What are portfolio models and what is the corporate parants role in this?

Portfolio models are use to determine these portfolio choices i.e. the balance of a corporate portfolio (The products and services a firm sells). Among its various roles, the corporate parent needs to assess: • which industries and businesses should be part of the corporation (added or divested) • whether any individual business is worth more under corporate umbrella, or would be worth more stand-alone. There are many models that managers can use to determine SBU portfolio choices. Each model pays attention to three criteria: 1. The balance of the portfolio 2. The attractiveness of the business units (how strong they are individually, and the growth rates of their markets or industries) 3. The ‘fit’ that the business units have with each other (potential synergies, or the extent to which the corporate parent can add value The BCG Matrix is the most common model to use in this regard.