competitive Strength Scorecard, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the Competitive Strength Scorecard. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. All data shown in the Competitive Strength Scorecard is copied onto the clipboard for further action. Important Note: The status of a CSF cannot be toggled between Conventional and Inverted. Status has to be set at Criterion level. Hints and Tips: 1. Different CSFs and Weightings may be applied within different Niches. The rationale is that one Niche may be particularly influenced by one set of CSFs (e.g. the geographic proximity of suppliers), whereas another may be may influenced by a different, and possibly more complex set of CSFs (e.g. Page 171 of 296

skills, capability, experience of different suppliers and so on). Also note that different Key Competitors may operate within different Niches. Go to Topic 15.2
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SECTION 15 The Competitive Strength Scorecard Topic 15.2 - Critical Success Factors Purpose: To provide the basis for comparison of different Suppliers in a Niche. Scope: Critical Success Factors (CSFs) reflect what the typical customer would consider as important and may include: The Financial Strength of a Supplier The Halo Effect of a parent company, or of being part of a larger Group of companies. A High Market Share Critical Accounts secured within a particular Market Product Design Level of Integration with other mission critical products / services A reputation for Friendly and Helpful service After Sales Support The Confidence / Competence that sales people portray Production Capacity Lead Times Image / Branding Location Distribution Network A Competitive Price
Go to Topic 15.3
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SECTION 15 The Competitive Strength Scorecard Topic 15.3 Adding A New Critical Success Factor Purpose: To add a new Critical Success Factor (CSF) into the Model. Access: From the Competitive Strength Scorecard, click any cell within the Critical Success Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. A pop-up menu displayed. Select the Add New Critical Success Factor menu item. The Add New Critical Success Factor input box is now displayed, along with the default CSF Name, Critical Success Factor x (where x is the serial number of the CSF). Action: Using 50 characters or less, overwrite the default CSF Name within the Add New Critical Success Factor input box. If necessary several words may be used, e.g. Product Design. Click the OK button to confirm addition of the CSF, or the Cancel button to abandon the procedure. On closing the Competitive Strength Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Hints and Tips: 1. It is now possible to expand your views, and quantify each new CSF via the Criterion Scorecard. Go to Topic 15.4
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SECTION 15 The Competitive Strength Scorecard Topic 15.4 Duplicating A Critical Success Factor Purpose: To Duplicate an Existing Critical Success Factor, (i.e. a CSF used in any Niche other than the Current Niche) into the Current Niche. Access: From the Competitive Strength Scorecard, click any cell within the Critical Success Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate Critical Success Factor menu item.
The Duplicate Critical Success Factor Dialogue is displayed. Action: Tick the CSF(s) required for Duplication from the list provided on the Duplicate Critical Success Factor Dialogue. Note that more than one CSF can be selected for Duplication. Close the Duplicate Critical Success Factor Dialogue to confirm duplication of the CSF(s) into the Niche. Note that the Names of the Duplicate CSF(s) are now displayed in sequence, as rows within the Competitive Strength Scorecard. Note also that the Competitive Strength Scorecard has been resized to accommodate the change. On closing the Competitive Strength Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate Critical Success Factor menu item will be disabled if the Active Niche already utilises all of the CSFs supported within the Model. Go to Topic 15.5
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SECTION 15 The Competitive Strength Scorecard Topic 15.5 Duplicating All Critical Success Factors Purpose: To duplicate all outstanding Critical Success Factors, (i.e. CSFs used in any Niche other than the Current Niche) into the Current Niche. Access: From the Competitive Strength Scorecard, click any cell within the Critical Success Factor column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate All Critical Success Factors menu item. Action: All outstanding CSFs are now duplicated into the Niche. Note that the Names of the Duplicate CSF(s) are now displayed in sequence, as rows within the Competitive Strength Scorecard. Note also that the Competitive Strength Scorecard has been resized to accommodate the change. On closing the Competitive Strength Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate All Critical Success Factors menu item will be disabled if the Active Niche already utilises all of the CSFs supported within the Model. Go to Topic 15.6
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SECTION 15 The Competitive Strength Scorecard Topic 15.6 - Removing The Critical Success Factor In Focus Purpose: To remove a Critical Success Factor (CSF) from the Current Niche. Access: From the Competitive Strength Scorecard, click the Name of the Critical Success Factor to be deleted (and note that the corresponding cell is highlighted). Then either: click the delete key, or with the cursor positioned over the selected cell on the Competitive Strength Scorecard (the CSF Name), click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Remove Critical Success Factor In Focus menu item.
Action: A warning appears, stating that all data associated with this Critical Success Factor will be PERMANENTLY DELETED. Click OK to proceed with removal of the CSF from the Niche, or Cancel to abandon the procedure. Assuming OK has been clicked, the CSF, and all supporting data will be removed from the Niche in focus. On closing the Competitive Strength Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: MATRIX V5 prevents the removal of all CSFs. At least one CSF must remain for the Niche, even though it may be effectively disallowed by applying a zero weighting. Go to Topic 15.7
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SECTION 15 The Competitive Strength Scorecard Topic 15.7 - Changing The Name Of A Critical Success Factor Purpose: To Rename a Critical Success Factor (CSF). Access: From the Competitive Strength Scorecard, click the Name of the Critical Success Factor to be renamed (and note that the corresponding cell is highlighted). Then either: double click within the Critical Success Factor field, to edit directly within the Dialogue, or with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Change Critical Success Factor Name menu item.
Action: To change the name of the CSF, either amend the existing name within the Dialogue, or key in a new name. Use 50 characters or less. If necessary several words may be used, e.g. Product Design. On closing the Competitive Strength Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Go to Topic 15.8
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SECTION 15 The Competitive Strength Scorecard Topic 15.8 - Evaluating Competitive Strength Start with the market! Base your Critical Success Factors (CSFs) around what your customers and prospective customers value, and what they need! Are they looking for a long-term relationship with one supplier, or do they 'shop around' and make a decision on which supplier is offering the best deal on the day? Do cultural issues influence prospective customers, or are local trading conditions likely to count against you? Are your customers interested in quality and prepared to pay a premium, or do they buy on price alone?
Once defined, CSFs such as 'Product Design', 'Service & Support Capability' etc are then entered into MATRIX V5 via the Competitive Strength scorecard. The scorecard can accommodate an unlimited number of CSFs, though in practice a typical Niche will utilise perhaps 4 or 5 at most. Note, as different Niches will be driven by different needs and wants, CSFs may differ from Niche to Niche. Now consider the relative importance of each of the different CSFs. For example it may be that Product Design and Service & Support Capability are much more important to your potential market than Price. Apply high 'Swing Weights' to those CSFs that are most important, and lower swing weights to those CSFs that are less important. Notes: 1. Each CSF then requires further expansion into Criteria, which are scored and weighted as appropriate within the underlying Criterion Scorecard. See SECTION 16 2. This exercise can never be a precise science! Whilst it is worth spending time considering the issues, and weightings should be as accurate as possible, estimates may be required where precise data is lacking. The aim is to generate a simple picture, which reflects how customers perceive the competitiveness of competing Suppliers. Go to Topic 15.9
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SECTION 15 The Competitive Strength Scorecard Topic 15.9 - Validation Rules Within The Competitive Strength Scorecard Validation warnings will occur within the Competitive Strength Scorecard as follows: Name: The field contains a Null Value (i.e. is left blank). The field contains a duplicate Name. Swing Weight: The field contains a Null Value (i.e. is left blank). The Swing Weight is greater than 100 Notes: 1. Integer values only will be accepted into the Swing Weight field. Go to SECTION 16
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SECTION 16 The Criterion Scorecard

This section describes the Criterion Scorecard. Topic No 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 Go to Topic 16.1 Topic Title The Criterion Scorecard In MATRIX V5 Expanding A Critical Success Factor Adding A New Criterion Duplicating A Criterion Duplicating All Criteria Removing The Criterion In Focus Changing The Name Of A Criterion Changing The Status Of A Criterion Validation Rules Within The Criterion Scorecard
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SECTION 16 The Criterion Scorecard Topic 16.1 The Criterion Scorecard In MATRIX V5 Purpose: To define in detail the Criteria which constitute a Critical Success Factor (CSF). To input Swing Weights and Scores against those Criteria for each Supplier.
To display the Dialogue exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix, and click the Competitive Strength (Data) button. Ensure that Product Design has been selected, and then click the Criteria button. In the example shown above the 'Product Design' CSF has been broken down into four Criteria, namely 'MTBF Benchmarks', 'Precision Engineering', 'Quality of Materials ', and 'Documentation'. Note that each Criterion has been explicitly qualified with the 'scale' against which it is to be measured. For example 'MTBF Benchmarks' is a Value Function to be measured in months, whereas Precision Engineering is a Direct Rating estimated on a 0 - 100 Scale. Clearly 'MTBF Benchmarks' and Precision Engineering, both weighted at 100, are the most important Criteria. The strongest supplier against MTBF Benchmarks is EngineerIT Ltd who achieves a Value Function of 18 months. Budget Assemblies Ltd, which is the weakest supplier against this criterion, achieves a Value Function of 10 months. The host company (HandyMan PLC) achieves an intermediate Value Function of 15 months. 'Documentation' (weighted at just 30) is the least important criterion.
Access: Ensure that the Competitive Strength Scorecard for the required Niche is currently displayed. Also ensure that any editing within the CSF scorecard has been completed, and that the required CSF has been brought in focus. To load the corresponding Criterion Scorecard: from the Menu Bar / Data, select the Criteria menu item, or from the Competitive Strength Scorecard, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Define Critical Success Factor menu item. from the Toolbar, click the Criteria Button from the Navigator, click the Criteria Button
The Criterion Scorecard is now displayed. Note that whilst the focus has now shifted to the Criterion Scorecard, the underlying CSF Name has been highlighted (in bold) within the Competitive Strength Scorecard to act as an aide-memoir. If an alternative CSF is selected whilst the Criterion Scorecard remains displayed, then the new CSF will be highlighted (in bold) and the contents of the Criterion Scorecard will be revised as appropriate. Action: To access a cell on the Criterion Scorecard, move the cursor to the required cell, and click once. Within the Criterion column, define the Criteria that constitute a CSF within that Niche. For example the Product Design may be assessed as a combination of Mean Time Between Faults (MTBF Benchmarks), the standard of Precision Engineering, the quality of Materials and the standard of Documentation. Try to avoid including Criteria where there would be no differentiation in score between all available Suppliers. Decide whether each Criterion is Conventional (labeled Con within the Status column) or Inverse (labeled Inv within the Status column). With Conventional Criteria, bigger scores reflect a more competitive offer. Examples are MTBF Benchmarks (Months) and % Success Rate. With Inverse Criteria, bigger scores reflect a less competitive offer. Examples are Sales Price and Lead Time to Delivery. To change the Status of a Criterion, select either Con, or Inv from the drop-down menus provided.
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Consider how the Host Company and Key Competitors perform against each of the Criteria listed, and apply scores in the Score column. Comparisons should be for the SAME Criterion across different Suppliers. Therefore, if the Host Companys Brand Image is valued highly by the market, the Host Company may score 100 against the Brand Image Criterion. A Key Competitor with a lesser-valued brand image may score only 70. A New and previously unknown Competitor may score 0. (Value Functions must of course use actual scores; with Direct Ratings, the most competitive Supplier should score 100, the least competitive should score 0, and others should be distributed as appropriate in between). Consider the importance of each Criterion, and apply a value in the Swing Weight column of between 0 and 100. Apply the highest weightings to those Criteria that are considered most important. The % Weight for each Criterion (shown in gray % Weight Column) is calculated automatically, and is also displayed within the % Weight column as a simple green barchart.
The same set of Criteria will apply across all Suppliers operating within a particular Niche, since these become the yardsticks against which competitive performance is measured. Only the scores for each Criterion may change from Supplier to Supplier. This approach provides the strategist with a rigorous basis for assessing the competitiveness of different Suppliers. Copying Data from the Criterion Scorecard: Data can be copied from the Criterion Scorecard, for passing into a compatible application (e.g. Word, PowerPoint, Excel etc). Move the cursor to the Criterion Scorecard. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. All data shown in the Criterion Scorecard is copied onto the clipboard for further action. Important Notes: 1. It is possible to input Value Functions such as actual Price in or $, or Lead Time in days. Alternatively, Direct Ratings which normally range from 0 to 100 can be used. Whilst it is possible to mix the two conventions within the Scorecard, the same convention should be adopted for any one Criterion across different Suppliers, so that data will calculate correctly throughout. 2. When the Criterion Scorecard is closed, or a new CSF is selected, the user is prompted to save any changes to Criteria data. Assuming the changes are saved, revisions are automatically applied to the corresponding CSF within the Competitive Strength Scorecard. 3. The status of CSFs cannot be toggled between Conventional and Inverted. Status has to be set at Criterion level. Hints and Tips: 1. Different Criteria and Weightings may be applied to an equivalent Critical Success Factor within different Niches. The rationale is that different Niches may have completely different interpretations of what is meant by (for example) Product Design. Also note that different Key Competitors may operate within different Niches. Go to Topic 16.2
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SECTION 16 The Criterion Scorecard Topic 16.2 Expanding A Critical Success Factor The following are examples of how Critical Success Factors can be expanded into constituent Criteria. Critical Success Factor Product Design Criteria Quality of Raw Materials Standard of Packaging Performance Finish Ease of Use Purchase Price Running Costs Maintenance Costs Promptness of Initial Response Promptness of Site Visit Knowledge of Service Staff Stock Levels / Spares Politeness of Staff Endorsements
Price
Service Capability
Go to Topic 16.3
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SECTION 16 The Criterion Scorecard Topic 16.3 - Adding A New Criterion Purpose: To add new Criterion to the Model (and to the Critical Success Factor in focus). Access: From the Criterion Scorecard, click any cell within the Criterion column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. A pop-up menu displayed. Select the Add New Criterion menu item. The Add New Criterion input box is now displayed, along with the default Criterion Name, Criterion x (where x is the serial number of the Criterion). Action: Using 50 characters or less, overwrite the default Criterion Name within the Add New Criterion input box. If necessary several words may be used, e.g. Technical Knowledge of Engineer (0 100 Scale). Click the OK button to confirm addition of the Criterion, or the Cancel button to abandon the procedure. On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Hints and Tips: 1. It is now possible to add into the model performance data relating to the new Criterion for each Supplier in the Niche. Go to Topic 16.4
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SECTION 16 The Criterion Scorecard Topic 16.4 Duplicating A Criterion Purpose: To Duplicate an Existing Criterion, (i.e. a Criterion used in any Critical Success Factor other than the selected Critical Success Factor) into the selected Critical Success Factor. Access: From the Criterion Scorecard, click any cell within the Criterion column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate Criterion menu item.
The Duplicate Criterion Dialogue is now displayed. Action: Tick the Criterion required for Duplication from the list provided on the Duplicate Criterion Dialogue. Note that more than one Criterion can be selected for Duplication. Close the Duplicate Criterion Dialogue to confirm duplication of the Criterion into the Critical Success Factor. Note that the Names of the Duplicate Criteria are now displayed in sequence, as rows within the Criterion Scorecard. Note also that the Criterion Scorecard has been resized to accommodate the change. On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate Criterion menu item will be disabled if the selected Critical Success Factor already utilises all of the Criteria supported within the Model. Go to Topic 16.5
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SECTION 16 The Criterion Scorecard Topic 16.5 Duplicating All Criteria Purpose: To duplicate all outstanding Criteria, (i.e. Criteria used in any Critical Success Factor other than the Current Critical Success Factor) into the Current Critical Success Factor. Access: From the Criterion Scorecard, click any cell within the Criterion column (and note that the corresponding cell is highlighted). Now, with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Duplicate All Criteria menu item. Action: All outstanding Criteria are now duplicated into the Critical Success Factor. Note that the Names of the Duplicate Criteria are now displayed in sequence, as rows within the Criterion Scorecard. Note also that the Criterion Scorecard has been resized to accommodate the change. On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: The Duplicate All Criteria menu item will be disabled if the selected Critical Success Factor already utilises all of the Criteria supported within the Model. Go to Topic 16.6
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SECTION 16 The Criterion Scorecard Topic 16.6 - Removing The Criterion In Focus Purpose: To remove a Criterion from the Current Critical Success Factor. Access: From the Criterion Scorecard, click the Name of the Criterion to be deleted (and note that the corresponding cell is highlighted). Then either: click the delete key, or with the cursor positioned over the selected cell on the Criterion Scorecard (the Criterion Name), click once with the RIGHT HAND mouse button. From the pop-up menu displayed, select the Remove Criterion In Focus menu item.
Action: A warning appears, stating that all data associated with this Criterion will be PERMANENTLY DELETED. Click OK to proceed with removal of the Criterion from the CSF, or Cancel to abandon the procedure. Assuming OK has been clicked, the Criterion, and all supporting data will be removed from the CSF in focus. On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Note: MATRIX V5 prevents the removal of all Criteria. At least one Criterion must remain for the Critical Success Factor in focus, even though it may be effectively disallowed by applying a zero weighting. Go to Topic 16.7
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SECTION 16 The Criterion Scorecard Topic 16.7 - Changing The Name Of A Criterion Purpose: To Rename a Criterion. Access: From the Criterion Scorecard, click the Name of the Criterion to be renamed (and note that the corresponding cell is highlighted). Then either: double click within the Criterion field, to edit directly within the Dialogue, or with the RIGHT HAND mouse button, click once. From the pop-up menu displayed, select the Change Criterion Name menu item.
Action: To change the name of the Criterion, either amend the existing name within the Dialogue, or key in a new name. Use 50 characters or less. If necessary several words may be used, e.g. Technical Knowledge of Engineer (0 100 Scale). On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Go to Topic 16.8
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SECTION 16 The Criterion Scorecard Topic 16.8 - Changing The Status Of A Criterion Purpose: To change the status of a Criterion from Conventional and Inverse, and vice versa. Access: Decide whether each Criterion is Conventional (labelled Con within the Status column) or Inverse (labelled Inv within the Status Column). With Conventional Criteria, bigger scores reflect a more competitive Supplier. Examples are Number of Users and % Success Rate. With Inverse Criteria, bigger scores reflect a less competitive Supplier. Examples are Sales Price and Delivery Time. From the Criterion Scorecard, double click the required Status field. Action: To change the Status, select the appropriate Status symbol (either Con or Inv) from the drop-down list that is provided. On closing the Criterion Scorecard, a message box queries whether the change is to be saved. Click the OK button confirm the changes, or the Cancel button to abandon the procedure. Go to Topic 16.9
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SECTION 16 The Criterion Scorecard Topic 16.9 - Validation Rules Within The Criterion Scorecard Validation warnings will occur within the Criterion Scorecard as follows: Name: The field contains a Null Value (i.e. is left blank). The field contains a duplicate Name. Swing Weight: The field contains a Null Value (i.e. is left blank). The Swing Weight is greater than 100 Scores: The field contains a Null Value (i.e. is left blank). The field contains ONLY a combination of the decimal, separator and negative characters. The Score is greater than 999,999,999,999.99 The Score is less than 999,999,999,999.99 The Scores is between 0 and 0.01 The Score is between 0 and 0.01 Notes: 1. Integer values only will be accepted into the Swing Weight field. 2. Decimal values will be accepted into the Scores field. 3. If a negative Score is to be updated with another negative Score, then the original score should be removed from the scorecard first by means of the delete button. (The scorecard will not allow the first negative symbol to be overwritten with a second negative symbol.) Go To SECTION 17
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SECTION 17 Text Input

