MATRIXV5.2Manual.pdf

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Version 5.2User Manual

Revised 05 October 2007


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MATRIX V5.2 USER MANUAL

SECTION SECTION Title

1 Introduction2 Quick Start

3 The MATRIX V5 User Interface4 The MATRIX V5 Navigator5 The MATRIX V5 Menu Bar6 The MATRIX V5 Toolbar7 Scenarios8 Segmentation Matrix9 Segmentation Map And Advanced Segmentation10 Ansoff Matrix11 The Competitors Dialogue12 The Economic Objectives Data Editor13 The Market History And Forecast Data Editor14 The Market Attractiveness Scorecard

15 The Competitive Strength Scorecard16 The Criterion Scorecard17 Text Input18 Life Cycle Analysis19 Share Analysis20 Market Attractiveness Analysis21 Competitive Strength Analysis22 Boston Matrix23 Directional Policy Matrix24 Perceptual Maps25 Gap Analysis26 Risk Analysis27 The MATRIX V5 / Microsoft Excel Interface

Appendix 1 Alphabetic Index

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Copyright 2007, Market Modelling Limited, Lorrimer Yeat, Endmoor, KENDAL, Cumbria, LA8 0EP, UKTel +44-(0)1-539-561-258, Fax +44-(0)1-539-561-259, Email [email protected]


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SECTION 1Introduction

This section contains introductory information about the following Help System / Manual, MATRIX V5and Market Modelling Limited.

Topic No Topic Title

1.1 How To Use This Help System / Manual

1.2 An Overview Of MATRIX V5.21.3 Registering MATRIX V5.21.4 Upgrading Models To MATRIX V5 Standard1.5 About Market Modelling Limited

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SECTION 1 IntroductionTopic 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 throughthe 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. Thetopics contained within each section are presented in a logical sequence. Each topic builds upon whathas been described before, so it is recommended that users become thoroughly familiar with thecontents 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 PersonalComputer. It can be used both with the Restricted Version of the software (which has limitedfunctionality), and the Full Licence of the software, both of which can be purchased from MarketModelling 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 copyis considered easier to work with.

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SECTION 1 IntroductionTopic 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 analysethe 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 enlighteningmodels for their businesses. The result is a clearer understanding of the marketing environment, amore 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 makingprocess in which they can frame and win their arguments. And they must be able to point to evidencein support of their strategic proposals.

What MATRIX V5 DoesThis sophisticated application brings together economic objectives, existing product line performancedata, market statistics and qualitative data from research campaigns to reach informed decisions aboutbusiness 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 andcharts can be exported to strategic plans, spreadsheets and presentations, enabling you to present thefacts about your business strategy more effectively and more professionally.

PrincipalsAll of the principals adopted in MATRIX V5 are well documented in leading textbooks on StrategicAnalysis and all of the algorithms and procedures are 100% compliant with industry standards. Theauthors have been careful to avoid falling into the doctrine of only one guru, thereby giving the userthe 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

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SECTION 1 IntroductionTopic 1.3 - Registering MATRIX V5.2

To access the full functionality of MATRIX V5.2, you will need to Activate the software with anappropriate 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 menuitem 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 toyou, 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 [email protected].

Once we have received the Serial Number, we will promptly return to you by Email the correspondingMATRIX V5.2 Activation Code along with further instructions.

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mailto:[email protected]:[email protected]


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SECTION 1 IntroductionTopic 1.4 - Upgrading Models To MATRIX V5 Standard

With the release of MATRIX V5, a number of significant changes have been made to the underlyingMicrosoft 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 isthe name of the model that you wish to upgrade). The backup copy of the database file should ofcourse 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 NewModel as per normal. If a MATRIX V4 standard model is detected, the following Message Box willappear:

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 ATTEMPTTO 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, andyou can continue using the model with MATRIX V4. If you attempt to open the model again usingMATRIX V5, the Message Box will reappear until you have elected to complete the upgrade.

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SECTION 1 IntroductionTopic 1.5 - About Market Modelling Limited

Market Modelling Limited is primarily a software development company that has built up a portfolio ofexpert-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 ofmarketing resource.

