In order to analyze, evaluate and also formulate the business portfolio, strategy comes into existence. In case of business portfolio, strategy is taken in form of market share objectives which are to be accomplished in N business units in business portfolio. STRATPORT by LaRoche assesses the strategic business portfolio in form of net cash value. Net present value of after tax cash streams in long term and also in the short term net present value flow implications.
Capital Asset Pricing Model forms the basis for integration of the risk considerations. The Capital Asset Pricing Model expresses the investment in market, also capacity expenditures, the working capital and determines the true impression of experience on the price and revenues within a time span. For the business portfolio or Strategic Business Units, the STRATPORT model by LaRoche and Srinivasan is meant to be a system for decision making in order to allocate the corporation or firms fiscal resources. In fact, the very impact of general marketing outlay on the market share and cost structure of the firm is well depicted through this STRATPORT model.
STRATPORT models strategy is formulated and achieved by increasing the long term profit with short term net present value flow limit (also maximizing the range of values over repeated period for short term net value flow limit). STRATPORT model means Strategic Portfolio planning and is a DSS i.e. Decision Support System for business portfolio. This model is an online tool or computerized mathematical tool making use of empirical and managerial (judgment based) information. STRATPORT was specifically made to help the top level managers and corporate planners in order to analyze and formulate the business strategies. Business portfolio strategy approach’s operation and extension is well represented through this model. STRATPORT model by LaRoche is a step towards better understanding of the business portfolio strategy.
