Multibusiness Strategy
         Chapter 9
    McGraw-Hill/Irwin                           Copyright © 2011 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
  Ex. 9.2  The BCG Growth-Share Matrix
                                                         9-5
  Ex. 9.4  The Industry Attractiveness-Business Strength 
  Matrix
                                                                           9-6