This section describes how the MATRIX.doc (Microsoft Word document) can be accessed via MATRIX V5. Topic No 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 Go to Topic 17.1 Topic Title Accessing MATRIX.doc Economic Objectives Scenarios Segmentation Matrix Ansoff Matrix Market History And Forecast Market Attractiveness (Data) Competitive Strength (Data) Life Cycle Analysis Share Analysis Market Attractiveness (Analysis) Competitive Strength (Analysis) Boston Matrix Directional Policy Matrix Perceptual Maps Gap Analysis Risk Analysis
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SECTION 17 - Text Input Topic 17.1 Accessing MATRIX.doc Purpose: For the user to input Word format text that relates to the model i.e. notes about the different Scenarios being addressed, the structure and balance of the current portfolio, Marketing Audit data and Analyses. Potentially to author a full Strategic Plan. Access: From the Menu Bar, select Text. Then from the pop-up menu displayed, select the appropriate topic heading under which information is to be authored, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the appropriate topic heading under which information is to be authored. After a few seconds the Microsoft Word format document MATRIX.doc opens at the required topic.
Action: Text and graphics can be managed through Microsoft Word as per normal practice. It is recommended that users become fully conversant with the functionality of Microsoft Word. This subject is beyond the scope of the current document. Note: MATRIX V5 is programmed to locate a topic heading (for example Economic Objectives) by searching for a matching red, hidden text phrase. It is important that the user does not delete these phrases, otherwise MATRIX V5 will not be able to locate the required topic headings for future authoring.
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It is also important that the user does not inadvertently switch off the hidden text capability within Microsoft Word. However, should this happen, hidden text can be re-activated from Microsoft Word / Tools / Options. From the Dialogue displayed, select the View tab, and then click once on the Hidden Text tick box such that the tick is displayed. Should you wish to edit the MATRIX.doc file directly, under default conditions it is available under the file structure C:/Program Files/MATRIX V5.2/Models/MyModel, where MyModel is the name of the model currently being addressed. Go to Topic 17.2
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SECTION 17 - Text Input Topic 17.2 - Economic Objectives Purpose: To input text and comments regarding Economic Objectives for the Model Access: From the Menu Bar / Text, select the Economic Objectives menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Economic Objectives menu item. MATRIX.doc is now opened at the Economic Objectives heading. Action: Make notes about: performance of the Industry within which the Host Company operates, and key competitors the rate of growth of Host Company business over recent Years, (or its rate of contraction) Economic Objectives for the future, and why performance may be different from the past the strategies that the Host Company be adopting to achieve improvements to performance.
Go to Topic 17.3
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SECTION 17 - Text Input Topic 17.3 - Scenarios Purpose: To input text and comments regarding Scenarios. Access: From the Menu Bar / Text, select the Scenarios menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Scenarios menu item. MATRIX.doc is now opened at the Scenarios heading. Action: Make notes about the Scenario(s) that the Host Company envisages for its business. Go to Topic 17.4
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SECTION 17 - Text Input Topic 17.4 - Segmentation Matrix Purpose: To input text and comments regarding the Segmentation Matrix. Access: From the Menu Bar / Text, select the Segmentation Matrix menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Segmentation Matrix menu item. MATRIX.doc is now opened at the Segmentation Matrix heading. Action: Make notes about: the Market, Product and Segment Structure that has been adopted why certain Niches within the Segmentation Matrix have been deemed Closed colour conventions adopted within the Segmentation Matrix.
Go to Topic 17.5
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SECTION 17 - Text Input Topic 17.5 - Ansoff Matrix Purpose: To input text and comments regarding the Ansoff Matrix. Access: From the Menu Bar / Text, select the Ansoff Matrix menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Ansoff Matrix menu item. MATRIX.doc is now opened at the Ansoff Matrix heading. Action: Make notes about: why different Niches have been plotted within the Penetration, Product Expansion, Market Expansion and / or Diversification quadrants the overall distribution of Niches within the matrix the proportion of business that stems from relatively low risk (Penetration) opportunities and higher risk (Diversification) opportunities.
Go to Topic 17.6
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SECTION 17 - Text Input Topic 17.6 - Market History And Forecast Purpose: To input text and comments regarding Market History And Forecast. Access: From the Menu Bar / Text, select the Market History And Forecast menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Market History And Forecast menu item. MATRIX.doc is now opened at the Market History And Forecast heading. Action: Make notes about: the rate of growth of the Niche, (or its rate of contraction). Note, the profile you describe should reflect positions in the market life cycle performance of the Host Company relative to growth (or contraction) of the Niche performance of the Host Company relative to Key Competitors why future performance of the Host Company may be different from past performance what strategies the Host Company will adopt to achieve improvements in performance.
Go to Topic 17.7
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SECTION 17 - Text Input Topic 17.7 - Market Attractiveness (Data) Purpose: To input text and comments regarding the Attractiveness of each Niche within the portfolio. Access: From the Menu Bar / Text, select the Market Attractiveness (Data) menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Market Attractiveness (Data) menu item. MATRIX.doc is now opened at the Market Attractiveness (Data) heading. Action: Make notes about: why some Niches appear to be more attractive to the Host Company than others Niches that perform particularly well, or particularly badly against specific Market Attractiveness Factors an overall view of the Attractiveness of each Niche why the Host Company has decided to invest in some Niches, and not others.
Go to Topic 17.8
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SECTION 17 - Text Input Topic 17.8 - Competitive Strength (Data) Purpose: To input text and comments regarding Competitor Performance in each Niche. Access: From the Menu Bar / Text, select the Competitive Strength (Data) menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Competitive Strength (Data) menu item. MATRIX.doc is now opened at the Competitive Strength (Data) heading. Action: Make notes about: why some Key Competitors appear to be stronger than others which Key Competitors perform particularly well (or badly) against specific Critical Success Factors an overall view of the performance of the Host company against its Key Competitors why the Host Company has decided to pursue some Niches in the face of stiff competition and not others where the competition may be weaker.
Go to Topic 17.9
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SECTION 17 - Text Input Topic 17.9 - Life Cycle Analysis Purpose: To input text and comments regarding the Life Cycle of the Niche. Access: From the Menu Bar / Text, select the Life Cycle Analysis menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Life Cycle Analysis menu item. MATRIX.doc is now opened at the Life Cycle Analysis heading. Action: Make notes about: the rate of growth of the Niche, (or its rate of contraction). Note, the profile you describe should reflect respective positions in the product life cycle performance of the Host Company relative to growth (or contraction) of the Niche performance of the Host Company relative to Key Competitors peforamances of different cuts of data, for example by Market, Product, Segment or Niche why future performance of the Host Company may be different from past performance what strategies the Host Company will adopt to achieve improvements in performance.
Go to Topic 17.10
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SECTION 17 - Text Input Topic 17.10 - Share Analysis Purpose: To input text and comments regarding Market Shares. Access: From the Menu Bar / Text, select the Share Analysis menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Share Analysis menu item. MATRIX.doc is now opened at the Share Analysis heading. Action: Make notes about: the share of the Niche, Product, Segment, Market, or Scenario enjoyed by the Host Company the share of the Niche, Product, Segment, Market, or Scenario enjoyed by Key Competitors significant changes in share over a period of time why future performance of the Host Company may be different from past performance what strategies the Host Company will adopt to achieve improvements in performance.
Go to Topic 17.11
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SECTION 17 - Text Input Topic 17.11 - Market Attractiveness (Analysis) Purpose: To input text and comments regarding the Attractiveness of each Niche within the portfolio. Access: From the Menu Bar / Text, select the Market Attractiveness menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Market Attractiveness menu item. MATRIX.doc is now opened at the Market Attractiveness heading. Action: Make notes about: why some Niches appear to be more attractive to the Host Company than others Niches that perform particularly well, or particularly badly against specific Market Attractiveness Factors an overall view of the Attractiveness of each Niche why the Host Company has decided to invest in some Niches, and not others.
Go to Topic 17.12
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SECTION 17 - Text Input Topic 17.12 - Competitive Strength (Analysis) Purpose: To input text and comments regarding Competitor Performance in each Niche. Access: From the Menu Bar / Text, select the Competitive Strength menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Competitive Strength (Data) menu item. MATRIX.doc is now opened at the Competitive Strength heading. Action: Make notes about: why some Key Competitors appear to be stronger than others which Key Competitors perform particularly well (or badly) against specific Critical Success Factors an overall view of the strength of the Host company against its Key Competitors why the Host Company has decided to pursue some Niches in the face of stiff competition and not others where the competition may be weaker.
Go to Topic 17.13
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SECTION 17 - Text Input Topic 17.13 - Boston Matrix Purpose: To input text and comments regarding the Boston Matrix. Access: From the Menu Bar / Text, select the Boston Matrix menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Boston Matrix menu item. MATRIX.doc is now opened at the Boston Matrix heading. Action: Make notes about: the balance within the portfolio between cash generation and cash consumption major changes over the model timeframe. For example, does the portfolio look more balanced in three years time than it does today? whether the big money earners are also likely to be the big money consumers whether there are too many Niches falling into the Star and Question Mark categories which Markets, Products, Segments or Niches should the Host Company consider divesting and why?
Go to Topic 17.14
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SECTION 17 - Text Input Topic 17.14 - Directional Policy Matrix Purpose: To input text and comments regarding the Directional Policy Matrix. Access: From the Menu Bar / Text, select the Directional Policy Matrix menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Directional Policy Matrix menu item. MATRIX.doc is now opened at the Directional Policy Matrix heading. Action: Make notes about: the balance within the portfolio between attractive opportunities that require investment, and less attractive opportunities which should be managed for cash, or divested where the Host Company stands a realistic chance achieving Market Leadership status, and winning whether the Host Company has sufficient skill, resource and collateral to shift its strategic position with specific Niches whether the Host Company is currently investing in opportunities for which it is best suited which Products, Markets or Segments the Host Company should consider divesting and why?
Go to Topic 17.15
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SECTION 17 - Text Input Topic 17.15 - Perceptual Maps Purpose: To input text and comments regarding Perceptual Maps Access: From the Menu Bar / Text, select the Perceptual Maps menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Perceptual Maps menu item. MATRIX.doc is now opened at the Perceptual Maps heading. Action: Make notes about: the Niches in which the Host Company is most competitive, and those in which it is least competitive the Niches in which Key Competitors have an advantage the most competitive and the least competitive Suppliers within specific Niches.
Go to Topic 17.16
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SECTION 17 - Text Input Topic 17.16 - Gap Analysis Purpose: To input text and comments regarding Gap Analysis. Access: From the Menu Bar / Text, select the Gap Analysis menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Gap Analysis menu item. MATRIX.doc is now opened at the Gap Analysis heading. Action: Make notes about: the overall gap between Objective and Forecast Revenue, and underlying reasons trends in the Gap anomalies between gaps in Revenue and Gross Margin e.g. why for a particular year there may be a surplus over Objective in Revenue but a shortfall in Gross Margin which Niches are most important to the Host Company, either because of the Revenue or because of the Gross Margin what strategies will be adopted to reduce potential gaps different gaps invoked by different Scenarios.
Go to Topic 17.17
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SECTION 17 - Text Input Topic 17.17 - Risk Analysis Purpose: To input text and comments regarding Risk Analysis. Access: From the Menu Bar / Text, select the Risk Analysis menu item, or from the Toolbar, click the Text button. Then from the pop-up menu displayed, select the Risk Analysis menu item. MATRIX.doc is now opened at the Risk Analysis heading. Action: Make notes about: which are the Highest Risk portfolios, and which are the Lowest Risk portfolios whether some portfolios show a higher Return for the same (or a lower) amount of Risk, than others the optimum Risk / Return portfolio i.e. the combination of Niches that the Host Company will actually be pursuing.
Go to SECTION 18
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SECTION 18 Life Cycle Analysis

This section describes Life Cycle Analysis, and how the concept is managed and displayed within MATRIX V5 Topic No 18.1 18.2 18.3 Go to Topic 18.1 Topic Title A Background To The Life Cycle Concept The Select Life Cycle Analysis Dialogue The Life Cycle Analysis Chart
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SECTION 18 Life Cycle Analysis Topic 18.1 A Background To The Life Cycle Concept The Life Cycle concept (below), states that business opportunities moves through the following 'lifecycle' phases:
Introduction: Sales Volumes / Revenues start off relatively low and show a slow rate of growth. Sales are limited to innovators and early adopters. Growth: After a while, Sales volumes / Revenues increase as the solution gains acceptance in the market. Maturity: Sales Volumes / Revenues remain relatively high, but the rate of growth starts to slow down as the market potential is reached. Decline: As the market reaches saturation (and other more innovative solutions present themselves) sales Volumes / Revenues start to decline. Repeat sales are made to existing customers and new sales are made only to the laggards.
There is no general rule about the shape of the graph, or the scale of the metrics involved. To assess his position on the life-cycle chart, the strategist needs to apply his own expertise and judgment within the market concerned. However, if the strategist can accurately determine the shape and status of the product life cycle, he can make better decisions about when to introduce product enhancements, and the funding of new product developments to meet emerging market needs. Go to Topic 18.2
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SECTION 18 Life Cycle Analysis Topic 18.2 The Select Life Cycle Analysis Dialogue Purpose: To give the user choice over the parameters and content of the Life Cycle Chart plot. Access: Ensure that the required Niche is selected (i.e. Active, as shown by the white borders). If plotting for a Segment, or Product, then ensure that a Niche within the required Segment Row or Product Column is selected. From the Menu Bar / Analysis, select the Life Cycle Analysis menu item, or from the Toolbar, click the Life Cycle Analysis button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Life Cycle Analysis menu item.
The Select Life Cycle Analysis Dialogue is displayed. Tabs: Click tabs, and then radio buttons and tick boxes within each tab to define parameters of the required Life Cycle Analysis Chart: 1. Scope Enables the Life Cycle Analysis Chart to be plotted for Host Company, the Host Company and Key Competitors, or the Host Company, Key Competitors and the Niche as a whole. 2. Data Enables the Life Cycle Analysis Chart to be plotted by Volume, Revenue or Gross Margin 3. Sum Enables data for individual Niches to be summed and thus show the Life Cycle trend for different cuts of the business. For the selected Niche within the selected Market For the selected Niche within the selected Scenario For the selected Product within the selected Market For the selected Product within the selected Scenario For the selected Segment within the selected Market For the selected Segment within the selected Scenario For the selected Market For the selected Scenario For the selected Group within the selected Market Page 213 of 296

