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Portfolio Simulation: A Tool to Support Strategic Management (Classic Reprint) - Tapa blanda

Merten, Peter P.

 
9781332275151: Portfolio Simulation: A Tool to Support Strategic Management (Classic Reprint)

Sinopsis

Excerpt from Portfolio Simulation: A Tool to Support Strategic Management

This philosophy leads to an integrative management of the portfolio that will make the whole larger than the sum of the parts. For this synergistic result to be obtained, a fairly centralized ressource allocation process would be required which would produce a balanced portfolio in terms of the generation and uses of cash.

Another contribution of the ecg, besides the balanced portfolio idea, resides in their selection of market share to express the desired strategy for each business. The strategy suggestions, which can be drawn out of the' growth-share matrix are: selective offensive strategies for question marks of fensive strategies for stars, defensive strategies for cash cows, divest or harvest strategies for poor dogs.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

"Sinopsis" puede pertenecer a otra edición de este libro.

Reseña del editor

Excerpt from Portfolio Simulation: A Tool to Support Strategic Management

This philosophy leads to an integrative management of the portfolio that will make the whole larger than the sum of the parts. For this synergistic result to be obtained, a fairly centralized ressource allocation process would be required which would produce a balanced portfolio in terms of the generation and uses of cash.

Another contribution of the ecg, besides the balanced portfolio idea, resides in their selection of market share to express the desired strategy for each business. The strategy suggestions, which can be drawn out of the' growth-share matrix are: selective offensive strategies for question marks of fensive strategies for stars, defensive strategies for cash cows, divest or harvest strategies for poor dogs.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Reseña del editor

Excerpt from Portfolio Simulation: A Tool to Support Strategic Management

The allocation of investment funds in multibusiness firms is considered in this article as a complex strategic decision making process. We show that a quantitative portfolio simulation model can be used effectively to support this strategic decision making process. The portfolio simulation model, which is formulated with a combined system dynamics and spiral loop approach, further allows us to show severe limitations of qualitative portfolio approaches, like the one of the Boston Consulting Group. The simulation experiments demonstrate that it can be extremely dangerous for diversified companies to follow the investment suggestions typically drawn from the Boston Consulting Group portfolio matrix, if competitors choose a course of action that is contradictory to normative situations. The simulation runs additionally show, that a more flexible positioning strategy can yield much better results than the fixed positioning strategy typically used by the Boston Consulting Group.

The allocation of investment funds in multibusiness firms is considered in this article as a complex strategic decision making process which is located at the top management level of diversified companies (see also Simon 1981, 49). Qualitative portfolio approaches, like the portfolio concept of the Boston Consulting Group (BCG) were developed in order to support this strategic decision making process. However, qualitative portfolio concepts have severe limitations (see Max, Majluf 1984, 145-150). We will show that a quantitative portfolio simulation model can overcome the methodological limitations which are typical for qualitative portfolio approaches. The quantitative portfolio simulation model, which has been developed with a combined system dynamics and spiral loop approach on the basis of the portfolio concept of the BCG, will be shown from three perspectives. First, we briefly describe the portfolio management process based on the concept of the BCG Second, the generic formal structures of the portfolio simulation model are shown. Third, we will present selected simulation results of the model which show different evolutionary development patterns of diversified firms and additionally show some severe limitations of the BCG portfolio approach.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

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