Action Checklist
• Before applying portfolio analysis, managers should achieve some understanding of all business units/products and the challenges/opportunities they face.
• Consider using particular forms of portfolio analysis, such as the Boston Consulting matrix. This places business units into readily understandable categories (cash cow, stars, problem child, dogs) according to factors such as market share and industry growth rate.
• Use the technique to emphasize the goal of portfolio balance and the need to achieve a “pipeline” of future income streams, rather than relying on the hope of any single blockbuster product resulting from a R&D success