STRATEGY

FORMULATIO
N
CORPORATE STRATEGY: PORTFOLIO
ANALYSIS & PARENTING STRATEGY
PORTFOLIO ANALYSIS

PORTFOLIO
ANALYSIS

INTERNATIONAL
BCG MATRIX PORTFOLIO
ANALYSIS
GE MATRIX
PARENTING STRATEGY

Corporate Parenting views a corporation in terms of resources

and capabilities that can be used to build business unit value as
well as generate synergies across business units.
Campbell, Goold, & Alexander:
“Multibusiness companies create value by influencing – or
parenting – the business they own. The best parent companies
create more value than any of their rivals would if they owned
the same business. Those companies have what we call
parenting advantage”
Developing a Corporate Parenting Strategy [Campbell, Goold,
& Alexander]:
Examine each business unit (or target firm in the case of
acquisition) in terms of its strategic factors.
Examine each business unit (or target firm) in terms of areas
in which performance can be improved.
Analyze how well the parent corporation fits with the
business unit (or target firm)
Exercise

1. Compare and contrast SWOT analysis with portfolio

analysis.
2. How is corporate parenting different from portfolio
analysis? How is it alike? Is it a useful concept in a global
industry?