The next step in business portfolio analysis calls for management to assess the attractiveness of its various SBUs and decide how much support each deserves.
Most companies are well advised to focus on adding products and businesses that fit closely with the firm’s core philosophy and competencies.
The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment.
Thus, most standard portfolio-analysis methods evaluate SBUs on two important dimensions – the attractiveness of the SBU’s market or industry and the strength of the SBU’s position in the market or industry.
The best-known portfolio-planning method was developed by the Boston Consulting Group, a leading management consulting firm.