Portfolio analyses evaluate an organization’s portfolio of business units by assessing the profitability and attractiveness of the industries the organization competes in as well as the competitive edge of an organization’s business units. As a result, portfolio analyses can offer key insights into the organization’s offerings.
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Lifecycles capture the evolution of industries, products, services and organizations.
When portfolio analyses and lifecycles are combined, the findings can be very powerful because this approach looks at the positioning, the competitive advantages and the stages of products and services, thereby informing strategy development as well as effective management accordingly.
Firstly, differentiation may help determine profitability potential. When differentiation gives more competitive advantage, profitability potential becomes higher and buyer loyalty increases.
Secondly, focus also helps determine profitability potential. When the organization targets a specific market segment with the sole objective of marketing to that segment, the conversion rate is higher and the profitability potential is also higher.
Thirdly, positioning helps determine profitability potential as well. It makes the offering different and unique, thereby increasing the perceived value of the offering.
When these three strategies are not well done, the profitability potential can be lower.
Horizontal integration is the process of an organization increasing production of products and/or services at the same part of the supply chain.
In contrast, vertical integration is the arrangement where the supply chain of an organization is owned by that organization.
Stretching refers to developing new competencies, whereas leveraging means transferring core competencies. These are important when an organization needs to optimize its various competencies.
An organization can integrate vertically in 2 manners: backward vertical integration and forward vertical integration. Backward vertical integration happens when an organization buys another firm which makes an input product for the acquiring organization’s product. By contrast, forward vertical integration happens when a firm takes control of the post-production process.
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A Company Value Chain identifies the main internal activities which create and deliver customer value & relevant support activities.
According to the 5 main generic strategies in this course, a Company Value Chain may differ for organizations because it depends on a firm’s cost structure as well as its ability to offer lower prices. A firm can outmanage its rivals and find ways to do value chain activities more efficiently, more precisely and more effectively – this can be achieved by spending more on capabilities and resources. This also helps constantly review cost-saving resources and techniques that can make sure to stay in the dominating position in the fierce competition.
Examples include using low-cost inputs and holding minimal assets, offering core products and services only and using lower-cost distribution channels.
The ‘build, borrow, or buy framework’ gives an effective model which helps strategies to decide whether to build a resource, borrow a resource or buy a resource. If internal development is possible, an organization may build a resource. If strategic alliance, contract or licensing is more convenient, an organization may borrow a resource. If acquisition is more practical, an organization may buy a resource.
Closeness is achieved through integrated alliances such as equity alliances and joint ventures, e.g., the borrowing of certain resources.
Tradability is when a firm creates a contract which allows for the transfer of ownership or use of certain resources, e.g., short-term contracts and long-term contracts.
Relevancy is when a firm wants to develop the same product or the same service.
Integration is acquisitions and merging.
In order to improve the team’s performance, I will introduce further training, a recognition and reward system as well as team-building activities to this team.
Further, I will build morale and maintain it at all times. This can be done through giving team members a sense of personal growth and a sense of responsibility, e.g., offering professional development sessions to help staff members gain new skills & giving them new roles.
“Because this project may need more time than what’s expected, effective project scheduling and effective project planning are obviously required. The project manager probably needs to merge some activities and shorten certain tasks in order to reduce the critical path.”
