Portfolio Decision-making Model

With the company achievement growth and the promotion of management level, many domestic companies start to carry on the multi-services which are not related to its main camp service. As a result of the specialized profession knowledge and the financial controls become more and more complex, each service balance and the development set a higher request to the business management, Compares with the world 500 strong companies, in multi-business management aspect, our country enterprise Many companies still made decisions based on experience, without a set of scientific strategies analysis tool, or the analysis method tool is imperfect, the enterprise grows to the certain stage the benefit starts to glide down caused by the complexity of multi-service controls. The policy-making risk excessively to be high during the growth, cannot achieve the highly effective the goal of management.First , at present there are many strategic analysis tool for the multi- services investment portfolios, According to each service correlation strong or weak, may roughly divide into two kinds, as to the strong correlation service , Activity-Based Costing mainly(ABC) and the Theory of Constraints(TOC) constitutes the decision-making model. As to the weak correlation service, there are GE matrix, shell matrix, ADL matrix which is suggest by Athur D Little, Boston matrix is the commonly used service investment portfolio analysis tool, which is one of Boston consultation group's main contributions, this matrix is one kind of strategic analysis tool for the higher manager in enterprise to make a decision of expanding or the projects increase, The object of the matrix is forming a optimum combination of SBU (Strategic Business Unite). The Boston matrix technique characteristic is transforms the complex situation to a simple way, but as the matrix analysis supposition premise simplifies, the factor for decision-making not adequate, and the strategic choice plan limited, the matrix usability receives the question. This article makes a systematic analysis with strategic theory and some relative classic case.At last, this article carries on the analysis of these strategic methods, Make a specifically analysis for BCG matrix, including to its supposition premise scientific nature, the flaw when it is explicated, to the flaw which exists above, combined with professional analytic methods, including the scope economic analysis, the strategic alliance, the localization analysis and so on, suggest an improved multi-services investment portfolios strategy analysis flow, and the introduction dynamic analysis method and the method of Analytic Hierarchy Process make the application of matrix to be more accurate and reasonable.