A Multi-Objective Optimization Model for Designing Business Portfolio in the Oil Industry

Authors

  • A. K. Kiamehr Department of Industrial Management, Tarbiat Modares University, Tehran, Iran
  • A. Azar Department of Industrial Management, Tarbiat Modares University, Tehran, Iran
  • M. D. Nayeri Department of Industrial Management, Tarbiat Modares University, Tehran, Iran
Volume: 8 | Issue: 6 | Pages: 3657-3667 | December 2018 | https://doi.org/10.48084/etasr.2023

Abstract

Designing a business portfolio is one of the key decisions in developing corporate strategy. Most of the previous models are either non-quantitative or financial with an emphasis on optimizing a portfolio of investments or projects. This research represents a multi-objective optimization model that firstly, employs quantitative methods in strategic decision-making, and secondly, quantifies and considers non-financial, strategic variables in problem modeling. In this regard, links between businesses within a portfolio have been classified into four groups of market synergy, capabilities synergy, parenting costs, and sharing benefits, and have been structured as a conceptual model. Although the conceptual model can be applied to various industries, it is formulated for designing the portfolio of multi-business companies in Iran oil industry. The model has been solved for three cases by NSGA-II algorithm and strategic insights have been explored for different corporate types.

Keywords:

corporate strategy, business portfolio, multi-objective optimization, oil industry

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How to Cite

[1]
A. K. Kiamehr, A. Azar, and M. D. Nayeri, “A Multi-Objective Optimization Model for Designing Business Portfolio in the Oil Industry”, Eng. Technol. Appl. Sci. Res., vol. 8, no. 6, pp. 3657–3667, Dec. 2018.

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