The main purpose of a portfolio planning matrix is to:
A)Locate potential synergies between businesses
B)Forecast the future performance of the different businesses
C)Evaluate the group's market positioning of its different products relative to its leading competitors
D)Represent graphically the different businesses in terms of key strategic variables that determine their potential for profit

Question

Quizplus · Accepted Answer

The main purpose of a portfolio planning matrix is to represent graphically the different businesses in terms of key strategic variables that determine their potential for profit. It helps to assess the company's business portfolio and make decisions about allocating resources and investing in new markets or products. It helps to analyze the relative market position and growth prospects of each business unit and prioritize investments based on their potential for profit.

The Main Purpose of a Portfolio Planning Matrix Is To