Name the tool that can be used to analyze the current business portfolio of a firm.

Principles of Management
OER 2019th Edition
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax
Chapter9: The Strategic Management Process: Achieving And Sustaining Competitive Advantage
Section: Chapter Questions
Problem 3CRQ: Give an example for why a firm would pursue each of the three grand strategies.
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1. Name the tool that can be used to analyze the current business portfolio of a firm.

 

2. What two variables does this business portfolio tool focus on.

 

3. Which of the strategies generated by this growth tool is the most risky.

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Step 1

Ans. Introduction

Portfolio analysis is the point at which you concentrate on a venture portfolio to decide whether it meets your effective financial planning objectives and inclinations. It's likewise a method for checking whether it meets the objectives you've set for your portfolios, like gamble, expansion, and execution.

Consider a portfolio a container that holds your interests in general. The all out worth of the container is the amount of the market costs of your ventures. Yet, how would you gauge the all out hazard of the container?

You might see that as situation develop in the business sectors, certain ventures answer with more keen cost developments than different speculations. For instance, when it rains, the cost of a ride with Uber or Lyft rises, yet the cost of a TV on Amazon is unaffected. The awareness of a speculation to situation transpiring in the market is painstakingly watched and estimated by market experts.

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