Grey portfolio analysis method
Grey Systems: Theory and Application
ISSN: 2043-9377
Article publication date: 2 June 2020
Issue publication date: 16 October 2020
Abstract
Purpose
The article proposes a new method of strategic analysis. The method was called the grey portfolio analysis method. The presented method is complementary to the popular BCG matrix. The use of the grey portfolio analysis method enables to make a dynamic portfolio analysis for data with a high level of uncertainty.
Design/methodology/approach
First, the article presents current problems related to the application of portfolio methods in strategic management, in particular with reference to the BCG matrix. Second, the basics of grey numbers, operations with them and the way of acting in the grey portfolio analysis method are presented. Finally, the developed method is presented in a case study concerning an IT enterprise, whose portfolio includes cloud computing services.
Findings
In the article, a new method of a strategic analysis based on the BCG matrix was presented. It combines grey methodologies of decision making with a grey prognostic model in the context of a strategic analysis. Due to this fact, a dynamic approach to the issues of portfolio methods is possible.
Practical implications
The article fits the current need related to the development of new expert systems supporting strategic management in enterprises.
Originality/value
An introduced method is new and innovative in the area of portfolio methods. Its originality results from the fact that it eliminates a static nature of the BCG matrix through the use of grey prognostic models. What is more, when grey numbers are used, a problem of uncertainty of information, which appears, is solved at a methodological level.
Keywords
Acknowledgements
The publication was financed from the funds for the statutory activity of the Faculty of Engineering Management at Poznań University of Technology, under the grant: Selected applications of grey systems theory in management and quality sciences, No. 11/142/SBAD/1006. Project leader – Rafał Mierzwiak, PhD, Eng. This work was also supported by a project of China Postdoctoral Science Foundation, grant number: 2018M630561
Citation
Nowak, M., Mierzwiak, R., Wojciechowski, H. and Delcea, C. (2020), "Grey portfolio analysis method", Grey Systems: Theory and Application, Vol. 10 No. 4, pp. 439-454. https://doi.org/10.1108/GS-11-2019-0049
Publisher
:Emerald Publishing Limited
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