The McDonald DPM like other models of portfolio analysis attempts to define a firm’s strategic position and strategy alternatives. The accepted level at which a firm can be analysed using the DPM is that of strategic business unit.
Professor Malcolm McDonald of the Cranfield School of Management developed the matrix to define Business Strengths in terms of Critical Success Factors (CSF’s). A critical success factor represents something that a company must do right in the eyes of the customer.
For the first time the business strengths are looked at from the customer’s point of view and are therefore more objective. In the past defining the factors was a very subjective exercise from the company’s point of view. The Business Strengths in this matrix are relative strengths (relative to the best in the market)
The DPM can be used at any level in the organisation and for any kind of SBU.