Strategic portfolio analysis
Complex situations require more complex methods of analysis. The intention of this chapter is to give the reader an insight into the portfolio analysis approach, and to show the relationship of the data considered to the concepts of industry analysis discussed in an earlier chapter. The value and pitfalls of the concept are described. The chapter explains how risk can be incorporated into portfolio analysis.
During the 1970s there were many major contributions to corporate planning. One of the most significant was undoubtedly strategic portfolio analysis. This technique, which can be found in many different variations, helped to satisfy the emerging need for centralised decisions on key strategic issues ...