q Unik- IE Conponate Tor tpolio Analisis Meaning - Tt isa sk a4 ‘techniques hak. help. strategist» 9 taking obrategic 4 with to individual p10 businesses in a firm's panteoli, Tn this each eeqrrent af company product ine is On Ong anisati on's = evaluated . This | Soler % Production cost * Monket. share x Potential Rd ge Lthis ed in Hid! 1960. Techniques of Covporate Tort polio Pvalig * Bet mabin on Product Por tpolio x GE Nine! cell “model. # Hofer's product mookel evolwien Wy Direch onal. poliey ono. the shat? osition x Acton evaluation on heeS bp. CFA* 4 onalze Hoe conan businen portsolio x To oddl row produc, om 3evics businesses gt To decide produc Advankages ay CPA nancial stobildy ¢ Tt defines the + with the peer 4 Tt acts os On ee 1 no various producl bends \7- donscosting: Baie jnvest0Ts x Tt gne rmgormation 3 osx to Now Aim of Cow Pe. ee Juninons ad. deeds wshith [puilinesses = dae anon. OnLess investment a yo devdop grout Stas : pew jbusnesse?* 4 To decide wuth buna ‘shoulel , Components of. cPAY x Risk Aversion a re Boalyg i shal 4 Debnmrining Dispersion 2 Pebuinng #¥ Valu moximi gation rE we Sujpiciency, Choice of strategy tL Shiategic choice oupens thy Hy decision which determines — the udune ptrateny of a tim. Tt addresses the quustion “When shall wa go” Ar SWOT Wits, donducled, to erent a otren ond weoknoser Of tho dim one opportunities that con he exploit One also determinecl, Factors ofc ching strategic choice x Envivenruntal const vainks x Internal. organisations put. emanaggerent pouten gulat ons haps‘Nala ancl prefermness Monougernents attituele dowanels aisle gw “Time constraints — time pressure , daame head a on she] of decision # Frgormaton *etcaeblas 4 Compettors gneacon ‘foce Shategic Choicet a> Focusing on alternnatvesi+ The aim o4 this stip is to nore coun) the choice te | a rranag calle nuumben Of feanihle eo bray yt can atok. be done. visual a hatin vane me ene savor JB : Managers apranally us GAP ornelyyi this punport- By. eventing son lo hun clepiniton ih helps The manager “tn think in a a a!have tts be > Cahoon et erg Each gacton ie evaluated a; the ondon). te cot ie. Hal zation acne iss | clep involve® mae, = a conned oud on the OT cyealive deck dy. Marg sharteate A ehratenit Be tebe olbonal choice! | choice yuk Jeol | |‘Tmportance. of aon at a - rar A voi Ce b— Ww x hethern oO Wanimeee succeeds on fai ls depends in Longs eae Ane etateg~ choice eel ga by the ee one”: # Spending ond mone intrnducd x pre Lue t vt te have do prob uss 2)! Anlaeds qmonket is an enomple back etrategse eheick : x Anteipatnd a. olin in Gonmusne7 io i a, iam Lagte® awd re bake odvartoy® i eck. chante example “a a compet good otratede choice + the djeveloprent of business eheteg tokee into neocon that oll companie> and 2a with limi tect pes ounee % some, eotend x The Coes a ocewespl companies oath, oblocadee ecanc® 2h obuaiein bo the project® thot. have the oreateot Re \mp out Ree impr owe ol bt aoa on revere Y" vity oa ed in produc JVC reine pregit monga Boston CONSULTING GRDUP MATRty BCh Matyi ln Trtiodu chon = Boston consulting Gwoup matnig is developeok ty pquek HENDERSON a t oeTon CONSULTING CnRouP. INTHE EARLy 1a70'S Aceonding to this techni opt, loustness, 0 laesigied! as ow om hi f upon +hein market ate vond tnelative market share Relative Mardeh shore and Markek gs To undewhanel the Boston Madtix you nod te-undertend Wow menel shen onc monket gprovith inhennelate. MARKET SHARE !