PPM or Prodect Portfolio Management is the consolidated administration of the methods, technologies, and processes utilised by individual product managers or the entire product management team for analyzing and cooperatively managing existing and/or future products depending on several key features and business requirements (Investopedia, 2017). The prime focuses of PPM are to figuring out the optimum mix of resources to best accomplish a business’ financial and operational targets, while taking care of the constraints imposed on the organisation by its strategic objectives, external business factors, and it customers. Barczak and Kahn (2012, p.295) defined PPM as the procedure that helps firms to distribute resources strategically between all the services and products it offers, recognize areas of possible advancement, evaluate the product mix for ensuring sustainability and profitability, and preserve the desired link between the company’s strategies and products. The …show more content…
This balance can be achieved by using various parameters such as long-term versus short-term business objectives, market conditions, technologies, external conditions etc. Pie charts, histograms, bubble diagrams are frequently used by businesses for revealing this balance (Doorasamy, 2017, p.21). Alignment of Business Strategies PPM certainly enhances the lucrativeness of a business with multiple products. However, Sadeghi and Zandieh (2011, p.7922) argued that in order to successfully implement PPM, companies must make sure that their portfolios of products properly replicate the firm’s product innovation strategies and also the categorisation of expenditures falls in line with the organisation’s strategic precedence. To achieve this, there are three different approaches available for businesses. They are - bottom up (decision criteria and effective gatekeeping), top-down, and a mixture of both. Balancing the
‘The strengths, weaknesses, opportunities and threats analysis often forms the bedrock of any product planning process. It provides a simple yet effective framework for analysing both internal resources and external trends and competitors’ (Pender, L, 1999: 179)
The Balanced Scorecard is a business strategic planning system used by management to make decisions based on information provided about the business from four different perspectives. The first of the four perspectives is the financial perspective. Which means that we evaluate our business and conduct research from the shareholders perspective. Next is the internal business perspective, which is an internal evaluation of what the business must be good at to excel. Next is the innovation and learning perspective which is an evaluation of the firm’s ability to continue to improve and create value. The final perspective is the customer perspective, which is looking at the business activities from the customers
Portfolio: Risk Management Plan The concept of risk management is relatively new, as hospitals look to prevent hospital-acquired infections (HAIs), falls, injuries, and other forms of preventable harm, rather than reacting once harm has already taken place. Before this concept became a best practice, most health organizations relied on malpractice and liability insurance to protect against losses and mitigate the effects of accidents and poor patient outcomes (Colorado State University-Global Campus, 2014). Today, risk management is an integral facet of a healthcare facility’s business practice in preventing risks, ensuring regulatory compliance, minimizing financial damage, and preserving its reputation in the community. Although most large organizations have a dedicated risk management team, the facility/property manager (FPM) plays an important role within the team as the following narrative demonstrates.
3M Corporation's each division is treated as a profit center with no interdivisional business between the six divisions. The business unit strategy is to "hold" as the company wants to maintain and increase profitability and market share. In terms of corporate strategy, 3M functions as an unrelated diversified corporation with the prime goal to innovate consistently, thereby offering a...
Capability Maturity Model Integration (CMMI) is a evolutionary process improvement training and appraisal program and service administered. It's framework that describes the key elements of an effective product development and maintenance process. The Capability Maturity Model Integration covers best-practices for planning, engineering and managing product development. CMMI helps to integrate traditionally, separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes. (Godfrey, 2008) It helps in improving the Programming performance and reducing the system complexity. It provides guidance for Quality processes.
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
However, this vision generates an overlapping problem between the marketing department and the product development department. The marketing department, among other duties, is responsible for the identification of new opportunities and also to assure the development of new products. Unless these activities are extremely well coordinated with the product development department, there will be misalignment in the strategy of the EPD. Ultimately, this misalignment will affect a third department, i.e. the manufacturing department, since it is directly involved in the product development process.
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Product service management is is developing and maintaining a product image and how people perceive it. For example the starbucks logo has changed through the years. It started off as a brown logo, the siren figure a bit more zoomed out and the name “starbucks” underneath it. Later it was changed to green, with the siren art altered but the company name left underneath it. Today’s logo is green with the siren figure zoomed in on and no company name underneath it. Since today the green mermaid has become so recognizable they took off the
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
In today’s fast changing business environment, companies need a competitive edge to survive. Globalization has increased the competition and stress for Platinum Concept. Jim’s company presently focused on differentiation strategy, but now customers focused on necessities and not luxuries. Therefore, they need to develop a strong market strategy. And implementing BPM can aid in the same. BPM strategy provides the business with greater agility to adjust to changing circumstances. (1). Strategy is developed keeping the internal and external views...
This video provides an overview of product diversification. It explains that there are two types of diversification, which are related diversification and unrelated diversification. In addition, the video informs that diversification often involves merger and acquisition activities. Furthermore, it stresses the importance of keeping diversifications balanced, as in some instances, companies that do not take advantage of diversification, can miss out on some benefits, and/or could experience negative effects. However, on the other hand, the opposite could also occur, because some companies that over-diversify, extend themselves too far and can experience detrimental and disadvantageous effects as well. The key is staying
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.