The Business Portfolio Research Of Chenguang Group Based On Parenting Advantage

Along with the deepening of China’s reform, opening up, and the continuousimprovement of the market economic system, many enterprises have made diversified asthe direction of the development. However, starting from the mid90, problems hasappeared in many implementing diversified group, that is the serious deterioration of theasset and capital structure. It becomes the focus of debate that the effects of Group arebeneficial or harmful to subsidiaries. More and more people are doubted that weatherdiversified enterprises can produce good benefit. It is against such a background, thecompany diversified development becomes one of the most worthy of studies in the fieldof strategic management issues in China.This paper based on the study of Chenguang Group, assess the company’s corecompetitiveness and business lines with parenting advantage and some other relativetheories and come up with solutions to optimize its business line. Firstly, this study gives adescription of history, reform and background of coal geology industry. Secondly, thispaper descants the parenting advantage and makes a comparative study of businesscombination evaluation system and evaluation methodology. Thirdly, it adopts AHP andPAHP to analyze the evaluation results combining the company’s situation. Finally, itcomes up solutions both from subsidiary operation level and parenting level to improveChenguang Group’s core competitiveness according to the evaluation results.The innovation points in this paper:(1) Constructing the Chenguang Group companyparenting advantage framework.(2) Design evaluation index system for businesscombinations, and it uses the mathematical methods to make a quantitative analysis andevaluation of Chenguang Group portfolio.(3) According to the existent problems ofChenguang Group, it puts forward a portfolio strategies based on the parenting advantage.Across the full text,, there are a wide range of applications the theory of parentingadvantage in enterprise implementing diversification strategy. Based on the parentingadvantage, we do a research about Chenguang Group portfolio, and it can be an exampleof application for parenting advantage.