7 Lecture

1. What is portfolio analysis? A. The process of evaluating a company's financial statements B. The process of evaluating a company's portfolio of products or services C. The process of evaluating a company's workforce D. The process of evaluating a company's customer base

Answer: B

2. Which of the following is NOT a component of portfolio analysis? A. Strengths and weaknesses analysis B. Competitive analysis C. Market analysis D. SWOT analysis

3. Which portfolio analysis model categorizes products or services into four quadrants based on market share and market growth rate? A. BCG matrix B. Ansoff matrix C. GE matrix D. SWOT matrix

Answer: A

4. Which quadrant of the BCG matrix represents products or services with a high market share and high market growth rate? A. Dogs B. Question marks C. Stars D. Cash cows

Answer: C

5. Which quadrant of the BCG matrix represents products or services with a low market share and high market growth rate? A. Dogs B. Question marks C. Stars D. Cash cows

Answer: B

6. What is the primary goal of portfolio analysis? A. To increase profits B. To improve customer satisfaction C. To reduce costs D. To increase market share

Answer: A

7. Which of the following is a limitation of portfolio analysis? A. It can be time-consuming and expensive B. It does not consider external factors such as the economy or political environment C. It is only useful for large companies D. It is too subjective and does not provide concrete data

Answer: B

8. Which portfolio analysis model is based on the idea that a company's success is dependent on the strength of its competitive position and the attractiveness of the industry? A. BCG matrix B. Ansoff matrix C. GE matrix D. Porter's Five Forces

Answer: D

9. Which quadrant of the GE matrix represents products or services with a strong competitive position and high market attractiveness? A. High potential B. Low potential C. Investment D. Harvest

Answer: C

10. Which of the following is an advantage of portfolio analysis? A. It provides a comprehensive view of the company's portfolio B. It is a quick and easy process C. It focuses only on external factors D. It is not affected by changes in the market

Answer: A

1. What is portfolio analysis? Answer: Portfolio analysis is the process of evaluating a company's portfolio of products, services, or business units in order to determine their overall value and potential for growth.

2. What are the components of portfolio analysis? Answer: The components of portfolio analysis typically include strengths and weaknesses analysis, market analysis, and SWOT analysis.

3. What is the BCG matrix? Answer: The BCG matrix is a portfolio analysis model that categorizes products or services into four quadrants based on market share and market growth rate.

4. What is the GE matrix? Answer: The GE matrix is a portfolio analysis model that evaluates a company's products or services based on their competitive position and market attractiveness.

5. What is a cash cow in the BCG matrix? Answer: A cash cow is a product or service with a high market share but a low market growth rate.

6. What is a star in the BCG matrix? Answer: A star is a product or service with a high market share and a high market growth rate.

7. What is a question mark in the BCG matrix? Answer: A question mark is a product or service with a low market share but a high market growth rate.

8. What is a dog in the BCG matrix? Answer: A dog is a product or service with a low market share and a low market growth rate.

9. What are the limitations of portfolio analysis? Answer: Limitations of portfolio analysis include its subjectivity, its failure to consider external factors, and its potential cost and time requirements.

10. What is the primary goal of portfolio analysis? Answer: The primary goal of portfolio analysis is to identify areas for improvement and make informed decisions about resource allocation and investment in order to increase profits and growth potential.

Portfolio analysis is an essential tool for evaluating a company's product, service, or business unit offerings. It is a structured approach to assessing the overall value and potential for growth of a company's portfolio by considering multiple factors such as market share, market growth rate, and competitive position. The process involves analyzing each product or service within a company's portfolio and placing them into categories based on their relative value and potential. This categorization enables the company to prioritize resources, investments, and marketing efforts based on the potential return on investment. One popular portfolio analysis model is the BCG matrix, which categorizes products or services into four quadrants based on their market share and market growth rate. The four quadrants are cash cows, stars, question marks, and dogs. Cash cows are products or services with a high market share but low market growth rate, while stars are products or services with a high market share and high market growth rate. Question marks are products or services with a low market share but high market growth rate, and dogs are products or services with a low market share and low market growth rate. Another popular portfolio analysis model is the GE matrix, which evaluates a company's products or services based on their competitive position and market attractiveness. The matrix is divided into four quadrants: high potential, low potential, investment, and harvest. High potential products or services have a strong competitive position and high market attractiveness, while low potential products or services have a weak competitive position and low market attractiveness. Investment products or services have a weak competitive position but high market attractiveness, while harvest products or services have a strong competitive position but low market attractiveness. Portfolio analysis can help a company to identify opportunities for growth, divestment, or investment in its product or service offerings. By evaluating the performance of individual products or services, companies can make informed decisions about resource allocation, marketing efforts, and investment strategies. However, it is important to note that portfolio analysis should not be the sole determinant of a company's strategic decision-making. It should be used in conjunction with other factors such as external market conditions, customer needs, and the company's overall mission and vision.