Portfolio Management - The key to successful business - A longitudinal case study of a construction company

Abstract: Title Portfolio Management - The key to successful business A case study of a construction company Authors Britta Ek Thomas - Master of Science in Technology Management Filip Eliasson - Master of Science in Biotechnology Engineering with Technology Management Elin Skoghagen - Master of Science in Technology Management Advisors Charlotta Johnsson, Associate Professor Department of Automatic Control, Faculty of Engineering, Lund University Thomas Kalling, Professor Institute of Economic Research, Lund School of Economics and Management, Lund University Supervisor A, Product Manager The Mother Company Supervisor B, Director of Product Development The Mother Company Issue of Study Managing product portfolios in today’s business environment is highly complex; there are a number of orthogonal dimensions to consider in order to be successful. Theories within the area of portfolio management are often single tracked and lack the comprehensive picture of what vital aspects to consider to achieve portfolio management excellence. Purpose The purpose of the study is to increase the understanding of the mechanisms impacting portfolio management in an increasingly complex competitive and corporate environment. Methodology A longitudinal case study was chosen as research design since the authors aimed for a thorough and deep understanding of the case company’s strategic portfolio management over time. Initially, a literature review was conducted to increase the knowledge of portfolio management and the surrounding context of internal processes and the external environment. The chosen theories; portfolio management theory, PESTLE, Porter’s five forces, Porter’s generic strategies, Resource-based view and strategy process theory, were then composed into a unique theoretical framework. In the next step, empirical data from the case company was gathered through interviews, questionnaires, databases, observations and following of relevant employees. Finally, the theoretical framework and empirical conclusions were synchronized by using pattern matching. The conclusions drawn resulted in an increased understanding of the mechanisms impacting portfolio management in an increasingly complex competitive and corporate environment. The findings were visualized in Cheez - a generic portfolio management framework applicable in acquisition focused, capital and technology intensive industry companies operating within multinational B2B contexts. Conclusion The output of the study accentuates an amplified importance of internal company-specific processes, intrinsic barriers and driving forces to consider when managing product portfolios in an increasingly complex competitive and corporate environment. Further, deep understanding of the company’s internal and external market environment is required. Depending on the company’s portfolio management prerequisites, different aspects of the environment and the corporate processes have to been considered when striving for enhanced portfolio performance. To visualize the logic of the impacting mechanisms, the generic portfolio management framework Cheez has been developed, applicable on acquisition focused, capital and technology intensive industry companies operating within multinational B2B contexts.