Key Terms
STRATEGY (defined)
The plans, actions, objectives, and goals that outline how a business will compete in its chosen markets.
BUSINESS PORTFOLIO
The total group of products, services, and SBUs a company possesses.
CUSTOMER-ORIENTED
Defines the business in terms of solving customer needs
PRODUCT-ORIENTED
Focus is on the offering itself, not the customer need
DEFINITION
Identification of internal strengths and weaknesses and external opportunities and threats.
S - Specific
Clear, answers "what needs to be accomplished"
M - Measurable
Quantifiable so you can track progress
R - Realistic
Represents a genuine effort; balance between too easy and impossible
T - Time-Bound
Has a deadline; creates urgency and focus
STARS
Best opportunities; high share in a growing market; prioritize investment
CASH COWS
Mature products with strong share; generate revenue with minimal new investment; fund stars and question marks
QUESTION MARKS (also called problem children)
High-growth market but low share; require root cause analysis to understand why share is low; decision to invest or cut
DOGS
Low share, low growth; prime candidates for divestiture; selling them off can free capital
STRENGTHS
What you do well; patents, brand recognition, cost structure, talent; factors within your control
WEAKNESSES
Internal hindrances; outdated tech, weak brand, high debt, poor capital access; also within your control