WORKSHEET #8: Company Volume Index on the Size/Role Matrix
Note:
This worksheet draws on the results of customer data gathered using Analysis 2
and Analysis 66
. Please review these analyses for further information and context for the steps in this worksheet.
Step 1:
Use the minimum customer size segment breaks from the first random 100 customer sample of all industry customers and the percentage of industry sales as shown in Analysis 10 and Basic Strategy Guide Step 4 as your base Size/Role matrix.
Step 2:
Collect a random sample of the company's current customer relationships. Place each of these relationships and their sales volumes on the Size/Role matrix. Convert the sales in your company's customer sample into percentages of total sales in the sample using the same process as used to create the Size/Role matrix in Basic Strategy Guide Step 4 and Analysis 10.
Step 3:
Divide the company's percentages on the Size/Role matrix segments by the industry percentages on the Size/Role matrix segments. Convert the results for each segment to an index by multiplying the fraction by 100. This index gives you the results as shown in Analysis 12 and Basic Strategy Guide Step 8.