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S a egic Analysis o Business Po olios: Case
S udy o Chabaha Fishe y Clus e
Amin Reza Kamalian
Associa e P o esso , Depa men o Managemen , Uni e si y o Sis an &
Baluches an, Zahedan, I an
Meisam Ghasemnezhad1
MA En ep eneu ship, Depa men o Managemen , Uni e si y o Sis an &
Baluches an, Zahedan, I an
Abs ac
Today, compe i i e ad an ages o businesses wi h a ious p oduc s a e
dependen on a compe i i e analysis and de eloping a ele an s a egy. One o
he e ec i e amewo ks by which one can assess business po olios is he
Gene al Elec ic (GE) Ma ix, which i sel ocuses on wo aspec s namely
ma ke a ac i eness and he business s eng hs. The e o e, his s udy asks
wha is he con ibu ion o each o Chabaha Fishe y Clus e ’s business uni s,
as a as he compe i i e ad an ages and ele an s a egies o each uni a e
conce ned? The objec i e o he s udy is hen de ined as how o iden i y he
gap be ween ma ke a ac i eness in ishing indus y and po en ials o
Chabaha Fishe y Clus e and o p o ide app op ia e s a egies in line wi h he
GE Ma ix. Chabaha Fishe y Clus e ’s manage s ha e been chosen as he
a ge s a is ical popula ion o he s udy. Ma ke ing Managemen so wa e is
used o analyze da a and esul s show hose uni s which p oduced canned ish
enjoyed be e posi ions among o he pa s o he Clus e .
Keywo ds: Gene al Elec ic (GE) Ma ix, businesses po en ials, he
indus ies’ g a i y, po olio analysis, Ma ke ing Managemen so wa e
Ci e his a icle: Kamalian, A. R., & Ghasemnezhad, M. (2015). S a egic Analysis o
Business Po olios: Case S udy o Chabaha Fishe y Clus e . In e na ional Jou nal o
Managemen , Accoun ing and Economics, 2(6), 558-570.
1 Co esponding au ho ’s email: [email protected]
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559
In oduc ion
Mos businesses p oduce mo e han one p oduc o wo k h ough mo e han one uni
oday. They may begin hei ac i i ies wi h one p oduc o jus one uni bu expand hei
business g adually in esponse o a ac i e ma ke oppo uni ies. To manage mul i-
p oduc o mul i-uni businesses incu some big challenges. Haspe lagh s a es ha
di e si y in p oduc s o uni s may become bo h a g ea sou ce o compe i i e ad an age
and a sou ce o basic h ea s. The e o e, each uni in he companies’ po olio enjoys a
di e en po en ial o g ow h, has a di e en compe i i e en i onmen and i needs o
make a ious s a egic decisions o ensu e ha he o ganiza ion’s o e all objec i es a e
achie ed (Udo-Imeh and colleagues, 2012).
As a as ma ke ing is conce ned, ha ing a ious compe i i e analy ic ools could be
help ul o make s a egic decisions. This inc easingly en o ces companies o make new
in es men s and expand hei o ganiza ional lexibili y (Ko le & Kelle , 2009). When a
company decides o de elop a ma ke ing s a egy, manage s a e equi ed o assess hei
s a egic business uni s’ s anding in he ma ke . (Jan, 2002). So he goal o ma ke ing
e o s is o analyze he company’s in e nal po en ial (main compe ence) and he
po en ial o compe i ion. This will c ea e expe ise and s a egic coope a ion
ag eemen s (D ummond & Enso , 2001). To achie e hese objec i es, analyzes ocus on
wo main goals. Fi s , o know compe i ion bo de s in o de o de ine s a egic a eas in
which he company ac s upon. And secondly, o analyze he compe i ion as a se o
compe i o s’ ac i i ies wi hin he same s a egic a ea (Be gen & Pe e a , 2002).
Chabaha Fishe y Food Indus y Clus e enjoys he oppo uni y o ha ing access o
c ude ma e ials as well as s a egic s a us o Chabaha F ee Region. The e o e, i also
enjoys double oppo uni y o bo h ha ing access o in e na ional ma ke s and being a
ocal poin o o eign and domes ic in es o s. Bu , he Clus e also su e s om some
weak sides including a low expo quo a and p oduc supply luc ua ions due o no
ma ke ing ac i i ies as well as ha ing no di ec access o he ma ke . This all comes in
spi e o he ac ha consump ion o ma ine c ea u es and hei by-p oduc s has
inc eased d ama ically. Also, he e a e no expo companies wi h collec i e powe o
o e Business De elopmen Se ices nei he in he egion no he p o ince o ake
some s eps in esol ing weak sides o he indus y and in p o iding s a ic condi ions o
o e and o expo he p oduc s. The e a e 51 ac i e indus ial uni s in Chabaha Fishing
Indus y Clus e mos o which a e dependen on ishe ies such as aising ish and
sh imp, p oducing conse ed ood and ish powde . These a e conside ed as he
company’s po en ials o in es men .
