Assessment of Non-Core Activities for Strategic Divestment PPT

This PPT slide, part of the 218-slide Business Model Design Report PowerPoint presentation, presents an assessment of non-core activities within a portfolio, focusing on their profitability and synergy with the core business. It utilizes a scatter plot format, where the x-axis represents the level of synergy with core operations, ranging from low to high. The y-axis indicates the average EBT margin, with values ranging from -40% to 20%.

Key insights emerge from the positioning of various activities. The upper right quadrant highlights activities that are both profitable and supportive of the core. These should be managed carefully, with potential for divestment when appropriate. Activities in the upper left quadrant are profitable, but offer limited support to the core, suggesting a need for strategic management or eventual divestment.

The lower quadrants reveal activities that are not profitable. The lower left quadrant indicates activities that provide limited support to the core and should be divested. The lower right quadrant contains activities that support the core, but are not profitable, indicating a need for reevaluation.

The size of the circles on the scatter plot represents different subsidiaries or activities, allowing for quick visual assessment of their relative importance and performance. The color coding distinguishes between different entities involved, such as SUB A and SUB X, which aids in understanding the broader organizational context.

Overall, this slide serves as a strategic tool for decision-making regarding portfolio management, highlighting areas for potential divestment while ensuring that core operations remain robust and profitable. The insights gained can guide executives in making informed choices about resource allocation and strategic focus.

This slide is part of the Business Model Design Report PowerPoint presentation.

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