To assist managers portfolio management using portfolio matrices was devised in the late 1960s and early 1970s, to encourage managers to view their individual business units as a series. When to use portfolio analysis provides essential information to underpin recommendations for the development of the category strategy. Recommends that each product, sbu, or division be considered separately for purposes of strategy. Strategic portfolio analysis, alternatively termed business portfolio planning or portfolio strategy or policy strategy profile or organisational portfolio plan, is a broad term and refers to a technique found in many different variations. Portfolioanalysis methods for assessing capability options rand. Pdf strategic management study of walmart inc delita. B strategic management 30% b 30% a 70% assessment strategy there will be written examination paper of three hours. Strategic portfolio analysis introduction in strategic. Portfolio management z it is top management responsibility that requires the assessment of strengths and weaknesses of the current portfolio of businesses, in order to define the priorities for resource allocation among businesses, and the identification of opportunities for diversification and divestment. This paper examines and compares two case studies in practicing strategic portfolio management. Mba strategic management lecture notes pdf download mba. Programme and project manag level in the organisation what is a strategic portfolio.
As a first step in portfolio analysis, an investor needs to specify the list of securities eligible for selection or inclusion in the portfolio. A financial term portfolio analysis, is primarily the study of certain portfolio regarding its performance, roi and associated risks. Fundamentals of strategic management sage publications. Some of these include publishing, meetings and conventions, education and training. Pondicherry university a central university directorate of distance education investment and portfolio management mba finance paper code. Corporate portfolio analysis could be defined as a set of techniques that help. Understand the concept of swot and portfolio analysis. Strategic management of governmentsponsored r d portfolios. Ge mckinsey matrix smi strategic management insight.
Both matrices are used to analyze companys product or business unit portfolio and facilitate the. Portfolio management presents the best investment plan to the individuals as per their income. It can be also used to make strategic decision about strategic business units. Portfolio matrices as a powerful analysis method tool help in optimizing the strategic managerial decision making. Course objectives investment analysis and portfolio management course objective is to help.
Introduction in strategic management strategic portfolio analysis introduction in strategic management courses with reference manuals and examples pdf. Portfolio management meaning and important concepts. Pdf in recent decades we have witnessed an unseen dynamism. To manage a portfolio of projects successfully, a project manager must obtain and exploit the support of senior management. The final chapter offers some brief thoughts on the future direction of strategic management. In a laymans language, the art of managing an individuals investment is called as portfolio management.
Portfolio analysis in strategic management allows to answer key questions how to shape the present and future business portfolio of product or services in order to reduce the risk of functioning in a changing environment, and increase the effects of the implemented strategy. Portfolio analysis importance of portfolio corporate. A principal tool is portfolio analysis, a device for graphically arranging a diversified companys businesses along two dimensions. Little strategic condition matrix, were discussed in terms of their nature, characteristics, relevance and strategic implications to marketing and management.
Ge mckinsey matrix is a very similar portfolio evaluation framework to bcg matrix. Strategic portfolio analysis ceopedia management online. Pdf strategic management report for starbucks aishah. Their input, advice, and lessons learned, both successes and failures, have been incorporated into this document so that we may all apply better strategic management.
By displaying products or a portfolio of products in a matrix fashion, insight is gained into the strategic. Strategic management is a broader term than strategy and is a process that includes top management s analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. Successful organisations make strategic choices about which activities should be implemented to deliver their decisions at this level can significantly impact the. Strategic portfolio analysis introduction in strategic management. Portfolio analysis and the resulting positioning of. Bcg matrix analysis helps the company to allocate resources and is used as an analytical tool in brand marketing, product management, strategic management and portfolio analysis. The study or analysis is conducted with two objectives viz minimizing the risks and maximizing the returns.
The rise and fall of cpm in strategic management thinking. Strategic analysis of starbucks corporation 1 introduction. Only with executive support can project managers achieve the results that enable the organization to implement its strategy through its projects. Course objectives investment analysis and portfolio management.
Portfolio management refers to managing money of an individual under the expert guidance of portfolio managers. Strategic portfolio analysis, alternatively termed business portfolio planning or portfolio strategy or policy strategy profile or organisational portfolio. Bcg matrix provides a scheme for classifying a companys business according to their strategic needs. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee. A chapter analysis is provided below to help the reader see where particular concepts are covered. Portfolio planning recognizes that diversified companies are a. Decisions at this level can significantly impact the success of the organisation. The data arising from the portfolio analysis are objective and can therefore be helpful in gaining from both management and customers support for proposed change. Project portfolio analysis helps to balance and prioritize the portfolio for the greatest overall investment, risk and reward.
Portfolio analysis and implementation management guru. Punithavathy pandian, security analysis and portfolio management, vikas publications pvt. An effective study on strategic portfolio analysis ijir. Strategic positioning in terms of investment requirements. Portfolio analysis is a systematic way to analyze the products and services that make up an associations business portfolio. Portfolio management transformation how to effectively screen and. Strategic financial management is the portfolio constituent of the corporate strategic. The course is intended for 32 academic hours 2 credit points. Next he has to generate the riskreturn expectations for these securities namely, the expected rate of return. Portfolio analysis requires an analysis of each business in. Business portfolio analysis matrix strategic management. Strategic portfolio analysis of business management. Strategic portfolio analysis involves identification and evaluation of all products or service groups offered by company on the market so called product mix and preparing specific strategies for every group according to its relative market share and actual or projected sales growth rate.
Portfolio analysis strategic management business scribd. Introduce your students to strategic management with the marketleading text that has set the standard for the most intellectually rich, yet thoroughly practical, analysis of strategic management. Strategic portfolio management pmi project management. Portfolio analysis free download as powerpoint presentation. Investment analysis and portfolio management 5 the course assumes little prior applied knowledge in the area of finance. Boston consulting growthshare matrix, general electric industryattractiveness matrix, shell directional policy matrix, and arthur d. Chapter main concepts covered some key authorities discussed 1 from planning to strategic management. Evaluate the options in dimesensitive portfolio analysis 29. All associations except the simplest and the smallest are involved in more than one business. In this article we will discuss about strategic portfolio analysis, explained with the help of suitable examples.
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