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Strategic Management Analysis

   

Added on  2020-02-19

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StrategicManagement 1
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY..................................................................................................................................3Describe the advantages and disadvantages of Portfolio Analysis..............................................3Explain how Corporate Parenting can contribute to an effective corporate strategy..................3Describe the two types of diversification strategies....................................................................4The roles each of the four vertical growth integration strategies................................................4Conclusion.......................................................................................................................................5References........................................................................................................................................62
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INTRODUCTION Strategic management can be defined as the process in which different plans aredeveloped and implemented with an objective to carry out the smooth flow of businessoperations and accomplish different goals[ CITATION Bet16 \l 1033 ]. The present reportsexplain the key advantages and disadvantages linked to portfolio analysis. The role of corporateparenting in enhancing a firm’s overall corporate strategy is also reflected in this report. MAIN BODY Describe the advantages and disadvantages of Portfolio AnalysisPortfolio analysis can be termed as an efficient process which allows businesses to carryout the systematic analysis of their services and products offered. Furthermore, portfolio analysisis conducted by companies with an objective to identify the performance of their investmentportfolio with regards to areas such as risks and rate of return. The key advantage of carrying outportfolio analysis is that it supports businesses in managing risk and return efficiently. Inaddition to this, it assists corporations to conduct an adequate evaluation of their differentbusiness unit and helps in accurately allocating resources. On the other side of this, it can be critically argued that the process encouragescompanies to carry out the separation of their products, services, and business units and this isvery time consuming and complicated process[ CITATION Hil14 \l 1033 ]. Anotherdisadvantage of portfolio analysis is that the analysis depends entirely on forecasting and it is notnecessary that prediction provides accurate and correct information every time. Companies canmake use of portfolio analysis to identify the current position of their products in BCG matrix.For example, it can render organizations with information that some products lie in the categoryof dogs which indicates low market share and low growth rate of products. Based on theinformation collected, companies can take corrective measures through portfolio analysis. Explain how Corporate Parenting can contribute to an effective corporate strategyCorporate parenting can be termed as the process in which the corporate headquarter of acompany takes care of different business sub units. It can be expressed that corporate parentingdirectly contributes to development and implementation of the effective corporate strategy. Forexample, SWOT analysis of different business units can be carried out by corporate headquartersof the company. The analysis is considered as a crucial and integral part of corporate parentingand helps companies to identify the key strengths and weakness of every unit. Furthermore, the3
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