For the selected Group within the selected Scenario
4. Format Enables the Life Cycle Analysis Chart to be plotted as either a Straight Line, or as a Curve. Points, which denote the value at each Year, can also be plotted. View Key: Ticking the View Key tick box displays the key (legend) within the chart. Buttons: Once the required parameters have been selected, click Plot to plot the Life Cycle Analysis Chart, or Cancel to abandon the procedure. Go to Topic 18.3
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SECTION 18 Life Cycle Analysis Topic 18.3 The Life Cycle Analysis Chart In MATRIX V5 Purpose: To indicate position within the Product Life Cycle. Display: The Life Cycle Analysis Chart is based upon data entered within the Market History And Forecast Data Editor. Typically it reflects the growth or contraction in Sales Volumes, Revenues or Gross Margin for the Host Company, its Key Competitors and the Niches being addressed. Data can be summed in various ways to provide feedback about the Niche, Segment, Product, Market or the Scenario as a whole.
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Life Cycle Analysis Dialogue: 1. Scope: Select HandyMan PLC, Key Competitors and Niche 2. Data: Select Volume 3. Sum: Select Niche / Market In Focus 4. Format: Select Curve, and tick the Points Tick Box Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The Niche is approaching the mature phase of its life cycle. Sales Volumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will improve its position within the Niche, with Sales Volumes increasing from 2,250 units in 2006 to 4,000 units in 2009. Budget Assemblies Ltd is anticipated to be one of the losers, with Sales Volumes expected to fall from a high of 3,000 units in 2006, to 2,650 units in 2010.
Line Colours: Note, the Host Company, Key Competitors and the Niche assume corresponding colours from the Competitors Dialogue and the Segmentation Matrix respectively. If the plot is for Product / Market In Focus, then the colour attributed to the Product is that of the first Open status Niche included within that Product array. Similar arguments apply to Segment / , Market / , and Scenario / charts. If the plot is for Group / charts, then Group colours are used as appropriate. Page 215 of 296

Hotspots: These become active on moving the cursor to where Year and Volume (or Revenue, or Gross Margin) intersect. A pop-up window provides the user with critical information, such as Scope, Supplier Name, Year etc. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Life Cycle Analysis Chart to the Windows clipboard, move the cursor away from any hotspot area on the chart. Then with the right RIGHT-HAND mouse button, click once. From the popup menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to SECTION 19
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SECTION 19 Share Analysis

This section describes how Share Analysis is managed and displayed within MATRIX V5 Topic No 19.1 19.2 Go to Topic 19.1 Topic Title The Select Share Analysis Dialogue The Share Analysis Chart
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SECTION 19 - Share Analysis Topic 19.1 The Select Share Analysis Dialogue Purpose: To give the user choice over the parameters and content of Share Analysis Pie Charts. Access: Ensure that the required Niche is selected (i.e. Active, as shown by the white borders). If plotting for a Segment, or Product, then ensure that a Niche within the required Segment Row or Product Column is selected. From the Menu Bar / Analysis, select the Share Analysis menu item, or from the Toolbar, click the Share Analysis button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Share Analysis menu item.
The Select Share Analysis Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define parameters of the required Share Analysis Chart: 1.1. Host Enables the Share Analysis Chart to be plotted for Host Company business split by Niche, Product, Segment, Market or Group 1.2. Competitor Enables the Share Analysis Chart to be plotted for Competitor business split by Niche, Product, Segment, Market or Group 1.3. Scenario Enables the Share Analysis Chart to be plotted for the Niche, Product, Segment, Market, Scenario, or Group. Split can be by logical options of Supplier, Niche, Product, Segment, Market or Group as appropriate. Note that Host, Competitor or Scenario as defined above are mutually exclusive. If further adjustments are made for example within the Data or Time tabs, the plot will be for Host, Competitor or Scenario, whichever was the last to be clicked. 2. Data Enables the Share Analysis Chart to be plotted by Volume, or Revenue Page 218 of 296

3. Time Enables the Start Year and End Year to be defined for Share Analysis Chart. Select from the drop-down list boxes as appropriate. View Key: Ticking the View Key tick box displays the key (legend) within the chart. Buttons: Once the required parameters have been selected, click Plot to plot the Share Analysis Chart, or Cancel to abandon the procedure. Go to Topic 19.2
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SECTION 19 - Share Analysis Topic 19.2 The Share Analysis Chart In MATRIX V5 Purpose: The Share Analysis Chart is based upon data entered within the Market History And Forecast Data Editor. Typically it illustrates how the Host Company business is split amongst different Niches, Products, Segments and Markets over user defined time periods. A similar analysis can be undertaken for Key Competitors, and for the Niche, Product, Segment, Market or Scenario as a whole.
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Share Analysis Dialogue: 1.1 Host: Select HandyMan PLC split by Niche 2. Data: Select Revenue 3. Time: Drop Down Start Year 2006, and End Year 2010 Also, tick the View Key Tick Box These are the default settings. Clicking the Plot button reveals the example shown above (Host Company business split by Market Niche). The largest Niche by Revenue is for Metallic Assemblies sold to the Rest of World Industrial Segment, whereas the smallest Niche by Revenue is for Plastic Assemblies sold to the European Hobby Segment.
Pie Colours: for 1.1 Host Company, and 1.2 Competitor plots, each pie slice (which represents a Niche) assumes the corresponding colour from the Segmentation Matrix. If the plot is split by Product then the colour attributed to the Product is that of the first Open status Niche included within that Product array. Similar arguments apply to split by Segment, and split by Market. If the plot is split by Group then Group colours are used as appropriate. for 1.3 Scenario plots, pie slices that represent Suppliers assume corresponding colours from the Competitors Dialogue. Pie slices that represent Niches assume corresponding colours from the Segmentation Matrix. If the plot is split by Product then the colour attributed to the Product is that of the first Open status Niche included within that Product array. Similar arguments apply to split
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by Segment, and split by Market charts. If the plot is split by Group then Group colours are used as appropriate. Hotspots: These become active on moving the cursor over the chart pies. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, Period and Volume (or Revenue). Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Share Analysis Chart to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to SECTION 20
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SECTION 20 Market Attractiveness Analysis

This section describes how Market Attractiveness is managed and displayed within MATRIX V5 Topic No 20.1 20.2 20.3 20.4 Topic Title The Select Market Attractiveness Analysis Dialogue The Market Attractiveness / Comparative Chart In MATRIX V5 The Market Attractiveness / Profile Chart In MATRIX V5 The Market Attractiveness / Strengths & Weaknesses Chart In MATRIX V5
Go to Topic 20.1
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SECTION 20 Market Attractiveness Analysis Topic 20.1 The Select Market Attractiveness Analysis Dialogue Purpose: To give the user choice over the style and content of the Market Attractiveness Charts Access: From the Menu Bar / Analysis, select the Market Attractiveness menu item, or from the Toolbar, click the Market Attractiveness Analysis button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Market Attractiveness menu item.
The Select Market Attractiveness Analysis Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define the style and content of the required Market Attractiveness Chart: 1. Plot Enables various types of Market Attractiveness Chart to be plotted as follows: Comparative, compares the overall performance of each Niche against each other Niche Profile, shows how each Niche performs against each Market Attractiveness Factor. Note that the Profile can be plotted for the Niche in focus, or if the View All Niches tick box is ticked, for all Niches within the portfolio. Strengths & Weaknesses, shows the ordered Strengths and Weaknesses of the Niche in focus.
2. View: Selecting Overview displays the full scope of the chart; selecting Zoom enables the user to zoom in to a detailed area of the chart. View Key: Ticking the View Key tick box displays the key (legend) within the chart. Buttons: Once the required parameters have been selected, click Plot to plot the Market Attractiveness Chart, or Cancel to abandon the procedure. Go to SECTION 20.2
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SECTION 20 Market Attractiveness Analysis Topic 20.2 - The Market Attractiveness / Comparative Chart In MATRIX V5 Purpose: Scores and weights entered via the Market Attractiveness Scorecard are processed into a Histogram, which compares the overall Attractiveness of each Niche against each other Niche.
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Market Attractiveness Dialogue: 1. Plot: Select Comparative 2. View: Select Overview Also, tick the View Key Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. The light green (Composite Assemblies / Europe / Industrial) Niche is the most attractive, whereas the teal (Plastic Assemblies / North America / Hobby) Niche is the least attractive.
Display: Niches are arranged in order of overall attractiveness from Left to Right. Note, each vertical bar (which represents a Niche) assumes the corresponding colour from the Segmentation Matrix. Different forms of shading depict different Market Attractiveness Factors. Hotspots: These become active on moving the cursor over the vertical bars. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Market Attractiveness Factor Name, Raw Score, Normalised Score (0 100).
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Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Market Attractiveness / Comparative Chart to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 20.3
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SECTION 20 Market Attractiveness Analysis Topic 20.3 - The Market Attractiveness / Profile Chart In MATRIX V5 Purpose: Scores and weights entered via the Market Attractiveness Scorecard are processed into a Line Chart, which illustrates how the Niche performs against each Market Attractiveness Factor (MAF).
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Market Attractiveness Dialogue: 1. Plot: Select Profile. Ensure the View All Niches Tick Box remains blank 2. View: Select Overview Also, tick the View Key Tick Box Whilst performance against the most important MAF (Market Potential ($GM, Periods 2007 2009)) is mediocre, the opportunity performs much better against successjve MAFs which have a slightly lower weighting, namely Fit with Core Skills (0 100 Scale) Market Accessibility (0 100 Scale) and Cost of Market Entry ($). There are no MAFs against which the opportunity performs particularly badly. Not surprisingly, this Niche displays a relatively strong overall attractiveness.
Display: As MAFs are arranged in order of weight from Left to Right, it is easy to determine how well a Niche performs against MAFs considered important. The Profile can be plotted for the Niche in focus, or (if the View All Niches tick box is ticked on the Select Market Attractiveness Dialogue), for all Niches within the portfolio. Note, each line (which represents a Niche) assumes the corresponding colour from the Segmentation Matrix. Hotspots: These become active on moving the cursor to where Market Attractiveness Factor and Normalised Score intersect. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Market Attractiveness Factor Name, Raw Score and Normalised Score (0 100).
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Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Market Attractiveness / Profile Chart to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 20.4
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SECTION 20 Market Attractiveness Analysis Topic 20.4 - The Market Attractiveness / Strengths & Weaknesses Chart In MATRIX V5 Purpose: Scores and weights entered via the Market Attractiveness Scorecard are processed into a horizontal Bar Chart, which illustrates the relative Strengths and Weaknesses of the Niche in focus.
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Market Attractiveness Dialogue: 1. Plot: Select Strengths & Weaknesses 2. View: Select Overview HandyMan PLC perceives that this is an inherently strong opportunity which performs particularly well against the Market Accessibility (0 100 Scale) MAF. The opportunity performs above average against all other MAFs, and there are no weaknesses. Not surprisingly, this Niche displays a relatively strong overall attractiveness.
Display: Strengths are shown towards the top of the graph in green and to the right of the 0% line; Weaknesses are shown towards the bottom of the graph in red and to the left of the 0% line. Hotspots: These become active on moving the cursor over the horizontal bars. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Market Attractiveness Factor (MAF) Name, MAF Score, MAF Normalised Score (0 100) and MAF Strength (-100 to + 100).
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Copy to Clipboard: To copy the Market Attractiveness / Strengths & Weaknesses Chart to the Windows clipboard, move the cursor away from any hotspot area on the chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to SECTION 21
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SECTION 21 Competitive Strength Analysis

This section describes how Competitive Strength is managed and displayed within MATRIX V5 Topic No 21.1 21.2 21.3 21.4 Topic Title The Select Competitive Strength Analysis Dialogue The Competitive Strength / Comparative Chart In MATRIX V5 The Competitive Strength / Profile Chart In MATRIX V5 The Competitive Strength / Strengths & Weaknesses Chart In MATRIX V5
Go to Topic 21.1
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SECTION 21 Competitive Strength Analysis Topic 21.1 The Select Competitive Strength Analysis Dialogue Purpose: To give the user choice over the style and content of the Competitive Strength Charts Access: First, ensure that the required Niche is selected (i.e. Active, as shown by its white borders). Then either: from the Menu Bar / Analysis, select the Competitive Strength menu item, or from the Toolbar, click the Competitive Strength button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Competitive Strength menu item.
The Select Competitive Strength Analysis Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define the style and content of the required Competitive Strength Chart: 1. Plot Enables various types of Competitive Strength Chart to be plotted as follows: Comparative, compares the overall performance of each Supplier against each other Supplier within the Niche Profile, shows how each Supplier performs against each Critical Success Factor. Note that the Profile can be plotted for the Host Company, a Competitor, or All Suppliers into the Niche Strengths & Weaknesses, shows the ordered Strengths and Weaknesses of the Host Company or a Competitor within the Niche
2. View Enables the View of the Competitive Strength Chart to be altered as follows: Selecting Overview displays the full scope of the chart; selecting Zoom enables the user to zoom in to a detailed area of the chart.
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Selecting Analysis by CSF plots the chart by Critical Success Factor; selecting Analysis by Criterion plots the chart by Criterion.
View Key: Ticking the View Key tick box displays the key (legend) within the chart. Buttons: Once the required parameters have been selected, click Plot to plot the Competitive Strength Chart, or Cancel to abandon the procedure. Go to SECTION 21.2
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SECTION 21 Competitive Strength Analysis Topic 21.2 - The Competitive Strength / Comparative Chart In MATRIX V5 Purpose: Scores and weights entered via the Competitive Strength Scorecard are processed into a Histogram, which compares the overall Strength of each Supplier against each other Supplier.
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial on the Segmentation Matrix. The following settings are required on the Select Competitive Strength Dialogue: 1. Plot: Select Comparative 2. View: Select Overview, and Analysis by Criterion Also, tick the View Key Tick Box HandyMan PLC is the most competitive supplier within in this Niche, but is far from being an ideal supplier. It is important that the company improves in the one area where it is weak, namely Typical Unit Price ($). The performance of EngineerIT Ltd is comparable to that of HandyMan PLC. Budget Assemblies Ltd is not competitive, and does not pose a real threat.
Display: Suppliers are arranged in order of overall strength from Left to Right. Note, each vertical bar (which represents a Supplier) assumes the corresponding colour from the Competitors Dialogue. Different forms of shading depict different Critical Success Factors. Hotspots: These become active on moving the cursor over the vertical bars. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, Critical Success Factor (CSF) Name, CSF Normalised Score (0 100). Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed.
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Copy to Clipboard: To copy the Competitive Strength / Comparative Chart to the Windows clipboard, move the cursor away from any hotspot area on the chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 21.3
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SECTION 21 Competitive Strength Analysis Topic 21.3 - The Competitive Strength / Profile Chart In MATRIX V5 Purpose: Scores and weights entered via the Competitive Strength Scorecard are processed into a Line Chart, which illustrates how the Supplier performs against each Critical Success Factor (CSF).
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Competitive Strength Dialogue: 1. Plot: Select Profile, and HandyMan PLC 2. View: Select Overview, and Analysis by Criterion Also, tick the View Key Tick Box HandyMan PLC performs well against all of the leading Criteria, and in particular against Speed of Initial Response (Hours), Typical Engineer Call-out Time (Hours), and Precision Engineering (0 100 Scale) where it achieves maximum marks. Despite a poor peformance against Typical Unit Price ($), HandyMan PLC is a strong all round performer within this Niche.
Display: As CSFs are arranged in order of weight from Left to Right, it is easy to determine how well the Supplier performs against CSFs considered important. Using the radio buttons and the drop-down list box located in the lower half of the Select Competitive Strength Dialogue, the Profile can be plotted for the Host Company, a Competitor, or All Suppliers into the Niche. Note, each line (which represents a Supplier) assumes the corresponding colour from the Competitors Dialogue. Hotspots: These become active on moving the cursor to where Critical Success Factor and Normalised Score intersect. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, Critical Success Factor Name, and CSF Normalised Score (0 100).
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Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Competitive Strength / Profile Chart to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 21.4
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SECTION 21 Competitive Strength Analysis Topic 21.4 - The Competitive Strength / Strengths & Weaknesses Chart In MATRIX V5 Purpose: Scores and weights entered via the Competitive Strength Scorecard are processed into a horizontal Bar Chart, which illustrates the relative Strengths and Weaknesses of a Supplier within the Niche in focus.
To display the chart exactly as shown above, open the HandyMan demonstration model and select the Europe / Metallic Assemblies / Industrial Niche on the Segmentation Matrix. The following settings are required on the Select Competitive Strength Dialogue: 1. Plot: Select Strengths & Weaknesses, and HandyMan PLC 2. View: Select Overview, and Analysis by Criterion Clicking the Plot button reveals the example shown above (Competitive Strengths and Weaknesses for the Host). The company is in a strong position ranking amongst the best for Precision Engineering (0 100 Scale), Speed of Initial Response (Hours), Technical Knowledge of Engineer (0 100 Scale), and Typical Engineer Call-out Time (Hours). However its Typical Unit Price ($), which is more expensive than its key competitors, is considered to be a weakness.
Display: Strengths are shown towards the top of the graph in green and to the right of the 0% line; Weaknesses are shown towards the bottom of the graph in red and to the left of the 0% line. Hotspots: These become active on moving the cursor over the horizontal bars. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, Critical Success Factor (CSF) Name, CSF Normalised Score (0 100), and CSF Strength (-100% to + 100%).
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Copy to Clipboard: To copy the Competitive Strength / Strengths & Weaknesses Chart to the Windows clipboard, move the cursor away from any hotspot area on the chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to SECTION 22
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SECTION 22 Boston Matrix

