Learning Objectives To learn the strengths and limitations of using portfolio approaches to evaluating diversified corporations. To learn what synergies are and how they affect the evaluation of a diversified corporation.

The Portfolio Approach The BCG Growth-Share Matrix The Industry Attractiveness-Business Strength Matrix BCG’s Strategic Environments Matrix

The Synergy Approach Capitalizing on core competencies Sharing infrastructure and capabilities Providing a relevant competitive advantage to the intended business Relatedness that makes the core competencies beneficial Unique or difficult to recreate combination of core competencies