Abstract

The aim of the article. The aim of the article is to identify marketing aspects of balanced business portfolio evaluation; to form its procedure, which includes set of certain steps; to prove expediency of strategic business units integration into balanced business directions. The results of the analysis. The main marketing features of business portfolio evaluation process were shown in the article. It was emphasized, that market correlation between business portfolio components is strongly needed to be mentioned during its balance estimation. It was justified, that one of the most effective ways to investigate this correlation correctly is based on identification of business portfolio’s components. We mentioned that according to modern market conditions, business portfolio can include not only just strategic business units (SBU), but also its supporting market activities, which add value to the main SBUs. Third product level was given as an example of supporting market activities. Therefore, the procedure of balanced business portfolio evaluation was suggested, which includes five steps. On the first step distinguishing of SBUs and supporting market activities is proposed. For that issue set of criteria was suggested, according to which it is possible to come to the conclusion which type goes to each portfolio component. On the next stage, competitiveness and market attractiveness estimation for each portfolio component was lead, using traditional portfolio matrixes (BCG, GE / McCinsey, Shell / DPM, ADL / LC, etc.). The balance of business portfolio (which includes separately taken SBUs) is evaluated. For that point, BSC method is commonly used. On the third step, the model of creation business directions is given. It includes the relationships nature investigation between all business portfolio components, which gives an answer whether it is appropriate to create business directions based on existing portfolio components or not. It gives the type of possible business directions (as we mentions, there can be three possible types of business direction: horizontal, vertical and combined), its structure and life cycle as well. Forth procedure’s step aims to evaluate business portfolio balance, which based not on separately taken SBUs, but on business directions. On this step the same methods as on second one are used. The final step includes compressing of two valuations and choosing that business portfolio structure, which is better for the company. Conclusions and directions of further researches. Compared to other procedures, this one includes comparison of two balance business portfolio valuations (which goes from different business portfolio structures). Moreover, given procedure includes expediency business direction creating model. The advantages of business portfolio based on business directions were also given: additional market barrier for other competitors are created, improvement of competitiveness, increasing of profitability, etc.

Keywords: business portfolio, business direction, strategic business unit, supporting market activity, portfolio analysis, balanced business portfolio evaluation procedure

Cite as: Yavorska, K. (2013). The balanced business portfolio evaluation procedure at industrial enterprises . Marketing and Management of Innovations, 3, 146-153. https://doi.org/10.21272/mmi.2013.3-14

This work is licensed under a Creative Commons Attribution 4.0 International License

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