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Management article
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Reference no. 81112
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1981

Abstract

Seven steps assist managers in evaluating an existing portfolio model or in designing an idiosyncratic approach: establishing the level and unit of analysis; identifying the relevant dimensions; determining the relative importance of the dimensions; constructing a matrix; locating the products or businesses on the relevant portfolio dimensions; projecting the likely position of each product or business on the dimensions; and selecting the desired position for each existing and new product and deciding how to allocate resources among these products.

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Abstract

Seven steps assist managers in evaluating an existing portfolio model or in designing an idiosyncratic approach: establishing the level and unit of analysis; identifying the relevant dimensions; determining the relative importance of the dimensions; constructing a matrix; locating the products or businesses on the relevant portfolio dimensions; projecting the likely position of each product or business on the dimensions; and selecting the desired position for each existing and new product and deciding how to allocate resources among these products.

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