Matrix models of portfolio analysis as a tool for choosing an organization's growth strategy

Abstract

Subject. The article addresses matrix models of portfolio analysis as a tool to select a strategy for organizational growth. Objectives. The focus is to review the existing matrix models for portfolio analysis of strategic management at the level of business units. Methods. The study draws on general scientific methods of analysis. Results. The paper provides the features of the construction of described matrices, possible limitations and advantages of using specific models, and gives recommendations for their use to define prospects for corporation development in target markets. I show that there is no unambiguous algorithm for using a specific model in a certain situation, and the choice of a tool for portfolio analysis rests on many factors that are unique to each particular case, given organizational capabilities and resources of the corporation. Conclusions. The advantage of matrix models is their visibility. They reflect the fundamental points of strategic management, indicating areas of investment in attractive spheres, where the company has the strongest competitive positions. They are an effective tool of strategic management to make management decisions on company's position in the market.