Portfolio Analysis

Khawaja Naveed Haider

073605-085
University Of Management and Technology, Lahore
naveedtaji@gmail.com
http://www.umt.edu.pk
What’s Portfolio Analysis?
 It’s basically a product portfolio in which we
rank our product or we can say that where
our products are stands in the market.
 We’ve three Matrices under this tab.
1. BCG Matrix (Boston Contingency Group)
2. GE Matrix (General Electric)
3. Product/Market Growth Matrix
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BCG Matrix
 It is what how we maintain or analyze our product.
Here’s the matrix.

 Please move to next

slide for explanation of
this matrix.

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BCG Matrix Explanation
 If the industry is growing and your share is low, you’re
question mark (?). What are you doing? You need to
improve. Like Snakes industry is growing but there’re
some snakes with no name. You must’ve seen it.
 If the industry is growing and your share is also high
then it’d be Stars. Like Beauty Soap industry. LUX is a
product of Unilever. Unilever’s all Beauty Soaps are all
stars.

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Do you know?
 When you start your
business, your product
is in "?" position. It's
up to you where you
want to go, Stars Or
Dogs...
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BCG Matrix Explanation
 If the industry growth is high and but your
share is high then your product’s Cash Cow.
Like industry of Tetra Pack packaging. Only
“Packages Ltd” and “Tetra Pack” has the
plant of Packet Milk and Juices packaging.
 If the industry growth is low and your share is
also low then your product is dog. Better to
exit from the market. You’ll be amazed to see
the example. Nestlé's Polo is the example.
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GE Matrix
 This matrix is given by General Electric which is
world biggest electronics British company.
 It’s what you’ve to do with BCG Matrix.

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GE Matrix Explanation
 Invest: It is used to strengthened and build these
kinds of SBUs (Strategic Business Units). Bold and
well financial marketing efforts are needed here. It’s
basically use when you start a new business as the
name suggests.
 Protect: It’s used to protect your current SBUs. Like
PEPSI is protecting its product. Because Coke is the
competitor of PEPSI and they’re allocating resources.
You can say it a defensive approach. It also generates
cash needed by other SBUs or products.
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GE Matrix Explanation
 Harvest: They lack an attraction market at a strong
position. These SBUs shouldn’t receive substantial
new resources instead expenditure should cut to
minimize any remaining profit. You know that
*CDL’s Dairy Queen milk is operating in Loss?
 Divest: In this position, an SBU shouldn’t receive
any resources. Probably, the best approach is to
eliminate from the organization’s portfolio by selling
it or shutting it down. Point To Ponder: What about
POLO? I think it fits here… But why Nestle is not
shutting it down?
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*Chaudary Dairies Limited (Formally Haleeb Foods Ltd)

Product/Market Growth Matrix
 It is about the market. What you’re gonna do or
what you’ve to do. So get a look at the matrix
below…
Existing New Product
Product
Existing Market Product
Market Penetration Development
New Market Market Diversification
Development
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Product/Market Growth Matrix
 Market Penetration: When someone snatches the market
share of other. Do you know that there’s big fight between
Haleeb and Milkpak? Both are always willing to penetrate in
the market.
 Market Development: It’s like I’m supplier of Board
Markers. I’m supplying to different educational institutes. If i
begin to supply my product to different business organization,
it would be market development. What do you think about the
development of Mobile Phones market in Pakistan? Mobiles
were being used by only businessmen but now… you must
have your mobile phone I think…
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Product/Market Growth Matrix
 Product Development: If you’re gonna introduce a
new product in the market, it’d be product
development. Have you seen Nestlé's Pure Water?
You must know that Milkpak is also the product of
Nestlé .
 Diversification: When we have totally new product
in a new market. Conglomerates can also put under
this heading. Do you know Mitsubishi is the biggest
conglomerate of the world? There’re other like
Berkshire Hathaway (USA), Aditya Birla Group
(India), Reliance Industries (India), Habib Group
(Pakistan), Bibojee Services (Pakistan)
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Ok… That was it.
 I’m sure you understand the topic. I tried my
best of the best to make you know about the
things effectively.

 Thanks for you time… and and and BEST

OF LUCKKKK…

FOR EDUCATIONAL PURPOSE ONLY !!!

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THIS PRESENTATION IS ONLY FOR
EDUCATIONAL PURPOSE

naveedtaji@gmail.com
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE