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Applications to Business Portfolios

Help for applications to business portfolios in the portfolio optimization template for Excel

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Portfolio Optimization Help Topics: Setting Up the Inputs Running the Optimization Process Analyzing and Utilizing the Results Applications to Business Portfolios

A business can be regarded as simply a collection of investments. Portfolio optimization can be applied at a variety of different levels within an organization reconciling up to the total organization.  Such levels typically include business units making up the entire organization, products and services making up business units, and so on.  It is important that profitability for each business or product can be identified by attributing costs and revenues that otherwise be recorded at an aggregated level.  Methods such as Value Stream Mapping can assist in accomplishing this. In utilizing the model for a portfolio of business units, two applications are particularly useful for specific decision making purposes. These are: