The business portfolio approach—Where it falls down in practice

During the past decade the SBU (or portfolio) concept has enjoyed widespread popularity as a basis for corporate-wide strategic planning systems within large, diversified firms. This article discusses the implementation of such systems on the basis of 3 years of clinical and small sample research. A ‘basic model’ of implementation is used as a basis for comparison to progressive practice as observed in a sample of 13 firms. Furthermore, a new conceptual perspective for the portfolio concept is developed as a complement to the observed approach to implementation.