During early 1997 Market Modelling Limited purchased the Intellectual Property Rights to MatMar, aspreadsheet based decision support tool that handled the Ansoff, Boston and Directional Policy Matrixtechniques. The decision was made later in 1997 to extend the capability of MatMar to cover MarketAttractiveness, Competitive Strength, Gap Analysis and Risk Analysis, and to redevelop the productusing more modern software components. The resultant application was relaunched as MATRIX V3early in 1998. Since that time, work has continued on MATRIX V3 (MATRIX V4, and more recently onMATRIX V5), resulting in a product and an approach to strategic marketing that sets the standard theworld 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 thatsuch a mapping application needed to be graphically driven but able to support simple arithmeticalgorithms for calculating volumes, percentages, mark-ups etc. The resultant Market Mapping SoftwareV1 package was released during the autumn of 2000. More recent developments have included anextension 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 discussedinternally for a number of years. By the spring of 2001, a sufficiently robust model for the applicationhad been developed and programming work commenced in October 2001. TACTIX V1 which for thefirst time enables the user to produce a marketing driven business plan - was released in the summerof 2002.

We are dedicated to the development of software applications for the business strategist. Users of ourproducts range from company employees fulfilling an internal consultancy role to Academics andmembers of the external consulting community. Our pledge is to continue developing new softwareapplications that support what is accepted as best practice within the industry, and to keep existingproducts up-to-date with the latest technologies.

Market Modelling LimitedLorrimer Yeat, Endmoor, Kendal, Cumbria, LA8 0EPTel +44-(0)1-539-561-258, Fax +44-(0)1-539-561-259Email: [email protected]://www.market-modelling.co.uk

* All trademarks acknowledged

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SECTION 2

Quick StartThis section provides a quick introduction to the scope of the MATRIX V5 application, and helps youto create a simple model.


2.1 Step 1 - Overview2.2 Step 2 Economic Objectives Data2.3 Step 3 - Define Portfolio2.4 Step 4 - The Ansoff Matrix2.5 Step 5 - Market Attractiveness Data2.6 Step 6 - The Competitors Dialogue2.7 Step 7 - Competitive Strength Data

2.8 Step 8 Market History And Forecast Data2.9 Step 9 - Life Cycle Analysis2.10 Step 10 Share Analysis2.11 Step 11 Market Attractiveness Analysis2.12 Step 12 Competitive Strength Analysis2.13 Step 13 Boston Matrix2.14 Step 14 Directional Policy Matrix2.15 Step 15 Perceptual Maps2.16 Step 16 Gap Analysis2.17 Step 17 Risk Analysis

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SECTION 2 Quick StartTopic 2.1 Step 1 - Overview

The following topics provide a 'quick introduction' to the scope of the MATRIX V5 Strategic Marketingsoftware 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 aprogramme of Strategic Analysis. Most of the concepts used in MATRIX V5 are well documented inleading text-books on the subject and individually (or collectively) can help the user assess whatelements of the business portfolio are worth retaining for investment, which elements should bemanaged 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 shouldbe doing'; and considers the structure of the markets that you are addressing, your competitiveposition, which opportunities you should be investing in, where you should be generating cash, therisks 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 howyour productoffering is to be packaged, howto promote your services, howyour products should be routed tomarket and so on. If you are interested in marketing planning then you should certainly take a look atanother of our products - TACTIX V1 - which draws together the disparate elements of a tacticalmarketing plan within a cohesive financial framework.

When using MATRIX V5 for the first time, we recommend that you adopt the following simple andlogical sequence of operations, namely:

Set Economic Objectives (Step 2). Economic Objectives (Revenue and Gross Margin) are set forthe business in focus.

Define Strategic Content and Scope (Steps 3 to 4). Structure the business into a coherent portfolioof 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' scorecardsand data editors.

Review Models and Concepts (Steps 9 17). Review the analyses and reconcile your view of theopportunities presented to you. It may be that some business opportunities are less attractive thanwere at first apparent, so it may be necessary to revise some of the data - or perhaps change yourassumptions!

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 thestrategic issues facing HandyMan PLC, a fictional company that manufactures robotic assemblies. Thepurpose 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 allprospective customers who download our software are involved with robotic assemblies, we hope that

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the example model will be accepted in the 'illustrative' spirit with which it has been designed. Allcompanies referred to within this example model are fictional; any similarity to any real company ispurely coincidental and unintentional.

