PORTFOLIO MANAGEMENT

PORTFOLIO MANAGEMENT - The Business Portfolio For firms...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
The Business Portfolio • For firms with different SBUs, planning also includes allocating resources among the businesses • Each SBU is a separate profit center within the larger corporation • Each SBU is responsible for its own costs, revenues, and profits Portfolio Management • The range of products owned by a large firm is called a business portfolio • Portfolio analysis allows a firm to assess the potential of its products and businesses – BCG Growth-Market Share Matrix
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Growth-Share Matrix 3 ? 10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x 20% 20% - 18% 18% - 16% 16% - 14% 14% - 12% 12% - 10% 10% - 8% 8% - 6% 6% - 4% 4% - 2% 2% - 0 Market growth rate Relative market share Stars Cash cow Question marks Dogs ? ? 5 4 2 1 6 8 7 .5x .4x .3x .2x .1x .5x .4x .3x .2x .1x BCG Matrix • Method focuses on the potential of a firm’s existing successful products to generate cash that the firm can then use to invest in new products • New products are chosen for their – Relative market share
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/15/2010 for the course MKTG 380 taught by Professor Robbins,j during the Spring '08 term at Winthrop.

Page1 / 5

PORTFOLIO MANAGEMENT - The Business Portfolio For firms...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online