ABSTRACT
A solution to uncertainty is a portfolio of strategic options. The portfolio approach can be used to balance cash flow within the corporation and can also be used to balance uncertainty. Strategy as a portfolio of strategic options is resilient and adaptable but the flexibility and responsiveness comes at the price of suboptimal commercial efficiency. The growth market share matrix developed by Bruce Henderson of the Boston Consulting Group (BCG) in the 1970s illustrates how cash generating businesses can complement cash consuming businesses to provide a balanced portfolio of business units. This model is a staple of MBA programmes and a useful way to look at a range of businesses under the corporate umbrella. Balancing cash flows is an effective way to ensure the corporation has the capital it needs without paying a premium to commercial lenders or bond holders. Technology can make some business models obsolete as Schumpeter's waves of creative destruction ripple through the industry world.
