Question

How do the tools available for analyzing multibusiness strategies differ from those use to analyze a single line of business strategy?

Answer 1

These tools will be differing in dimension as well as scope. for example: While using BCG matrix for a single business like NIKE we can categorizes its products offerings in 4 dimensions that is Star, Cash cows, Question mark and Dog . This BCG for GE will categorizes its diversified portfolios like GE electric, IT, Aviation and Power etc.

When, we talk about a tool, Value Chain Analysis, Then, it will more compatible with multibusiness organization. An organization might use various strategies to develop its value chain.

A company, which has only one product or service to offer, might use only one generic strategy. For example: Unilever utilizes cost leadership strategy for its Indian market as customers have middle income group.

A single business can be analysed through return on investment, market share, competitions level etc.Where multi-business strategies will utilize product to product comparison, employment policy, workplace environment, competitive advantage, critical success factor, cost minimization etc.