Example of how overhead may vary with turnover
2002 Actual vs 2004 Budget
Monday 25 July 2005
Sunday 24 July 2005
Strategic reminder - Boston Consulting Box (BCG) and Portfolio Analysis
boston consulting box
The business portfolio is the collection of businesses and products that make up the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities.
The company must:
(1) Analyse its current business portfolio and decide which businesses should receive more or less investment, and
(2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.
Methods of Portfolio Planning
The two best-known portfolio planning methods are from the Boston Consulting Group and by General Electric/Shell. In each method, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised.
The business portfolio is the collection of businesses and products that make up the company. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities.
The company must:
(1) Analyse its current business portfolio and decide which businesses should receive more or less investment, and
(2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.
Methods of Portfolio Planning
The two best-known portfolio planning methods are from the Boston Consulting Group and by General Electric/Shell. In each method, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised.
Monday 18 July 2005
We don't need another hero
Research from three associates of Ashridge Business School has brought to light the leadership values for the 21st century. Gone is the CEO superhero dispensing wisdom from on high, and in its place is the human leader with frailties and weaknesses like the rest of us.
Here, Ashridge associates George Binney, Gerhard Wilke and Colin Williams reveal their blueprint for legendary leaders
Also from Ashridge Leadership skills for the 21st century
Also from Ashridge Leadership skills for the 21st century
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