This section describes how the Boston Matrix is managed and displayed within MATRIX V5. Topic No 22.1 22.1.1 22.1.2 22.1.3 22.1.4 22.2 22.3 22.4 Go to Topic 22.1 Topic Title A Background To The Boston Matrix Technique Question Marks Stars Cash Cows Dogs The Select Boston Matrix Dialogue The Boston Matrix In MATRIX V5 Strategic Implications Of The Boston Matrix
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SECTION 22 Boston Matrix Topic 22.1 - A Background To The Boston Matrix Technique Introduction: The Boston Matrix takes its name from the Boston Consulting Group who where its developers during the 1970s. The Matrix has gained wide acceptance as a business strategy tool, to the point where it is now recognised as being one of a limited number of analytical techniques to have profound implications for businesses. The Boston Matrix is a two dimensional matrix, the vertical axis of which is defined as Market Growth Rate and the horizontal axes as Relative Market Share. Market Growth Rate is used as an indicator of the Attractiveness of a market, and is a synonym for cash use. Relative market share is an indicator of the strength of the Host Company relative to other Key Competitors. The four quadrants are known as Question Marks, Stars, Cash Cows and Dogs respectively.
Sales of company and competitor products into markets are represented on the matrix as bubbles, the size and distribution of which communicate the health of the business. Cash pattern and flows within the Boston Matrix: The theory underlying the Boston technique is the product life cycle concept, which very broadly states that products are cash poor at the beginning of their lives and require significant investment to become cash rich. Products generate a surplus of cash as they mature. The companys total cashflow is the sum of all the individual product cashflows. The number, and distribution of opportunities around the Boston Matrix can gain an indication of total cashflow. Strong cashflows are generated from healthy balanced portfolios of opportunities, which typically comprises: Cash Rich products Products which generate a less strong, but positive cashflow A few products which consume cash
The generation and use of cash is at the heart of any business objective. Cash from operations, injections from outside sources such as parent company, share issues, etc. determine a companys ability to service its cash needs. Ranking highly amongst todays cash consumers is the companys Page 240 of 296

future portfolio, which ensures that the company has a future cashflow. However, with only so much cash available for re-investment into a business, choices have to be made to determine which products and which markets will be selected for investment. It is the quality of these investment decisions that shape the business. In large corporate companies strategic decisions are usually made at headquarters where managers and executives of operating company business units submit numerous calls for cash, in the form of budget proposals. Such centralisation enables a wider and more balanced view to be taken than would be the case at operating company level alone. If for example, the strategic thrust of a parent company necessitated the disposal of a subsidiary company or product range it would be highly unlikely that any significant investment would be made to develop even the most promising of products within the subsidiary companys portfolio. Go to Topic 22.1.1
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SECTION 22 The Boston Matrix Topic 22.1.1 Question Marks It is much more common for new products to be launched into high growth (rather than low growth) markets, as the perception is that high growth markets will eventually generate a greater return. However the drain on cash at this stage can be great. Initially the volume of product sold will be low and significant expenditure will be required to raise market awareness and stimulate volume sales. If the corporate objective of building sales to achieve market leadership is pursued, then the combination of high market growth rates, and high promotional expenses will create a large demand for cash. Moreover, the technology involved in production may also be at the growth phase of its life cycle. This results in a proliferation of product types, step jumps in terms of quality (compared with previous generations of the same utility) and presence in the market only for a relatively short period of time. All of this requires a significant investment to fund the continuous development programme and (quite probably) an expensive manufacturing operation. If the initial investment decisions were sound, and sales follow on at a faster rate than for other competing products, the product will move into the 'Star' category as increases in relative market share are achieved. If such investments are not made, then the product will at best maintain a static market position and in time, lose market position to other competitive products. Its ultimate demise will be into the 'Dog' category. The two extremes of strategy available for managing 'Question Marks' are: To make the major investment decision, gain a disproportionate share of new sales, or achieve sales by acquiring competitors products. The objective is to turn the Question Mark into a 'Star'. To divest and exit from the opportunity if the stakes are too high.
The adoption of a segmentation strategy i.e. use more limited resource and focus in on key market niches in which one can play a leading role may be an alternative and lower risk strategy. Critical Points: - Almost all new products start life as Question Marks - Focus is the keyword to maximise the chances of success Go to Topic 22.1.2
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SECTION 22 The Boston Matrix Topic 22.1.2 Stars 'Stars' are successful products for which there is significant market demand. Usually they have grown from 'Question Marks' by gaining a high relative market share. They may be approaching the mature phase of their life cycle. Like 'Cash Cows', 'Stars' are in market leading positions. Unlike 'Cash Cows', the sales of 'Stars' must continue to grow at a high rate in order to maintain their lead positions. And, as well as penetrating further into existing markets, it may be desirable to penetrate new markets with Star products. Therefore, appropriate strategies for 'Stars' protect existing market share and result in increased supply into the market, e.g. product enhancements, improved distribution, cost efficiencies etc. The net result is that whilst 'Stars' will yield a significant cashflow to the business, they will also require high levels of cash injection to finance growing sales. 'Stars' are therefore prime candidates for investment. When the market growth rate slows, 'Stars' should become the businesss 'Cash Cow' products. Critical Points: - Desirable market position where brand, product image and market position are strong - Coincident with positive gradient phase of the product life cycle. - If high market growth rate continues, cash investment would probably be required to maintain or increase cash dominance. Go to Topic 22.1.3
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SECTION 22 The Boston Matrix Topic 22.1.3 Cash Cows 'Cash Cows' are well-established products, and likely to be in the mature phase of their life cycle where sales will have grown to a stable maximum level. Generally 'Cash Cows' are very profitable and by the time they are classified as such they will be making a major positive contribution to the companys cashflow. Investment in product development resulting in the launch of product variants (causing brand proliferation), or any effort toward market extension, should be avoided unless there is opportunity for a very good return. Instead, the surplus cash generated from 'Cash Cows' should be used for investment in newer products associated with higher growth markets. Pricing and promotional strategies appropriate to Cash Cow products should be aimed at maintaining their hard won market share. Attempting to increase market share when all the competing players are entrenched may prove to be a costly and unsuccessful strategy. Unless there are good reasons for doing otherwise, the maximum investment limit in 'Cash Cows' should be sufficient only to maintain their market position. The market growth rates for Cash Cow products have slowed. The most likely potential threat to the maintenance of stable business conditions may be the introduction of low-cost substitute products offering more benefit to the customer. The new competing product may utilise a different (or new) technology in its manufacture or to function. If this new competing product is successful, the original products life cycle could be shortened, thus reducing its financial return. Critical Points: - Very desirable position where brand and product image and market position are strong - Coincident with the mature phase of the product life cycle - Should be cash rich and generate significant cash surpluses Go to Topic 22.1.4
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SECTION 22 The Boston Matrix Topic 22.1.4 Dogs Dog products are those products sold into markets that are not growing at a sufficiently fast rate and in which the company is not one of the leaders. These products are likely to be in the mature phase of their life cycle. There will be little new business to compete for, and any strategic moves to increase market share are likely to provoke vigorous competitive reaction. 'Dogs' may be linked to low profits, and the prognosis for investment is generally low. Unless some new competitive advantage can be introduced, it is unlikely that Dog products will be able to gain an improved position within the market (and so attract the necessary resources). If market demand can be assured for some years ahead, then the commercial risk of building market share may be worthwhile; generally however, alternative more attractive investment decisions could probably be found elsewhere. 'Dogs' should therefore remain within the portfolio only so long as they contribute something to the business (other than being the personal hobbyhorse of the Chairman)! For example a Dog may be worth retaining if it maintains a positive cashflow, a contribution to overhead expense, or helps to meet a strategic need. If (as is often the case with Dog products) the opportunity is moribund, decisive action should be taken such as: Focusing attention and resources to other opportunities that will provide a better return Focusing attention and resources to other opportunities that can be ring-fenced Maximising cashflow from the product by reducing to a minimum all production and marketing costs. Disposing of the product, selling the rights to the product or the business. Dropping the product from the portfolio.
Critical Point: - Generally not a very strong or particularly desirable market position Go to Topic 22.2
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SECTION 22 The Boston Matrix Topic 22.2 The Select Boston Matrix Dialogue Purpose: To give the user choice over the style, content and parameters of the Boston Matrix. Access: From the Menu Bar / Analysis, select the Boston Matrix menu item, or from the Toolbar, click the Boston Matrix button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Boston Matrix menu item.
The Select Boston Matrix Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define the style, content and parameters of the required Boston Matrix: 1. Plot Enables the user to plot the Scenario in Focus as a Summary Boston Matrix which covers the whole model timeframe, or to Step year by year through the sequence. An automated Boston Matrix Movie can also be displayed. The user can also superimpose two different scenarios and review conflicting and complementary opportunities. The Scenario selected in the left-hand list box is the Scenario in focus. The Scenario selected from the right-hand list box will be superimposed. This function is typically used in planning acquisitions and mergers, where the different Scenarios represent the acquiring and target companies respectively. Also, see Buttons below. 2. Scope Enables the Boston Matrix to be plotted for the Host Company, a Key Competitor, or for All Suppliers (into the) Active Niche. Note that if the plot is for the Host Company or a Key Competitor, by default the Use Niche Colours tick-box is ticked. Under this circumstance each Niche (i.e. bubble) on the Boston Matrix assumes the corresponding colour from the Segmentation Matrix. If the Use Niche Colours is made blank, then each Niche on the Boston Matrix assumes the corresponding colour from the Competitors Dialogue. If the plot is for All Suppliers / Active Niche, Page 246 of 296

then each Supplier on the Boston Matrix assumes the corresponding colour from the Competitors Dialogue. 3. Data Enables the Boston Matrix to be plotted by Volume or by Revenue. 4. Sum Enables Niches within the Boston Matrix to be summed: by Niche by Product by Segment by Market by Scenario by Group
5. Time If a Summary plot is selected then the Start Year and End Year define the norms for an Average Boston Matrix over the selected period. Select from the drop-down list boxes as appropriate. 6. X-Axis By default, the Relative Market Share variable is positioned on the X-axis and adopts a logarithmic Scale of between 0.1x and 10x, the mid point being 1x. Plots for the Suppliers share of a Niche (relative to its largest competitor) reflect the extremes of subordination (in which the Supplier has one tenth of the share of its nearest Competitor) to dominance (in which the Supplier as ten times the share of its nearest competitor). However, a zoom capability expands the scope of the X-Axis to between 0.01x and 100x By default the View X-Axis Scale tick-box is ticked. Under this circumstance the X-Axis Scale is visible. If the View X-Axis Scale box is made blank then the X-Axis Scale is removed. 7. Y-Axis By default, the Market Growth Rate variable adopts a fixed scale of between 30% and +30%, the mid point being 0%. Any Niche that is in growth will therefore be plotted as a Question Mark or a Star, and any segment that is in recession will be plotted as a Dog or a Cash Cow. However, a zoom capability expands the scope of the Y-Axis to the following: + / - 3% + / - 10% + / - 30% + / - 100% + / - 300% + / - 1000%
By default the Y-Axis Norm is offset by 0%. However the user can modify this value within the input box, thus providing greater flexibility within the plot. For example, offsetting a + / - 30% plot by a value of 5% will provide a plot of between 25% and + 35%. In this way it is possible to set a Norm for the Y-Axis that is equal to the Companys Objective Growth Rate. By default the View Y-Axis Scale tick-box is ticked. Under this circumstance, when the Boston Matrix is plotted the Y-Axis Scale is visible. If the View Y-Axis Scale box is made blank, then when the Boston Matrix is plotted the Y-Axis Scale is removed from the plot. View Key: Ticking the View Key tick box displays the key (legend) within the matrix. Page 247 of 296

