A New Approach to Portfolio Matrix Analysis for Strategic Marketing Planning

Portfolio management is an important factor that determines the performance of the portfolio. To perform well in the portfolio, it is not only essential to develop personal investment strategies, but analyzing current financial trend is also vital. Stock Trak is an online portfolio simulation that allows students to try out different investment strategies, and also get a hand on experience in what the real market trading conditions are. By managing the portfolio, I have acquired some new knowledge of investment strategies and also become more familiar with the current market by following closely to the financial headlines.

Andrews, K., 2010. The Concept of Corporate Strategy, 3rd Edition. Financial Times Prentice Hall. [Accessed 13 April 2014]

The extracted data used includes monthly returns from January 1972 to July 2011. The assets are selected so that the portfolio contains the largest, most liquid, and most tradable assets. The choice of such a variety of assets across several markets was used in order to generate a large cross sectional dispersion in average return. It helped to reveal new factor exposure and define a general framework of the correlated value and momentum effects in various asset classes.

“The Benefits of diversification are clear. Portfolio theory has played a crucial role in explaining the relationship between risk and return where more than one investment is held. It also enables us to identify optimal and efficient portfolios.”

The competitive forces that shape company strategy are very important to consider in any organization. However, they are especially important when an organization’s forces fall closer to the “intense” side on the scale between “intense forces” and “benign forces.” “Almost no company earns attractive returns on investment” when forces are intense, like those in industries that sell luxury goods. (Porter, 2008). Yet, Robert Mondavi’s wineries have leveraged the five forces (barriers to entry, bargaining power of suppliers/buyers, threat of substitutes, and competitive rivalry) in order to maintain consistent profits. The five forces are discussed in detail below with the level of importance increasing throughout the descriptions.

The BCG matrix portrays the perspective of the product portfolio, which is the growth-share matrix. This framework of tool categorizes products within a company's portfolio or within the business units as stars, cash cows, dogs, or question marks according to growth rate, market share, and positively or negative cash flow. By using positive cash flows a company can capitalize on growth opportunities. From this analysis, it can be seen that the products that is growing

In this case, the Partner’s Treasury Department has computed all the portfolios for minimum level of risk with different types of assets, more specifically, adding Real Estate Investment Trusts (REITs), Commodities or both, from an undefined approach. Since the results are identical as calculated from Mean-Variance Theory, they should be the optimal portfolios for each target level of return. Therefore a graph with efficient frontier, which represents the optimal portfolios with different assets, is constructed based on Exhibit 5 to 8 for comparison. [Appendix B] Technically, any portfolio on the efficient frontier is an optimized portfolio and is indifferent from each other in terms of risk/return trade off.

According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and

Portfolio and project management are similar and sometimes thought of as being one another. Between the project and portfolio management the goals and the intended strategic action is similar. The process between the portfolio management includes and involves the resources that list a process, which includes the evaluation, selection, and prioritization. Portfolio management and strategic management assist with the organizations missions and goals. These lay out the objective in the continuous planning and monitoring that assist with reaching the goals.

In the article, “The Five Competitive Forces that Shape Strategy,” Michael Porter argues that the five forces are an important element for managers and investors in the business industry. Porter stated that it is important to “understand the competitive forces, and their underlying causes” which many companies will use to determine if they will gain profit or not (Porter 80). Companies determine their profitability of the industry through the level of the force that they face. For instance, when the forces are favorable, most companies will be profitable. Porter gives a detail description of the five forces and explains the importance of each force. The five forces are the threats of new entrants, the power of the buyers, the power of the suppliers, the threats of substitute for products or services, and the rivalry among existing competitors. Porter believes that “a company strategist who understands the competition extends well beyond existing rivals will detect wider competitive threats and be better equipped to address them” (Porter 93). In other words, when strategists understand the different forces it will benefit them to make better decisions and to be ready to face the different challenges between competitors. In the article, Porter’s main goal is to present the importance of the five forces to the audience.

One tool that can help an organization to understand its competitive positioning is the BCG Matrix. This matrix is based on the product life cycle theory and is typically used to help organizations make decisions about what products or services should be given priority over scarce resources (VBM, 2012). In analyzing Jackson's portfolio it is important to bear in mind that not all services are going to be in any one category. With a hospital this large and diversified, there will be things in which it is especially strong and things in which it is especially

An intended strategy approach suggests it is fixated on a specific outcome which may reduce the rigidity of an organization but it does ensure focus is kept. It is argued that an organization is more likely to succeed through these stricter

Before this analysis will begin, it is vital to stress that this model is well-known as an effective instrument. An advantage of this model is that it captures the immediate environment in which the company competes. It allows to clearly understand the forces which

Today in the global business world we know that strategic changes are fundamental in order to

The goal of this report is to determine the optimal portfolio step by step. Firstly, we will choose a list of potential companies by evaluating their performances through 4 years (from 1/1/2011 to 31/12/2014) as well as using useful tools such as return, standard deviation, variance, covariance and correlation to evaluate more clearly about each stock and the relationship of each pair of stocks. Then, we will select the optimal portfolio by construction of portfolios that maximize the return with the acceptable risk. Finally, combination the chosen portfolio with the risk-free asset is to reduce the risk as well as increase the return of the new portfolio.