Portfolio analysis

Question 1

Definition

Answer 1

Its a bridge towards the development of strategies

Idea from the financial industry

Question 2

Process?

Answer 2

Defining criteria for the classification/acquisiion of information from previous stages (strategic starting position, environmental and company analysis) = axes

Definition of characteristics to describe these criteria
Weighting of characteristics among themselfes
Evaluation of the characteristics
Transfer of the results in graphic portfolio

Definition of a desired condition and transfer in portfolio

Dind and define strategies to achieve target
Definition of responsibilities and eventually first steps

Question 3

What is the Mc Kinsey-Portfolio?

Answer 3

Measurement of market attractiveness and relative competitive advantages in a nine field matrix

Question 4

What are the criteria for the ecternal perspective?

Answer 4

Market attractiveness:
Market growth & size, market quality (profitability, life cycle, investment intesity) energy supplies, raw materials and semi finished products, environmental situation

Question 5

What are the criteria for he internal perspective?

Answer 5

Relative competitive advantages:
market position (market share, financial strenght, growth rate, profitability, marketing potential, sales, cost leadership) production potential process efficiancy, hardware, energy/raw material supply= R&D potential, qualifications

Question 6

Pros and Cons of Mc Kinsey?

Answer 6

Pros: differentiated assessment of market and enterprise, clear presentation, multifactorial, future relatedness, investment orientation

Cons: Complexity, subjectivity in valuation, results reflect facts, what are the recommendations for the average company (in practice!)