What Defines a Company Business Portfolio?

What refers to a company business portfolio is the whole range of documents that highlight the activities and achievements of a business over time. Such documents often focus on key business milestones, market share, market shares’ gains, financial performance and profitability. They also include the achievements of management in terms of the achievement of short and long-term targets. However, there are other important criteria that need to be considered in order to describe a business’s portfolio. These other important criteria are the size of the business, its market sector, industry and competition.

The size of the business refers to the geographical extent of the business. For example, a firm that has its head offices on the second floor of a warehouse will not be considered as being a “large” business. Similarly, it would not be correct to state that a boutique furniture manufacturing company has a “small” portfolio. The fact is that a business with the size of a boutique furniture manufacturing company will have a relatively small market sector and its sales and profits will be highly concentrated in certain markets.

Another factor that goes into a company business portfolio is the location of its business. Many companies have their head offices in different parts of the world. In fact, some are global in their scope. When looking at such documents it is important to note the percentage of sales that are generated in the home country of the company and the countries in which sales are made. This is because many countries, such as China for example, tend to have a difficult time translating revenues from abroad into their native language.

A third important factor is the country where the bulk of the company’s customers reside. While countries like Mexico and China tend to be fast growing countries in terms of GDP per capita, their popularity as manufacturing hubs, is offset by the relatively high costs of doing business in these countries. Thus, although these countries do to attract large amounts of investment capital, the returns tend to be modest and fairly short term. Portfolio companies therefore look towards developing markets such as India, Mexico and the Philippines.

• Looking at what describes a company’s overall portfolio, it is important to note that there is no single entity that can be considered to comprise all of the company’s revenue and assets.
• Instead, each department within the organization performs a particular function that is responsible for driving the company’s revenue and profit growth.
• A good example is the production department which directly affects what types of products the company manufactures and sells.
• This department also controls the cost side of the business and the quality control of raw materials used to manufacture the products.

When considering what descriptions to include in a portfolio, it is best to select those that are directly relevant to the company’s core business model. For instance, if the company makes residential furniture then its description should focus on the types of products the company sells and which products are the most successful. Conversely, a description of what describes a company’s inventory management would focus on how efficiently the warehouse is managed and the number of lost inventory items that result from miscellaneous losses. Both of these items are critical to the company’s revenue stream and profitability. Thus the inventory manager’s job is critical to the profitability of the company.