Items related to Portfolio Simulation: A Tool to Support Strategic Management...

Portfolio Simulation: A Tool to Support Strategic Management (Classic Reprint) - Softcover

Peter P. Merten

 
9781332275151: Portfolio Simulation: A Tool to Support Strategic Management (Classic Reprint)

Synopsis

This book is a detailed look at how companies with multiple business concerns can distribute funding. The author employs a portfolio simulation model, which combines system dynamics and spiral loop approaches and demonstrates severe limitations to qualitative portfolio approaches. These include the Boston Consulting Group's portfolio matrix, in which investment suggestions can be highly dangerous if competitors act in ways that contradict normative situations. The author also concludes that fixed positioning strategies can have a negative impact, and a more flexible strategy can yield better results. Through simulation experiments and selected results from the model, the author shows different evolutionary development patterns for diversified firms and presents ideas to help companies achieve better results through improved resource allocation.

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