Opening the HandyMan Model:

Assuming that the software has been successfully installed, click the MATRIX V5.2 button (shownabove) 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-upreminder provides information, and encourages you to purchase the software. To clear the pop-updisplay, click the 'OK' button. MATRIX V5 should now be fully opened and the user interface should bedisplayed as follows:

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You are now ready to progress to the next step (Economic Objectives). Each of the steps supported byMATRIX V5 can be explored in more depth below. All of the diagrams used within the following pageshave been extracted from a working version of MATRIX V5.

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SECTION 2 Quick StartTopic 2.2 Step 2 Set Economic Objectives

The Host Companys Economic Objectives are defined using the simple 'Economic Objectives' DataEditor. 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 theyear-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, theHost Company's Revenue Objectives are set to grow by a Compound Annual Growth Rate (CAGR) of 20% from 20,000,000.00in 2006, to 41,472,000.00 in 2010. The company anticipates its Gross Margin will grow by a CAGR of 15% from 6,000,000.00in 2006 to 10,494,038.00 in 2010.

The information provided via this Data Editor is used within Gap Analysis (calculation of gap).

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SECTION 2 Quick StartTopic 2.3 Step 3 The Segmentation Matrix

Michael Porter proposed the Segmentation Matrix in his celebrated book Competitive Advantage firstpublished in 1985. In it he proposes that an industrycan 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 themodelling 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 areknown as 'Niches'. Users should not become overly concerned about nomenclature at this stage. Aconsiderable amount of flexibility can be applied to the definition of 'Market', 'Product' etc, andnotionally, 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; howeverreaching 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 theway in which markets are structured through a detailed Market Ecosystem and Value Mappingexercise.

The Segmentation Matrix can support an unlimited number of Markets, Products and Segments, butfor practical reasons the number of Market, Product and Segment 'entries' should be limited to amanageable number. Remember, 10 of each could potentially generate 1000 Niches, and keepingtrack of such a large number within the model may prove difficult. Bigger models can be 'nested', andmore 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 andSegment 'labels'.

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SECTION 2 Quick StartTopic 2.4 Step 4 - The Ansoff Matrix

The Ansoff Matrix is one of a number of 'classical marketing concepts' addressed by MATRIX V5. Thismatrix, 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 ofMarket (Existing or New). The resulting pattern provides a basis for assessing the host company'sintended 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 codedNiche defined within the Segmentation Matrix has been plotted within the appropriate Ansoff Matrix quadrant by simple 'pointand 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 thecompany's overall Forecast compared to Objectives. It also reveals the underlying trend of businessanticipated from Penetration, Market Expansion, Product Expansion and Diversification strategies.

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SECTION 2 Quick StartTopic 2.5 Step 5 - Market Attractiveness Data

Take an analytical view of your business and decide which Market Attractiveness Factors (MAFs) areimportant 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 fuela substantial and growing organisation, or is the potential for repeat business from a few criticalaccounts more important to you?

Do you excel in growing markets which may be lucrative, but where there is considerable risk? Orcan you make money through the adoption of sound cost-control and management techniques inolder, 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 atmost.

To display the Market Attractiveness Scorecard, click the Market Attractiveness (Data) button shownabove.

To display the Scorecard exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on theSegmentation Matrix and click the Market Attractiveness (Data) Button. In the example shown above, five Market AttractivenessFactors have been defined. Note that each Market Attractiveness Factor has been explicitly qualified with the 'scale' againstwhich it is to be measured. For example, 'Market Potential' is a Value Function to be measured in $, Gross Margin between theyears of 2008 and 2010, whereas Fit with Core Skills is a Value Function estimated on a 0 100 Scale. Clearly 'MarketPotential' (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. Notethat Competitive Intensity is an inverse rating, which reflects the view that the more intense the competition, the less attractivethe opportunity.

Score each MAF for each Niche. MATRIX V5 supports both Value Function (i.e. raw), and DirectRating (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 isProfitability (measured in $), where the more profitable the Niche, the more attractive is theopportunity, or

'Inverse', where a higher score corresponds to a less attractive proposition. An example is Cost ofMarket Entry (measured in $), where the higher the Cost of Market Entry, the less attractive is theopportunity.

Consider the relative importance of each of the different MAFs. Apply high Swing Weights to thoseMAFs that are most important, and lower Swing Weights to those MAFs that are less important. Forexample 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 expansionwithin the market.

