Strategic Portfolio Planning Systems

  • Derek F. Channon
  • Michael Jalland

Abstract

By definition multinational corporations operate in a number of countries. Moreover most MNCs also operate in a variety of different product market areas. As a result the key task for top management is the successful operation of a portfolio of businesses spread across a number of geographic markets. In recent years, therefore, there has been a rapid growth in the development of strategic portfolio planning systems designed to aid strategic decision-making in the multibusiness firms. While these systems are becoming increasingly widely used they are not without their problems and many of these are associated with international operations. This chapter therefore outlines the major portfolio planning approaches and also points out a number of the pitfalls which should be avoided if the best use is to be made of them in multinational strategic planning.

Keywords

Europe Income Marketing Beach Expense 

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References

  1. 1.
    Boston Consulting Group, Perspective on Experience (1970).Google Scholar
  2. 2.
    B. D. Hedley, ‘Strategy and the “Business Portfolio”’, Long Range Planning, Feb 1977.Google Scholar
  3. 3.
    S. Moose and A. Zakon, ‘Frontier Curve Analysis as a Resource Allocation Guide, Journal of Business Policy, spring 1972.Google Scholar
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    See for example Business Week 28 Apr 1975, p. 49Google Scholar
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    Royal Dutch Shell Group, The Directional Policy Matrix 1976.Google Scholar
  6. 6.
    Details of PIMS findings are available from a number of papers including S. Schoefller, R. Buzzell and D. Heany, ‘Impact of Strategic Planning on Profit Performance’, Harvard Business Review, Mar/Apr 1974;Google Scholar
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    William E. Rothschild, Putting it all Together (AMACOM, New York, 1976), p. 159.Google Scholar
  9. 8.
    Adapted from D. F. Channon, ‘Use and Abuse of Analytical Techniques for Strategic Decisions’, paper presented at TIMS XXIII International Meeting, Athens, July 1977.Google Scholar

Copyright information

© Derek F. Channon with Michael Jalland, Manchester Business School 1978

Authors and Affiliations

  • Derek F. Channon
    • 1
  • Michael Jalland
    • 1
  1. 1.Manchester Business SchoolUK

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