Improving the assessment and implementation of new business opportunities in the A group of companies

• Main Author: Prado, Josef Karlo V.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Organizational change; Industrial management
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5736
• Institution: De La Salle University

This paper examines the implementation of an analytical venture opportunity assessment process in a local conglomerate (AGRP), using the Action Research Methodology espoused by Coghlan and Brannick (2014). AGRP has recently adopted an aggressive diversification strategy, but its new businesses have all underperformed relative to expectations. Our research team identified the current venture assessment process as one of the main causes for this issue. Previous venture assessment in the organization was based mostly on management intuition, and overlooked key information and decision factors that are important in determining the overall attractiveness of a business opportunity. In response, the team developed an information-based assessment model based on the work of Botha and Robertson (2014). The model was designed to 1) improve the organizations ability to identify a new ventures associated risks, 2) deliver projections based on external data and analysis of key information, and 3) improve overall target attainment for approved new businesses. After the completion of two Action Research cycles, the team determined that the enhanced process enabled significant improvements in venture assessment quality, but was still very limited in its usefulness in identifying execution risks. The paper concludes by proposing an enhanced model to help address this important limitation.