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Remember, a Market Attractiveness exercise uncovers yourview of what youwant from an idealbusiness 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)

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SECTION 2 Quick StartTopic 2.6 Step 6 - The Competitors Dialogue

Competitors are managed via a simple 'Competitors Dialogue shown below. MATRIX V5 supports anunlimited 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 SegmentationMatrix, and click the Competitors button. In the example shown above, the Name of the Host Company is 'HandyMan PLC'. Thecompany 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. Pleasenote, 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.

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SECTION 2 Quick StartTopic 2.7 Step 7 - Competitive Strength Data

Start with the market! Base your Critical Success Factors (CSFs) around what your prospectivecustomers value and what they need!

Are they looking for a long-term relationship with one supplier, or do they 'shop around' and makea 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 countagainst you?

Are your customers interested in product design, or quality of service and prepared to pay apremium, or do they buy on price alone?

Once defined, CSFs such as 'Product Design', 'Service & Support Capability' etc are then entered intoMATRIX V5 via the Competitive Strength scorecard. The scorecard can accommodate an unlimitednumber of CSFs, though in practice a typical Niche will utilise perhaps 4 or 5 at most. Note, as differentNiches 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 shownabove.

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 SuccessFactors have been defined for the Niche in focus. Clearly 'Product Design' and Service & Support Capability (both weighted at100) 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 thatProduct Design and Service & Support Capability are much more important to your potential marketthan Price. Apply high Swing Weights to those CSFs that are most important, and lower SwingWeights to those CSFs that are less important.

Each CSF then requires further expansion into Criteria, which are scored and weighted as appropriatewithin the underlying Criterion Scorecard.

To display the Criterion Scorecard, select the required CSF within the Competitive StrengthScorecard, 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 isEngineerIT Ltd who achieves a Value Function of 18 months. Budget Assemblies Ltd, which is the weakest supplier against thiscriterion, achieves a Value Function of 10 months. The host company (HandyMan PLC) achieves an intermediate ValueFunction 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 isMean Time Between Faults (MTBF measured in Months), where the longer the time, the morecompetitive 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 itwants from anideal supplier, and how each of the competitors acting within the market 'measures up' against theideal!

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)

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SECTION 2 Quick StartTopic 2.8 Step 8 Market History And Forecast Data

The 'Market History And Forecast' Data Editor enables input of market history and forecast informationinto 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 buttonshown above.

To display the Data Editor exactly as shown above, select the Europe / Metallic Assemblies / Industrial Niche on theSegmentation Matrix and click the Market History And Forecast Button. In the example shown above, the Niche is approachingthe 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 willpeak. Thereafter, demand will tail off with a Sales Volume of 9,000 units predicted for 2010. The Host Company will maintain itsposition 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 in2010. 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. TheGross 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 ofthe market. Yet sometimes there is no basis for such optimism and the real driver is the desire to 'talkup' one's chances of success. If the market has over recent years been in steady decline, but youpredict year-on-year improvements to sales, then someone is bound to ask what gives you cause forsuch 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)

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SECTION 2 Quick StartTopic 2.9 Step 9 - Life Cycle Analysis

To display the Life Cycle Analysis Chart, click the Life Cycle Analysis button shown above, thenmake appropriate selections within the resulting Select Life Cycle Analysis Dialogue. Finally, click thePlot 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 SegmentationMatrix. The following settings are required on the Select Life Cycle Analysis Dialogue:

1. Scope: Select HandyMan PLC, Key Competitors and Niche2. Data: Select Volume3. Sum: Select Niche / Market In Focus4. Format: Select Curve, and tick the Points Tick BoxAlso, 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. SalesVolumes will grow from 7,000 units in 2006 to 9,400 units in 2009 when the market will peak. Thereafter, demand will tail off witha Sales Volume of 9,000 units predicted for 2010. The Host Company will improve its position within the Niche, with SalesVolumes increasing from 2,250 units in 2006 to 4,000 units in 2009. Budget Assemblies Ltd is anticipated to be one of thelosers, 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 aboutthe Niche, Supplier, and Volume / Revenue / Gross Margin and other relevant information. The chartcan also be copied and pasted into a compatible graphics or presentation package by means of theRight-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 formatand detail of the plot.

