What method is used to categorize all the products and services of a firm to align with strategic plans?

The method used to categorize all the products and services of a firm to align with strategic plans is portfolio analysis. This approach allows businesses to assess their various products and services by examining their performance, market position, and potential for growth.

Through portfolio analysis, a company can determine which products are contributing to overall success, identify those that may require more resources or strategic changes, and make informed decisions regarding investment and prioritization. Tools such as the Boston Consulting Group (BCG) matrix often come into play in this analysis, helping to visualize where each product stands in terms of market growth and market share.

This systematic examination not only helps companies manage their resources effectively but also supports strategic planning by enabling them to align their product offerings with market demands and organizational goals. The other options relate to different concepts; for example, portfolio management refers to the ongoing administration of a company's product portfolio, while product diversification involves expanding the range of products or services offered, and market segmentation focuses on dividing a market into distinct groups based on characteristics.