~ Monkef. ‘share ' the pencentnge the total morket shat is being dewvicedl by oun Company, meoswuidl either ln events on unit ‘volume Jeune.RELATIVE MARKET SHARE '- MUR east. wane ea les a le Dean oie on elt OO leg ea Line, vival. sales this year awe higihety oun market faints, «' hit proportion of. +he mankek we Ppt MARRE T CnaROWTH RATE Manket geowth is used asa means ot manele abtvractivences . Trdividual sales Bip Aducel oles . Amdividual Wis vlasks Hee? hi are wth ane ones ket shane aves l Moakets |@2qpe encig where the toballe mon ie expendind and thene'S, plenty of opportunity 4or aie bo male monty. THE Bin MAGROWTH 5 SHARE MATRIX. Tt “ts eos portfolio planning model uhh io loased on the obsenvatio7 +thak a company ® be clacsigied ino four businese 0 nit can coegonies ola. dest Rosdien } ‘ AaGSMoantot Guroudh Rate g + Stow NF rasam 4 ree # Auston maa “— ae din o attauk + Cosh tows : oe ry — él par Jey pov ilyincs! Re lative ae Shane foes A Giergatien), \ Cam Cows STARS ap Bat High market shane Hw stars ane De in business 7 w ate colo supine shan inverbnent , to ynountain ite monkob show 1 hy Te deads do Sasa aroun siluafecl ab deeming sp. QUESTION MARKS : Hift pout 9 Low mankel, Anore ' hion marks x Mont busines aborb ap ios qe # ‘They alll, absorb amnounds 4! co iy the rendeeh © short eva on a why queion ymronks 2 — outsH Qutio monks Jnove potential ug loncome ston and evertually courh, buk ean, valao shucome a dog 4 # Twebrank ehoulol ba gh, quodion marks. Beng of ‘etn Matix! +. ; ay This; ‘eiriple ae oxy t to uindarstoinel - by Tt helps You | do qpuicldy and fy gcreen the opportunities open bo Hovis hulp you think abouts how t" can make the mont of thom. cy Tt is used do identity 7) 1 ld Pawia sresourcee wean beet de us to Peaslmize- a companys quiwe peut © and propitability . Limitations of BCG Meelrixt ay Tt uses only two dimension %, Relative monkeb shane cond market gpowth ae ky Problems of getting deta on ose! ahare and market grouth | cy High market share does votlimea™ progite al the time. ; a» Business apith Jou market shoot “— ogitable Re can bereef fess is - ‘ ase dhrest +7 ae aa ERDr thane ferred} ‘ av iy Progile of products ypiestie ii) The ns oy produuch ©” " she davalopmerd. cycle af produchs Resource onan cand diveetmont vdeaicion >: TO fasiveett 7. Vil. re re on Ms wily Ca nelusion I ‘dn matrix has its tnt is Though one of dhe ea “omeus vond “aimple portfol'e planing rmatyix ,uUS on ple having multi products _ The GE Nine, Cell planning cas lectaic Cay iia ioned “In the 1405 , thot i to develop ) O pordyolto Mckinsey & Compa its "pire Unit. analysis matrix 401 ee Th ig a shrategy | tool. tha "gle systemat ¢ approach gor the hen Inve, enterprises +o prioviting anone +ne various Tr iso business porchategi ¢ implication 6 . Thie matrix has > points wy common with the | Tk atonds for veka Rusines® iat n mapa analysis: [trrachvene®5 ¢ Reseosment cae ‘Busines® otis sna | Manket Attractiveness | | ¥ Tndusty atiachveness indicates hola | hand oY eony it uill be Jor a company to compel. hin the market anol enn progits. work abba olive tt becomes . # The more progitable the industry Ip the ) x When evaluating the industry adbyactive ye2s, ts should’ look (a an induatyy wit change in the Neng Ww) siothon than in the Rew Near Jop Ges snes i” appraised “ee yao ‘dimenatons —. Monkeb Ti ve = yond Business strength | i these Jactons \o ‘missi Hn nat produce, analog pvt ane eS pr sithen a shong | HMA YE aL 1 ee out, me sack eon ) ope in an ablsactve man il! id “Thaee diygeront shategles ioe be chistingusshed anc adopted using ie GE Mehinsey Matrix Lnvest ] Goes \e ' Suggest us te‘godhead to ad eee ca, pushing you “through ‘expansion strategies : Businesses in the ‘qneen gone attract’ majoY i pvestment i = 4X Gineen Zone Yellow zone, Hold be ia cn ‘ Caubions you to ‘\yai} “ound 02" indicating old and mountain ype of ahradeyes aiyneal estabilily. jPed zone Hanverts/ self Tindicates +nat y adopt }unove | otrategic® he divestmen ore * Biquidation ov nelovildi Advankages ey | 1 Helps te pritnitige the fo achiewe the b dimited hesouncy, in orden est sehows >) Manager becornd, mdip euvorw: Of. Sow thor products ov business units Peyorm, aiid Tts. more sophisticated business port fois frame work than the PC& mma ti yo : i> dent fies tthe shaleges steps the needs, te make bb improve comp business pateolio : ithe pergor mance of its Masket Pekraghveness © frnnwod mankil growth owe Overall maat size Historical propit rmangin Croan Sine Of mankeof Morkel stictune Monket rivals Demand voriability Bee ega y= ¥ (slobal opportunities’ Business Strength: x Goward roarkel shan, 4 Brand imate x oe ¥ Poducton capael Fy bord x. Conporade tea iW | d+ Progit margin’ nelative te compeitors | w ® £D peers p * Ge aigetverh) eqjectivaness : Example Moowht Udyog + Founded in 1981 # Products Or Moowt $00 ,Omni , Alto, Sry, Suite 2 Ritz, Desitez Swift , Acstan jorsreg »Wogen others - tay ne i L Ven The Lenses in the Indion Rotomobile Snduaday Creating custemen Delgrt and” hpnehnolder's, Wealth’; @ pride, of Trdic 4 (me voluailess Ogn leans Vvaluas dxtye vs in ev omdeavoun , + Customer Obsession i> Fast flexible and first move {> “Ennevation’ 2° Crreativby . i) Networking ZL Posdnesship vy Openness) 8 Lessing ¥Coopovall A al Gunviic ‘Sreategles > 3 Tohoduction: erin )' They ane bavically aboud the chy ay dectn that agin ade in ond i achieve ih objectves Tp essentially a Corporake vhalgy ads the overall divechion don the ongarina on to folloc it also spd out tha exbend , pact vend timing o the divm's quuth wht BM This q plan Ahab gives ahi a cempuh tive oclvardage “thee +he ion and, ee “4° y m Compan of enllo prises orem ee en an onal tk earion: Q aii oo ey idk, sudese 2 sancl boost utainabhe oils Chanoclanisticn - 4) Div ensipications 5 TE involver eo Company, expanding a juniness intko raw rroodee’a The youn obectve % divensigeging the, gewrenyLyolia is oa. it aoe on one ag ant eet witty isk ae multiple oreo . Tt the ‘puanssaee . ye mone ce clthaes in exist rosa *y 8 coytening Aiyjerand produck 6 ‘ woo be tailonect be wipe. “cunt? a LL haa Hedh shone terwel » resell Om xi otedn andl Scketla They ‘nvolves “eithan expaneling uni ners operations ilo a nelaticl \ meer on enbring into aun entirely new Jn ; Forwarel trlagln COUN Then ao company | + obues ownermup aeet eontrol overt supplies ‘init production. prey ; Boskwenrel integra lor); happens uthen A Soles ousnemhip Kank conbrol ov oven dishi- bubor in ub dishiloulion pro Cm. 4 Horizontal Trtegnation: Th involves rnerging on cacklving Companys in Hhe voune ‘Mag fis primanu motivation i6 le inentak cer aot om gain ocen ho ew” mest } tuRoman » iil a Sao PH. SS aoe 385 whee AM ;S marke 4 Penak vation’ = es} a. involve 8” increasing tug wee mie whore for existing Produ On Nowices witn ‘can gif nbsatignts So om thei Pek urs jail et predict innovation , yen. om Compaight yanel distribution tpl this Mnatig, Toobiee ere a Tt vis the proc alls pee" of _ oat, ee all manila dbsolve mgr eo and. ae hn by sable “ to pred, mecuive cee their Inverbmond “seapl one 4) aae _ Types 3 lability 7 Strategy * wi loner Joel, rey i ST WSe ; Ww T+ involves maintaining the otaduys and keop operations wa thin exist) param lo W~ y” SVR a” Tt foouns on preserving the cumort state of une Z ovoiding “wan rrafey ao opal. ‘ vv hone rumen seody strnovg eggect ve monket eyonts ok eon ad : mwu # im be dleplogeet: ushen cond hor 3 A Gable Daub