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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 StartTopic 2.10 Step 10 - Share Analysis

To display the Share Analysis Chart, click the Share Analysis button shown above, then makeappropriate selections within the resulting Select Share Analysis Dialogue. Finally, click the Plotbutton 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 Niche2. Data: Select Revenue3. Time: Drop Down Start Year 2006, and End Year 2010Also, tick the View Key Tick Box

Clicking the Plot button reveals the example shown above (Host Company business split by Market Niche). The largest Nicheby 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 theNiche, Supplier, Share and other relevant information. The chart can also be copied and pasted into acompatible graphics or presentation package by means of the Right-Hand Mouse Click / 'Copy toClipboard' function.

The Select Share Analysis Dialogue:MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting 'ShareAnalysis' 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 Companysbusiness from each colour coded Niche. Niches are displayed in order of size, the largestappearing 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 StartTopic 2.11 Step 11 Market Attractiveness

To display the Market Attractiveness Chart, click the Market Attractiveness Analysis button shownabove, 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 Comparative2. 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) Nicheis 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 theNiche, Market Attractiveness Scores and other relevant information. The chart can also be copied andpasted 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 'MarketAttractiveness' charts. Tabs on the 'Select Market Attractiveness' Dialogue give the user choice in theformat and detail of the plot.

Examples include:

Comparative i.e. a summary Column chart, which compares the overall attractiveness of allNiches. Each Niche is colour coded and displayed in order of attractiveness, the most attractiveappearing first.

Profile i.e. a line chart that illustrates the performance of each Niche against the required MarketAttractiveness Factors.

Strengths & Weaknesses i.e. a bar chart, which shows the inherent Strengths and Weaknessesof the Niche in focus. Market Attractiveness Factors are displayed in order of strength ofperformance, the strongest appearing first. A text description of the Market Attractiveness Factor isdisplayed adjacent to each bar.

Go to Topic 2.12

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SECTION 2 Quick StartTopic 2.12 Step 12 - Competitive Strength

To display the Competitive Strength Chart, click the Competitive Strength Analysis button shownabove, 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 SegmentationMatrix. 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 companyis in a strong position ranking amongst the best for Precision Engineering, Speed of Initial Response, Technical Knowledge ofEngineer, and Typical Engineer Call-out Time. However its Typical Unit Price, which is more expensive than its keycompetitors, 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 theNiche, Competitive Strength Scores and other relevant information. The chart can also be copied andpasted 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 'CompetitiveStrength' Charts. Tabs on the 'Select Competitive Strength' Dialogue give the user choice in the formatand detail of the plot.

Examples include:

Comparative i.e. a summary Column chart, which compares the competitiveness of all Supplierswithin each Niche. Each Supplier is colour coded and displayed in order of competitiveness, themost competitive appearing first.

Profile i.e. a line chart that illustrates the performance of each Supplier against the requiredCritical Success Factors.

Strengths & Weaknesses i.e. a bar chart, which shows the inherent Strengths and Weaknessesof the Supplier in focus. Critical Success Factors (or Criteria) are displayed in order of strength ofperformance, the strongest appearing first. A text description of the Critical Success Factor (orCriterion) is displayed adjacent to each bar.

Go to Topic 2.13

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SECTION 2 Quick StartTopic 2.13 Step 13 The Boston Matrix

To display the Boston Matrix, click the Boston Matrix button shown above, then make appropriateselections within the Select Boston Matrix Dialogue*. Finally, click the Plot button located towards thebase 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 Focus2. Scope: Select HandyMan PLC. Tick the Use Niche Colours Tick Box3. Data: Select Revenue4. Sum: Select Niche5. Time: Drop Down Start Year 2008, and End Year 20106. X-Axis: Select Normal Log Scale (0.1x to 10x Biggest Competitor) and tick the View X-Axis Scale Tick Box7. 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 BoxAlso, tick the View Key Tick Box

Clicking the Plot button reveals the example shown above. We see a well-balanced portfolio, with several opportunities forinvestment in the Question Mark and Star categories. Amongst these, the Composite Assembly Niches appear to beconveniently grouped together and poised for future growth. The large Cash Cows associated with Metallic Assemblies will begenerating profits to fuel future growth, and the company will imminently withdraw from the two small Plastic Assembly Nicheslocated within the 'Dog' quadrant.

Each bubble represents a Niche (over a given period of time). The colour of the bubble matchesthe colour of the Niche in the Segmentation Matrix.

