Strategy - Strategic portfolios

7 important questions on Strategy - Strategic portfolios

What is a strategic business unit (SBU)?

Relatively autonomous business units that are usually active in specific product markets and that have profit & loss responsibilities

What is the aim of corporate decision making?

Improving the competitive positions of strategic business units

What is a strategic portfolio?

A diagram with SBU positioning
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What is compared in a strategic portfolio?

The added values of SBUs are compared and evaluated in the corporate context

What are the 4 positions of a SBU concering the BCG matrix?

High marketshare of SBU in market
  • Star: SBU with high growth potential
  • Cashcow: SBU in mature market, low growth potential (-> generate cash for stars)
Low marketshare of SBU in market
  • Question mark: high growth potential (-> star or dog)
  • Dog: low growth potential (-> sold)

In which way generate cash cows money for the starts?

Gaining the best possible returns in the short-term, while investing only minimally

How are question marks promoted to growth into future stars?

By more management attention, time and funding

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