This exercise asks you to apply the Shell Directional Policy Matrix to Brackwater Industrial.
The Scenario: Brackwater Industrial
Brackwater Industrial is a capital-intensive engineering group with three divisions. Its board must decide where next year’s capital goes.
Marine coatings. The sector grows slowly but margins have held steady for fifteen years and supply is secure. Brackwater is the clear market leader, with the lowest cost base and a research team competitors cannot match.
Battery casings. The sector is expanding rapidly and margins are good, though several better-funded entrants have appeared. Brackwater entered late, holds a small share, and its production line is a generation behind.
Legacy pipework. Demand has fallen every year for a decade and margins are thin. Brackwater holds a modest share, an ageing plant, and no research activity in the area.
Once you have drafted your own answer, compare it with Marketing Teacher’s suggested answer.
The slides, worksheet, lesson plan and poster for this lesson are free to download and free to use in your course — no sign-up, no permission needed.
