The Boston Consulting Group's Business Portfolio Analysis Model Can Be

question 170

Essay

The Boston Consulting Group's business portfolio analysis model can be used to guide a firm as it tries to change its relative market share (the factor on the horizontal axis). What conscious
decisions can management make on the role each SBU should have in the future and how money should be budgeted for its operations?

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Definitions:

Net Profit Margin

A financial performance metric that shows the percentage of net income derived from revenue.

Earnings Per Share

A financial metric that represents the portion of a company's profit allocated to each outstanding share of common stock, indicating its profitability.

Dividend Yield

A ratio indicating the annual dividends a firm pays out compared to its stock price.

Return on Equity

A measure of financial performance that calculates the amount of net income returned as a percentage of shareholders' equity.