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Shells Directional Matrix


. . and along the vertical axis is a company's competitive capability.Along the horizontal axis are prospects for sector profitability.The Shell Directional Policy Matrix is another refinement upon the Boston Matrix..

move cash to SBU's with greater potential.just like a cash cow. • Cash Generator . milk here for expansion elsewhere.grow the market by focusing just enough resources here.could be vulnerable over a longer period of time.Major resources are focused upon the SBU.gamble on potential major SBU's for the future. milk it and do not commit any more resources. • Try harder . • Double or quit .• Leader . • Custodial .Even more like a cash cow.liquidate or move these assets on a fast as you can. • Phased withdrawal . • Divest . • Growth . but fine for now. .

• As discussed above its a sort of extension to the BCG matrix and is a very useful tool for efficient policy making issues. .

Limitations • Assumes that the same set of factors is universally applicable for assessing the prospects of any product/business Relevant factors and thus their relevant importance will "vary both according to the firm's products and the individual characteristics of each company“ • No guidelines on how to implement the strategy. as mentioned in the cell of the matrix .


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