oan & fr +t cen rpelucle onal extenou grauath seh 284 Th-involve new product aunah» on services enfruing ra ymeinkel on expanding existing ones . # Compances musth consiclen fockor Like operational, veerperhilites , quali, quurance objectives and pinanecal Swro wrlls vavailohle shof ow eee actim it} Wotronchment Hrakegy PIT rm" abso known or dounsiging On sughd sing. 1. —“‘ \ IT twolves weducing ‘the 8i3¢ and +» Scope of an organizations oporahons to save Come cane] iinprove eyiclency w LE involves eutling ou cand susourch while ertreamlining procewses to maximilt piojits tuithout wacrizicing, proc quodity On eurbarnen ating ication B® Tho Wy of coporate, level Srraley is es when il dairy inancial veliyjicly dic te econgmie YeCLan , change in eonelitions, conyetiti» Com binahon Unralkegy 4 Tk involves the on it akon o} Lu10 on mon dyson etvabgies. Compantts °, Ut this 4 nokane th peer, * shor» new moot beinel inylerenting trio tye wrokegy DLVenLhs , imyvwveel efpicieny, iperraneel og. peblr euro mw” aenviee Levels cual gre prepitabilitg f a poem Becks pong LO Wels Duh be oe to ie objech ves enol goals. The euceen of OY binines oralega duperela on UA inyolemen - —tabim et the Y np once aF Unik 182 ee Splatter 4: phroduckian rorayett | Tt Inve vee derming ation seat ivmplamening» 3k oun Sha usin ov feam : eanning vont hp You execuk. on © ppchion’s plans Meaning * CORRTEN wi ahi dé a9 & beam | to er the achvites | within an “ pajanigation 1 the enecut ion a a re plan Depinition's, “accord ‘to Grapau i et the slieies. {pu the: implementation Gh ‘pe ‘ ohrateqes 1 rhe alain 7 outer ond the oxchi Sy Ochiene ; infegnation © ve Te act ll ; teata Magi * Int Sung tol linglinbet od. Depnw! eldan, goals 2 shategiesh Boplaying ‘the goals ancl duived jl shel on a whitsloarcl on ppt or the Sraluding vanl ai con duly ts c Ling ent Sree wuhod ib bes Like whan they shave swathed Harum... Dalle 4 ond Ll Hosting wren mashing You explain the a oe aati) on Sd team. This con Vy ove, cuecounkall mMvy) oe on Omer Se pa KOMer , YOU oe tt rca oe Hol, Seah yn ry O the det ah faut days on works onl poe: Joe Oo od He de ae va! pivis neport s+ help oy wueaknoner nese doe cae _ oor eat con halp motive ember to ee nite ‘page mounLein cluckiv pioject ie coe mop wanitor individaa) r{gective Srrete ge “mp\etnemrterhont a Cstablinw Lrequand hae BU) ‘ ’ # Promote horwrly ita ‘ i—e—rlrl—i—‘“ ‘Roe, of ‘op Mandagornrt v Z p Top. man ‘A de nesporrible doy estaklaring pall rdabinas vancl ohabay any gg management ' within Hw ongenigabiin. pelea hos peter 7" deal a Creating and main vision. ‘ «x Monaging company “finances { 4 Developing goals ancl plan by achieve taining the company, Sf Overueeina daily optnations é * Hing Anning and developing SD + Grkablishing ” and ee uphalding fe anear a Congunscating expectation to aban halden A Maidaivs produchive euntornar puledron a [nothing eredkive whrakages 03 auip Manage rau i, bs Ppeitions OF we . Chief Crecutive opp icer A nl ginanetal agfictn i Openacting fg lon | one vee Ong ion esp ‘ venclartls an’ oe oo Ty a ta! € Shils ie for Top at 4 \eaclewhip = Tt to abouk\ ee a hap, wd. encavaging popeitea pore Haus goah P Communication wuts ora: see only uithin teepigh ation ut Juith staltholdorw oubicke the uth ioe en as cones ictal «‘ Shetegte “thinking | clk soll “Top Pg ¢ develop a exganiaational plans \ which yet be el Jonwand=logking, %, ensure 4 > @ auceos And ih poqpurns Strategie thinking # Decision Malina i : me 7 j “Top hve mmanagyars ‘hold the - higpet curthenity Iw decision mala ne Thug they Fine, 3 eee perce? ri # Gad allg N “Top le panes Pees an inttennel cbuive daom