steps in cpm

7/29/2019 Steps in CPM

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MBA in Management Coca Cola Swot Analysis Matrix Management
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9/22/13 MBA Lectures Blog Archive Competitive Profile Matrix of Coca-Cola

mba-lectures.com/management/principles-of-management/1091/competitive-profile-matrix-of-coca-cola.html 2/9

A competitive profile matrix (CPM) categorizes a firms main rivals and its particular strengths and

weaknesses in relation to a design firms strategic position. In Competitive Profile Matrix an

organization assess itself as well its rivals by giving rating and weights to the critical/key success factors.

It then recognizes its strategic competitive place with its major rivals. A firm which obtains superior

weighted points would have the strong competitive place than its rivals. The construction of competitive

profile matrix for the Coca-Coal company is given below:

Steps in the construction of CPM

Here we will be using weighted rating system for the construction of competitive profile matrix. Some

of the important steps involved in the construction of competitive profile matrix are given below:

1. In the first column, lists down all the key success factors of Industry (usually from 6 to 10).

2. In the second column, assign weights to each factor ranging from 0.0 (not important to 1 (most important). Greater weights should be given to those

factors which have grater influence on the organizational performance. The sum of all weights must equal 1.

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3. Now rate each factor ranging from 1 to 4 for all the firms in analysis. Here, rating 1 represents major weakness, rating 2 shows minor weakness. Similarly,

rating 3 indicates minor strength whereas rating 4 shows major strength. It means that weakness must receive 1 or 2 rating while strength must get 3 or 4

rating.

4. Calculate weighted score by multiplying each factors score by its rating.

5. Find the total weighted score of all the firms by adding the weighted scores for each variable.

Competitive Profile Matrix for the Coca-Coal Company

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very good

Posted on: 18/Feb/2012@3:30 am

M. Mukarram says...

this was very helpful.

thanks.

Posted on: 2/Mar/2012@9:07 pm

Guntur Hendriwiyanto says...

thanks for the datanow i can do my homework

Posted on: 16/Mar/2013@2:57 pm

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