The (horizontal) X-Axis is defined as Relative Market Share which is plotted on a reversed logscale, 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 theNiche. 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 successiveyears.

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 theNiche, Growth, Share and other relevant information. The matrix can also be copied and pasted into acompatible graphics or presentation package by means of the Right-Hand Mouse Click / Copy toClipboard function.

The Select Boston Matrix Dialogue:MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting the BostonMatrix. Tabs on the 'Select Boston Matrix' Dialogue give the user choice in the format and detail of theplot.

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 StartTopic 2.14 Step 14 The Directional Policy Matrix

To display the Directional Policy Matrix, click the Directional Policy Matrix button shown above, thenmake appropriate selections within the Select Directional Policy Matrix Dialogue*. Finally, click thePlot 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 DirectionalPolicy Matrix Dialogue:

1. Plot: Select Scenario In Focus. Ensure the Equalise Pie Dimensions Tick Box remains blank2. Scope: Select Ideal / Threshold. Tick the Use Niche Colours Tick Box3. Data: Select Revenue4. Time: Drop Down Start Year 2006 and End Year 20105. Axes: Ensure the Reverse X-Axis, View X-Axis Scale and View Y-Axis Scale Tick Boxes remain blank. Tick the ViewSector Captions Tick Box.


Clicking the Plot button reveals the example shown above. The three Composite Assemblies Niches (Europe / Industrial, NorthAmerica / Industrial, and Rest Of World / Industrial) are worthy of serious investment. The various Metallic Assemblies Nichesalso 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 theSegmentation Matrix.

Relative Market Attractiveness is calculated from the Scores and Weights entered in the MarketAttractiveness Scorecard. Plots are positioned on the Y-Axis.

Relative Competitive Strength is calculated from the Scores and Weights entered in theCompetitive 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.

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The Angle of the Pie Slice is directly proportional to the Host Companys share. Correspondingdata 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 theNiche, Volume (or Revenue), Market Attractiveness, Competitive Strength, and other relevantinformation. The matrix can also be copied and pasted into a compatible graphics or presentationpackage 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 theDirectional Policy Matrix. Tabs on the 'Select Directional Policy Matrix' Dialogue give the user choice inthe format and detail of the plot.

Examples include:

Plots for the Scenario in Focus, Superimposing one Scenario upon another or or stepping fromone 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 StartTopic 2.15 Step 15 - Perceptual Maps

To display the Directional Policy Matrix, click the Perceptual Map button shown above, then makeappropriate selections within the Select Perceptual Map Dialogue*. Finally, click the Plot buttonlocated 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) Price2. Format: Select Bubble3. Scope: Select HandyMan PLC / All Niches. Tick the Use Niche Colours Tick Box4. Data: Select Revenue5. Time: Drop Down Start Year 2006 and End Year 20106. Axes: Ensure the Reverse X-Axis Tick Box remains blank. Tick the View X-Axis Scale and View Y-Axis Scale TickBoxes.


Clicking the Plot button reveals the example shown above. The opportunities in which the company is likely to be mostcompetitive are those in which it is able to offer a strong Product Design at a strong (i.e. inexpensive) Price. The threeComposite Assembly Niches are conveniently grouped together and show modest Product Design at a strong Price. The twoIndustrial / Metallic Assembly Niches show a strong Product Design at a relatively weak (i.e. expensive) Price. Furtherevidence of HandyMans misaligned strategy is shown by the two Hobby Niches, where an excellent Product Design is offeredat the weakest (i.e. most expensive) Price.

Each bubble represents a Niche. The colour of the bubble matches the colour of the Niche in theSegmentation 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 thatcan be created.

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Where Pie format has been selected, the diameter of each pie is directly proportional to theVolume or Revenue accruing to the Niche. Corresponding data was entered via the Market HistoryAnd Forecast Data Editor.

Where Pie format has been selected, the Angle of the pie slice is directly proportional to theSuppliers 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 theNiche, Volume (or Revenue), positions on the two axes, and other relevant information. The map canalso 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 Perceptual Map Dialogue:MATRIX V5 is an 'expert user' software tool which provides great flexibility when plotting PerceptualMaps. Tabs on the 'Select Perceptual Map' Dialogue give the user choice in the format and detail ofthe plot.

Examples include:

The ability to plot any Market Attractiveness Factor, or Overall Market Attractiveness against anyCritical Success Factor, or Overall Competitive Strength

Volume or Revenue Plots The ability to plot Spots, Bubbles (which reflect Supplier performance) or Pies (which reflectMarket 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 StartTopic 2.16 Step 16 - Gap Analysis

To display the Gap Analysis Chart, click the Gap Analysis button shown above, and then makeappropriate selections within the Select Gap Analysis Dialogue*. Finally, click the Plot button locatedtowards 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 Niche2. Data: Select RevenueAlso, tick the View Key Tick Box


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 companyshould take some comfort from the positive gap emerging in 2010 - that is, performance is expected to exceed objectives by aconsiderable extent.

By summing the Forecasts for each Niche, it is possible to see whether the business is on target tomeet its Economic Objectives, or whether it is likely to suffer a shortfall. Such a comparison may raiseissues about the viability of a portfolio. For example if there is a negative gap between the Objectivesand 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 aboutthe 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 toClipboard 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 StartTopic 2.17 Step 17 - Risk Analysis

To display the Risk Analysis Chart, click the Risk Analysis button shown above, and then makeappropriate selections within the Select Risk Analysis Dialogue*. Finally, click the Plot button locatedtowards 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 2010Also, tick the View Permutation Tick Box


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 reducingRisk 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 ofthe Niches within the Permutation, and to the Host Companys Competitive Strength. Risk willincrease in line with the number of Niches included within the Permutation. Return is related to GrossMargin over the chosen time period (thereby reflecting the importance of Profitability), and alsogenerally increases with the number of Niches.

Often there is no right or wrong answer about which Permutation to adopt, but the strategist maygain a valuable insight into which are more and less appropriate choices. For example, if twoPermutations 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 FrontierMarkers provide on-screen information about the contents of the Permutation, and Risk and ReturnScores. The map can also be copied and pasted into a compatible graphics or presentation packageby 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 3The MATRIX V5 User Interface

This section describes the MATRIX V5 User Interface.

Topic No Topic Title3.1 The User Interface In MATRIX V5Go to Topic 3.1


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SECTION 3 The MATRIX V5 User InterfaceTopic 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 toregular 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 andreview analysis. The Segmentation Matrix is displayed by default. See SECTION 8

Go to SECTION 4

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SECTION 4The MATRIX V5 Navigator

This section describes the MATRIX V5 Navigator.

Topic No Topic Title4.1 The Navigator In MATRIX V5Go to Topic 4.1

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SECTION 4 The MATRIX V5 NavigatorTopic 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 MenuBar / 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, whichenables Economic Objectives (Revenue and Gross Margin) to be keyed into the model. SeeSECTION 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 theScenarios 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. SeeSECTION 8

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Ansoff Matrix. Clicking the Ansoff Matrix button displays the Ansoff Matrix. The user can thenplot Niches into the four Ansoff Matrix quadrants. Note, on creating a new model, no Niches areplotted 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 CompetitorsActive (i.e. operate) within different Niches. See SECTION 11

Market Attractiveness. Clicking the Market Attractiveness button displays the MarketAttractiveness Scorecard, which enables the user to Define, Weight and Score MarketAttractiveness Factors for the Scenario as necessary. A pop-up menu, displayed by clicking on theMarket 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 CompetitiveStrength Scorecard, which enables the user to Define and Weight Critical Success Factors for theActive Niche as necessary. A pop-up menu, displayed by clicking on the Competitive StrengthScorecard 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 Criteriabutton displays the Criterion Scorecard. This contains all of the Criteria which support theselected Critical Success Factor within the Competitive Strength Scorecard. The user can thenDefine, Weight and Score the Criteria that comprise the Critical Success Factor as necessary. Apop-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 theMarket History And Forecast Data Editor, which enables the user to enter data relating toVolumes, Revenues, Unit Prices and Gross Margins as appropriate. Note that the Market HistoryAnd 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.) Clickingthe Export Data button exports the structure of the model, together with the existing data set to aMicrosoft 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 originalMATRIX.xls file will be preserved, but the file will be renamed with a time and date stamp; a newMATRIX.xls file will then be generated.) See SECTION 27

Import Data.(Note, this function is not available in the Restricted Version of MATRIX V5.) Clickingthe Import Data button opens the Import Data Dialogue. Data can now be imported directly intothe model from the underling MATRIX.xls spreadsheet, and any data that currently exists withinthe model will be overwritten. See SECTION 27

Analyses. Clicking the Analyses button displays a pop-up menu, which provides access to allanalyses within MATRIX V5. This includes Life Cycle Analysis, Share Analysis, MarketAttractiveness, Competitive Strength, the Boston Matrix, the Directional Policy Matrix, PerceptualMaps, Gap Analysis and Risk Analysis. See SECTIONS 18 - 26

Go to SECTION 5

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SECTION 5The MATRIX V5 Menu Bar

This section describes the MATRIX V5 Menu Bar.


