Essay on Awl (Ge/Mckinsey Approach)

1055 Words Mar 4th, 2011 5 Pages
AWL (GE/McKinsey approach) |

1.
Describe the business portfolio and the options available to AWL.
The business portfolio of AWL’s 1998 fiscal year consists of three SBUs, namely three new marketing textbooks, including Advertising and Sales Promotion Strategy, Analysis for Strategic Marketing and Marketing Engineering. We can also see these three textbooks in the GE Portfolio Matrix as shown in Graph 1 and Graph 2.

AWL should have clear understanding of these three new textbooks in order to prioritize the promotional resources for them. For example, the book named Marketing Engineering is a bit different from the other two, since it doesn’t currently have a large natural market but might ultimately be a big winner if it is
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Finally, the cells in the lower left corner are low in overall attractiveness, and AWL should consider harvesting and divesting businesses in those cells.

As can be seen in Graph 2, the majority of circle indicating the textbook Marketing Engineering written by Lilien and Rangaswamy is located in the upper right cell, which indicates that from the “leading-edge” prospective the textbook Marketing Engineering written by Lilien and Rangaswamy ranked the highest in terms of “Business Strength” and “Industry Attractiveness”. Hence, if AWL decides to allocate more resources to promote Marketing Engineering written by Lilien and Rangaswamy, there is a higher chance of success and as a result AWL is more likely to exploit the new “leading-edge” area in the publishing industry to gain further stable sales increase and long-term success.

4. What other factors should Mark consider in setting and allocating the budget?
The first factor Mark should consider is the cost of implementing the selling of the textbook Marketing Engineering written by Lilien and Rangaswamy. Although the circle indicating Marketing Engineering written by Lilien and Rangaswamy is plotted in the upper right cells which mean it has relatively advantage regarding to “Business Strength” and “Industry Attractiveness”, the promoting cost, the expected profit as well as the ROI should

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