Micro Analysis
Target Market
• Customer Profile
• Market Segments
• Market Demand
• Product Fit
 
Market Attractiveness
• Overall market size
• Annual market growth rate
• Competitive intensity
• Profit margins
• Technological requirements
Business Strength
• Market share
• Share growth
• Product quality
• Brand recognition
• Promotional effectiveness
• Distribution
• Unit costs
• Financial capitalization
• Liquidity
• Long term debt
• Production capacity and efficiency
• R&D innovation
• Personnel
American Can Company’s Relative Factor
Weights for Major Indexes – Table 4
Payback Index Percentage Desirability Index Percentage
Political Stability 26.0 Quality of infrastructure 13.6
Political Freedom 7.0 Avaliability of financing 10.1
Civil Liberties 7.0 Labor situation 9.1
Quality of Infrastructure 6.7 Market growth 8.6
Nationalization probability 6.3 Currency convertability 6.6
Desire for foreign investment 5.6 Per capita income 7.1
Bureaucratic delays 5.4 Market size 7.1
Market Size and growth 4.4 Inflation 6.8
Inflation 3.6 Physical quality of life 6
Labor Situation 3.5 Bureaucratic delays - Red tape 5.1
Currency Stability 3.3 Enforceability of contracts 4.4
Balance of Payments 3.3 Balance of payments 3.4
Likelihood of internal disorder 3.2 Currency history 3.2
Availability of financing 2.4 Corporate tax level 2.2
Restrictions on capital movements 2.3 Local management 2
Enforceability of contracts 1.8 Cultural interaction 1.7
Government intervention 1.5 Reserves import ratio 1.3
Limits on foreign ownership 1.4 Government intervention 0.8
Cultural interaction 1.4
Limits on expansion 1.1
Local management and partners 1.0
Physical quality of life 1.0
Corporate tax level 0.8