PPM or Prodect Portfolio Management is the consolidated administration of the methods, technologies, and processes utilised by individual product managers or the entire product management team for analyzing and cooperatively managing existing and/or future products depending on several key features and business requirements (Investopedia, 2017). The prime focuses of PPM are to figuring out the optimum mix of resources to best accomplish a business’ financial and operational targets, while taking care of the constraints imposed on the organisation by its strategic objectives, external business factors, and it customers. Barczak and Kahn (2012, p.295) defined PPM as the procedure that helps firms to distribute resources strategically between all the services and products it offers, recognize areas of possible advancement, evaluate the product mix for ensuring sustainability and profitability, and preserve the desired link between the company’s strategies and products. The …show more content…
This balance can be achieved by using various parameters such as long-term versus short-term business objectives, market conditions, technologies, external conditions etc. Pie charts, histograms, bubble diagrams are frequently used by businesses for revealing this balance (Doorasamy, 2017, p.21). Alignment of Business Strategies PPM certainly enhances the lucrativeness of a business with multiple products. However, Sadeghi and Zandieh (2011, p.7922) argued that in order to successfully implement PPM, companies must make sure that their portfolios of products properly replicate the firm’s product innovation strategies and also the categorisation of expenditures falls in line with the organisation’s strategic precedence. To achieve this, there are three different approaches available for businesses. They are - bottom up (decision criteria and effective gatekeeping), top-down, and a mixture of both. Balancing the
‘The strengths, weaknesses, opportunities and threats analysis often forms the bedrock of any product planning process. It provides a simple yet effective framework for analysing both internal resources and external trends and competitors’ (Pender, L, 1999: 179)
Portfolio: Risk Management Plan The concept of risk management is relatively new, as hospitals look to prevent hospital-acquired infections (HAIs), falls, injuries, and other forms of preventable harm, rather than reacting once harm has already taken place. Before this concept became a best practice, most health organizations relied on malpractice and liability insurance to protect against losses and mitigate the effects of accidents and poor patient outcomes (Colorado State University-Global Campus, 2014). Today, risk management is an integral facet of a healthcare facility’s business practice in preventing risks, ensuring regulatory compliance, minimizing financial damage, and preserving its reputation in the community. Although most large organizations have a dedicated risk management team, the facility/property manager (FPM) plays an important role within the team as the following narrative demonstrates.
When testing if a corporate strategy is leading the company to success, there are techniques that can be used to project data collected from the company. Long term attractiveness, competitive strength, and the nine cell industry attractiveness/business strength matrix are used to highlight strategic positions of each business in a diversified company. The industry attractiveness gages the prospects for long-term performance. Competitive strength measures how strong the units are positioned in a business in their industry. Lastly, the nine cell industry attractiveness/business strength matrix merges information on attractiveness and competitiveness to show where in the industry does a unit fit when it comes to long-term success. Walt Disney
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
The Nimsoft project plan will be derived using discovery-driven planning and by discovering what has already been discovered. Discovery-driven planning offers firms an organized approach to planning for new ventures in emerging markets. Given the uncertainty of new disruptive technology markets, discovery-driven planning drives firms to make assumptions about the organization and the emerging markets, then revise these assumptions as the market develops. Unlike conventional approaches, which focus on projections and prematurely define specific targets, discovery-driven planning focuses on meeting assumptions at key milestones and continually planning and adapting while the emerging market evolves. Thus, firms are able incrementally invest in the project.
Product service management is is developing and maintaining a product image and how people perceive it. For example the starbucks logo has changed through the years. It started off as a brown logo, the siren figure a bit more zoomed out and the name “starbucks” underneath it. Later it was changed to green, with the siren art altered but the company name left underneath it. Today’s logo is green with the siren figure zoomed in on and no company name underneath it. Since today the green mermaid has become so recognizable they took off the
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
Product management is a strategic and business-oriented role, which is focused on satisfied and transfer solutions to market needs. The role may consist of product development and product marketing, which are different (yet complementary) efforts,...
One of the most popular types of charts is the pie chart. The pie chart is used to visually represent the proportional value of individual parts to the whole. As the name describes, this is done by representing the numerical equivalence of each part as a piece of the whole pie, which in total equates to 100%. The Pennsylvania Department of Health (2001) says that pie charts are a good choice when a relatively small amount of parts, perhaps 3 to 7, need to be represented. With any more it becomes difficult to notice the differences in magnitude; thus, the pie chart loses its simplicity and impact. They can only be used when a total amount is known, one such example would be an election where the total of votes received by all candidates equals 100% of the votes. Or a budget where the total amount spending is divided in to categories such as labor, facilities costs, advertising, etc… which always are a part of the total. However, according to McBride (2003), the pie chart could not be used to show a change in spending through out a period. A pie chart shows data at one instance, like a snapshot and cannot be used to show change in data over time (para. 4). With the advent of computers, 3D graphs have become somewhat popular, unfortunately a negative aspect is that they add complexity to the image and can distort visual proportional value. It is recommended to stick with flat “2D” charts (para. 6).
In today’s fast changing business environment, companies need a competitive edge to survive. Globalization has increased the competition and stress for Platinum Concept. Jim’s company presently focused on differentiation strategy, but now customers focused on necessities and not luxuries. Therefore, they need to develop a strong market strategy. And implementing BPM can aid in the same. BPM strategy provides the business with greater agility to adjust to changing circumstances. (1). Strategy is developed keeping the internal and external views...
This video provides an overview of product diversification. It explains that there are two types of diversification, which are related diversification and unrelated diversification. In addition, the video informs that diversification often involves merger and acquisition activities. Furthermore, it stresses the importance of keeping diversifications balanced, as in some instances, companies that do not take advantage of diversification, can miss out on some benefits, and/or could experience negative effects. However, on the other hand, the opposite could also occur, because some companies that over-diversify, extend themselves too far and can experience detrimental and disadvantageous effects as well. The key is staying
Though the 4Ps approach has been working for companies for years, it became less effective as the market has developed. This happened due to the fact that product, price, place, and promotion do not include all the activities that are related to marketing a product. As a result, a more efficient approach was developed - the value approach.
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
The balanced scorecard uses short- and long-term, internal and external, and financial and nonfinancial measures to evaluate performance. Management can analyze these measures and compare them to the organizations goals (Kinney and Raiborn 2013, 11). The balance scorecard allows managers to analyze a business from four perspectives: customer perspective, internal perspective, innovation and learning perspective (learning and growth perspective), and a financial perspective (Kaplan and Norton January/February 1992, 72). Each perspective has goals and measures that assist in developing the balanced scorecard.