Lt2 -busi portfoanalysis
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The document discusses three frameworks for analyzing business portfolios: the BCG matrix, PIMS, and GE/McKinsey multifactor matrix. The BCG matrix evaluates business units based on their market share and market growth rate. PIMS uses a database of business performance metrics to derive strategic principles. The GE/McKinsey matrix rates business units on multiple industry and business strength factors.
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A strategic business unit (SBU) is an autonomous division within a larger corporation that is focused on a specific product or market segment. SBUs have their own marketing plans and budgets to drive their individual profitability, while still being accountable to the larger parent company. They allow corporations to be flexible and responsive to changing economic conditions by delegating control over key performance factors to the independent SBU level.
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The document provides an overview of strategic management and business level strategies. It discusses identifying strategic business units and various strategic options available at the business level, including Porter's generic competitive strategies of cost leadership, differentiation, and focus. Hybrid strategies are also covered. The strategy clock framework extends Porter's model by adding time-based considerations. Evaluating strategies using product portfolio analysis tools like the BCG matrix is also summarized. The document concludes by outlining strategic approaches across a product's life cycle.
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Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
Unit 1 topic sbu
Strategic business units (SBUs) are fully functional units within a business that develop their own strategic visions and report operational status to headquarters. SBUs operate as independent organizations with a specific focus on target markets and product offerings. They maintain internal divisions and have discrete marketing plans. The advantages of SBUs include allowing companies to focus on target audiences, differentiate products to meet customer needs, and gain competitive advantages through increased value.
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A strategic business unit (SBU) is a fully-functional unit of a business that operates as a separate unit but reports to the parent company's headquarters. An SBU focuses on a specific product or market segment and is responsible for its own profitability. Common characteristics of SBUs include having separate marketing plans and competitors as well as being judged on net sales. The success of an SBU depends on factors like the autonomy given to its manager and how well it shares resources with other SBUs within the larger company.
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شرکتهای بزرگ برای رهایی از نابود شدن خودشان را به واحدهای کوچکتری تقسیم می کنند .بزرگ شدن بیش از حد موجب مرگ شرکتها می شود
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The document discusses the GE Nine Cell Matrix, which is a tool used in business portfolio analysis and strategic planning. The matrix uses two axes - industry attractiveness and business unit strength - to evaluate business units. Industry attractiveness is determined by factors like market size, growth, and profitability. Business unit strength is determined by factors like market share, resources, and brand equity. Business units are placed into one of nine cells based on their relative attractiveness and strength. The cells are Grow, Hold, and Harvest, indicating the investment priority and strategies for each business unit. An example GE Nine Cell Matrix analysis is provided for Maruti Udyog.
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The document discusses the BCG Matrix and GE Nine Cell Matrix, which are tools for analyzing corporate portfolios. The BCG Matrix uses market share and industry growth to categorize businesses into four types: stars, cash cows, question marks, and dogs. The GE Nine Cell Matrix expands on this by using three categories for industry attractiveness (high, medium, low) and business strength (strong, average, weak), resulting in nine cells. This allows for a more nuanced analysis compared to the four cells of the BCG Matrix. The document then explains each matrix's benefits, limitations, and how they compare to each other.
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Strategic business unit
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The document provides an overview of strategic management and business level strategies. It discusses identifying strategic business units and various strategic options available at the business level, including Porter's generic competitive strategies of cost leadership, differentiation, and focus. Hybrid strategies are also covered. The strategy clock framework extends Porter's model by adding time-based considerations. Evaluating strategies using product portfolio analysis tools like the BCG matrix is also summarized. The document concludes by outlining strategic approaches across a product's life cycle.
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The document discusses various strategic analysis tools including the BCG matrix, GE nine cell matrix, and experience curve analysis. The BCG matrix classifies business units based on their market growth and relative market share to determine investment strategies. The GE nine cell matrix evaluates business units based on market attractiveness and business strength factors. Experience curve analysis explains that unit costs decline as a firm gains experience through increased production volumes. These tools help companies evaluate their portfolio of businesses and determine appropriate investment and strategic choices.
Bcg matrix
The BCG Matrix is a portfolio analysis tool developed by the Boston Consulting Group in the 1970s to help corporations analyze their business units and allocate resources. It divides business units into four categories based on their market growth rate and relative market share: stars, cash cows, question marks, and dogs. Stars are high growth, high share units that require investment; cash cows are low growth, high share units that generate cash; question marks are high growth, low share units that require investment to achieve their potential; and dogs are low growth, low share units that should be divested. The BCG Matrix provides a simple framework to assess business units and allocate capital but has limitations as it only considers two factors and does not account for synerg
Diversification
This document discusses strategies for growth and diversification. It identifies analyzing industry options and defining industries in new ways as important for identifying growth strategies. The document then outlines various business-level strategies for growth, including market penetration, market development, product development, and diversification strategies. It discusses when diversification makes sense, the motives and tests for judging diversification strategies. Finally, it covers strategic analysis of diversified companies and key issues, including attractiveness and performance evaluation.
