Assigning resources to SBU In corporate and divisional level strategy planning, we should calculate different products sales volume

and appoint them in proper SBU. Then we should take proper decision for every SBU. Here we are working with an example where the products are Hare oil, Hair gel, Hair spray.

Sale Invoice : Hair Care Product Sales Invoice (000) Year 2005 2006 2007 2008 Hair Oil 225 400 450 500 Hair Gel 300 400 550 570 Hair Spray 600 650 675 900

Calculated table: To recognize in which SBU this product are, we should calculate Market Growth Rate (MGR), Relative Market Share(RMS). Below there is a calculated table.

Calculated Table Year 2006 Hair Oil MGR=78% MS=.27.59% 2007 RMS=0.62 MGR=12.5% MS=26.87% 2008 RMS=0.67 MGR=11.1% MS=25.38% RMS=0.56 Hair Gel MGR=33.3% MS=27.59% RMS=0.62 MGR=37.5% MS=33.33% RMS=0.83 MGR=3.64% MS=28.93% RMS=0.63 Hair Spray MGR=8.3% MS=44.83% RMS=1.62 MGR=3.8% MS=40.3% RMS1.21 MGR=33.3% MS=45.69% RMS=1.58

We calculated MGR, Market Share (MS), and RMS by using these : Sales of Current Year Sales of previous tear MGR= Sales of previous year Current sales MS= Total sales Current Market share RMS= Largest Market Share By plotting the Market Growth rate & Relative Market Share we can have different situation of our products in Great share Matrix. The situation of our product & decisions we have made : from the dot points in the graph we can say the condition of our product. We also consider the direction of points. X100 X100