This PPT slide, part of the 218-slide Business Model Design Report PowerPoint presentation, presents a strategic assessment of non-core activities within a portfolio, highlighting potential divestiture options without compromising the overall business's operational efficiency. It categorizes various activities based on their average EBIT margin and their support level to the core business. The vertical axis indicates profitability, ranging from highly profitable to significantly unprofitable, while the horizontal axis assesses the degree of support these activities provide to the core operations.

Activities are represented as bubbles, with size correlating to their average annual revenues. The upper right quadrant identifies activities that are both supportive of the core and profitable, suggesting these should be retained and potentially leveraged for further growth. The middle section includes activities that support the core, but are not currently profitable, indicating a need for strategic reassessment.

The lower left quadrant highlights activities that are neither profitable nor supportive, which should be considered for divestment. The slide emphasizes that significant portions of the portfolio can be divested without risking economies of scope or overall profitability. This insight is critical for decision-makers looking to streamline operations and focus on core competencies while optimizing resource allocation.

Overall, the slide serves as a visual tool for executives to evaluate their portfolio strategically, guiding them toward informed decisions on which activities to retain, reassess, or divest. The clarity of the categorization allows for a straightforward understanding of where value lies within the portfolio.

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Strategy Development Example Business Model Design Core Competencies