Portfolio Analysis : Strategic Planning

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Portfolio analysis works as a great tool to analyze the specific products, investments or services (now written as aspects) a company currently has in its portfolio. Usually view by strategic business unit or product line, the tool can provide great value during the strategic planning phase. A great approach in making strategic decisions on the viability of certain aspects of the business, it can spell out profitability, longevity, rate of growth, risk, usage and potential. It does not work as the end all be all answer in making strategic conclusions, but portfolio analysis can provide a great overview of where a companies aspects are in areas of market and positioning. Both the BCG Growth-Share Matrix and the GE Business grid are similar in the way aspects of a business are mapped to see the portfolio analysis in a birds eye view approach. The both evaluate in a 2-dimensional style, assessing market and business opportunities. Aspects with a positive position on either are definitely seen as signs of growth, while a negative position is a sign of more evaluation required. Differences include the simplicity of the BCG, a better overview analysis while GE is more complex, getting more into the meat and potatoes of an aspect. The BCG is great way to view aspects in evaluating cash flows and future potential or business use and is divided in high or low measurements. The GE grid provides a deeper look in the power to compete and is measured in high, medium, low measurements
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