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4.3 - Coggle Diagram

- - - - Seeking to align the management of different projects and businesses with the strategic objectives of the organisation
      - Focusing on value creating activities in the businesses forming the portfolio
        
        Investment
        
        Divestment
      - Tool used for portfolio management such as
        
        BCG's Growth-share matrix
        
        McKinsey-GE Directional Policy Matrix
    - - Managing and enhancing synergies across SBU's is a Key role of the parent company
      - e.g. direct and guide interactions across different SBU's to facilitate cooperation on projects of strategic importance
    - - e.g. in the case of multinational, key-value creation can be added by sharing marketing knowledge across SBU's in different countries
- - - - Related Diversification
        
        Vertical Integration
        
        Integrating (Backwards) upstream to include suppliers
        
        Integrating (Forward) downstream to include channels and buyers.
        
        Horizontal Integration
        
        when an organisation takes over a competitor, or offers complementary products within the value chain
      - Unrelated Diversification
        
        Involves a completely new business area
        
        The highest risk of all
- - - - a contract between two or more organisations to participate in a common activity or to pool resources for achieving a common goal