The GE-McKinsey Ma ix is used as one o he s a egic analysis amewo ks o
mul i-p oduc businesses. The e o e, in his s udy, we y o answe he ques ion “whe e
is he s anding o each o he uni s o Chabaha Fishe y Clus e in e ms o compe i i e
ad an ages and which s a egies a e ela ed o each business uni ?”
To his end, we ied o ge acquain ed wi h he ac o s unde examina ion in business
po olio analysis a e e iewing he li e a u e o esea ch and explo ing he
a ac i eness o ishing indus y ma ke as well as he po en ials o businesses ac i e in
he ishe clus e . In he nex pa , a esea ch pa e n was designed on how o use Ma ke
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Managemen so wa e, which i sel was labeled as an inno a ion in he cu en s udy.
Finally, he abo e pa e n is used in analyzing da a a e hey a e accumula ed.
Theo e ical basics
Analyzing business uni s
As a as compe i i e ma ke ing is conce ned hey usually de ine h ee le els o
s a egy including he company le el s a egy, business uni s’ le el s a egy and du y
le el o ope a ional s a egy (Hooly & colleagues, 1998). This pape is conce ned wi h
business uni s’ le el s a egy as a new model in which businesses de elop own
s a egies.
Va ious ma ke s a e ca ego ized o achie e ce ain objec i es. Those a eas in which
businesses ope a e a e called S a egic Business A ea. Hence, S a egic Business Uni s
link he businesses’ compe i i e s a us wi h one o mo e s a egic business a eas (Jonk,
2007). This will enable he businesses’ managemen o make app op ia e decisions a e
e iewing business po olios in line wi h he dis ibu ion o inancial esou ces o each
o hei own businesses (Day, 1997).
The GE Ma ix de eloped by McKinsey ad iso s’ g oup is dubbed as one o he mos
used models in s a egic analysis (Robinson & colleagues, 1978).
The Gene al Elec ic (GE) Ma ix
The Gene al Elec ic (GE) Ma ix applies se e al ac o s in o de o assess he
indus y’s ap u e and he ade uni ’s po en ial. The Ma ix, as seen in Figu e 1,
con ains 9 cells dubbed as he GE nine-cell planning g id and i elies on he
indus y’s long- ime a ac i eness, he company’s powe and i s compe i i e
s a us (Hange and Villen, 2004). Wi h espec o he ade uni ’s s a us in GE
Ma ix, h ee s a egic app oaches a e p oposed o each uni in he in es men
baske : 1- In es men o g ow h, 2- Selec i e in es men and income ac i i ies
and 3- P o i - aking o disowning he esou ces (Wilson & Gilligan, 1992). Types
o s a egies based on Ma ix po olios analysis a e hen p o ided a e
iden i ying business uni s in he GE Ma ix. You should no ice ha he p o ided
op ions in all o he cells o his Ma ix do no hinde collec i i y a he hey
could be applied o each he objec i es o any o ganiza ions simul aneously and
in he same di ec ion. As seen in Figu e 3, he ma ke ing uni ’s s a egic op ions
a e displayed based on Ma ix po olio (Islam, 1999).
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Business s eng h (compe i i e po en ial)
Figu e 1 Gene al Elec ic Ma ix
Sou ce: Hange & Villen (2004)
Weak Medium S ong
Ques ion Ma k
Winne s
Winne s
Lose s
Medium
Winne s
Weak lose s
Lose s
P o i -make s
Indus y’s a ac i eness
Low medium High
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1. La ge esea ch and
de elopmen
p og am
2. Righ o make new
inno a ions
3. To educe he p ice
4. To speed up selling
p omo ion
5. New p oduc s
6. F esh ma ke s
1. To en e new
ma ke s
2. To engage wi h new
sec o s
3. To add dis ibu ion
schemes
4. To inc ease he
p oduc ’s use
(consecu i e buying)
1.
To ocus on mo e
pa s o he ma ke
2. To seek o an
unused place
3. To p o ide i s -
class goods o
se ices
4. To c ea e a
dis inc i e image
5. To ocus on
p oduc ion phase
1. To seek and ocus
on
he as es eme ging
ma ke s
1. The p oduc ’s quali y
imp o emen
2. Inno a i e p oduc
3. Re o med
dis ibu ion p og am
1.
The p ocess o
imp o ed
p oduc ion
ope a ion
2. To elimina e he
addi ional o
su plus capaci y
3. To inc ease
dis ibu ional
channels
1. To enhance selling
p omo ion
2. To s ess
ma ke ing
3. New se ices
4. To inc ease p ice
1.
