What is PORTFOLIO PLANNING MATRIX?

A technique used to analyze the business portfolio of a company. It is generally adopted by large corporations and businesses, who have decentralized centers of profit which are referred to as Strategic Business Units. The purpose of the portfolio planning matrix is to determine the products of the company which will provide profits in the future, find out the product that is currently the primary profit generator for the company, the products which generally consume more money in production than they give as well as those which are producing just enough cash to keep on going for a certain period of time.

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