5.1 The Menu Bar In MATRIX V55.2 File Menu

5.2.1 Open New Model (The Open Model Dialogue / New Model Tab)5.2.2 Open Existing Model (The Open Model Dialogue / Last Model Tab)5.2.3 Open Existing Model (The Open Model Dialogue / Existing Models Tab)5.2.4 Save5.2.5 Save Model As5.2.6 Preferences (The Preferences Dialogue)5.2.7 Export Data

5.2.8 Import Data (The Import Data Dialogue)5.2.9 Exit

5.3 View Menu5.4 Scenarios Menu5.5 Portfolio Menu5.6 Data Menu5.7 Text Menu5.8 Analysis Menu5.9 Help Menu

5.9.1 MATRIX V5 Help5.9.2 About MATRIX V5

Go to Topic 5.1


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SECTION 5 The MATRIX V5 Menu BarTopic 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 titlebar.

File MenuTo open the File menu, select File. See Topic 5.2

View MenuTo open the View menu, select View. See Topic 5.3

Scenarios Menu

To open the Scenarios menu, select Scenarios. See Topic 5.4

Segmentation MatrixTo open the Segmentation Matrix menu, select Segmentation Matrix. See Topic 5.5

Data MenuTo open the Data menu, select Data. See Topic 5.6

Text MenuTo open the Text menu, select Text. See Topic 5.7

Analysis MenuTo open the Analysis menu, select Analysis. See Topic 5.8

Help MenuTo 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 BarTopic 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 ModelTo open a New Model, select the Open New Model menu item. See Topic 5.2.1

Open Existing ModelTo open an Existing Model, select the Open Existing Model menu item. See Topics 5.2.2 and5.2.3__

SaveTo Save a Model, select the Save menu item. See Topic 5.2.4

Save Model AsTo Save a Model under a different name, select the Save Model As menu item. See Topic 5.2.5___

PreferencesTo 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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ExitTo 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 BarTopic 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 newModel (e.g. HandyMan) and click the Open button. After completing the Preferences Dialogue (seeTopic 5.2.6), the Segmentation Matrix is displayed. This contains a single Niche coloured red bydefault. From this embryonic Segmentation Matrix, you will be able to develop the first Scenario withinthe Model.

Go to Topic 5.2.2

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SECTION 5 The MATRIX V5 Menu BarTopic 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 Modeltab to view. This tab shows the Name of the last worked upon model in bold typeface, together withthe full pathway of the last model.

Action:Click the Open button. The last worked upon Model is now re-opened, with the first Scenariodisplayed within the Segmentation Matrix.

Go to Topic 5.2.3

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SECTION 5 The MATRIX V5 Menu BarTopic 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 youhave drilled down to the location of the model you wish to access. Move the cursor to the name of themodel that you wish to edit, and double click the model name to activate the Open button. Click theOpen button. The requested model is now opened, and the first Scenario is displayed within theSegmentation Matrix.

Note:Models can only be worked upon one at a time. The action of opening one model will cause an earliermodel (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 BarTopic 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.mdbdatabase will then be held under the file structure C:\Program Files\MATRIXV5.2\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 theCancel 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 BarTopic 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 clickeither:

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 BarTopic 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, immediatelyafter the name of the new Model has been confirmed. If a Model has already been created (and iscurrently 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 asthe underlying major Time Unit.Timeframe (Years) The Lifetime of the model in years, as reflected in the Economic Objectivesand Revenue Data Editors, the Revenue Graphs, and the Gap Analysis Charts. The default is setto 5 (years). To change the Duration, select the required number of years from the drop-down listbox. Note, the minimum Duration is 2 (years), and the maximum Duration is 20 (years).Start YearThe 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, orbehind the current year.

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