To Main ain
p oduc ion capaci y
2. To Main ain ma ke
sha e
3. To Main ain
p oduc ’s quali y
4. To Main ain
cus ome se ices
1. Cash
2. Cessa ion
3. To educe spending
4. To educe asse s
Figu e 2, Ma ke ing uni ’s s a egic op ions based on Ma ix po olio
Sou ce: Islam (1998).
Fac o s behind business s eng h
The indexes showing any company o o ganiza ion’s capabili ies in mee ing
he needs o he cus ome s a e conside ed as ac o s behind business s eng h as
compa ed o o he p oduce s. They a e also conside ed as he o ganiza ion’s
capabili ies o achie e i s espec i e long- e m and sho - e m objec i es. The
ac o s behind ade s eng h include ma ke sha e, channels o dis ibu e he
company’s p oduc s in he ma ke , he p icing policies, quali y s anda ds, he
abili y o encoun e changes in he ma ke , p o i ma gin, he abili y o compe e,
o be in o med o cus ome and he ma ke , he compe i i e s a us, echnology
and managemen alen .
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Fac o s behind he indus y’s a ac i eness
You could unde s and he a e o he indus y’s a ac i eness h ough
ecognizing he ac o s behind ma ke a ac i eness. The U.S. ma ke ing
associa ion de ines ac o s behind ma ke a ac i eness as c i e ia which show
seen and unseen p o i a ailable in a pa icula ma ke o indus y. I depends on
se e al ac o s including ma ke size, i s annual g ow h a e, p o i -making a e,
he in ensi y o compe i ion in he ma ke , seasonal and pe iodical quali ies,
consump ion, echnology, social, cul u al, legal and economical ac o s. On he
o he hand, a pa icula ma ke enjoys mo e a ac i eness i i had mo e po en ial
and unseen p o i s wi hin i s s uc u e (Ha ison & John, 1998).
The esea ch backg ound
A ew s udies ha e been ca ied ou in he ield o business po olio analysis some
explana ions abou which ollow:
(Ama ulli and colleagues, 2011) deployed Ma ke ing Enginee so wa e o do a
esea ch dubbed “S a egic analysis h ough using GE Ma ix: o be applied on o I aly’s
mode indus y”.
(Hamidizadeh and colleagues, 2011) in hei esea ch dubbed “measu ing and
analyzing he a ac i eness o d edging indus y” used Po e compe i i e model in
hei analysis. Resul s showed ha om among compe i i e o ces, he p o ide s mainly
h ea en he indus y. They enjoy ela i ely high powe and ha e mo e e ec i e
impo ance as compa ed o o he compe i i e o ces wi hin he indus y, acco ding o
hei indings.
(Saya eh & colleagues, 2010) conduc ed a esea ch in o “ he a ac i eness o ship
w ecking indus y’s oppo uni ies” in I an. They used he wo-sen ence es o iden i y
chances and F eidman es o make p io i ies.
(Jezni & Gha ibna az, 1998) did a s udy i led “Designing and de ining ma ke ing
s a egies based on ma ke a ac i eness and he compe i i e s a us o Food Indus y”.
Findings showed ha wi h he compe i i e s a us ge ing s onge , companies i s eso
o de ensi e s a egies and ocus on main aining hei cu en s a us and pu he in asi e
s a egy as hei second choice.
Iden i y a ac i eness ac o s/business s eng h in ishing indus y
The Ma ke ing Managemen so wa e in oduces i e main dimensions o analyze
and ecognize he ma ke a ac i eness ac o s/ he business s eng h. As pe he cu en
s udy, i also conside s hose dimensions as main issues in analyzing business po olio
as shown in Figu e 3.
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Figu e 3 Inden i ying a ac i eness ac o s/business s eng h in Fishing Indus y
P oposed esea ch pa e n in employing Ma ke ing Managemen
so wa e
Ma ke ing Managemen so wa e was in oduced as a new me hod in business
po olio Ma ix analysis, bu i was no deployed in Academic esea ches so a .
The e o e, in his s udy, an app oach is p o ided on how o use he so wa e in scien i ic
esea ches.
Phase 1: Fi s we de e mine each business uni ’s sha e in he company’s income. I ’s
like his: numbe one shows each business uni is alloca ed a li le amoun o he
income. Numbe wo shows a ew o he income sha e is alloca ed. Numbe 3 means
hal o he income is de i ed om his uni . Numbe 4 s a es ha mo e han hal o he
income is de i ed om his uni and numbe 5 means all o he business income is
de i ed om his business uni . A e collec ing he da a and coun ing he ela i e mean
sha e o each business uni he de i ed numbe is mul iplied by 100 o con o m o he
so wa e algo i hm.
