Portfolio Analysis: Igniting a long-term spirit in a short-term world (I). Ouverture
So inspired for being back again.
After these two weeks of vacation, here we are returning back for you. It is a good vice to think for you, and I can´t leave you alone.
What did I explore during two weeks’ vacations? I had the chance to start to swim again. Something I didn´t practice since March last year. During the last 17 months I wasn´t able to go for a water dip, and immerse my head in the water. As a result, I have gained weight (maybe 8 kilograms at least); and that is strong evidence of a lack of exercise. Not good. After undergoing the two Sinovac shots, I couldn´t wait for the day in which I could go out again to swim. These vacations were a celebration for my soul, my mind, my spirit. Just to be allowed to return to the pool is a miracle. Even with the high risk of other COVID19 variants, I needed to swim again, desperately.
The beauty of aquatic sports has no comparison with another exercising, at least for me. There is something so refreshing about swaying in the water, that no other sport can fill. Beyond the benefits for my body, swimming has an impact on my brain, and I missed to reel in the waters given the pandemic season. To plunge into the pool and lap successively is a period for my mind solely dedicated to reflection, inspiration, meditation, and praying to Jesus Christ for wisdom and calm. If you are already vaccinated, and free of any agglomeration risk, I encourage you to look for the pool water, better if in a natural way (sea, lake, river, transparent water wells, and ponds, or thermal waters), and at least bathe to celebrate that we are still alive. I truly encourage you to be awash from the past stressful months. Just be cautious to use your mask, and only remove it when you are swimming in the pool water which has tons of chlorine.
Alors, we are here clean, energetically fresh to begin the third saga of the year: “Portfolio Analysis: Igniting a long term spirit in a short term world”.
Introduction. This saga will be the purest theory of all that I have written. Why? Without theories and frameworks, it is impossible to apply our problem-solving “on point”. This saga pretends to be an opening door for you about the expansion theory of diversification that took the world of the biggest MNCs (Multinational Corporations) in the 70s and 80s, before Michael Porter’s appearance and the “core” concept on the business corporate strategy map. We have to go back in time, to the moment in which we were not learning what has caused so many troubles with our global value chains. Please remember that every company on earth has started as a tiny little thing, as Eleonora Escalante Strategy. But when growth begins, and companies saturate their organic market (local country of origin) that is the point in which companies decide to go either by using the vertical integration path, or the horizontal international expansion paths (a process which is also called by some authors as a horizontal strategy). We already cover this material in our past saga.
There is no corporate strategy without portfolio analysis. Typically, nowadays portfolio analysis is always associated with financial frameworks, which are also associated with financial returns. The majority of decisions about portfolio analysis are built on sales growth percentages, ROIC, ROA or ROE, multiples, and valuation indicators. That is the way it works. But Eleonora Escalante Strategy is always trying to shake the roots of our excessive and biased approach that only privileges shareholder value. We will study the theory of portfolio analysis starting from what was existent and available in the books and management journals of the traditional corporate strategy that was put down and sunk in the middle of the 80s. So we are returning back in time to at least 40 years ago. That was the time I was 10 years old, and diversification was still esteemed. I am sure we will learn a lot with it.
Then we will disclose a new pathway for integral portfolio analysis, starting from the fundamental basics of our own strategic reflections’ theory. We will stretch our boundaries to provide a new philosophy. We aspire to be taken into account by strategy professors and researchers, in our quest to improve the way in which corporate strategy works.
Our outline: Honestly, today, our post will be short. We will expose our outline for the next 26 episodes. Here we go:
If you wish to download the outline in PDF format click here:
Using music and watercolors. Eleonora Escalante Strategy is undoubtedly supporting arts (in the traditional inherited way in which our ancestors did it, before the disruptive artificial technologies ). We care for it in all that we do, and this time we will use music. Music from bands, from musicians, from choirs, from philharmonic orchestras and solos a Capella. We will select a song that fits with the subject of our episode. Take the time to listen to it, please. I encourage you to click the video music first, and with that pleasing lyrical background begin your reading, because each song will open the next episode, as a prelude to what we will write.
For today, this is our opening song.
See you next Friday. Much love to you.
Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.
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