In this case, exiting investments can be accelerated, eliminated or de-prioritized. Again, the resources within the business can be allocated or re-allocated to active investments. Normally, portfolio decision approach is characterized by changing and unforeseen information, vibrant opportunities, various objectives and strategic considerations among many others. Also, a variety of decision makers and locations are considered. In determining product success, portfolio management incorporates or ignores a number of decision making approaches in the business. These include periodic evaluations of the all portfolio investments, making of decisions with regard to individual projects on a continuous basis (Product Success 7). Similarly, there is development of new product process characterized by a complete resource distribution decisions.
Apart from decision making and resource distribution, new product portfolio control deals with future opportunities and events. However, there is a lot of information needed to make the best out of investments. First, there is need to understand that product portfolio control focuses on future chances and events. Therefore, most of the information needs to make investments selection decision process at its best. Secondly, the decision environment is a very vibrant one. The status and opportunities for investment in portfolio are continuously changing with the introduction of new information. Thirdly, projects in portfolio are at various stages of completion, although all the projects are competing for resources so that comparisons are made. Finally, resources to be distributed across the projects are restricted.
A verdict to finance one project can mean that resources are not accessed by another and resource sharing between projects is not completely seamless. There are four major goals in portfolio management that leads to product or brand success. Actually, the goal that an individual wishes to focus on mainly is the one that will eventually determine the choice of portfolio approaches. These objectives include: Value exploitation Balance Strategic course Right number of investments With regard to value maximization, the main objective is to distribute resources with an intention of maximizing portfolio value. This means that the projects are selected so that the sum of values are maximize that are related to active projects. On the other hand, balance deals mainly with the development of balanced approach to realize the desired balance. For instance, the relevant balance in terms of permanent short term projects versus long term projects must be attained. Strategic direction as part of the main objectives ensures that apart from all the other factors, the ultimate project portfolio truly gives a reflection of business approach. This should mean that the breakdown of using funds across markets, projects among other investments is closely related to business strategy. In relation to the right number of projects, most organizations have several continuing projects for the limited resources that are available. Therefore, an overriding objective is to make sure that a balance is reached between resources needed for the main projects and resources that are available. Product or brand failure In contrary to product success, product or brand failure means that the product in the market cannot meet the customer needs in the market (Hlavacek, Maxwell, and Williams 33). Marketers understand that they are supposed to maintain a steady