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Definition

Business portfolio

Definition (1):

The business portfolio is the collection of businesses and products that make up the company. The best portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.

Definition (2):

It refers to a group of services, products, and business units of a specific company allowing the company to achieve its strategic objectives and goals.

Definition (3):

A business portfolio can also refer to the combination of a company’s available assets for reaching its vision and developing its mission.

Portfolio planning involves two steps. First, the company must analyze its current portfolio and determine which businesses should receive more, less, or no investment. Second, it must shape the future portfolio by developing strategies for growth and downsizing.

This portfolio includes productive assets like fixed assets, machinery, and equipment. It can also consist of business assets like business units, strategic alliances, and subsidiaries along with their available line of products, registered brands, patents, and other important elements used to generate positive financial outcomes for a company.

Use of the Term in Sentences:

  • The business portfolio is quite extensive because the company’s growth is remarkable in the last few years.
  • Please try to prepare an attractive business portfolio.
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