Buttons: Three types of Plot are available to the user, namely Plot, Step and Movie, accessed by the Plot < and >, >> and buttons respectively. Plot Note, this option is only accessible if the Summary radio button has been selected. Click the Plot button. An average view of the Boston Matrix (i.e. with Market Growth Rates, Relative Market Shares and Volumes / Revenues averaged over the selected timeframe) will be displayed. Step Note, this option is only accessible if the Step radio button has been selected. Click the > Button, or the < Button to move forward one year or back one year respectively. The Boston Matrix will display plots for each successive year, and arrows will display the trend of each Niche. Movie Note, this option is only accessible if the Movie radio button has been selected. Click the >> Button. The Boston Matrix will display plots for each successive year as a movie. Alternatively, click Cancel to abandon the procedure. Go to Topic 22.3
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SECTION 22 The Boston Matrix Topic 22.3 The Boston Matrix In MATRIX V5 Purpose: Answers the question Which Niches should I be investing in, and which Niches should be generating cash?
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Boston Matrix Dialogue: 1. Plot: Select Summary and Scenario In Focus 2. Scope: Select HandyMan PLC. Tick the Use Niche Colours Tick Box 3. Data: Select Revenue 4. Sum: Select Niche 5. Time: Drop Down Start Year 2008, and End Year 2010 6. X-Axis: Select Normal Log Scale (0.1x to 10x Biggest Competitor) and tick the View X-Axis Scale Tick Box 6. Y-Axis: Select the Fixed Growth Scale (+ / - 100%), set the Offset Y-Axis Norm by (%) Text Box to 20 and tick the View Y-Axis Scale Tick Box Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. We see a well-balanced portfolio, with several opportunities for investment in the Question Mark and Star categories. Amongst these, the Composite Assembly Niches appear to be conveniently grouped together and poised for future growth. The large Cash Cows associated with Metallic Assemblies will be generating profits to fuel future growth, and the company will imminently withdraw from the two small Plastic Assembly Niches located within the 'Dog' quadrant.
Display: The Boston Matrix is a two dimensional matrix, based upon Relative Market Share and Relative Market Growth with bubbles reflecting the Volume or Revenue derived from each Niche. The Relative Market Share variable is calculated from the scores entered in the Market History And Forecast Data Editor. Plots are positioned on the X-Axis, which adopts a logarithmic scale of between 0.1x and 10x, the mid point being 1x. Plots for the Suppliers share of a Niche are determined relative to its largest Key Competitor. This reflects the extremes of subordination (where the Supplier has one
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tenth of the share of its nearest Key Competitor) to dominance (where the Supplier has ten times the share of its nearest Key Competitor). The Market Growth Rate variable is calculated from the scores entered in the Market History And Forecast Data Editor. By default, plots are positioned on the Y-Axis, which adopts a conventional scale of between 30% and +30%, the mid point being 0%. Any Niche that is in growth will therefore be plotted as a Question Mark or a Star, and any Niche that is in recession will be plotted as a Dog or a Cash Cow Note, Plots falling outside of these extremes for the Growth or Share Axes will not be displayed. However, MATRIX V5 offers a zoom capability, which expands or contracts the X and Y-axes of the Boston Matrix to cope with extreme positions of Growth and Share. See Topic 22.2 The Area of the bubble is proportional to the Volume or Revenue derived by the Host Company or Key Competitor from the Niche. The Colour of the bubble varies according to user selections within the Select Boston Matrix Dialogue: If the plot is for the Host Company or a Key Competitor, and the Use Niche Colours tick-box on the Select Boston Matrix Dialogue has been ticked, then each Niche (i.e. bubble) on the Boston Matrix assumes the corresponding colour from the Segmentation Matrix. If the plot has been summed by Product then the colour attributed to the Product is that of the first Open status Niche included within that Product array. Similar arguments apply to summing by Segment, by Market, and by Model. If the plot is summed by Group then Group colours are used as appropriate. If the Use Niche Colours tick-box on the Select Boston Matrix Dialogue is made blank, then each bubble on the Boston Matrix assumes the corresponding colour from the Competitors Dialogue. If the plot is for All Suppliers / Active Niche, then each Supplier on the Boston Matrix assumes the corresponding colour from the Competitors Dialogue.
Hotspots: These become active on moving the cursor over a bubble on the Boston Matrix. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, Year, Volume (or Revenue), Relative Market Share and Market Growth Rate. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Boston Matrix to the Windows clipboard, move the cursor away from any hotpot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 22.4
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SECTION 22 The Boston Matrix Topic 22.4 - Strategic Implications Of The Boston Matrix The importance of achieving a balanced portfolio cannot be underestimated, but what exactly constitutes a winning portfolio is more difficult to determine. A policy of continuous product development resulting in the steady launch of new products is essential to corporate health. It therefore follows that a portfolio in equilibrium will include a number of 'Question Mark' and 'Star' products, though the number of 'Question Marks' should be greater than 'Stars' to allow for market failures. To achieve the required balance, branded products with strong market positions can either be acquired or developed in-house. The frequency at which new products should be developed will be different for each market and industry, but will be linked to: Rate at which competitors launch new products Markets history and current trends in product development Typical Product Life Cycles within the Industry Scope for actual or perceived product differentiation.
There also needs to be sufficient cash rich product to generate a cash surplus. A healthy portfolio will have a number of 'Cash Cow' products (minimum of two) to reduce the obvious risks associated with the business being dependent upon the sales of a single product. Ideally there should be relatively few 'Dog' products. A portfolio with all of the products positioned in the bottom of the matrix where all the company's products are sold into low growth markets does not represent a balanced portfolio. Although it does not represent an immediate potential threat to the health of the business it should be cause for concern in the medium to long term. A preponderance of products in the lower half of the matrix suggests the possibility of either or a combination of the following: A dearth of new 'Question Mark' and 'Star' products being launched. Incorrect or 'low' market growth rates specified for the companys segments.
Based upon the portfolio distribution it may be possible to determine the company's overall strategic intent as follows:
Hold Strategy To enjoy continued strong cashflow. Relatively high market share / low market growth rate Cash Cow opportunities should be able to maintain market share at or around existing levels.
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Build Strategy To grow the business. Relatively low relative market share / high market growth rate Question Mark opportunities need investment in order to grow.
Harvest Strategy To develop short term cashflow irrespective of the long term damaging effect to the product or business. This strategy is appropriate for any weak products where disposal in the form of a sale is unavailable or not preferred due to high exit barriers.
Divest Strategy To change the capital of the business and allow resources to be used elsewhere.
Go to SECTION 23
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SECTION 23 Directional Policy Matrix

This section describes how the Directional Policy Matrix is managed and displayed within MATRIX V5. Topic No 23.1 23.2 23.3 23.4 23.5 Topic Title A Background To The Directional Policy Matrix Technique The Select Directional Policy Matrix Dialogue The Directional Policy Matrix In MATRIX V5 Strategic Implications Of The Directional Policy Matrix A Comparison Between The Boston Matrix And The Directional Policy Matrix
Go to Topic 23.1
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SECTION 23 Directional Policy Matrix Topic 23.1 - A Background To The Directional Policy Matrix Technique The Shell Oil Company developed the Directional Policy Matrix in the 1970s following the widespread implementation of the Boston Matrix. General Electric and the McKinsey Company also contributed to the development of this technique, which resulted in what is now known as the GE-McKinsey Matrix. Development of the multivariate Directional Policy and GE-McKinsey Matrices came about because of the recognition of the potential limitation (within the Boston Matrix) of using only a single variable for each axis of a matrix. It was considered that a number of additional factors should also be utilised to develop representative analyses of the business. In the Directional Policy Matrix, the vertical axis is defined as Market Attractiveness and the horizontal axis as Competitive Strength. The individual factors that comprise Market Attractiveness may be referred to as external variables, i.e. factors outside the control of the company. The individual factors that comprise Competitive Strength may be referred to as internal variables, i.e. factors within the control of the company.
Selecting the criteria is not a trivial matter and should involve collective effort from key managers and executives in group-meetings. As the process is largely unscientific it is important that as many parties are involved as possible, including the most senior management. When done properly a consensus view that reflects organisational values will result. In MATRIX V5, plots are produced for each Niche from the data entered in the Market Attractiveness and Competitive Strength Scorecards. Niches are represented on the matrix as pie charts, the size and distribution of which communicate the health of the business. The solid slice of the pie represents the share of the market enjoyed by the Host Company.
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Rationale: The rationale behind the Directional Policy Matrix is that a company should be investing in opportunities (i.e. Niches) that are both attractive to it and in which it possesses some measure of competitive advantage. Conversely, a company should be divesting itself of opportunities which may not be so attractive, and / or in which it is competitively weak. For those opportunities that lie somewhere in between, the matrix provides a basis for discussion about the most appropriate strategies to adopt, for example, whether the opportunity should be cultivated or milked. Go to Topic 23.2
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SECTION 23 Directional Policy Matrix Topic 23.2 The Select Directional Policy Matrix Dialogue Purpose: To give the user choice over the style, content and parameters of the Directional Policy Matrix. Access: from the Menu Bar / Analysis, select the Directional Policy Matrix menu item, or from the Toolbar, click the Directional Policy Matrix button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Directional Policy Matrix menu item.
The Select Directional Policy Matrix Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define the style, content and parameters of the required Directional Policy Matrix: 1. Plot Enables the Directional Policy Matrix to be plotted for the Scenario in focus, or conditional upon more than one Scenario being included within the Model: to plot the Scenario in Focus, click the Scenario In Focus radio button. Note that the Next Scenario (>) and Previous Scenario (<) buttons are disabled, and when plotting the Directional Policy Matrix the user has no choice but to click the Plot button to superimpose two different scenarios and review conflicting and complementary areas, click the Superimpose button. The Scenario selected in the left-hand list box is the Scenario in focus. The Scenario selected from the right-hand list box will be superimposed. This function is typically used in planning acquisitions and mergers, where the different Scenarios represent the acquiring and target companies respectively. to compare different Scenarios, click the Step Radio button. By default, the Scenario shown in the left-hand list box is the Scenario in focus. The Scenario selected from the right-hand list box will be compared. This function is typically used when the host company wishes to illustrate a change in overall strategy. Note that in the first instance the Plot and Previous Scenario (<) buttons are disabled, and when plotting the DPM the user has no choice but to click the Next Scenario (>) button.
Also included under this tab is a tick-box control, which gives the user the ability to Equalise Pie Dimensions. If very large differences exist between the Volumes or Revenues supported by Page 256 of 296

different Niches, it is probable that the smallest Niches will not be visible in normal plots of the DPM. The Equalise Pie Dimensions tick box sets all pies to the same diameter, irrespective of the Volume or Revenue accruing to each Niche, rendering all Pies visible. Setting the pie dimensions to equal distorts the plot of the Directional Policy Matrix, and is intended as a comfort factor, simply to clarify the locations of minor business opportunities. It therefore carries a permanent warning that the Scale (which is automatically calculated for different pies) is Lost. 2. Scope Values for Relative Market Attractiveness are derived from the scores and weightings entered in the Market Attractiveness Scorecard. Ideal / Threshold Analysis. Location on the Y-Axis reflects the attractiveness of the Niche compared to Perfect and Marginal cases. Best / Worst Analysis. Location on the Y-Axis reflects the attractiveness of the Niche compared to the Most Attractive and Least Attractive actual cases.
Similar arguments apply to location and values for Relative Competitive Strength. 3. Data Enables the Directional Policy Matrix to be plotted by Volume or by Revenue. 4. Time Enables the Start Year and End Year to be defined for the Directional Policy Matrix. Select from the drop-down list boxes as appropriate. 5. Axes By default the X-Axis is shown with the Maximum value to the left, and the Minimum Value to the right. To reverse the status of the X-Axis (so that the Minimum value is to the left and the Maximum Value is to the right), tick the Reverse X-Axis tick box. By default the View X-Axis Scale tick-box is blank. Under this circumstance, when the Directional Policy Matrix is plotted the X-Axis Scale is not visible. If the View X-Axis Scale is ticked, then when the Directional Policy Matrix is plotted the X-Axis Scale is included in the plot. The same arguments apply to the Y-Axis Scale. View Key: Ticking the View Key tick box displays the key (legend) within the matrix. Buttons: Two types of Plot are available to the user, namely Scenario In Focus and Compare Scenarios, accessible by the Plot, and > or < buttons respectively. Scenario In Focus Note, this option is only accessible if the Scenario In Focus Radio button on Tab 1. Plot has been clicked. To display the Directional Policy Matrix for the Scenario in Focus, click the Plot Button Compare Scenarios Note, this option is only accessible if the Compare Scenarios Radio button on Tab 1. Plot has been clicked. From the list boxes, select the two Scenarios to be compared. To display the Directional Policy Matrix for the First Scenario, click the Next Scenario (>) button. To simultaneously plot the First and the Second Scenarios, click the Next Scenario (>) button a second time. Note that broken tangent lines link equivalent Niches (i.e. Niches that possess the same Market, Segment and Product Names), thereby showing the trend within the two plots. To revert to the First Scenario, click the Previous Scenario (<) button. Alternatively, click Cancel to abandon the procedure. Go to Topic 23.3 Page 257 of 296

SECTION 23 Directional Policy Matrix Topic 23.3 The Directional Policy Matrix In MATRIX V5 Purpose: Answers the question which Niches should be retained within my strategic portfolio, and which ones should be divested?
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Directional Policy Matrix Dialogue: 1. Plot: Select Scenario In Focus. Ensure the Equalise Pie Dimensions Tick Box remains blank 2. Scope: Select Ideal / Threshold. Tick the Use Niche Colours Tick Box 3. Data: Select Revenue 4. Time: Drop Down Start Year 2006 and End Year 2010 5. Axes: Ensure the Reverse X-Axis, View X-Axis Scale and View Y-Axis Scale Tick Boxes remain blank. Tick the View Sector Captions Tick Box. Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The three Composite Assemblies Niches (Europe / Industrial, North America / Industrial, and Rest Of World / Industrial) are worthy of serious investment. The various Metallic Assemblies Niches also appear to be well placed. The company should be concerned about its relatively poor position with 'Plastic Assemblies. Note in particular the two Niches stemming from the Hobby Segment which the Host Company finds to be both unattractive, and areas in which it lacks a competitive offer. As suggested by the matrix, it will imminently divest these opportunities.
Display: The Directional Policy Matrix is a two dimensional matrix, based upon Relative Competitive Strength and Relative Market Attractiveness, with pies reflecting the Volume or Revenue derived from each Niche. Relative Competitive Strength is calculated from the scores and weightings entered in the Competitive Strength Scorecards. Plots are positioned on the X-axis. Choosing the Ideal / Threshold option reflects the strength of the Host Company compared to Perfect and Marginal cases. Choosing the Best / Worst option reflects the strength of the Host Company compared to the Most Competitive and Least Competitive actual Suppliers within a Niche.
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Relative Market Attractiveness is calculated from the scores and weightings entered in the Market Attractiveness Scorecard. Plots are positioned on the Y-axis. Choosing the Ideal / Threshold option reflects the attractiveness of the Niche compared to Perfect and a Marginal cases. Choosing the Best / Worst option reflects the attractiveness of the Niche compared with the Most Attractive and Least Attractive actual Niches within a Scenario. The Area of the Pie is proportional to the Volume or Revenue of the Niche, and the Angle of the Pie Slice is proportional to the Host Companys share of the Niche. The Colour of the Pie varies according to user selections within the Select Directional Policy Matrix Dialogue: If the Use Niche Colours tick-box on the Select Directional Policy Matrix Dialogue has been ticked, then each Niche (i.e. bubble) on the Directional Policy Matrix assumes the corresponding colour from the Segmentation Matrix. If the Use Niche Colours tick-box on the Select Directional Policy Matrix Dialogue is made blank, then each bubble on the Directional Policy Matrix assumes the Host Company colour from the Competitors Dialogue.
Hotspots: These become active on moving the cursor over a pie on the Directional Policy Matrix. A pop-up window provides the user with critical information, such as Market, Segment and Product Name, Period, Volume (or Revenue), Relative Competitive Strength and Relative Market Attractiveness. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Directional Policy Matrix to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the popup menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 23.4
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SECTION 23 Directional Policy Matrix Topic 23.4 Strategic Implications Of The Directional Policy Matrix Unlike the Boston Matrix in which one is looking for a balance of business opportunities spread amongst growth and maturing markets, in the Directional Policy Matrix the concentration of business opportunities should be focused around the Leader domain, i.e. the top left hand area of the matrix. Under such circumstances, one is looking at a strong portfolio where the company is focusing on markets that are attractive and where it is acknowledged as being competitive. Note that metrics relating to market size and growth may not feature in the Relative Market Attractiveness axis; it is quite possible for segments labelled as Cash Cows (bottom right hand corner in the Boston Matrix) to appear in this domain.
The closer an opportunity is towards the bottom and the right hand corner of the matrix, the weaker the company is in relation to market requirements, and the less attractive the market. If the company finds significant elements of the portfolio in the Divest domain it needs to think quickly about what actions to take, e.g. to what extent should they be milked and how quickly should they be disposed of. Despite its potential, an opportunity labelled as a Question Mark product in the Boston Matrix could fall into this domain if it is not strategically aligned with the holding group! Areas in-between are more problematic. The company will need to make a strategic decision on whether or not to keep the Niche in the portfolio, the amount to invest in it, whether it can ever hope to achieve market leadership, the extent to which it should generate cash and so on. Generally speaking the further towards the top and right, the more likely one is to invest, as one is approaching markets that the company would deem as attractive, despite the fact that the company is not yet competitive. Conversely those opportunities towards the bottom and left are in areas that the company would find less attractive, and should be managed diligently for cash. Leader Domain The strategy should be to maintain this position. At certain stages this may imply a need for resources which cannot be met entirely from funds generated by the product, (e.g. resources to expand capacity), although earnings should be above average. Try Harder Domain The implication is that the product can be moved towards the leadership box by judicious application of resource. In these circumstances the company should certainly consider making available resources in excess of what the product can generate. Double or Quit Domain Tomorrows breadwinners among todays R&D projects may come from this area. Putting the strategy simply, those with the best prospects should be selected for full backing and development; the rest should be abandoned. Page 260 of 296

