Rodamas Group Case Study

Great Essays
McKinsey/General Electric Business Screen 2.0

In order to get an idea of the portfolio of the Rodamas Group and its performance, we created a GE business screen. This GE business screen shows both, the (external) attractiveness and the internal strength of each business. Furthermore the bubble size describes the market size, the pie represents the market share and the arrow shows the direction, in which the business tends to move. As the Rodamas Group is a very unique company with its huge amount of joint ventures, we decided to add a darker pie within each bubble, to highlight the share of the Rodamas Group's ownership in each joint venture. Exhibit 1: Calculation of vertical axis of GE business screen. Exhibit 2: Calculation
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First of all, the distribution business has by far the greatest opportunities in terms of potential market size, followed by the printing business. In terms of industry attractiveness, we see a steady growth in all of the analysed industries except printing which is being disrupted by new technologies. Speaking of Group's competitive position, the GE business screen predicts that Group's competitiveness is expected to marginally decline in some business, while gradually increase in others. Based on these facts, the business screen suggests Rodamas should exit the dairy business, an unattractive industry where there is no substantial competitive advantage, hold on its position in distribution and expand in glass …show more content…
http://www.mckinsey.com/insights/corporate_finance/making_trade-offs_in_corporate_portfolio_decisions
Campbell, Whitehead, Making Trade-offs in Corporate Portfolio Decisions, McKinsey, 2014
3. http://www.quickmba.com/strategy/matrix/ge-mckinsey/
4. http://www.rodamas.co.id/group-of-companies/
5. http://www.rodamas.co.id/group-of-companies/
6. http://www.propertyfundsworld.com/2012/10/08/174363/yishan-capital-partners-forms-two-joint-ventures-indonesia
7. http://highpointmarketing.com/wp-content/uploads/2013/03/hddrawppstryrev.jpg
Disclaimers:
1. Smaller companies were ignore, since Tan is planning to sell it and it contributes insignificant amount of revenue or net profit to the group.
2. Since Rodamas is the only fully owned entity, we treat it as the distribution company of Rodamas. However, research reveals that TNS (95% ownership) does the distribution business.
3. Axiomas property mainly helps logistics, it can be seen as supplement to the distribution business, hence no individual treatment is needed.
4. Kao International market share was estimated by taking the average of the various products in exhibit 3 in

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