Design the business portfolio
– Process
– Analyze current portfolio (SBU = strategic business unit)
– Develop growth strategies to modify portfolio
– Best portfolio
– Best fits the company's strengths and weaknesses ...
– ... to threats and opportunities in the environment
– Methods
– BCG (relative market share vs. market growth)
– GE (business strength, industry attractiveness; indexes)
– Problems
– Difficult to define SBUs and measure market share/growth
– Focus on current business, not future
– Overemphasis on market share and growth, not capabilities