Portfolio Analysis : Strategic Planning

Cambridge Behavioral Hospital currently uses a Change Theory. Strategy for most organizations is about change and focus. A firm strategy starts with knowing the external and internal forces that impact the organization’s ability to achieve its most important goals, and then steadily making the necessary changes to direct those forces. “A validation (or invalidation) of the strategic assumptions reinvigorates strategic thinking and provides a basis for investigating whether to change the strategy” (Swayne, Duncan & Ginter, 2008).

Before we can talk about the Strategy Hudson Bay uses we must first answer the the question of what a Corporate and Business Strategy is and how The Bay inaugurates this into their company;

The organization strategic plan consists of addressing clinical quality, growth, and becoming a larger part of the community, and providing long term value. The annual report states the following strategic goals (Bon Secours, 2012):

Yield to maturity (YTM) reflects the return required and set by the market on the assumption that the bond is held to maturity. In equilibrium, it is also the return that investors can expect to earn over the life of the bond. Holding Period Return (HPR) is the expected return over a future period, and is not based on the assumption that the bond is held to maturity. SIMILARITIES    Both expressed as annualised returns (not effective rates) Use the settlement price as cost base Total returns accounting for both the coupon interest component and the capital gain/loss component

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

Portfolio management supports an organization’s mission and goals by ensuring the program is managed properly and the timing is on a set schedule. Portfolio management supports the accomplishments and the preferred outcomes. The tools and techniques involved assist with the efficiency and the effectiveness. The portfolio management supports in the organization utilizes the resources where they can be applied throughout the organization. Portfolio management assists with creating the operational needs throughout the period of the project. The portfolio management achieves with the vision, mission, and goals and even identify the risk. The time cost and all resources that would be required help identifying within the goals.

Portfolio analysis is the wide set of tools to analyze elements of a firm's product mix to determine the optimum allocation of its resources. Two most common measures used in a portfolio analysis are market growth rate and relative market share. In portfolio analysis top management views its product lines and business units as a series of investments from which it expects a profitable return. The product lines/business units form a portfolio of investments that top management must constantly juggle to ensure the best return on the corporation's invested money. The most popular approach is the BCG growth share

The organizations that will be discussed are Century 21 Powerhouse Realty where I am employed at as a real estate agent and the Disney organization, which is an organization that has adopted total quality management. In the following paragraphs I will evaluate my organization’s mission, vision, goals, and objectives as well as discuss the relationship

UNIVERSITY OF ILLINOIS AT CHICAGO Liautaud Graduate School of Business Department of Finance Professor Hsiu-lang Chen 1 Practice Problem I

From September 3rd, 2015 to October 28th, 2015, our group was given the opportunity to manage an investment portfolio, with the goal of maximizing the value of the portfolio through acquiring, holding, and selling stock. The beginning cash balance of the portfolio was $100,000, and our group had the ability to make up to 500 trades. During this time period, our group made 20 stock purchases and sold stock twice. At the close of business on October 28, 2015, the value of our group’s portfolio increased from $100,000 to $106,785.33, yielding a return of  6.78% (((106785.33/100,000)-1) x 100)). In comparison to the S&P 500 returned at 7.16% and the Dow Jones having a return of 8.65% (Yahoo).

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.

Portfolio management is making decisions in relation to investment mix and policy, asset allocation for individuals and institutions and balancing risk against performance. This includes the strengths, weaknesses, opportunities and threats in the choice of domestic vs. international, growth vs. safety, and many other trade-offs encountered in the attempt to maximize return given the client’s risk tolerance. (Haughey, 2014)

BCG matrix is a resource allocation matrix. It helps us to decide which strategy we should follow for an industry as per its growth rate and the output with respect to competitor.

This scope of study   is limited to 6 firms /companies of selected industries. Pharmaceutical, Information Technologies, Automobile, & 12 companies / banks from Banking Industry.

Boston Consulting Group (BCG) Matrix: is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s