Question

Is the Nestle Company just running a portfolio of investments? Explain.

Is the Nestle Company just running a portfolio of investments? Explain.

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Answer #1

Answer- Yes,Nestle Company Running a portfolio of investment.

Explanation- Business portfolio is a collection of business And products That make up company.The best business portfolio is the one that best fits the company strength and weakness to opportunities in the environment.

Portfolio investment can be defined as a set of techniques that help strategists in taking strategicdecision with regard to individual products or business in a firms portfolio.

The main advantage in adopting a portfolio approach in a multi-product,multi business firm is that resource could be channelised at the corporate level to the a business that posses that greatest potential.

Nestle company has products like Maggi,coffee,milk product etc.So portfolio of investment is necessary for deciding which product require more investment and attention and which product require less investment.

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