Relevance. Widely used in the practice of strategic choice has received a two-dimensional matrix , developed by the Boston Consulting Group. Therefore, this matrix is a matrix known as " Boston Consulting Group " or BCG matrix . This matrix allows the company to classify the products in its market share relative to its main competitors and the rate of annual growth in the industry. Matrix enables us to determine which products company occupies a leading position compared to competitors , what is the dynamics of its markets , allows to make the preliminary allocation of financial resources between strategic products. The matrix is based on the well-known premise - the greater the share of goods in the market ( the larger the volume of
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The basic method of portfolio analysis is the construction of two-dimensional matrices , by which business units or products can be compared with each other based on criteria such as sales growth , relative competitive position , the stage of the life cycle , market share, industry attractiveness , etc. The implemented principles of market segmentation (highlight the most important criteria based on the analysis of the external environment ), and analysis of the enterprise and agreement ( pairwise comparison of criteria) . It should be noted that although in the matrices of different consulting firms use different sets of variables , but it is still two-dimensional matrix , in which one axis fixed values of the internal factors, and on the other - external .
Portfolio analysis is designed to address the following issues :
• coordination of business strategies or strategies of economic departments. It aims to provide a balance between business units and quick-impact areas , to prepare the future ;
• the allocation of human and financial resources between business units ;
• analysis of the portfolio balance;
• Establishing executive tasks;
• Restructuring the company ( merger, acquisition , liquidation or other actions to change the management structure of the company , business expansion or contraction ) .
1.2 Advantages and disadvantages of portfolio