10 portfolio analysis ppt
Portfolio analysis (PA) is a technique used to analyze organizations with multiple business units or product lines. PA helps managers allocate resources by assessing each business unit's market share, industry growth, competitive strengths, and attractiveness. Common PA models include the BCG matrix, GE model, and life cycle matrix. The BCG matrix analyzes market share and growth to classify business units as stars, cash cows, dogs, or question marks. The GE model rates industry attractiveness and competitive strength to identify build, maintain, or divest categories. PA aids strategic decisions like balancing risk and return across a portfolio.
Chapter 8 Strategic Management Ppt08
The document outlines the key aspects of strategic management discussed in Chapter 8, including:
1) The six steps in the strategic management process, which involve analyzing internal/external environments, formulating strategies, and evaluating results.
2) The three major types of corporate strategies - growth, stability, and renewal strategies - and how the BCG matrix is used to analyze a company's portfolio.
3) Porter's five competitive forces model and the three generic competitive strategies of cost leadership, differentiation, and focus.
4) Why strategic flexibility is important in today's dynamic environment and strategies companies use regarding e-business, customers, and innovation.
379741
The document outlines the key aspects of strategic management discussed in Chapter 8, including:
1) The six steps in the strategic management process, which involve analyzing internal/external environments, formulating strategies, and evaluating results.
2) The three major types of corporate strategies - growth, stability, and renewal strategies - and how the BCG matrix is used to analyze a company's portfolio.
3) Porter's five competitive forces model and the three generic competitive strategies of cost leadership, differentiation, and focus.
4) Why strategic flexibility, e-business techniques, customer orientation, and innovation are important in today's strategic environment.
9erobbins Ppt08
1) The document outlines the key steps in the strategic management process including analyzing the external and internal environment, formulating strategies, implementing strategies, and evaluating results.
2) It describes different types of organizational strategies such as corporate strategies for growth, stability, and renewal as well as business-level strategies around cost leadership, differentiation, and focus.
3) Emerging trends in strategic management are discussed like the need for strategic flexibility, applying e-business techniques, and becoming more customer-oriented and innovative.
Strategic Planning For Managers
The document provides an overview of strategic planning including the five tasks of strategic planning: forming a vision, setting objectives, crafting a strategy, implementing the strategy, and evaluating performance. It discusses factors that shape strategy choices, three tests for the best strategy (performance, competitive advantage, and fit), and analyzing industry environment to design competitive strategy using Porter's five forces model. It also outlines considerations for strategy implementation and execution.
Robbins ppt08
The document outlines the steps in the strategic management process which includes conducting external and internal analyses, formulating strategies, implementing strategies, and evaluating results. It also discusses different types of organizational strategies such as corporate level strategies including growth, stability, and renewal strategies. Business level strategies focus on gaining a competitive advantage through cost leadership, differentiation, or focus. The implications of dynamic environments and strategies for applying e-business, innovation, and becoming more customer oriented are also examined.
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Lt2 -busi portfoanalysis
- 1. Business Portfolio Analysis Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore
- 5. BCG Product Portfolio Matrix Dimensions Relative Market Share (Log Scale) Product Sales Growth Rate
- 8. Matrix Quadrants High Low High Low Product Sales Growth Rate Relative Market Share
- 15. Example of a BCG Matrix for a Fastener Supplier in South East Asia Anchoring Systems Powder Actuated Tools Cable Tray Systems Electric Power Tools Concrete Lifting Systems Note that the Anchoring System SBU is forecasted to move to new position High Low High Low Product Sales Growth Rate Relative Market Share
- 17. Three Paths to Success (cont’d) High Low High Low Market Growth Rate Relative Market Share
- 19. Three Paths to Failure (cont’d) High Low High Low Market Growth Rate Relative Market Share
- 26. GE Multifactor Portfolio Matrix Industry Attractiveness Business Strengths High High Medium Medium Low Low Invest/Grow Selectivity /earnings Harvest /Divest Protect Position Invest to Build Build selectively Build selectively Selectively manage for earnings Limited expansion or harvest Protect & refocus Divest Manage for earnings
- 27. GE Multifactor Portfolio Matrix (Cont’d) Invest/Grow Selectivity /earnings Harvest /Divest Industry Attractiveness Business Strengths High High Medium Medium Low Low
Editor's Notes
- Objective: Continuously generate cash cows Money earned by a cash cow is not reinvested in that part of the business but in a question mark with the intent to gain share; hoping to turn a ? into a star. As the market matures, and competition lessens, that star will degenerate into a cash cow and the process will be repeated. With a new cash cow, the firm has a steady source of funds to pursue future avenues of growth.
- Objective: Continuously generate cash cows Money earned by a cash cow is not reinvested in that part of the business but in a question mark with the intent to gain share; hoping to turn a ? into a star. As the market matures, and competition lessens, that star will degenerate into a cash cow and the process will be repeated. With a new cash cow, the firm has a steady source of funds to pursue future avenues of growth.
- The PIMS database consists of nearly 3,800 SBUs representing more than 500 firms Member firms have been in the program from 2 to 12 years The program provides member firms with reports that indicate what ROI an average SBU “should” be expected to make predictions of how the SBU’s ROI would change if a policy change is made The program shows that profit is affected by 37 basic factors explaining more than 80% of the profitability variations
- Attempt to explain why different SBU had different profitability