What is portfolio strategy approach?

As a student of MBA I was reading a book on management. I came to the topic of strategies of management. The term was present there and I need to know the details.
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The portfolio concept is analogous to an individual’s selecting a portfolio of stocks to achieve balance in terms of risk, long-term growth, etc.
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A portfolio strategy approach is a method of analyzing an organization’s mix of businesses in terms of both individual and collective contributions to strategic goals.
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