Growth Domain Investment should be made to allow the product to grow with the market. Generally, the product will generate sufficient cash to be self-financing and should not be making demands on other corporate cash resources. Proceed with Care Domain In this position, some investments may be justified but major investments should be made with extreme caution. Phased Withdrawal Domain A product with a weak position with average market (or an average to weak position with unattractive market) is unlikely to be earning any significant amounts of cash. The indicated strategy is to realise the value of the assets on a controlled basis to make the resources available for redeployment elsewhere. Cash Generator Domain A typical situation in this matrix area is when the company has a product that is moving towards the end of its life cycle and is being replaced in the market by other products. No finance should be allowed for expansion, and so long as it is profitable, the opportunity should be used as a source of cash for other areas. Every effort should be made to maximise profits since this particular activity has no long-term future. Divestment Domain Products falling in this area will probably be losing money, not necessarily every year, but the losses in bad years will outweigh the gains in good years. Go to Topic 23.5
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SECTION 23 Directional Policy Matrix Topic 23.5 A Comparison Between The Boston Matrix And Directional Policy Matrix Many companies use the Boston Matrix technique and it is apparent that Market Growth and Relative Market Share are very powerful and informative key business indicators. But it is equally clear that Market Growth and Relative Market Shares are not necessarily the only determinants of commercial success. Likewise it may not be possible to clearly define specific competitors in specific Niches. For example, an IT company that is targeting large corporate customers may find itself competing with a whole raft of management consultancies, systems suppliers and even the customers own in-house IT department. The profile of competition will change with every bid, and defining the economic performance of specific competitors (as required by the Boston Technique) becomes impossible. The Directional Policy Matrix overcomes these limitations by utilising an alternative multivariate approach to the problem. Indeed, metrics relating to size, growth, and share can be left out of the equation altogether! However, in providing this extra sophistication, the successful use of this tool is dependent upon nominating the correct key determinants for success, i.e. correct Market Attractiveness Factors and Critical Success Factors. Qualitative market research techniques can be of enormous help in arriving at a view about what the criteria should be, the weightings and the relative performance of different types of competitor within the market. Go to SECTION 24
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SECTION 24 Perceptual Maps

This section describes how Perceptual Maps are managed and displayed within MATRIX V5. Topic No 24.1 24.2 24.3 Go to Topic 24.1 Topic Title Examples Of Perceptual Maps The Select Perceptual Map Dialogue A Typical Perceptual Map In MATRIX V5
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SECTION 24 Perceptual Maps Topic 24.1 - Examples Of Perceptual Maps Whilst it has been criticised for oversimplifying what can be sometimes be complex commercial problems, the two-dimensional Perceptual Map has become a particularly useful vehicle for management to draw attention to an emerging market opportunity, a new strategic direction, or a changing market condition. Cliff Bowman, Professor of Business Strategy at Cranfield School of Management, developed the Customer Matrix example illustrated below. A proactive supplier will always consider how to maintain initiative within the market. A useful starting point is to consider competitive position as a perceptual map in which 'Perceived Price' is plotted against 'Perceived Use Value'.
If the supplier determines that his solution is 'average' when compared to the competition, the alternative courses of action are: to achieve the status of lowest cost producer and offer lower prices than the competition - i.e. move West. Here Bowman cites the work of Porter, and emphasizes the need for all organisations to become low cost (if not lowest cost) producers so that at the very least market fluctuations can be accommodated. to move North by adding Perceived Use Value. Here Bowman is at pains to point out that market segmentation plays a critical role in determining what customers do actually value and that any advantage must be sustainable.
Bowman then goes on to explore the interactive nature of these axes. For example an increased share obtained by adding value can result (through economies of scale) in lowest cost producer status. The move North West - sequentially adding Perceived Use Value and cutting price - may offer the company the best strategy to tackle the market and offer global potential, but the company must be nimble in order to maintain its competitive position. Examples of other Perceptual Map frameworks are shown below. Note - the user should always take care to ensure that the framework (or variation thereof) adequately addresses the problem in hand. As always, the user should check whether the 'high' point of the X-Axis is to the right (or to the left) edge of the Perceptual Map in question.
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Brand Strength vs Market Attractiveness. Ideally the Host Company owns strong brands in highly attractive markets - i.e. the top left-hand sector.
Patent Life vs. Market Attractiveness. Ideally the Host Company owns products with a long patent life in highly attractive markets - i.e. the top right-hand quadrant
Relative Cost of Production vs. Differentiation. This is an adaptation of Porter's famous matrix where position is a reflection of strategy. The worst locations are the 'Death Zone' towards the bottom-left in which a company clearly cannot compete effectively. Weak marketing organisations may at best find themselves 'in the middle' as no coherent strategy is being pursued.
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Quality vs. Price. An analysis of competitive position will show whether the Supplier is offering 'Value for money', and may well indicate the strategy being pursued. For example if a low price is being charged and a superior quality of product is being offered, then the company in question is likely to be pursuing a growth strategy.
Probability vs. Effect on Company. Whereas the Perceptual Maps shown above are 'outwards facing' (as they consider the company in the context of the Universe within which it operates) the Market Sensing Map is 'inwards facing' as it considers the impact of external events on the company.
Go to Topic 24.2
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SECTION 24 Perceptual Maps Topic 24.2 The Select Perceptual Map Dialogue Purpose: To give the user choice over the style, content and parameters of the Perceptual Map. Access: from the Menu Bar / Analysis, select the Perceptual Map menu item, or from the Toolbar, click the Perceptual Map button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Perceptual Map menu item.
The Select Perceptual Map Dialogue is displayed. Tabs: Click tabs, and then radio buttons, list boxes and drop-down list boxes within each tab to define the style, content and parameters of the required Perceptual Map: 1. Scope Enables the Perceptual Map to be plotted for the Host Company, a Key Competitor, or for All Suppliers (into the) Active Niche. Note that if the plot is for the Host Company or a Key Competitor, by default the Use Niche Colours tick-box is ticked. Under this circumstance each Niche (i.e. Spot, Bubble or Pie) on the Perceptual Map assumes the corresponding colour from the Segmentation Matrix. If the Use Niche Colours is made blank, then each Niche on the Perceptual Map assumes the corresponding colour from the Competitors Dialogue. If the plot is for All Suppliers / Active Niche, then each Supplier on the Perceptual Map assumes the corresponding colour from the Competitors Dialogue. Note that when Competitor / All Niches is selected, Plot options (Tab 3) are restricted to Competitive Strength only, since Market Attractiveness relates only to the Host Company. Similarly, if Competitor / All Niches is selected whilst revising the parameters of the perceptual map, the X- and Y-Axis Plot options may be adjusted automatically to the first entries within the corresponding Competitive Strength list boxes in order to generate a valid plot. 2. Format Options include:
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Spot, which is independent of any size metric, and plots X-Axis and Y-Axis position only. Bubble, where (similar to the Boston Matrix) the diameter of the bubble is proportional to the Revenue or Volume accruing to the Supplier. Pie, where (similar to the Directional Policy Matrix), the diameter of the pie is proportional to the Revenue or Volume accruing to the Niche, and angle of the pie slice is proportional to the Revenue or Volume accruing to the Supplier.
3. Plot Defines the two Axes of the Perceptual Map. Note that the metric used for each axis can be performance of the Niche against an individual Market Attractiveness Factor, or the Overall Market Attractiveness, and of a selected Supplier against an individual Critical Success Factor, or the Overall Competitive Strength. From the appropriate list boxes, select both the X-Axis and the Y-Axis Metrics. 4. Data Enables the Perceptual Map to be plotted by Volume, or by Revenue. Note, the Volume and / or Revenue Radio Buttons will not be enabled if Spot has been selected under Tab 2. Format. 5. Time Enables the Start Year and End Year to be defined for the Perceptual Map. Select from the dropdown list boxes as appropriate. 6. Axes By default the X-Axis is shown with the Minimum value to the left, and the Maximum Value to the right. To reverse the status of the X-Axis (so that the Maximum value is to the left and the Minimum Value is to the right), tick the Reverse X-Axis tick box. By default the View X-Axis Scale tick-box is ticked. In this circumstance the X-Axis Scale is visible. If the View X-Axis Scale box is made blank then the X-Axis Scale is removed. The same arguments apply to the Y-Axis Scale. View Key: Ticking the View Key tick box displays the key (legend) within the matrix. Buttons: Once the required parameters have been selected, click Plot to plot the Perceptual Map, or Cancel to abandon the procedure. Go to Topic 24.3
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SECTION 24 Perceptual Maps Topic 24.3 A Typical Perceptual Map In MATRIX V5 Display: A Perceptual Map is a two dimensional matrix, each axis representing a selected Critical Success Factor. Spots, Bubbles or Pies are plotted as required.
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Perceptual Map Dialogue: 1. Plot: Select X-Axis Plot (Competitive Strength) Product Design, and Y-Axis Plot (Competitive Strength) Price 2. Format: Select Bubble 3. Scope: Select HandyMan PLC / All Niches. Tick the Use Niche Colours Tick Box 4. Data: Select Revenue 5. Time: Drop Down Start Year 2006 and End Year 2010 6. Axes: Ensure the Reverse X-Axis Tick Box remains blank. Tick the View X-Axis Scale and View Y-Axis Scale Tick Boxes. Also, tick the View Key Tick Box Clicking the Plot button reveals the example shown above. The opportunities in which the company is likely to be most competitive are those in which it is able to offer a strong Product Design at a strong (i.e. inexpensive) Price. The three Composite Assembly Niches are conveniently grouped together and show modest Product Design at a strong Price. The two Industrial / Metallic Assembly Niches show a strong Product Design at a relatively weak (i.e. expensive) Price. Further evidence of HandyMans misaligned strategy is shown by the two Hobby Niches, where an excellent Product Design is offered at the weakest (i.e. most expensive) Price.
Location on each Axis is calculated from the scores and weightings entered in the Market Attractiveness, Competitive Strength and Criterion Scorecards. Area of Bubble - is proportional to the Volume or Revenue derived by the Host Company or Key Competitor from the Niche. Area of Pie - is proportional to the Volume or Revenue derived by the Niche, and the Angle of the Pie Slice is proportional to the Suppliers share of the Niche.
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Colour of the Spot / Bubble / Pie varies according to user selections within the Select Perceptual Map Dialogue: If the plot is for the Host Company or a Key Competitor, and the Use Niche Colours tick-box on the Select Perceptual Map Matrix Dialogue has been ticked, then each Niche (i.e. Spot, Bubble or Pie) on the Perceptual Map assumes the corresponding colour from the Segmentation Matrix. If the Use Niche Colours tick-box on the Select Perceptual Map Dialogue is made blank, then each Spot / Bubble / Pie on the Perceptual Map assumes the corresponding colour from the Competitors Dialogue. If the plot is for All Suppliers / Active Niche, then each Supplier on the Perceptual Map assumes the corresponding colour from the Competitors Dialogue.
Hotspots: These become active on moving the cursor over a Spot, Bubble or Pie on the Perceptual Map. A popup display provides the user with critical information, such as Market, Segment and Product Name, Supplier Name, and Names and Scores of the two Critical Success Factors. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Perceptual Map to the Windows clipboard, move the cursor away from any hotspot area on the chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to SECTION 25
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SECTION 25 Gap Analysis

This section describes how Gap Analysis is managed and displayed within MATRIX V5. Topic No 25.1 25.2 25.3 25.4 Go to Topic 25.1 Topic Title A Background To The Gap Analysis Technique The Select Gap Analysis Dialogue The Gap Analysis Chart In MATRIX V5 Strategic Implications Of Gap Analysis
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SECTION 25 Gap Analysis Topic 25.1 A Background To The Gap Analysis Technique In his celebrated book 'Corporate Strategy', Igor Ansoff describes a systematic approach to how the gap between a company's Objectives and Forecast performance can be narrowed and ultimately eliminated. Objectives are decided upon for the company, and a Forecast is extrapolated from the company's current range of activities. Whilst that the former is shown to increase (companies like to grow), the latter is shown to tail off over time (as products lose competitiveness within the marketplace). The difference in performance shown is known as the 'Total sales gap'.
The business environment(s) should then be analysed to establish whether by nature the future would: be similar to the past - i.e. simple evolution - in which case market needs can be met by logical extensions to traditionally successful products and services, the introduction of efficiencies in the supply chain, price increases etc., or be discontinuous, and the company needs to consider the introduction of new solutions to service new market demands.
The analysis gives rise to the chart shown above in which the 'Competitive Gap' is bridged by the evolutionary aspect of the business and the 'Portfolio Gap' is bridged by new products, new markets or diversification. When addressing the 'Portfolio Gap', management should seek the lowest risk options, perhaps starting with new products to existing markets before committing to the expense of market development. Companies will have different views of diversification depending upon their attitudes towards risk, and their inherent 'flexibility'. A company with significant capital tied up in plant will be less able to seek completely new ventures than would (say) an investment trust, which has highly fluid resources. Go to Topic 25.2
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SECTION 25 Gap Analysis Topic 25.2 The Select Gap Analysis Dialogue Purpose: To give the user choice over the style, content and parameters of the Gap Analysis Chart. Access: from the Menu Bar / Analysis, select the Gap Analysis menu item, or from the Toolbar, click the Gap Analysis button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Gap Analysis menu item.
The Select Gap Analysis Dialogue is displayed. Tabs: Click tabs, and then radio buttons and drop-down list boxes within each tab to define the style, content and parameters of the required Gap Analysis Chart: 1. Sum Enables the Gap Analysis Chart to be displayed by Niche, Product, Segment, Market, Group or Ansoff Quadrant respectively. 2. Data Enables the Gap Analysis Chart to be plotted by Revenue, or by Gross Margin. View Key: Ticking the View Key tick box displays the key (legend) within the Perceptual Map. Buttons: Once the required parameters have been selected, click Plot to plot the Gap Analysis Chart, or Cancel to abandon the procedure. Go to Topic 25.2
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SECTION 25 Gap Analysis Topic 25.3 - The Gap Analysis Chart In MATRIX V5 Purpose: To illustrate the gap between Objective and Actual Revenues (or Gross Margins) of the Host Company during past Years, and the gap between Objective and Forecast Revenues (or Gross Margins) for the Current and Future Years. Display: Various displays are supported by MATRIX V5, including: By Niche (shown below). Note, each band (which represents a Niche) assumes the corresponding colour from the Segmentation Matrix. By Product. The colour attributed to the Product band is that of the first Open status Niche included within that Product array. Similar arguments apply to summing By Segment, and By Market. By Group. The colour attributed to the Group band is that of the appropriate Group. By Ansoff Quadrant. Each band assumes the corresponding colour from the Ansoff Matrix quadrant.
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Gap Analysis Dialogue: 1. Sum: Select By Niche 2. Data: Select Revenue Also, tick the View Key Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. As a consequence of its late entry into the market with Composite Assemblies the Host Company is showing a negative gap by Revenue during the period 2006 to 2009. However, the company should take some comfort from the positive gap emerging in 2010 - that is, performance is expected to exceed objectives by a considerable extent.
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Hotspots: These become active on moving the cursor to the Gap between Objective and Forecast in any Year. A pop-up window provides the user with critical information, such as Objective Revenue (or Gross Margin), Forecast Revenue (or Gross Margin) and Gap. Key / Legend: If the key (legend) is not displayed, then click and drag the left or right-hand edge of the Chart to increase its width. As the aspect ratio is changed, the key is revealed. Copy to Clipboard: To copy the Gap Analysis Chart to the Windows clipboard, move the cursor away from any hotspot area of the chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 25.4
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SECTION 25 Gap Analysis Topic 25.4 Strategic Implications Of Gap Analysis By summing the Forecasts for each Niche, it is possible to see whether the business is on target to meet its Objectives, or whether it is likely to suffer a shortfall. Such a comparison may raise a number of issues about the scope and viability of the portfolio. For example if there is a negative gap between the Objectives and the summed Forecasts (i.e. the Objectives are higher than the summed Forecasts) then other Scenarios may be considered. For example: the Economic Objective needs to be revised downwards, or the portfolio needs to be expanded with additional Market / Segment / Product opportunities so that the gap can be bridged, or the portfolio needs to be fundamentally re-thought, or the Forecast for all, some or one of the Niches within the portfolio need to be revised upwards such that the overall Forecast improves. This of course beggars the question as to whether the increase in business is feasible, and what strategies will be adopted to realize such increased levels of business.
Of course it is possible to undertake combinations of such actions to bridge the gap. Go to SECTION 26
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SECTION 26 Risk Analysis

