The aim of this thesis is to analyze the benefits and the challenges in implementing the manufacturing technology maturity assessment matrix from the US Department of Defence (US DoD) which is the Manufacturing Readiness Level (MRL) matrix, in automotive manufacturing industry. MRL matrix is created for maturity assessment in the defence acquisition process of the US DoD. This matrix is considered as an efficient and effective way of maturity assessment of manufacturing technologies and the resource allocation in the portfolio management. The thesis is based on a case study at an automotive manufacturing firm, taking its steps towards the MRL matrix from a stage-gate model in its portfolio management.  A Qualitative method study is carried out in this research and interviews were taken from six different personnel from an automotive manufacturing firm. These interviews gave a better understanding of the expectations and level of details needed in the MRL matrix.  From the data collected from this case study, six findings were found, which are a manufacturing technology should be implemented on the factory floor only when it is completely mature, the MRL framework by US DoD is complicated and the language used is difficult to understand, and four other findings. These findings clearly show the benefits and challenges of implementing the MRL matrix by the US DoD in the automotive manufacturing industry.

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Project portfolio management (PPM) is considered a central part for achieving intended strategies for organisations. However, only a percentage of strategies are actually realised, and whilst much previous research has focused on the formulation of strategies, less has been directed towards the realisation. To gain further understanding of how PPM can contribute to realising strategies, this thesis studied the PPM activities of selecting projects and allocating resources, and related challenges when trying to achieve a strategically aligned project portfolio in a matrix organisation. A qualitative case study was performed at a pharmaceutical production company in Stockholm referred to as Medex. An abductive research approach was used, and the data was thematically analysed whilst striving to achieve triangulation. The study was divided into a pre-study and a main study consisting of a total of 15 semi-structured interviews with participants at different positions within the organisation, in parallel to the collection of secondary data from Medex’s intranet.    The study indicate that it is a challenge for a matrix organisation to align projects to strategy through project objectives, and that it is rather project values’ strong connection to strategy that provide a clear link between projects and strategy. It further suggests that using project value for linking projects to strategy can increase the understanding of the motivation of project priorities, as well as creating a foundation for determining if the allocation of resources is oriented towards strategy. Furthermore, the study demonstrates the challenge and necessity for top management to base their decisions on sufficient and reliable information. Moreover, the selection of projects must be performed in accordance with available resource capacity, which highlights the need for strong connections between short-, medium- and long-term resource allocation. Furthermore, the study emphasises the need for a structured way of evaluating PPM processes to improve and address associated challenges. Additionally, the high competition between resources in a matrix organisation is depicted and the study indicates that a strong focus on profits can limit the possibility of achieving a strategically aligned project portfolio. While the study is based on a single case, the findings can be regarded as transferable, at varying extents, to other companies of similar size and organisational structure as well.

