Business Portfolio Analysis Using Capgemini

 Business portfolio analysis is basically the procedure of evaluating a business's overall business performance and competitive standing relative to its peer group. Usually used in strategic management to maximize overall investment activities. It provides insight into the most suitable type of business for raising venture capital. An effective portfolio also serves as an indicator of the strength of a business's balance sheet.

There are two broad categories of business portfolio analysis: qualitative and quantitative. In the quantitative portion, this usually refers to either the supply-demand or a mix of the product line in the strategic management plan. It may include production data, historical sales, or forecasted sales. In the case of the qualitative component, it refers to the quality of the business's offerings.

A good part of doing business is finding the most suitable market niche. In order to do that, a good business portfolio analysis must first identify potential competitors. If the company is not aware of its competitors' marketing, technical, and other activities, then it will be hard to strategize and counter their strengths. This is where qualitative research comes in.

An owner might want to use the services of a company like Capgemini to do their business portfolio analysis. The Capgemini method was developed by David S. Capgemini, a former CFO for both BTMS and GE Capital. The method compares the performance of similar companies against a target company and then gives the corporation a letter grade. The letter grade is typically a symbol ranging from "A" to "F". The better the grade, the better the prospect for the company.

As an owner might be looking at increasing his or her total profits, there are many ways to do so. One of those ways is to improve the performance of the company's smaller business units. Most often, this involves using more capital. However, even though capital is necessary to increase the value of the company's small-business portfolio, that strategy should never compromise the owner's responsibility to assess the risk to the company from doing so. Any potential risk should be balanced against the potential reward.

A major advantage of doing a business portfolio analysis with a strategic management service is the use of a matrix. A matrix is a tool used by many financial managers to compare the effects of various events on a given balance sheet. By putting together the information contained in the matrix, the CFO can see which types of events tend to affect the value of a particular segment of the business. Then, he or she can decide whether those events are worth pursuing and how much he or she should charge for the activity.

Read more about the portfolio analyse, project analyses in strategic management on thekeepitsimple, a blogging website for people related to management and business leaders.

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