This section describes how Risk Analysis is managed and displayed within MATRIX V5 Topic No 26.1 26.2 26.3 26.3.1 26.3.2 Go to Topic 26.1 Topic Title A Background To The Risk Analysis Technique The Select Risk Analysis Dialogue The Risk Analysis Chart In MATRIX V5 Risk Analysis Chart - Risk Axis Risk Analysis Chart - Return Axis
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SECTION 26 Risk Analysis Topic 26.1 - A Background To The Risk Analysis Technique Risk Analysis is a unique development by Market Modelling Limited which produces a Risk / Return chart for a given combination of Niches within a portfolio. Intentionally or otherwise, many organisations address business opportunities that are inefficient and may be seen as dead weight for example products that have passed the end of their life cycles, or market segments that are no longer profitable. Risk Analysis enables the strategist to isolate such problem areas, and take a strategic view on whether a more efficient portfolio can be developed by withdrawal from the Niches under question, or whether to safeguard the bigger picture they should be retained. In the Risk Analysis Chart: Risk is plotted on the X-Axis. Risk is proportional to the inverse of Market Attractiveness multiplied by the inverse of Competitive Strength, and a total Risk score is obtained by summing the individual Risk scores for a given combination of Niches. Return is plotted on the Y-Axis. A value for Return is calculated by totaling the Gross Margins for a given combination of Niches.
Scores are normalised between two extremes. The (100,100) co-ordinate is the Maximum-Risk / Maximum-Return position at the top right-hand corner of the Chart. This often (but not always) corresponds to a Permutation containing all Open Niches within the Scenario. The (0, 0) co-ordinate is the Zero-Risk / Zero-Return position at the bottom left-hand corner of the Chart. This often (but not always) corresponds to a Permutation containing no Niches. (Note, the instances where the corner positions do not correspond to the extremes of Maximum Risk / Return and Minimum Risk / Return, are those in which Negative Gross Margins depress the Y-Axis positions of corresponding Niches.) The potential number of Permutations available to a company is 2 to the power n, where n is the number of Open Niches. A business with a portfolio of 10 Open Niches could therefore pursue 2 to the power 10, i.e. 1,024 Permutations. A business with 50 Open Niches could pursue 1,125,899,906,842,620 Permutations! Clearly, even the most powerful computers would have difficulty calculating and plotting the positions of all possible Permutations for most modelling exercises! However the Risk Analysis Chart on MATRIX V5 does combine the most efficient and the least efficient combinations of Niches into two frontiers, the boundaries of which form an envelope that contains all possible Permutations. This provides a useful visual indicator about to the efficiency of a given Permutation.
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In the above diagram: Point H represents the theoretical Maximum Risk / Maximum Return Permutation. Point L represents the Zero Risk / Zero Return Permutation. Point A represents an Optimum Risk Permutation which lies on the efficient frontier. It offers moderate Risk and good Return, and may be worth pursuing. Point B represents a slightly Higher Risk / Higher Return Permutation. However it is not optimum since it does not lie upon the efficient frontier. It should be considered if it implies withdrawing from several Niches which represent a geographic market, an industry type, or a product range. That is, there is a common feature associated with all of the excluded Niches. Point C is even more preferable since it does lie on the efficient frontier. However it does imply a higher Risk than the permutations represented at points A and B. If the Permutation at C looks sensible, and passes with other analyses (e.g. the Boston and Directional Policy Matrices and Gap Analysis), then this option would perhaps be given favorable consideration. Point D represents a relatively High Risk / Low Return Permutation near to the inefficient frontier. It entails considerably higher Risk than Permutations A, B or C and is also likely to yield a lower Return. Permutation D should be avoided.
Note, there may be no right or wrong answer as to which Permutation the company should pursue. If two Permutations lie on the same plot for Risk, but the first shows a significantly higher Return than the other, then clearly the former would be the more worthy of consideration. If two points lay on the same plot for Return, but the first shows a significantly lower Risk than the other then again, the former is the more worthy of consideration. However in order that the Host Company continues to operate in any one Industry, it may be necessary to retain unattractive Niches despite the fact that they move a given Permutation towards inefficiency. Go to Topic 26.2
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SECTION 26 Risk Analysis Topic 26.2 The Select Risk Analysis Dialogue Purpose: To give the user choice over the Permutation and Time parameters of the Risk Analysis Chart. Access: from the Menu Bar / Analysis, select the Risk Analysis menu item, or from the Toolbar, click the Risk Analysis button, or from the Navigator, click the Analysis button, and then from the pop-up menu displayed, select the Risk Analysis menu item.
The Select Risk Analysis Dialogue is displayed. Tabs: Click tabs, and then tick boxes and drop-down list boxes within each tab to define the style, content and parameters of the required Risk Analysis Chart: 1. Permutation By default, the Permutation is displayed with all Niches Selected, as shown by all tick boxes in the Select column being ticked. A process of exclusion then creates permutations, i.e. the appropriate Tick Boxes are clicked to make them blank. Note that once a Permutation has been decided upon, it will be retained until the user again changes it. 2. Time Enables the Start Year and End Year to be defined for the Risk Analysis Chart. This affects the values for Gross Margin and reflects position on the Y-Axis. Select from the drop-down list boxes as appropriate. View Permutation: Ticking the View Permutation tick box lists the Niches included within the Permutation in the Risk Analysis Chart. Buttons: Once the required parameters have been selected, click Plot to plot the Risk Analysis Chart, or Cancel to abandon the procedure. Go to Topic 26.3 Page 280 of 296

SECTION 26 Risk Analysis Topic 26.3 - The Risk Analysis Chart in MATRIX V5 Purpose: To illustrate the relative Risks and Returns for different Permutations of Niches. Display: Risk Analysis is a two dimensional chart based upon Risk and Return, with Risk positioned on the X-Axis and Return positioned on the Y-Axis. The shaded green area represents the envelope that contains all potential Permutations implied by the portfolio. Key Permutations that lie upon the Efficient Frontier and the Inefficient Frontier are displayed as small black squares.
To display the chart exactly as shown above, open the HandyMan demonstration model. The following settings are required on the Select Risk Analysis Dialogue: 1. Permutation: Tick all of the Niche Select Tick Boxes. 2. Time: Drop Down Start Year 2006 and End Year 2010 Also, tick the View Permutation Tick Box These are the default settings. Clicking the Plot button reveals the example shown above. The Risk Analysis Chart confirms the proposition that by dropping both Niches associated with the Hobby Segment, HandyMan PLC will be able to achieve virtually 100% Return, whilst reducing Risk to just a fraction of its original value. This Permutation lies on the efficient frontier and cannot therefore be improved upon.
The Permutation in focus, i.e. that the user has selected via the Select Risk Analysis Dialogue is shown as a larger Red square. Its location within the envelope gives an indication of its efficiency. Hotspots: These become active on moving the cursor over the Red Permutation in focus square, and also the black Permutation squares located on the two frontiers. A pop-up window provides the user with critical information, such as Risk and Return Scores, Permutation etc.
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View Permutation: If the list of Niches (comprising the Permutation) is not displayed, then click and drag the left or righthand edge of the Chart to increase its width. As the aspect ratio is changed, the list is revealed. Copy to Clipboard: To copy the Risk Analysis Chart to the Windows clipboard, move the cursor away from any hotspot area on the Chart. Then with the right RIGHT-HAND mouse button, click once. From the pop-up menu displayed, select the Copy to Clipboard menu item. The image is now copied into clipboard, and can then be pasted into compatible text documents (e.g. MATRIX.doc), or presentation packages for illustrative purposes. Go to Topic 26.3.1
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SECTION 26 Risk Analysis Topic 26.3.1 - Risk Analysis Chart - Risk Axis In the Risk Analysis Chart, Risk is plotted on the X-Axis. Risk calculated by multiplying the inverse of a Niches Market Attractiveness by the inverse of its Competitive Strength (data for which was entered in the Market Attractiveness and Competitive Strength Scorecards respectively). The following logic applies: High Market Attractiveness x High Competitive Strength High Market Attractiveness x Medium Competitive Strength Medium Market Attractiveness x High Competitive Strength Medium Market Attractiveness x Medium Competitive Strength Medium Market Attractiveness x Low Competitive Strength Low Market Attractiveness x Medium Competitive Strength Low Market Attractiveness x Low Competitive Strength = = = = = = = Very Low Risk Low Risk Low Risk Medium Risk High Risk High Risk Very High Risk
An overall score of Risk for the Permutation is obtained by summing the individual Risk scores for each Niche included within the Permutation. The final scores are then normalised between 0 and 100. Go to Topic 26.3.2
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SECTION 26 Risk Analysis Topic 26.3.2 - Risk Analysis Chart - Return Axis In the Risk Analysis Chart, Return is plotted on the Y-Axis. Return is calculated by summing the Gross Margins for each Niche included within the Permutation over the required time period. The final scores are then normalised between 0 and 100. The calculation has been based upon Gross Margin rather than Revenue to encourage organisations to be more concerned with indicators of profit, rather than indicators of size. Go to SECTION 27
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SECTION 27 The MATRIX V5 / Microsoft Excel Interface

