The business portfolio analysis represents an analytical approach by means of which managers have the possibility to view the corporation as a set of strategic business units that must be managed in a profitable way. Also, by taking into account features specific to the area in which the company operates, by taking into account the competitive advantage and the modalities of earmarking financial resources thereof, the business portfolio analysis provides managers the opportunity to approach companies from a different point of view and to pay increased attention to all activities that need to be undertaken.

The present paper aims at presenting from a conceptual standpoint the Hofer method of business portfolio analysis, its strategic consequences and the characteristic advantages and disadvantages. Moreover, the paper will emphasize the importance and part that the business portfolio analysis holds within a company.

business portfolio, strategic business units, strategic planning