Analyzing the Current Business PortfolioWe have discussed in last Lesson that in order to analyze the current business portfolio, thecompany must conduct portfolio analysis (a tool by which management identifies and evaluatesthe various businesses that make up the company). Two steps are important in this analysis:1). The first step is to identify the key businesses (SBUs). The strategic business unit(SBU) is a unit of the company that has a separate mission and objectives and which can beplanned independently from other company businesses.2). The SBU can be a company division, a product line within a division, or even a singleproduct or brand.3). The second step is to assess the attractiveness of its various SBUs and decide how muchsupport each deserves.d. The best-known portfolio planning method is the Boston Consulting Group (BCG) matrix:1). Using the BCG approach, where a company classifies all its SBUs according to thegrowth-share matrix.a). The vertical axis, market growth rate, provides a measure of market attractiveness.b). The horizontal axis, relative market share, serves as a measure of company strengthin the market.2). Using the matrix, four types of SBUs can be identified (Discussed in detail in lastLesson)a). Starsb). Cash Cowsc). Question Marksd). Dogs