Page 2 - Portfolio Analysis
P. 2
PORTFOLIO PLANNING SYSTEMS
The portfolio planning approach is designed to help managers decide on
the allocation of scarce resources among competing business
opportunities. Its aim is to attain that mix of activities which best serves
the long-term interests of the organisation. It may be used when
determining strategies for multi-division businesses or multi-product
businesses. The approach can guide decisions on growth, disposal or
retention.
Under Portfolio Planning three related areas will be examined. The first
two of these areas, the Experience Curve and the Product Life Cycle,
provide the underpinning for the third, the Boston Consulting Group (BCG)
Matrix.
THE EXPERIENCE CURVE
THE PRODUCT LIFE CYCLE
BCG MATRIX