The interest in logistics properties has risen significantly over the last decade, which have attracted more national and international investors. Previous research has mostly been centered on the property's location and how it has influenced their value. As the e-commerce trend has progressed, more requirements for property design have emerged, which makes it interesting to investigate how real estate companies resonate about this. The purpose of this master's thesis has been to investigate how the major real estate firms in the logistics sector conduct strategic acquisitions and divestments to satisfy market demand, and how this has affected their measurable profitability. The study is based on quantitative data gathered from annual reports regarding their portfolio change and various profitability measures. Moreover, the quantitative survey has been complemented with in-depth interviews with these companies to get an understanding regarding their transaction history and to gain a deeper understanding of their investment strategy regarding logistic properties. What has been observed by the study is that real estate companies strive to have flexible properties to be able to adjust for future tenants and thus minimize any vacancies. New logistical trends like “last mile delivery” seem to affect the company's strategies on localization. Pure logistics companies with less diversification have shown higher economic lease rates and profit development in their logistic portfolios than the more diversified companies. Furthermore, a general strategic development towards more diversification in more niched portfolios is visible. / Intresset för logistikfastigheter har ökat markant under det senaste decenniet, vilket har lockat fler nationella och internationella investerare. Tidigare forskning har mest handlat om varför efterfrågan ökar och hur fastighetens läge har påverkat dess värde. De strategier som fastighetsbolagen i Sverige tillämpar för att anpassa sig till denna trend och hur deras portföljlönsamhet har utvecklats är fortfarande obesvarade ämnen. Syftet med detta examensarbete har varit att undersöka hur de stora fastighetsföretagen inom logistiksektorn genomför strategiska förvärv och avyttringar för att möta marknadens efterfrågan och hur detta har påverkat deras mätbara lönsamhet. Studien baseras på kvantitativa data från årsrapporter avseende finansiell information, portföljfördelning och lokal närvaro. Dessutom har den kvantitativa undersökningen kompletterats med fördjupande intervjuer med dessa företag för att få en förståelse för deras transaktionshistorik och för att bättre förstå deras investeringsstrategier avseende logistikfastigheter. Det som har observerats av studien är att fastighetsbolagen strävar efter att ha flexibla fastigheter som ska kunna anpassas för framtida hyresgäster och därmed minimera eventuella vakanser. Nya logistiska trender som "last mile delivery" verkar ha en inverkan på företagens strategier för lokalisering. Logistikföretag med en större andel logistikfastigheter och mindre diversifiering har visat högre ekonomisk uthyrningsgrad och vinstutveckling i sina logistikportföljer än de mer diversifierade företagen. Vidare syns en generell strategisk utveckling mot mer diversifiering i mer nischade portföljer.

Divestitures have grown in importance and popularity over the years, rivaling other strategic transactions in mergers and acquisitions. The dominating opinion in academic research is that divestitures overall generate an abnormal return for the parent company stock. This thesis will focus on how Swedish companies perform in the short-term around the announcement of a divestiture. A multiple linear regression analysis finds significance for divestiture gains being attributed to companies focusing on core competencies and to companies with low returns on assets and high returns on equity. However, no significance is found for the size of the companies or financial distress. / Avknoppningar är idag en populär företagstransaktion. Den dominerade åsikten i den globala forskningen kring avknoppningar gör gällande att de generar en överavkastning för företaget i förhållande till marknaden. Denna kandidatuppsats ämnar undersöka vilka faktorer som kan påverka denna överavkastning genom att studera svenska företag på Nasdaq Stockholm. En multipel regressionsanalys visar att företag som säger sig utföra avknoppningar för att fokusera på kärnverksamheten generar en överavkastning. Vidare blir det en överavkastning på företag som har låg avkastning på totalt kapital och hög avkastning på eget kapital. Ingen verkan hittas dock för att storleken på företaget eller skuldstrukturen har en inverkan på överavkastningen.