This section describes the MATRIX V5 / Microsoft Excel Interface Topic No 27.1 27.2 27.3 27.4 Go to Topic 27.1 Topic Title The MATRIX V5 / Microsoft Excel Interface Overview Generating The MATRIX.xls Workbook Populating The MATRIX.xls Workbook With Data The Import Data Dialogue
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SECTION 27 The MATRIX V5 / Microsoft Excel Interface Topic 27.1 - The MATRIX V5 / Microsoft Excel Interface Overview (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: The MATRIX V5 / Microsoft Excel Interface enables MATRIX V5 to harness the mass of corporate, web and published research data without the need for re-keying, thus cutting to a fraction the time taken to create a strategic model. Advantage can be taken of Excels functionality to handle issues such as forecasting future sales for the Host Company and Key Competitors. Excel workbooks can also be cross-referenced to create integrated models. In addition to MATRIX V5, the key requirement is Microsoft Excel (2000 or above). The key steps in the use of the MATRIX V5 / Excel interface are: Generate Model within MATRIX V5. Define Scenarios, Products, Markets, Competitors, Market Attractiveness Factors, and Critical Success Factors etc within MATRIX V5. Note the model contains only default 0 Scores. Generate Excel Workbook. Once structuring of the model in MATRIX V5 is complete, a workbook is created at the click of a button. The Excel workbook is a structured mirror image of the current model. Populate Excel Workbook with Data. The workbook can now be populated with data using a number of different methods and techniques. Import Data into MATRIX V5. Once data preparation is complete, data can be imported back into MATRIX V5. Data is typically imported in a matter of seconds. Review Industry Standard Analysis. When the import process has been successfully completed, it is possible to review the industry standard analysis that MATRIX V5 provides, including Life Cycle Analysis, Share Analysis, Market Attractiveness, Competitive Strength, The Boston Matrix, The Directional Policy Matrix, Perceptual Maps, Gap Analysis and Risk Analysis.
Go to Topic 27.2
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SECTION 27 The MATRIX V5 / Microsoft Excel Interface Topic 27.2 Generating The MATRIX.xls Workbook (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To generate the MATRIX.xls Microsoft Excel Workbook, which contains a structured mirror image of the current Model. Access: from the Menu Bar / File, select the Export Data menu item, or from the Toolbar, click the Export Data button, or from the Navigator, click the Export Data button. Action: The MATRIX.xls Excel workbook will be generated, complete with the current MATRIX V5 data set. If data is exported on a second or subsequent occasion, then the structure and contents of the original MATRIX.xls workbook will be preserved and renamed with a time and date stamp, and a new MATRIX.xls workbook will be generated. A message box informs the user once Export has been completed. Under default conditions MATRIX.xls is located under C:\Program Files\MATRIX V5.2\Models\MyModel, (where MyModel is the name of the current Model). MATRIX.xls can be used for data preparation so that data can subsequently be imported back into the MATRIX V5. Note: The contents the MATRIX.xls workbook will depend upon the user selection of Input and Analyses within the Preferences Dialogue as follows: Volume Only: Volume, Market Attractiveness, Competitive Strength, (ordered) Critical Success Factors Revenue Only: Objectives, Revenue, Market Attractiveness, Competitive Strength, (ordered) Critical Success Factors Volume and Revenue: Objectives, Volume, Revenue, Market Attractiveness, Competitive Strength, (ordered) Critical Success Factors Volume, Unit Price and Gross Margin: Objectives, Unit Price, Gross Margin (%), Volume, Market Attractiveness, Competitive Strength, (ordered) Critical Success Factors Revenue and Gross Margin: Objectives, Gross Margin (%), Revenue, Market Attractiveness, Competitive Strength, (ordered) Critical Success Factors Go to Topic 27.3
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SECTION 27 The MATRIX V5 / Microsoft Excel Interface Topic 27.3 - Populating The MATRIX.xls Workbook With Data (Note, this function is not available in the Restricted Version of MATRIX V5.) Access: Open the MATRIX.xls workbook. The default location is C:\Program Files\MATRIX V5.2\Models\MyModel, where MyModel is the name of the current Model. Pending the users selection of Input and Analyses within the Preferences Dialogue, the workbook is structured into sheets covering the following key data requirements: Objectives Unit Price Gross Margin (%) Volume Revenue Market Attractiveness Competitive Strength Critical Success Factors
Action: Once the necessary sheet has been selected it is possible to: Key data directly into the worksheet. Cut and paste data into the worksheet from tables in Microsoft Word. Cross reference against other cells within the current workbook. For example, a Market Attractiveness Factor may relate to Revenue. The Revenue fields for the different Niches shown in the Revenue sheet could provide a rigorous basis to support this Factor. Use Excels functionality to generate a trend for future Years based upon historical data Cross reference data from other Excel workbooks. Obtain data from Internet resources. Access data from the corporate database, (assuming that the necessary data mining tools are available) Access data from third party databases, including market research databases.
Notes: The spreadsheet is initially protected and the user CANNOT change its data or structure directly. This is to avoid the user from erroneously deleting a line within the table (which would at best result in a mismatch of data in the model). To remove protection from the worksheet, from Excel, select Tools / Protection. Now select the Unprotect Sheet menu item. The worksheet now becomes accessible, and changes should be made to data as appropriate. Remember to protect the sheet again once you have finished editing data or entering formulae. When the worksheet becomes unprotected there is no safeguard against changing its structure. DO NOT ATTEMPT to change the structure of the worksheet, otherwise it will lose integrity with MATRIX V5, and it is unlikely that data will successfully be re-imported into MATRIX V5 at a later stage. Changes to the structure of the model (for example the introduction of New Products, Competitors etc) should be done within MATRIX V5. Once changes to structure have been completed, a new MATRIX.xls workbook should be generated. Relevant formulae should be cut and pasted from the previous, and (now time and date stamped) original MATRIX.xls sheet. Do not forget to check the integrity of such formulae, as the structure of the new workbook may have changed and the content of the formulae may need to be modified!
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Editing Fields: Fields which can be edited are displayed with black text on a clear background. Fields which should not be edited are displayed with black text on a grey background. Fields which correspond to Closed Niches are displayed with grey coloured text. Note that clear fields which correspond to Closed Niches may be edited. However, when plotting graphs, matrices and charts, any data updated from such Closed fields will not be taken into consideration in the underlying calculations. Rules Concerning Data Preparation: Before import, data contained within the corresponding Excel workbook will be thoroughly validated. Whilst working within the Excel environment, users should therefore apply the same rules concerning data preparation, as if they were working directly within the MATRIX V5 Data Editors and Scorecards. For general guidelines on the ranges in value that are acceptable for corresponding fields, please see: Validation Rules Within The Economic Objectives Data Editor Validation Rules Within The Market History And Forecast Data Editor Validation Rules Within The Market Attractiveness Scorecard Validation Rules Within The Competitive Strength Scorecard Validation Rules Within The Criterion Scorecard Whilst working upon the Gross Margin (%) worksheet, ensure that the format of the number to be imported is the integer value of the required percentage. For example, if a Gross Margin value of 25% is required, then the corresponding field within the Gross Margin (%) worksheet should be 25, NOT 25% or 0.25. Go to Topic 27.4
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SECTION 27 The MATRIX V5 / Microsoft Excel Interface Topic 27.4 The Import Data Dialogue (Note, this function is not available in the Restricted Version of MATRIX V5.) Purpose: To import data from the underling MATRIX.xls workbook into the MATRIX V5 model database. Access: from the Menu Bar / File, select the Import Data menu item, or from the Toolbar, click the Import Data button, or from the Navigator, click the Import Data button.
The Import Data Dialogue is displayed. Action: Data can be imported directly into MATRIX V5: Click the appropriate tick boxes from the list shown to the right of the Import Data Dialogue to include the required worksheets on an individual basis. Pending the users selection of Input and Analyses within the Preferences Dialogue, options include Objectives, Unit Price, Gross Margin (%), Volume, Revenue, Market Attractiveness, Competitive Strength and Critical Success Factors. To de-select a worksheet, click a second time against the worksheet that you wish to de-select, so that the tick-box is clear. Click the Select All button to select all worksheets for import. Click the Deselect All button to de-select from import all worksheets that have already been selected. Click the Import button to start the data import procedure Close the Import Data Dialogue to abandon the data import procedure.
Extensive validation will be performed on each worksheet prior to import. Should a validation error be encountered then the location of the error (i.e. worksheet) will be displayed on a Message Box. Review the data within the offending worksheet and make corrections as appropriate. Once the validation has been successfully completed, a Message box informs the user that the data set has successfully passed Validation. Importing data will permanently overwrite selected data held within the underlying Model database. Click the OK button to proceed with import, or Cancel to abandon the procedure.
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Notes: If there is evidence that not all data has been imported, or an error condition occurs, then: 1. create a new MATRIX.xls workbook through the Export Data routine. 2. cut and paste data and formulae from the original (now date and time stamped) MATRIX.xls workbook into the newly created MATRIX.xls workbook. Double check that formulae are still appropriate, and if necessary (due to the changed structure of the workbook), modify the formulae. 3. attempt once again to import data.
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Appendix 1 Alphabetic Index Title............................................................................................................................... SECTION / Topic Ansoff Matrix .......................................................................................................................................... 10 A Background To The Ansoff Matrix Technique .......................................................................... 10.1 Plotting Niches On The Ansoff Matrix .......................................................................................... 10.3 The Ansoff Matrix In MATRIX V5 ............................................................................................... 10.2 Boston Matrix ......................................................................................................................................... 22 A Background To The Boston Matrix Technique ......................................................................... 22.1 Cash Cows ................................................................................................................................ 22.1.3 Dogs .......................................................................................................................................... 22.1.4 Question Marks ......................................................................................................................... 22.1.1 Stars .......................................................................................................................................... 22.1.2 Strategic Implications Of The Boston Matrix ................................................................................ 22.4 The Boston Matrix In MATRIX V5 .............................................................................................. 22.3 The Select Boston Matrix Dialogue ............................................................................................ 22.2 Competitive Strength Analysis............................................................................................................... 21 The Competitive Strength / Comparative Chart In MATRIX V5 ................................................. 21.2 The Competitive Strength / Profile Chart In MATRIX V5............................................................ 21.3 The Competitive Strength / Strengths & Weaknesses Chart In MATRIX V5 ............................. 21.4 The Select Competitive Strength Analysis Dialogue .................................................................. 21.1 Competitive Strength Scorecard .......................................................................................................... 15 Adding A New Critical Success Factor......................................................................................... 15.3 Changing The Name Of A Critical Success Factor...................................................................... 15.7 Critical Success Factors............................................................................................................... 15.2 Duplicating A Critical Success Factor .......................................................................................... 15.4 Duplicating All Critical Success Factors....................................................................................... 15.5 Evaluating Competitive Strength.................................................................................................. 15.8 Removing The Critical Success Factor In Focus ......................................................................... 15.6 The Competitive Strength Scorecard In MATRIX V5 ................................................................. 15.1 Validation Rules Within The Competitive Strength Scorecard ................................................... 15.9 Competitors Dialogue........................................................................................................................... 11 Adding A New Competitor ............................................................................................................ 11.6 Changing The Colour Attributed To A Competitor ....................................................................... 11.5 Changing The Colour Attributed To The Host Company ............................................................. 11.3 Changing The Name Of A Competitor ......................................................................................... 11.4 Changing The Name Of The Host Company ............................................................................... 11.2 Mapping A Competitor To A Niche............................................................................................... 11.7 Removing The Competitor In Focus ............................................................................................ 11.8 The Competitors Dialogue In MATRIX V5.................................................................................. 11.1 Criterion Scorecard .............................................................................................................................. 16 Adding A New Criterion ................................................................................................................ 16.3 Changing The Name Of A Criterion ............................................................................................. 16.7 Changing The Status Of A Criterion............................................................................................. 16.8 Duplicating A Criterion.................................................................................................................. 16.4 Duplicating All Criteria .................................................................................................................. 16.5 Expanding A Critical Success Factor ........................................................................................... 16.2 Removing The Criterion In Focus ................................................................................................ 16.6 The Criterion Scorecard In MATRIX V5 ..................................................................................... 16.1 Validation Rules Within The Criterion Scorecard ....................................................................... 16.9 Directional Policy Matrix ........................................................................................................................ 23 A Background To The Directional Policy Matrix Technique......................................................... 23.1 A Comparison Between The Boston Matrix And The Directional Policy Matrix........................... 23.5 Strategic Implications Of The Directional Policy Matrix ............................................................... 23.4 The Directional Policy Matrix In MATRIX V5 .............................................................................. 23.3 The Select Directional Policy Matrix Dialogue............................................................................ 23.2
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Title............................................................................................................................... SECTION / Topic Economic Objectives Data Editor......................................................................................................... 12 Definition Of Gross Margin ........................................................................................................... 12.5 Definition Of Objectives................................................................................................................ 12.3 Definition Of Revenue .................................................................................................................. 12.4 The Economic Objectives Data Editor In MATRIX V5................................................................ 12.1 Validation Rules Within The Economic Objectives Data Editor.................................................. 12.2 Excel Interface ....................................................................................................................................... 27 Generating The MATRIX.xls Workbook ....................................................................................... 27.2 Populating The MATRIX.xls Workbook With Data....................................................................... 27.3 The Import Data Dialogue........................................................................................................... 27.4 The MATRIX V5 / Microsoft Excel Interface Overview ................................................................ 27.1 Gap Analysis.......................................................................................................................................... 25 A Background To The Gap Analysis Technique .......................................................................... 25.1 Strategic Implications Of Gap Analysis ........................................................................................ 25.4 The Gap Analysis Chart In MATRIX V5 ..................................................................................... 25.3 The Select Gap Analysis Dialogue ............................................................................................. 25.2 Introduction .............................................................................................................................................. 1 About Market Modelling Limited..................................................................................................... 1.5 An Overview Of MATRIX V5.2 ....................................................................................................... 1.2 How To Use This Manual ............................................................................................................... 1.1 Registering MATRIX V5.2 .............................................................................................................. 1.3 Upgrading Models To MATRIX V5 Standard ................................................................................. 1.4 Life Cycle Analysis................................................................................................................................. 18 A Background To The Life Cycle Concept ................................................................................... 18.1 The Life Cycle Analysis Chart .................................................................................................... 18.3 The Select Life Cycle Analysis Dialogue .................................................................................... 18.2 Market Attractiveness Analysis.............................................................................................................. 20 The Market Attractiveness / Comparative Chart In MATRIX V5 ................................................ 20.2 The Market Attractiveness / Profile Chart In MATRIX V5........................................................... 20.3 The Select Market Attractiveness Analysis Dialogue ................................................................. 20.1 The Market Attractiveness / Strengths & Weaknesses Chart In MATRIX V5 ............................. 20.4 Market Attractiveness Scorecard ......................................................................................................... 14 Adding A New Market Attractiveness Factor................................................................................ 14.3 Changing The Name Of A Market Attractiveness Factor............................................................. 14.7 Changing The Status Of A Market Attractiveness Factor ............................................................ 14.8 Duplicating A Market Attractiveness Factor ................................................................................. 14.4 Duplicating All Market Attractiveness Factors.............................................................................. 14.5 Evaluating Market Attractiveness................................................................................................. 14.9 Market Attractiveness Factors...................................................................................................... 14.2 Removing The Market Attractiveness Factor In Focus ................................................................ 14.6 The Market Attractiveness Scorecard In MATRIX V5 ................................................................ 14.1 Validation Rules Within The Market Attractiveness Scorecard ................................................ 14.10 Market History And Forecast Data Editor............................................................................................. 13 Calculated Data Within The Market History And Forecast Data Editor...................................... 13.3 Definition of Forecast ................................................................................................................... 13.2 The Market History And Forecast Data Editor In MATRIX V5.................................................... 13.1 Validation Rules Within The Market History And Forecast Data Editor ..................................... 13.4
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Title............................................................................................................................... SECTION / Topic Menu Bar ................................................................................................................................................. 5 About MATRIX V5 ....................................................................................................................... 5.9.2 Analysis Menu ................................................................................................................................ 5.8 Data Menu ...................................................................................................................................... 5.6 Exit............................................................................................................................................... 5.2.9 Export Data ................................................................................................................................. 5.2.7 File Menu........................................................................................................................................ 5.2 Help Menu ...................................................................................................................................... 5.9 Import Data (The Import Data Dialogue) ................................................................................... 5.2.8 MATRIX V5 Help ......................................................................................................................... 5.9.1 Open Existing Model (The Open Model Dialogue / Existing Models Tab) ................................ 5.2.3 Open Existing Model (The Open Model Dialogue / Last Model Tab)........................................ 5.2.2 Open New Model (The Open Model Dialogue / New Model Tab) ............................................. 5.2.1 Portfolio Menu ................................................................................................................................ 5.5 Preferences (The Preferences Dialogue) .................................................................................. 5.2.6 Save ............................................................................................................................................ 5.2.4 Save Model As ............................................................................................................................ 5.2.5 Scenarios Menu ............................................................................................................................. 5.4 Text Menu....................................................................................................................................... 5.7 The Menu Bar In MATRIX V5 ........................................................................................................ 5.1 View Menu...................................................................................................................................... 5.3 Navigator.................................................................................................................................................. 4 The Navigator In MATRIX V5......................................................................................................... 4.1 Perceptual Maps .................................................................................................................................... 24 A Typical Perceptual Map In MATRIX V5 .................................................................................... 24.3 Examples Of Perceptual Maps..................................................................................................... 24.1 The Select Perceptual Map Dialogue ......................................................................................... 24.2 Quick Start ............................................................................................................................................... 2 Step 1 - Overview........................................................................................................................... 2.1 Step 2 Economic Objectives Data............................................................................................... 2.2 Step 3 - Define Portfolio ................................................................................................................. 2.3 Step 4 - The Ansoff Matrix.............................................................................................................. 2.4 Step 5 - Market Attractiveness Data .............................................................................................. 2.5 Step 6 - The Competitors Dialogue .............................................................................................. 2.6 Step 7 - Competitive Strength Data ............................................................................................... 2.7 Step 8 Market History And Forecast Data................................................................................... 2.8 Step 9 - Life Cycle Analysis............................................................................................................ 2.9 Step 10 Share Analysis ............................................................................................................. 2.10 Step 11 Market Attractiveness Analysis.................................................................................... 2.11 Step 12 Competitive Strength Analysis..................................................................................... 2.12 Step 13 Boston Matrix ............................................................................................................... 2.13 Step 14 Directional Policy Matrix .............................................................................................. 2.14 Step 15 Perceptual Maps .......................................................................................................... 2.15 Step 16 Gap Analysis................................................................................................................ 2.16 Step 17 Risk Analysis................................................................................................................ 2.17 Risk Analysis.......................................................................................................................................... 26 A Background To The Risk Analysis Technique .......................................................................... 26.1 Risk Analysis Chart - Return Axis ............................................................................................. 26.3.2 Risk Analysis Chart - Risk Axis ................................................................................................. 26.3.1 The Risk Analysis Chart In MATRIX V5 ..................................................................................... 26.3 The Select Risk Analysis Dialogue............................................................................................. 26.2
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Title............................................................................................................................... SECTION / Topic Scenarios ................................................................................................................................................. 7 Accessing A Scenario Within The Model ....................................................................................... 7.2 Adding A New Scenario ................................................................................................................. 7.3 Changing The Name Of A Scenario............................................................................................... 7.6 Duplicating A Scenario ................................................................................................................... 7.4 Removing The Scenario In Focus.................................................................................................. 7.5 Scenario Planning In MATRIX V5 .................................................................................................. 7.1 Segmentation Map And Advanced Segmentation................................................................................... 9 A Background To Advanced Segmentation ................................................................................... 9.1 Adding A New Group................................................................................................................... 9.3.1 Changing The Colour Attributed To A Group .............................................................................. 9.3.4 Changing The Name of A Group................................................................................................. 9.3.3 Creating A New Link.................................................................................................................... 9.4.1 Groups............................................................................................................................................ 9.3 Links ............................................................................................................................................... 9.4 Removing The Group In Focus ................................................................................................... 9.3.2 Removing The Link In Focus....................................................................................................... 9.4.2 The Link Data Editor .................................................................................................................. 9.4.3 The Segmentation Map In MATRIX V5 ........................................................................................ 9.2 Segmentation Matrix ................................................................................................................................ 8 A Background To The Segmentation Matrix .................................................................................. 8.1 Adding A New Market.................................................................................................................. 8.5.1 Adding A New Product ................................................................................................................ 8.7.1 Adding A New Segment .............................................................................................................. 8.6.1 Changing The Colour Attributed To A Niche.................................................................................. 8.3 Changing The Name Of A Market............................................................................................... 8.5.5 Changing The Name Of A Product ............................................................................................. 8.7.5 Changing The Name Of A Segment ........................................................................................... 8.6.5 Changing The Position Of A Product Column............................................................................. 8.7.7 Changing The Position Of A Segment Row ................................................................................ 8.6.7 Changing The Status Of A Product Column ............................................................................... 8.7.6 Changing The Status Of A Segment Row................................................................................... 8.6.6 Changing The Status Of All Niches In The Market To Open..................................................... 8.5.6 Changing The Status Of An Individual Niche................................................................................. 8.4 Duplicating A Market ................................................................................................................... 8.5.2 Duplicating A Product.................................................................................................................. 8.7.2 Duplicating A Segment................................................................................................................ 8.6.2 Duplicating All Markets................................................................................................................ 8.5.3 Duplicating All Products .............................................................................................................. 8.7.3 Duplicating All Segments ............................................................................................................ 8.6.3 Managing Markets.......................................................................................................................... 8.5 Managing Products ........................................................................................................................ 8.7 Managing Segments ...................................................................................................................... 8.6 Removing The Market In Focus .................................................................................................. 8.5.4 Removing The Product In Focus................................................................................................. 8.7.4 Removing The Segment In Focus............................................................................................... 8.6.4 The Segmentation Matrix In MATRIX V5 ..................................................................................... 8.2 Share Analysis ....................................................................................................................................... 19 The Select Share Analysis Dialogue .......................................................................................... 19.1 The Share Analysis Chart........................................................................................................... 19.2
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Title............................................................................................................................... SECTION / Topic Text Input ............................................................................................................................................... 17 Accessing MATRIX.doc................................................................................................................ 17.1 Ansoff Matrix ................................................................................................................................ 17.5 Boston Matrix ............................................................................................................................. 17.13 Competitive Strength (Analysis)................................................................................................. 17.12 Competitive Strength (Data)......................................................................................................... 17.8 Directional Policy Matrix ............................................................................................................. 17.14 Economic Objectives.................................................................................................................... 17.2 Gap Analysis .............................................................................................................................. 17.16 Life Cycle Analysis ....................................................................................................................... 17.9 Market Attractiveness (Analysis)................................................................................................ 17.11 Market Attractiveness (Data)........................................................................................................ 17.7 Market History And Forecast........................................................................................................ 17.6 Perceptual Maps ........................................................................................................................ 17.15 Risk Analysis .............................................................................................................................. 17.17 Scenarios...................................................................................................................................... 17.3 Segmentation Matrix .................................................................................................................... 17.4 Share Analysis ........................................................................................................................... 17.10 Toolbar..................................................................................................................................................... 6 The Toolbar in MATRIX V5 ............................................................................................................... 6.1 User Interface .......................................................................................................................................... 3 The User Interface In MATRIX V5 ................................................................................................. 3.1
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SECTION 2 Quick Start

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SECTION 3 The MATRIX V5 User Interface

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SECTION 4 The MATRIX V5 Navigator

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SECTION 5 The MATRIX V5 Menu Bar

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