Phase 2: Ma ke ing Managemen so wa e is used o di ide he wo dimensions o
business s eng h and he indus y’s a ac i eness by 5 main ac o s. The o al weigh o
hese ac o s in each dimension should equal 100. Those ac o s include: ma ke ,
compe i ion, social and economic, echnology and socio-poli ic. In his s udy, he e o e,
o p e en any mis akes in ques ionnai es da a, each o he main ac o s in one o 5
ca ego ies a e gi en a ma k. Then he ela i e abundance o each ac o can be ob ained
a e collec ing he da a and compu ing he mean. Main ac o s’ ela i e abundance is
hen mul iplied by 100 o achie e a co ec numbe be ween 0 o 100, in o de o he
mean o become compa ible wi h he so wa e’s algo i hm.
Phase 3: Each one o he main ac o s a e disin eg a ed in o sub-di isions in his
phase and like he p e ious phase each o he sub-di isions a e gi en a one o 5 ma k.
Then each mean is di ided by 5 and he de i ed numbe is mul iplied by 100 o he
Indus y
a ac i eness/Busin
ess s eng h
Ma ke
Compe i ion
Financial
and
economic
Technology
Social and
poli ic
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weigh o each o hem o be de e mined. (I is wo hy o no e he e ha in his phase i is
no equi ed o he collec ion o sub-di isions o each main ac o be equal o 100).
Ma ke ing Managemen so wa e shows he s a us o each business uni in he nine-
cell Ma ix a e all he abo e phases a e done. Now he esea che could use ob ained
da a o make decision o each one o he business uni s.
Me hodology
The cu en s udy is an applica ion esea ch in e ms o he objec i e and i ’s a
desc ip i e-measu emen esea ch in e ms o da a collec ion. The s udy’s s a is ical
popula ion is consis ed o 51 ac i e p oduc ion uni s o Chabaha Fishing Clus e which
a e wo king in 7 indus ial ownships as shown in able 1. Kona ak Indus ial Township
has been chosen as he esea ch sample om among hose ownships. Sampling me hod
is judgmen -based. As pe he s udy, 22 people o he manage s ha e been chosen om
among ac i e uni s in Kona ak Indus ial Township. Ques ionnai es a e used o collec
he da a he collec ed da a a e analyzed by Ma ke ing Managemen so wa e.
Table 1: Ac i e uni s in indus ial clus e o Chabaha Fishe ies
To al
P ocessing and eezing
Fishmeal
Tuna
Uni ’s name
22
6
6 10 Kona ak
2
1
1 - Chabaha
7
-
- 7 Nagoo
11
1
7 3 Pasabanda
5
2
2 1 Be is
2
-
1 1 Pazm
2
-
2 - Ramin
51
10
19 22 To al
Analyzing he da a
Phase 1: Main p oduc s o Chabaha Fishe y Food indus y clus e include ish
powde , p oducing and conse ing ish he sha e o which is shown in he Table 2.
Table 2: Weigh o each business uni and he income o Chabaha Fishing Clus e
Name o p oduc
M
ean
R
ela i e abundance
W
eigh o each uni
(
×
100
)
Tuna 3.76 0.42 42
Fishmeal 2.97 0.33 33
P ocessing and eezing
2.31 0.25 25
To al 9.04 1 100
Phase 2: In his phase, he business s eng h and indus y’s a ac i eness a e di ided
in o 5 main ac o s o al weigh o which should equal 100 in each ca ego y. Those
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ac o s include: ma ke , compe i ion, inancial and economic, echnology, socio-
poli ical shown in he Table 3.
Table 3: The impo ance o main ac o s in indus y
Dimensions Mean
Rela i e abundance
Weigh o each uni (×100)
Ma ke 4.9 0.23 23
Compe i ion 4.8 0.22 22
Financial and Economic
4.55 0.2 20
Technology 3.75 0.17 17
Social and poli ic 4 0.18 18
To al 22 1 100
Phase 3: In his pa , a e selec ing sub-di isions linked o each main ac o , hei
weigh s a e de e mined. The sub-di isions o he socie y unde s udy is shown in Table
4. Table 4: The sub-di isions used in he esea ch
Dimensions Ma ke Compe i ion
Financial &
Economy Technology Socio-Poli ical
Indus y a ac i eness
Ma ke
dimensions
numbe o
subs i u e
goods p o i -making complexi y
he union’s impac
Segmen a ion change in
ma ke
sha e ma ke sha e ma gin
a ie y
people’s social
endency
Ma ke endency sa ing as pe he
index go e nmen al
egula ions
P ice sensi i i y en y & exi
impedimen s inancial policies
impac
Seasonal selling wage le el
Ma ke a ie y
Demand and
supply ela ion
Access o ene gy
Business s eng h
Business sha e clus e
compe i i e
ness
In es men ou pu
a e con o mi y
wi h changes social accep ance
Business g ow h Change in
ma ke
sha e su plus alue Quali y o
esea ch and
de elopmen
quali y o social
ela ions
Regional co e ing
Impedimen s o
en y and exi o