Globalization allows companies to reach a larger customer base and to focus on niche markets, driving specialization. Conversely, it also lets customers choose from a wider array of options on any given market, which all together leads to increased competition. Such global scale competition is straining profitability and urges companies to innovate both strategy and operations in search of competitive advantages. The ensuing increased rate of change has placed an emphasis on achieving flexibility to ensure alignment with market needs, with companies successful in quick modifications flourishing even in face of unpredictable and unceasing turbulence. The trend toward increasing turbulence is acutely experienced by the automotive industry. Due to the commoditization of hardware in light of digitalization, the automotive industry is undergoing a shift in profitability toward software. The adaptation of strategy to the market is vital to survival, which in turn means that the operationalization of the strategy is crucial. One way to actualize the strategy is through project portfolio management (PPM). As corporate strategy and project portfolios are tightly connected, PPM is essential to implementing the strategy. It is of interest to study the flexible qualities of PPM in an individual industry moving from stable to turbulent, in order to gain insight into the challenges of that industry. The flexible properties of PPM in the automotive industry is thus of utmost importance to the survival of companies. The built-in flexibility of PPM is however not always enough and there is an increasing interest in agile PPM (APPM). So far, there is little advancement on the topic of APPM, and the need for further understanding is obvious with consideration to recent market developments, especially in the automotive industry. This thesis has employed a single case study to understand what challenges traditional companies in the automotive industry face when trying to become more agile in their project portfolio management in order to align their organization around agile practices on the team level and increase responsiveness to external changes. Adopting an abductive approach, empirical data was collected using interviews, observations, documents as well as a survey. The results of this study are twofold. Firstly, an exhaustive mapping of a major automotive company’s PPM process is presented. Secondly, this mapping is utilized to establish what PPM processes could be made more agile and what the main challenges are. / Globalisering möjliggör för företag att utöka sin kundbas och fokusera på nischmarknader, vilket driver specialisering. Kunderna kan samtidigt välja från ett större utbud av alternativ på marknaden som leder till en ökad konkurrens. Sådan global konkurrens bidrar till en lägre lönsamhet och tvingar företag att förnya sin strategi och verksamhet, i jakt på konkurrensfördelar. Den snabba förändringen har ökat kravet på att uppnå flexibilitet för att säkerställa anpassning till marknadens behov, där företag som lyckats med snabba förändringar kan prestera trots oförutsägbar och oupphörlig turbulens. Trenden mot ökad turbulens är tydligt märkbar inom bilindustrin. Allt eftersom differentierbarheten för hårdvara minskar i ljuset av digitalisering, pågår en förskjutning av lönsamheten mot mjukvara inom bilindustrin. Anpassning av strategin till marknaden är avgörande för överlevnad, vilket i sin tur innebär att strategins operationalisering är avgörande. Ett sätt att realisera strategin är genom hantering av projektportföljen (PPM). Eftersom företagsstrategi och projektportföljer är tätt sammankopplade, är PPM viktigt för att uppnå strategiska mål. PPM:s flexibla egenskaper inom bilindustrin är således av största vikt för företagens överlevnad. Det är intressant att studera flexibla egenskaper inom PPM i en stabil bransch som är under förändring för att få insikt i utmaningarna som branschen står inför. Den inbyggda flexibiliteten hos PPM är dock inte alltid tillräcklig och det finns ett ökande intresse för agil PPM (APPM). Hittills finns det få framsteg på APPM-området och behovet av ytterligare kunskap är uppenbart med tanke på den senaste marknadsutvecklingen, särskilt inom bilindustrin. I denna avhandling används en enskild fallstudie för att förstå vilka utmaningar som traditionella företag inom bilindustrin står inför när de försöker bli mer agila i sin projektportföljshantering, för att kunna linjera företaget kring agila rutiner på teamnivå och öka responsförmågan gentemot externa förändringar. Genom att utnyttja ett abduktivt tillvägagångssätt samlades empiriska data in med hjälp av intervjuer, observationer, dokument samt en enkätundersökning. Resultatet av denna studie är tvåfaldigt. Först och främst presenteras en uttömmande kartläggning av ett omfattande bilföretags PPM-process. Sedan används denna kartläggning för att fastställa vilka PPM-processer som kan göras mer agila och vilka huvudsakliga utmaningar som finns i samband med detta.

Portfolio Management is the process of allocating an investor's wealth to in­ vestment opportunities over a given planning period. Not only should Portfolio Management be treated within a multi-period framework, but one should also take into consideration the stochastic nature of related parameters. After a short review of key concepts from Finance Theory, e.g. utility function, risk attitude, Value-at-rusk estimation methods, a.nd mean-variance efficiency, this work describes a framework for the formulation of the Portfolio Management problem in a Stochastic Programming setting. Classical solution techniques for the resolution of the resulting Stochastic Programs (e.g. L-shaped Decompo­ sition, Approximation of the probability function) are presented. These are discussed within both the two-stage and the multi-stage case with a special em­ phasis on the former. A description of how Importance Sampling and EVPI are used to improve the efficiency of classical methods is presented. Postoptimality Analysis, a sensitivity analysis method, is also described. / Statistics / M. Sc. (Operations Research)

