ABSTRACT
The purpose of this chapter is to illustrate the application and use of two particular methods of portfolio analysis. The first is derived from the directional policy matrix. The second is the risk matrix. Both were described in outline in the previous chapter. In order to achieve this purpose a fictional company, Good Investments plc, is described. This company has a wide spectrum of businesses. Although the company does not exist, the situation it faces does. The industries and dilemmas are all ones in which I have had experience, and Good Investments is a sort of disguised composite of consulting work with several clients. The data given about the industries and markets are also disguised, so do not be tempted to use it for a real analysis. The example is set in a normal period: in other words no recession is in progress. Also, because it had to be written at a certain time, industry prospects may have changed by the time you read this: if this is the case, please suspend disbelief in order to see how to score and plot businesses on the matrices, and how to use them. The material is adapted from a case study I wrote for Harbridge Consulting Group, and is used with permission.
