Portfolio analysis helps a company to decide its most suitable business mix of products and services. This analysis helps a company to invest its resources to the most profitable segments. It also helps to determine the nonpaying business units that require closing or selling.
Company GE sold the controlling interest in its business unit NBCU to Company C, because it was getting higher cost per shares than is expectations.
Whereas, Company C has bought majority shares of NBCU, so that they can deliver top quality entertainment shows to the customers. It would help the company to achieve higher rate of returns and profitability.
A different product that partly or completely satisfies the same needs of the consumers is termed as substitute products. These products replace one another.
Product substitution :
The process in which a product or service becomes a substitute for another product or service due to decline in the value of the service it offers is known as product substitution
The product vulnerable to substitution :
Televisions have become vulnerable to substitution due to other gadgets like mobile phones, tablets, laptops and personal computers. These products provide a variety of services to the customers and also telecast television programs.
This situation can be avoided by television companies by providing more utility in the product and adding more attributes like the following:
• Ability to connect pen drives, memory cards and other mass storage devices
• Supporting software for all audio and video formats
• In built media player
• Options to surf and view online content
Such inclusion will help the television manufacturer to survive the tough competition by other competing products.
Mission statement is a strategic plan that describes the overall purpose for existence of a business firm. It helps to establish the core values and principles of an organization.
Objectives define the short as well as long term goals of a business firm.
Company SLC operates in food service industry.
Mission statement of Company SLC is given below :
"Company SLC's mission is to construct leadership brands in consumer-packaged goods and provide quality services to its customers."
Objectives of Company SLC are given below:
Company SLC's main objective is to construct long-term shareholders value across the globe.
Functions of company SLC that supports its mission statement and objectives are given below :
• The firm maintains the benchmark quality in its packaged goods.
• Use of high quality ingredients for different recipes developed by the company.
• The company focuses on quality control systems and periodical testing to ensure that the product meets its quality standards.
• It avoids the use of artificial colors, flavors and preservatives as per consumer expectations.
• Company SLC supports the community by supporting the establishment of the Science Faculty at the University of Newcastle.
• Employees of the company participate in various charity initiatives.
Hence, it can be concluded that business activities of Company SLC is integrated with its mission and objectives.
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