The starting point in the portfolio planning process requires the firm to analyze businesses in terms of their ________.
A) similarity and stability
B) dissimilarity and market share
C) market share and growth prospects
D) customer base and employee credentials

Question

Quizplus · Accepted Answer

The starting point in portfolio planning is to analyze businesses in terms of their market share and growth prospects. This analysis helps the firm to decide which businesses to invest in and which ones to divest. businesses with high market share and high growth prospects are considered to be stars and the firm should invest in them, while businesses with low market share and low growth prospects are considered to be dogs and the firm should divest them.

The Starting Point in the Portfolio Planning Process Requires the Firm