Portfolio analysis

Fig. 6. Portfolio analysis to guide investment in major catalyst innovation requiring new plant.

A combined comparative WTW analysis of specific global emissions and fuel supply costs is typically presented in a pathway portfolio analysis. Portfolio analysis helps to identify rapidly those alternative fuels and drive trains, or combinations of these, which can lead to the highest specific GHG emission savings. 

In Section 7.3, process-specific technical information on alternative fuels, which is needed for the WTW analysis is presented, and in Section 7.4 drive-system-specific data are provided, which are then merged in a WTW analysis of complete energy chains in comparison in Section 7.5. In reality, the potential number of realistic alternative fuel chains and drive system combinations is much larger. Owing to limited space, a set of most relevant processes is presented. A separate section (7.6) discusses the resource utilisation of the energy chains presented in Section 7.5. Section 7.7 finally combines specific GHG emissions for relevant alternative fuel supply chains with specific costs in a portfolio analysis. 

A combined presentation of specific greenhouse-gas (GHG) emissions and specific fuel-supply costs is dubbed portfolio analysis. It serves to identify rapidly the most... 

Table 7.22 shows the assumption for energy and feedstock prices underlying the portfolio analysis in Fig. 7.9. In general, energy costs are highly time dependent. The analysis also needs to be seen in the context of complete energy systems and... 

Figure 7.9 shows a typical portfolio analysis of selected combinations of alternative fuel supply and vehicle drive systems for the period until 2010, based on the assumptions in Table 7.22. 

D5mamic Modeling vs. Alternative Pipeline Portfolio Analysis Tools. 651... 

Pharmaceutical pipeline portfolios, however, have industry-specific nuances, which present some significant challenges. Traditional financial portfolio analysis often fails to address these subtle distinctions, while pharmaceutical domain experts often lack the financial portfolio background required to adapt those approaches to pipeline issues. The mismatch results in decision analysis on the basis of a suboptimal set of evaluation tools. This type of inadequate anal5dic methodology has huge financial implications in the pharmaceutical world, where yearly research and development costs are now over 50 billion globally. ... 

Some readers may have seen pharmaceutical portfolio analysis designed and implemented in a spreadsheet or other computational applications, including the ability to compute Monte Carlo results. While these approaches can indeed be of value, our clients have seen a number of additional insights into pipeline d5mamics, which only a dynamic modeling simulation can provide. 

R D and technology plans can also be analyzed with widely used portfolio analysis (47), which provides visual correlations between variables such as potential value, probability of success, time-to-completion, technology maturity, and project cost as a means of optimizing the planned effort. The analyses can be used to redirect effort and reallocate resources as a project progresses. 

Use portfolio analysis techniques to select and progress research and development projects. Research cannot be scheduled, but finances can be budgeted and milestones set. Development, on the other hand, should be done well and as rapidly as possible to maximize profit. 

FIGURE 27.4 Four-quadrant table used for portfolio analysis in which projects are evaluated on the basis of their potential financial return (value) and probability of development success. 

Portfolio analysis is a strategic planning tool, used to concentrate research investment on products for which market prospects appear favorable and competitive advantages can be exploited [Dichtl 1987]. 

This chapter has presented a brief introduction to asset management, focusing on primary applications. The basic analytical tool for portfolio analysis has been and remains MV analysis and variants of the technique. Mean-variance an ysis is intellectuedly deep, has an intuitive theoretical foundation, and is mathematically efficient. Virtutilly all asset-management problems are solved using the approach or modified versions of it. 

In many instances, and especially in the United Kingdom, the majority of the underlying properties are occupied by a diverse range of tenants on long-term leases (15-25 years), who share the responsibility for maintenance, repair and insurance. In this case, portfolio analysis can sometimes become as much a consideration of the nature and strength of the tenants as a review of the property itself. This is particularly true where the secu-... 

Associated with duration is the concept of dollar duration. Dollar duration is invaluable for portfolio managers when analysing the concentration of the portfolio in different buckets adjusted for duration. Mathematically, it is the product of the dollar value of the bond and its duration. For the purpose of portfolio analysis duration contribution (the product of duration and market value percentage) is used. Exhibit 26.3 shows the concentration of a portfolio in duration contribution terms. 

Utilizing the shortfall risk framework an investor s risk aversion can be described more clearly than for example, with a utility function. A common utility function is U = L X fp - Op (William F. Sharpe, A Simplified Model for Portfolio Analysis, Management Science 9 (1963), pp. 277-293). Here determination of the parameter X, which measures the investor s risk aversion, is a problem. 

Country Portfolio Analysis (CPA) An analysis of country market attractiveness using statistics like income, population, and product consumption. It is recommended that this analysis be adjusted for cultural, administrative, geographic, and economic distance. (Distance still matters. Harvard Business Review, September 2001, pp. 129-147)... 

Sharpe, W. F. 1963. A simplified model for portfolio analysis. Management Science. 9 277-293. 

Portfolio Analysis of Products and Product Groups in the Supply Chain... 

The portfolio analysis is a weU-known strategic management concept developed by the Boston Consulting Group. Herewith the company can assess which product segments exist and how to balance the product portfolio and subsequently the distribution of financial resources. 

The product portfolio analysis has two different indicators market share and market growth. Products are placed within this matrix according to these indicators. The optimal strategies can be depicted from the matrix, in which case the... 

Mission and vision Product portfolio analysis Product life-cycle posifion Generic strafegy... 

Terho, H., Halinen, A. (2007). Customer portfolio analysis practices in different exchange contexts. Journal of Business Research, 60(1), 720-730. 

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