Explain the difference between directional policy matrices and
multiple factor indices.
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General Management
Explain the difference between directional policy matrices andmultiple factor indices.
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Directional PolicyMatrix DPM analysis is aimed at determining the appropriate strategic planning goals and the right strategies to achieve those goals across the portfolio of products strategic business units SBUs and markets In broad terms the DPM is a framework and process to review the performance and relative potential of each productSBUmarket and to decide which productsSBUsmarkets to Builddevelop furtherincrease market share of Maintainresource to keep the status quo or current market share Harvestsell off or withdraw from having squeezed the last potential sales Divestdrop or exit immediately For best results the DPM analysis should involve marketing sales and operations managers in both plenary and group sessions It is very important that all can contribute and thereby all can own the outcomes In process terms the DPM analysis involves nine steps 1 DETERMINE MARKETS The first step is to define and agree the marketsSBUsproduct groups or segments that the business sees itself competing in This should be heavily informed by the
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