Advantages And Disadvantages Of Portfolio Analysis : The BCG Growth-Share Matrix

This was a simulation project related to application of different tools of portfolio management. The project was applied by using stocktrak.com platform. This website provides the students and teachers with a real time simulation platform for learning the portfolio investment. A specific allocated amount was used in this simulation project for portfolio investment. A portfolio was created of different securities like stocks, bonds and currencies. These bonds and securities were from different sectors of economy like technology industry, financial industry, consumer goods industry, services industry, health industry, industrial goods industry, utilities industry, and basic materials industry. The top performing stocks in this simulation project were Bank of America Corporation, Hersha Hospitality trust, Deans Food Company, Loews Corporation, and Pepsi Co Inc. The study also found that the percentage return on portfolio remained above the return realized on Dow Jones ETF during the timeline of the project.

With Reference to this statement, describe, discuss and illustrate the principles of portfolio theory. Your essay should include coverage of the Markowitz Efficient Frontier and the Capital Market Line.

 Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n):

Over the course of time I have been following the three stocks in the fast food industry. I have been following Starbucks, McDonald and Yum Brands. I have collected information on my stocks and their progress. In my research I have found surprising statistics on the three company stocks I chose. In my paper I will explain how the following companies’ stocks I chose and how they did as well as the reasons their stocks affect their current and future progress.

For the three consecutive days of teaching reading and writing, the student will complete a mini portfolio to prepare for student teaching portfolio expectations. For this assignment you will be required to:

A 5 year strategic plan for Mensa Inc. should be dynamic and focus on ensuring that the present situation where in multiple sectors and businesses are involved. Re investing and formulating a stronger BCG matrix with divestiture from loss making units becomes extremely essential. The BCG matrix is a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix.

The business portfolio analysis uses quantified performance measures and market growth to analyze a firm’s strategic business units as though they were a collection of separate investments. The BCG advises clients to locate the position of each of its SBUs on a growth share matrix. The vertical axis is the market growth rate, which is the annual rate of growth of the specific market or industry in which a given SBU is competing. The horizontal axis is the relative market share, defined as the sales of the SBU divided by the sales of the largest firm in the industry. Each of the quadrants are given a specific name and description based on the amount of cash they generate. Cash cows; are SBUs that typically generate large amounts of cash, far more than they can invest profitability in their own product line. They have a dominant share of slow-growth market and provide cash to pay large amounts of company overhead and to invest in other SBUs. Stars; are SBUs with a high share of high-growth markets that mat need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. Question marks or problem children; are SBUs with a low share of high growth markets. They require large injections of cash just to maintain their

This report has been assigned by the University of Western Sydney to analyse strategic review for Premier Investment Ltd that was introduced in 2011in relation to its wide cost efficiency program and long term gross margin expansion program. The comparison analysis of 2011 and 2012 for Premier will be performed to examine the success of strategic review. Finally, there will be an identification of any red flags that might be highlighted in ratios analysis from Premier recast financial statements.

You work for a financial planning organisation that manages thousands of clients’ portfolios and accounts. Recently there have been several changes in the industry that affect clients who have share portfolios. For some clients, the changes will have a negative effect on their investments while other clients will be receiving good news.

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.

Growing a portfolio is not an easy task, and being able to analyze numbers to make sense of the best course of action is a valued skill in asset management. I have underwritten many development deals and have learned that

According to the CAPM model:R_i=α+βR_m+ε, α represent the abnormal return gained by the portfolio. If the market is efficiency, the α has to be zero.

Internationally, the company operates toy stores under the name Toys R Us. It also sells merchandise through its Internet sites and through mail order catalogues. Its products include:

The objective of studying this case is to understand the concepts of diversification and the efficient frontier by analyzing Harvard Management Company’s application of portfolio theory for managing the endowment of Harvard University. Please read the case carefully and be prepared to discuss the following questions in class on Monday, October 11.

If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.