Analysis of growth, price-recovery, and productivity components (continuation of 12-23). Suppose that during 2013, the market for Stanmore’s special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore’s strategic actions.
Calculate how much of the change in operating income from 2012 to 2013 is due to the industry-marketsize factor, product differentiation, and cost leadership. How successful has Stanmore been in implementing its strategy? Explain.
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