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Multibusiness Strategy
Chapter 9
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1. Understand the portfolio approach to strategic analysis
and choice in multibusiness companies.
2. Understand and use three different portfolio approaches to
conduct strategic analysis and choice in multibusiness
companies
3. Identify the limitations and weaknesses of the various
portfolio approaches
4. Understand the synergy approach to strategic analysis and
choice in multibusiness companies
5. Evaluate the parent company role in strategic analysis and
choice to determine whether and how it adds tangible
value in a multibusiness company
9-3
The Portfolio Approach
The portfolio approach is a historical starting point
for strategic analysis and choice in multibusiness
firms
Boston Consulting Group (BCG) pioneered an
approach called portfolio techniques that attempted
to help managers
“balance” the flow of cash
resources among their various
businesses while identifying their
basic strategic purpose within the overall portfolio
9-4
The BCG Growth-Share Matrix
9-5
The Industry Attractiveness-Business Strength
Matrix
9-6
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