As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio.What would be a good choice for this firm?

Question

Quizplus · Accepted Answer

Strategic business units (SBUs) provide a framework for analyzing the company's product portfolio based on market share and growth potential. John can use this analysis to determine which product lines should receive additional resources and which should be removed from the portfolio. This approach is more effective than computer models, which lack the qualitative insights provided by SBUs, and more specific than a marketing or inventory audit, which may not provide a comprehensive view of the product portfolio.

As Chief Executive of Stalwart Shipfitting Company, a Diversified Producer