Monday, November 30, 2009

Shell Directional Policy Matrix

A Nine Celled directional Policy Matrix

The Shell Directional Policy Matrix is another refinement upon the Boston Matrix. Along the horizontal axis are prospects for sector profitability, and along the vertical axis is a company's competitive capability. As with the GE Business Screen the location of a Strategic Business Unit (SBU) in any cell of the matrix implies different strategic decisions. However decisions often span options and in practice the zones are an irregular shape and do not tend to be accommodated by box shapes. Instead they blend into each other.

Shell Directional Policy Matrix

Each of the zones is described as follows:

  • Leader - major resources are focused upon the SBU.
  • Try harder - could be vulnerable over a longer period of time, but fine for now.
  • Double or quit - gamble on potential major SBU's for the future.
  • Growth - grow the market by focusing just enough resources here.
  • Custodial - just like a cash cow, milk it and do not commit any more resources.
  • Cash Generator - Even more like a cash cow, milk here for expansion elsewhere.
  • Phased withdrawal - move cash to SBU's with greater potential.
  • Divest - liquidate or move these assets on a fast as you can.
As discussed above its a sort of extension to the BCG matrix and is a very useful tool for efficient policy making issues.

Reference: www.marketing teacher.com

15 comments:

Haider said...

Good Job...... I didn't read this. You could atleast have given a source from where you copy pasted this. I just wondered where Faizaan's very well SELF-WRITTEN article went. Then I realized it was drowned to the next page due to posts which are as likely to get feedback as likely as the probability of them getting read. Dude..... I don't think you understood when Sir told us about posting on the blog. We won't be getting marks on the NUMBER of posts we made, rather on the QUALITY of the posts. I'm not suggesting that you're posts aren't good. It's just that looking at the previous ones not many get feedback at all. When they do, its mostly "Keep it up...bro" or "Nice work...man" etc. You can imagine how this sort of stuff would work if someone raised their hand in the class to say this. I suggest you once try to write a post yourself and see how that works out or try talking to sir about it. I did. Helped me a lot. Hope this didn't sound rude

Syed Ahmad Hashmi said...

Let the teacher decide what we are doing and we all should be in our limits in accordance with the democratic rules. Start to copy paste yourself as well because its not easy to find good material and its very easy to spoil others show as you very well did it through your comment, but anyway thanks for being a critic but avoid this aimless talk next time.

Syed Ahmad Hashmi said...

Yes one more thing haider the source reference which you need for my "Copy paste" posting is given in my post kindly read it properly.Hint is a beautiful "copy paste" diagram. Another thing we all are mature so we should all show good signs of maturity through our comments.

Azeem Akhtar said...

its good ahmad through this policy we can also analyse our company capability

Rana Aqeel Akhtar said...

this is a good information.
through it we can know our company's position.

Rana Aqeel Akhtar said...
This comment has been removed by the author.
Haider said...

Well done Ahmed.... good thing you told these guys what to write APART from the "good work" and "good information" part. Its good that you ASKED these guys to comment on this just so that it'd make me look 'dumb'. But dude... you totally blow up the point of blogging. And as I told you that it IS SIR's decision that there shouldn't be copy-pasted posts. And it was I who suggested in a post that even if you just HAVE TO do a copy-paste, make sure you give YOUR opinions with it as well.
Anyways.... the purpose of my comment was to inform you that in the first class Sir specifically said that 'Copy-pasted posts will receive no points (or negative points)' i can't remember exactly. So i don't know how you took my comment, but I hope the result will be productive in the future.

Haider said...

@ Rana: I totally understand why your comment doesn't make sense because I really don't know how you decide whether you like a post or not before even reading it.

Syed Ahmad Hashmi said...

Bad politics haider you are disturbing everybody. Just concentrate on your work and stop acting like a bad element of the society.

Rabbia Nasir Amin said...

good concise post ahmad, a good analysis of each unit within the matrix
and I checked with the Boston Matrix too, this one seems to be an extension of that !

Rabbia Nasir Amin said...
This comment has been removed by the author.
Atta.ul.Wadood Chatha said...

Good work Ahmad.It gives a standard ,through which we can analyse our company's position

Rabbia Nasir Amin said...
This comment has been removed by the author.
Haider said...

Bad Politics my..... you delete the pointless comments anyone makes just so it doesn't make you look..... Anyways this is not some sort your private blog or something. I am entitled to my opinion and I have every right to them. Just so you know we are actually here to share those very opinions. My criticism was meant to be taken constructively. You didn't, thats your problem. I don't hold any sort of grudge against you. I thought it might have helped out more creative stuff out of you, but it seems thats not possible. This is not the first post I have critiqued and more certainly it won't be the last. But I assure you that this sort of response to criticism is new to me but not unheard of. So if my criticism was something new to you...... well lets say there are a lot of things that happen for the first time in life. And as for the "bad part of the society" crap..... I couldn't care less :)

Syed Ahmad Hashmi said...

Bias Attitude haider avoid it.