A business portfolio is an organised collection of information about an organisation. It contains important details about the company, such as its goals, available assets and mission. The purpose of the portfolio is to help business leaders make informed decisions. Creating an organised and thorough portfolio can also help to reduce organisational risk. There are a number of ways to create a company portfolio, including using templates, programs and business portfolio tools. In addition, the portfolio can contain important affiliations and relationships, such as partnerships with certifying organisations.
Identifying the strengths and weaknesses of a company’s business portfolio is essential for strategic planning. To ensure long-term survival and growth, a company must regularly evaluate its current portfolio and determine which products or businesses should receive more, less or no investment. It must also develop strategies for growing and downsizing the portfolio to fit opportunities in the marketplace.
The Boston Matrix is a model that helps companies assess their product portfolios. It consists of four product categories: stars, cash cows, question marks and dogs. Companies should aim to have a balanced portfolio that includes a mixture of each type of product. The stars are the most profitable and fastest-growing products. They require the most resources. The cash cows are the second-most profitable products, and they have a steady market share. The question marks are the products that are stable but do not have a high market growth rate. The dogs are the least profitable and slow-growing products.