Portfolio Strategy

Expertise

Strategic portfolio management is the process of analyzing and making decisions on strategic investments for a business (products) or a corporation (strategic business units). The process is aimed at determining what investment priorities should be attached to the firm's product or business portfolio with regard to an intended risk position.

Several crucial questions have to be answered:

  • Do companies use portfolio management to create transparency across their businesses and to identify a need for action at the individual business unit and overall portfolio level?
  • How do diversified companies analyze and manage their corporate portfolios, which analytical methodologies, quantitative metrics or tools do they use?
  • How does the risk profile and overall balance of their portfolio look and what are the synergies between businesses?

References

  • Evaluating alternative divestiture scenarios for a mechanical engineering company
  • Assessing an acquisition target for a mechanical engineering company