An approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return is called ________

Question

Question

This question was previously asked in

UGC NET (Management) Official Paper-II (Held On: 12 Mar, 2023 Shift 2)

Answer 1

The correct answer is Portfolio Analysis.

Key PointsPortfolio Analysis:

An approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return is called portfolio management.
This approach involves analyzing and evaluating a company's business portfolio in terms of its overall attractiveness and the company's competitive position within each business.
The goal is to allocate resources to the most attractive businesses and divest or downsize those that are less attractive.
The portfolio management approach often involves using tools such as the Boston Consulting Group (BCG) matrix, which classifies a company's businesses into four categories: stars, cash cows, question marks, and dogs.
The BCG matrix helps a company to identify which businesses have the potential to generate high profits and which ones may require further investment or divestment.

Hence, the correct answer is Portfolio Analysis.