Contingency model of business portfolio analysis in holding companies

Subject Areas : Strategic Management Researches

Mohammad Talari ¹ , seyed hamid khodadad Hosseini ² , Asadollah Kordnaiej ³ , Adel Azar ⁴

1 - Assistant Professor, Department of Business Management, Faculty of Management and Accounting, Hazrat Masoumeh University, Qom, Iran
2 - Professor of Business Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran (Corresponding Author)
3 - Associate Professor, Department of Business Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran
4 - Professor, Department of Industrial Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

Received: 2019-05-09 Accepted : 2019-06-10 Published : 2019-12-21

Keywords: Corporate Level Strategy, business portfolio analysis, classic grounded theory, contingency model of portfolio analysis,

Abstract :

Today, corporations have strong role in the economy of developing countries. Therefore, in recent decades, company-level strategy and portfolio management has been one of the important research axes in the field of strategic management. Therefore, portfolio analysis was studied as a key issue at the level of parent companies in this study. In this regard, the purpose of the research is to study how to analyze the portfolio and finally provide a contingency model for analyzing the business portfolio in different corporations. Method is qualitative and research strategy is classic grounded theory. Data collected by semi-structured interviews with 22 expert and director of the 13 Iranian corporations. The results indicate that the corporate portfolio analysis is based on two general classes: tool orientation and approach orientation. Tool orientation is based on prescriptive logic and typically uses classical analysis matrices, parent advantage models, quantitative and financial models. Approach orientation is based on descriptive logic and influenced by the intuition in managers and political pressures. Analysts and managers are two group involved in the process of portfolio analysis. Accordingly, the contingency model of portfolio analysis was presented. Finally, in the contingency model, portfolio analysis strategies of all four types of corporate-related, diversified, unrelated and integrated- were explained separately