peopl. wulthin the onganination ty move towards, their gealls ancl support tuhet ahey Shave planned. & Hwnen Due developrrant- a ‘yued people Aale cornmeal and ove the Su compekencies Jo r out Nhwin pleura “a dinection.. “a ia: wih cet Se EGE # ‘Daleae sai ‘ 6 rot just apse” kta i on leas o Wategic ‘decision: Wiel wa vdinates Bud. at's alse a Ps eo uber decor and motivate thom OM . oh smpatstin proce +t Set ancals Dalmnmine the aotle on ee -uide on de parma Spelt - Then identiqey any key variables on gbeehacles tab may pride councl ‘de velop le okt A Determine Roles Aovimoiieate: Your Implementation Strot with your ream Thio null help you bilities ecuch elepar cabablish wheels) aveporn?: AU dake’ on ancl outline on action plan fon colleagues vend udelerhe a # Resign Wonk - eam mambo - Assigh tucks to Your Each individual) stole Sci nod Pheeae a vanel how thorn | sae Deadlinas ets be rmunealtl bo! ensne He ee a Tih time to put your wnaligic ee rend shoull have — chook in, ot yor deni to ie garter vedi a vaoacl tld # Maju diel Rein oqs = ™ me die salt# Comte fhe Jobe Con nve to. — , ee Plasshey a amiiows team pndfesanar ia Get the. paject is on track nak no additon Ra RASS oe ‘| pd “to achieve the. goal pikn fe Zt Revie and. Peplect Regleot.. on the, inate. process anel meview what went well ARM that did nob . Ue “there leanings to inyyiove. * yous, aateggy fon fee, projedls ' Appro aclu of Sheleg re Tmplenertair # Pommanclen Approach Ae ge hin Spinal j#he manager Anacst bnane ara eck sb alegy by +s yo suit ho. Valp ep expel, , “K Changs Approweht . eis ; Ae Approach mainly Focuses on preparing dhe onganivation to Couvny oul sb io + a Reconding ba the acne this astroligy » thwin owsponsibility 2 Jo Get the bumnow ouooly to move doward, the new abrategio goals a The ibusmordh ublived uncon 41 shratigg include updated planing ond + Cullirol Approach.) 4 Tk ajo etich: organization mendbe the chance to contri bubs to the creation. andl eetution of the shakigy < Ti. asta swaponeibility ated dsfins Epon aanjgetion’s mu Or, LD oval provide pwn work ockivities the support |yon oroet ehedeqs , lou She alo hi vb ab eat son ii \ ahi ech. mdi vidio) | oped ) approach ia ceo individual proporal, ey emplaype runt shave aes2 7 Pounce Allocation’ of Shatege Geni acatane, ht allocation iT) 2 stategtealll Salling veinal amigning ave able rooounces to a teak on’ project Lo Support [auinere aetiee 7 Tmpontance - x Enger work 4 shite cv ameng, oll rwsornees do pe a oe ve athe uly, kino vand train eee 5 © allocaiel A ts ree oninence. iG optinigpel thy “medchiney i Seouncrr bo the sii Peano Sight dima . Benepits: x Sta4 Retent Yor A tivrm con we the proper -yesounce allocation proc to drive etter swo0Uree y satispaction Rial utilization etegayertne allocation methods ult ake nk othe capable and available bung overlooked , Prouness, em ; tanles One acelgnel fainly wa ai, soll Ciel Sabiaoetor Resource ronorger down 7 onan that thu» clienDA: an provided rh tee be me powibla itl, the lho : auible, combini \ ry eapenieno ret ight nibh acesaditations Soshwant ophmige the: Rarouncg A \locaton a Reduce aclmin via cuilo nebeel bee motah Swoowrer adlocohtn ) 4 8 b> Basil explore adbennative nrouncling | clecisiOn with g necter visibilityo . > \tock sills and prejerence Ths supponb quulylling cars dy Trowax trans p wuithin the Surource, allocation Procey ape w Finanwial’ SWooUrtey a : # “Physioal) swoouneey xt Human Sunourens a Technological Srpowrees. - Componank KV * Francia) planing a, # Wonktonee & Project’ Sehedulir w Asst dishilubiok. ‘Role # Tt helps 4acilitate” communication amona teams # Ib abo help a Josten