To compare the population mean sales amounts μ B, μ M \mu_B, \mu_M μ B , μ M , and μ T \mu_T μ T that would be obtained by using the bottom, middle, and top display heights, we use the following dummy variable regression model: y = β B β M D M β T D T ε y=\beta_B \beta_M D_M \beta_T D_T \varepsilon y = β B β M D M β T D T ε, which we call Model 1 1 1. At the end of the month, sales of the bakery product at the 18 18 18 participating stores are recorded, and the data in Table 14.17 14.17 14.17 are obtained. For each shelf display height, six supermarkets of equal sales potential are randomly selected, and each supermarket displays the product using its assigned shelf height for a month. Shelf display height has three levels-bottom ( B ) (B) ( B ), middle ( M ) (M) ( M ), and top ( T ) (T) ( T ). The company wishes to study the effect of the height of the shelf display employed by the supermarkets on monthly sales, y y y (measured in cases of 10 10 10 units each), for this product. The Tastee Bakery Company supplies a bakery product to many supermarkets in a metropolitan area. Industry attractiveness might include such factors as average industry profitability, number of competitors, ethical standards, technological stability of the market, market growth rate, and so forth The Y axis is defined as industry attractiveness, which again providesĪ much broader analysis than the BCG's industry growth rate. In this matrix, the X axis is defined as business strength- competitive position. This analysis is more than just relative market share! It includes an analysis of the internal resources and capabilities that are believed by strategic managers to be important for success in this business. This nine-cell matrix (shown in Figure 6.7) provides a more comprehensive analysis of a business unit's internal and external factors. McKinsey-GE Stoplight Matrix was developed by McKinsey and Company for GE. Industry attractiveness includes such factors as profitability, number of competitors, ethical standards, technological stability of the market, market growth rate More than relative market share, it includes an analysis of the internal resources and capabilities believed to be important to business success LL - liquidate McKinsey-GE Spotlight Matrix Provides a more comprehensive analysis of a business unit's internal and external factors Bcg matrix left(market growth) high, low
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