内容文本教程portfolio analysis

1、ACFI3213 Week 10 LectureDarren SparkesCorporate Appraisal, Portfolio AnalysisJohnson, Whittington, Scholes, Angwin & Regner (2014) Exploring Strategy, tenth edition, pp 49-52, 244-248Plus article in Additional Materials on BbPosition AuditMission & ObjectivesEnvironmental AnalysisCorporate Appraisal

2、Strategic Option GenerationStrategy Evaluation & ChoiceStrategy Implemen -tationReview & ControlThe Rational Planning Model3Position AuditMission & ObjectivesEnvironmental AnalysisCorporate AppraisalStrategic Option GenerationStrategy Evaluation & ChoiceStrategy Implemen -tationReview & ControlThe R

3、ational Planning Model4STRENGTHSWEAKNESSESOPPORTUNITIESTHREATSINTERNAL specific to the organisationEXTERNAL open to the whole market/industryCorporate Appraisal -SWOT Analysis5Learning esConduct a corporate appraisal for an organisationEvaluate the product portfolio of an organisationCritically eval

4、uate the BCG matrix as a portfolio management toolEvaluate alternative portfolio management tools and modelsIntroductionGrowthMaturityDeclineLife Cycle7IntroductionGrowthMaturityDeclineSales/Profits/CashSales volumeIndustry Life CycleLow rivalry:High Differentiation, Innovation keyLow rivalry:High g

5、rowth & weak buyers, low entry barriers, Growth ability keyStronger buyers: Low growth & standard products, Higher entry barriers, Market share and cost keyExtreme rivalry:Typically many leavers & price competition, Cost and commitment key8IntroductionGrowthMaturityDeclineSales/Profits/CashSales vol

6、umeProduct Life Cycle9IntroductionGrowthMaturityDeclineSales/Profits/CashSales volumeCashProfitProduct Life CyclePlease plot the anticipated profit and cash lines onto the graph10IntroductionGrowthMaturityDeclineSales/Profits/CashSales volumeCashProfitProduct Life CycleXXXXXXXBalanced Portfolio ?11R

7、elative Market ShareMarket Growth RateHighLowHighLowBCG Portfolio Matrix12Relative Market Share (RMS)The SBU/Products market share relative to the largest competitor (market leader) or nearest competitor.The SBU/Products market shareLargest/nearest competitor market shareRMS =The dividing line betwe

8、en low RMS and high RMS is 1Relative Market ShareMarket Growth RateHighLowHighLowBCG Portfolio Matrix1x14Market Growth RateA signal of market attractiveness a high growth market is an attractive market to be inThe dividing line between low and high growth is often taken to be 10%Relative Market Shar

9、eMarket Growth RateHighLowHighLowBCG Portfolio Matrix1x10%16Relative Market ShareMarket Growth RateProblem ChildStarCash CowDogHighLowHighLowBCG Portfolio MatrixBuild or divestLosses & negative cashBuild then holdnegative to neutral cashLosses to breakevenHold then harvestProfits & positive cashMILK

10、 IT!Harvest then divestProfits to lossespositive to negative cashCASH1x10%(Source: Johnson, Whittington and Scholes 2011)17Relative Market ShareMarket Growth RateProblem ChildStarCash CowDogHighLowHighLowBCG Portfolio MatrixXXXXXXXBalanced Portfolio ?1x10%18Analyse the product portfolio of AV plcAV

11、Market Share %Market Leader % Nearest Competitor %Expected Market GrowthBuilding Brick Manufacturer325SmallParcel Carriage Service16NilFood Manufacturer255Slow declinePainting and Decorating0.51.2Forecast to slow downSoftware Development108Rapid growthRelative Market ShareMarket Growth RateProblem C

12、hildStarCash CowDogHighLowHighLowAV plc PortfolioBalanced Portfolio ?1x10%Parcel CarriageBuilding BrickFood ManufacturerSoftwarePainting & Decorating20(Source: S. Edwards Nutton, Financial Management, December/January 2005/06)The Directional Policy Matrix(GE-McKinsey Matrix)Investment & growthSelect

13、ive GrowthSelectivitySelective growthSelectivityHarvest/DivestSelectivityHarvest/DivestHarvest/DivestHigh Medium LowIndustry AttractivenessHighMediumLowBusiness Strength(Source: Johnson, Whittington and Scholes 2011)Learning esConduct a corporate appraisal for an organisationEvaluate the product por

14、tfolio of an organisationCritically evaluate the BCG matrix as a portfolio management toolEvaluate alternative portfolio management tools and modelsTutorial Week 11 You are to conduct a full corporate appraisal (SWOT) for the case study organisation including;An appraisal of the product portfolioAn analysis of resources and competencesA macro environmental analysisAn