CORPORATE PORTFOLIO ANALYSIS Boston Consulting Group (BCG)

Matrix

BCG Matrix was developed by Boston Consulting Group, USA.

According to this technique, businesses or products are classified as low or high performers depending upon

Industry Growth Rate

Firm’s Market Share.

CORPORATE PORTFOLIO ANALYSIS General Electric (GE) Business Screen

General electric of USA, with the support of the consulting firm McKinsey and company developed a more complicated matrix as a technique of portfolio analysis.The GE Business Screen includes:

Industry attractiveness in terms of growth rate

Business strength of a frim

CORPORATE PORTFOLIO ANALYSIS

Strategic Position and Action Evaluation (SPACE)

SPACE involves a consideration of four dimensions as below

Firm’s competitive advantages Firm’s financial strength Industry Strength Environmental stability

FINANCIAL STRENGTH

LOW HIGH

HIGH HIGH

ENVIRONMENTAl INDUSTRY

STABILITY STRENGTHS

low low

LOW HIGH

COMPETITIVE ADVANTAGE

CORPORATE PORTFOLIO ANALYSISDirection Policy Matrix (DPM)

DPM developed by Sheel chemicals UKDPM uses the two dimension to select

strategiesBusiness Sector Prospects

Unattractive Average Attractive

Firm’s Competitive CapabilitiesWeakAverageStrong