What is a business portfolio? How does a company typically conduct a portfolio analysis?
What will be an ideal response?
A business portfolio is the collection of businesses and products that make up a company. Business portfolio planning involves two steps. First, the company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment. Second, it must shape the future portfolio by developing strategies for growth and downsizing. The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones. Management's first step is to identify the key businesses that make up the company, called strategic business units (SBUs). An SBU can be a company division, a product line within a division, or sometimes a single product or brand. The company next assesses the attractiveness of its various SBUs and decides how much support each deserves. When designing a business portfolio, it's a good idea to add and support 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.
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Franklin Company is a medium-sized manufacturer of bicycles. During the year a new line called "Radical" was made available to Franklin's customers. The break-even point for sales of Radical is $250,00 . with a contribution margin ratio of 40 percent. Assuming that the profit for the Radical line during the year amounted to $80,000 . total sales during the year would have amounted to:
a. $450,000. b. $420,000. c. $400,000. d. $475,000.
By the late 1940s, on which aspect of leadership did the majority of research focus?
a. analyzing their traits rather than on their behavior b. the behavior of leaders rather than on analyzing their traits c. the outcomes of their decisions rather than how they arrived at their decisions d. the methods used to achieve their decisions rather than the outcomes of their decisions
Which of the following is not a balanced scorecard category?
a. Quality b. Financial c. Internal business d. Customer
Commonly shared in online environments, a(n) ___________________ is a type of visual aid that combines images and graphic elements to present complex information in a format that is easy to understand
Fill in the blank(s) with correct word