collaboration # It allows Communication vutth Staktholdou to kop them ued about pragnen towards abn Hs, noeaashonn toy Nee eagoneterion- y_ Lommitrrent t ane obahagg . A ihe Real cos ps the top uk it ee yot endl thene + Middle roanogerart. aa pron Line odspervisons mat Snave She Fret hacded to cornmunicate “the Pan vol envvall the empayees in the obcdegy. cw nob cornmitted ; the aed of the 4 es orgonigation Tonk pe: eithon + Ability and will Tt auquins jee Fie embract change while other pnd ey hho knowin 40% yea . aaa COMMS = you have bean followinF) tthe * soma swaleqy dan 50 years tho 1 o Sem Mi time Jo Chanoe Sl (Y chasiine tthe onimpontant Mekinsey's 18 OP »anbeoothe- Trtieduction~ pv ods , # Te isa gobal rangement PMT gm 3 the trusted advises te the world Jeaking pusinens e+ _Qovernmart wand inohhitions . x Founded by Blames 9. Mekinsey in \926 x The 1s dorcunawork me menage’ model ‘lavelopsect hy Robert v: Waterman # Jom Pe bens gosis of “Te Modal 4 the model is boxed on Theory hak fon an ongoninattion {pe peyoun. wall “tra elamarta ywork fy he alignoe vonel yw Yorei Mi. con be useel abo Me oss godtio ondia Elemats: Harel Elemundi , G04 E leper “i, shawl Values © i - alt Systems cee Harel elmavti cow those, (Sop elements aut Lay wich con be ecuihy ble ond woke vankiged acl Ane inpluenceel coy alin eae hy manages Hand, elements yw Strategyr The plan devised bo maintain anel build competitive advontbage oven the wt competition ; Yoho HK Stucwer Th, wos the mrgangetion 19 Shwelwucl ond sho oaports Lo whom fy 2yelerni- The doily cctvites and procedure Mra otayg rrombou engarze in Yo os Whe ‘eo dons #goyk © t PF ii disnec Shorad value : it \a ‘collec Subondinads eck, when the Sargent Was fitak developed , tia eons velues of. stha Company one pel au evidencecl wn the corporate, genoal vuorle ethic pulbe venel the copanilitie x Skillav ie ee FREE Ge. The vocks al chill, and compadencits fac ela og aoe leDenwhacks of 78 modal .. - YF & the external environment noe mer in the Mekin sexy le Framework, altho athe otran variables do.exlot and tha, only the most ceil variables ono depicted in the meclel: # The notion of Pperfownanca 0% Srectvenass is nob yale. expli cit th Ohalegic Positioning, Strategic positioning ig alll about wher a Compahy gtands in the market . Tid how a busines distinguishes iteely trom its competitors onel how ib 1s parcaivedt urstomer In CO wunion to othor Comp anies in the, indushe undluubancline its position ,a busines coun moe strategic decisions thet will \elp It Diggeuntiation focus Ottatesgic positioninc analysis x Competitor analysis Skills ond expartise . # Madel analysis fe Resowre avail abilityFinancial stahility H a and rales Foun Route to Cormpetitive Advan: Meaning Oy \ \ “t \hen ‘two of move -Flem Compde within the Same morket jone- dims possesses a competitive adventage. oven its ai when it gaane | % perwis tently higher nate. of pryit Types Ss 7 Cost advarboge. Competitive ae 44 Miiances Strategy @ They ae considered o loy sha of or on company developrent . tail on \yormedh peodrership hehween Wo or mors organiza Hone in orden to achieve thor con” aoald ana comm : They one 4dexible hich makeo it vi atttactve te ywost \pusiness ea mel ‘ ay well ao ComVamn .Thou ou s typer of strategi¢é alliance, # “Yaading)- They en straight porcand , thy _bugens and cello trom some Gort Of ) cagruamants . ’ RF So i & Functional . The lewie qonctions bet, two pertes whew thay ettorin Specltio “goals ancl ertablih ongoing ‘manegemar| cwlehorshup a: 48 B® Dynames Hb inelvee the hidden asseste oy both panties _ such ao alills, kno ancl capacity econ ty deliver L