In this thesis we investigate the application of two heuristic methods, genetic algorithms and tabu/scatter search, to the optimisation of realistic portfolios. The model is based on the classical mean-variance approach, but enhanced with floor and ceiling constraints, cardinality constraints and nonlinear transaction costs which include a substantial illiquidity premium, and is then applied to a large I 00-stock portfolio. It is shown that genetic algorithms can optimise such portfolios effectively and within reasonable times, without extensive tailoring or fine-tuning of the algorithm. This approach is also flexible in not relying on any assumed or restrictive properties of the model and can easily cope with extensive modifications such as the addition of complex new constraints, discontinuous variables and changes in the objective function. The results indicate that that both floor and ceiling constraints have a substantial negative impact on portfolio performance and their necessity should be examined critically relative to their associated administration and monitoring costs. Another insight is that nonlinear transaction costs which are comparable in magnitude to forecast returns will tend to diversify portfolios; the effect of these costs on portfolio risk is, however, ambiguous, depending on the degree of diversification required for cost reduction. Generally, the number of assets in a portfolio invariably increases as a result of constraints, costs and their combination. The implementation of cardinality constraints is essential for finding the bestperforming portfolio. The ability of the heuristic method to deal with cardinality constraints is one of its most powerful features. / Decision Sciences / M. Sc. (Operations Research)

Information technology (IT) investment decision makers are required to process large volumes of complex data. An existing body of knowledge relevant to IT portfolio management (PfM), decision analysis, visual comprehension of large volumes of information, and IT investment decision making suggest Multi-Criteria Decision Making (MCDM) and hypervariate display techniques can reduce cognitive load and improve decision confidence in IT PfM decisions. This dissertation investigates improving the decision confidence by reducing cognitive burden of the decision maker through greater comprehension of relevant decision information. Decision makers from across the federal government were presented with actual federal IT portfolio project lifecycle costs and durations using hypervariate displays to better comprehend IT portfolio information more quickly and make more confident decisions. Other information economics attributes were randomized for IT portfolio projects to generate Balanced Scorecard (BSC) values to support MCDM decision aids focused on IT investment alignment with specific business objectives and constraints. Both quantitative and qualitative measures of participant comprehension, confidence, and efficiency were measured to assess hypervariate display treatment and then MCDM decision aid treatment effectiveness. Morae Recorder Autopilot guided participants through scenario tasks and collected study data without researcher intervention for analysis using Morae Manager. Results showed improved comprehension and decision confidence using hypervariate displays of federal IT portfolio information over the standard displays. Both quantitative and qualitative data showed significant differences in accomplishment of assigned IT portfolio management tasks and increased confidence in decisions. MCDM techniques, incorporating IT BSC, Monte Carlo simulation, and optimization algorithms to provide cost, value, and risk optimized portfolios improved decision making efficiency. Participants did not find improved quality and reduced uncertainty from optimized IT portfolio information. However, on average participants were satisfied and confident with the portfolio optimizations. Improved and efficient methods of delivering and visualizing IT portfolio information can reduce decision maker cognitive load, improve comprehension efficiency, and improve decision making confidence. Study results contribute to knowledge in the area of comprehension and decision making cognitive processes, and demonstrate important linkages between Human-Computer Interaction (HCI) and Decision Support Systems (DSS) to support IT PfM decision making.

Thesis (MComm (Business Management))--University of Stellenbosch, 2009. / Measuring the performance of any financial portfolio is only relevant if compared relative to another similar portfolio. Over the years the norm in the industry has been to use market capitalisation indices as benchmarks to measure performance. Market capitalisation indices, such as the FTSE/JSE ALSI, create a natural return drag because of the overweighting of overvalued stocks and the underweighting of undervalued stocks. It is this return drag that led to the creation of the Fundamental Indexing concept by Research Affiliates in 2005. Fundamental Indexing weights stocks based on their economic footprint in the market rather than their market capitalisation. The Fundamental Indexing approach uses four metrics, namely sales, book values, dividends and cash flows to calculate this economic footprint. The Fundamental Index is referred to as the RAFI (Research Affiliates Fundamental Index) Index The Fundamental Index concept delivered very good results when applied to the South African stock market. The South African RAFI Composite Index outperformed the FTSE/JSE All Share Index by 5.55% p.a. compounded annually during the period 1995 to 2006. This return was achieved with a similar risk profile as the FTSE/JSE All Share Index. This index also had similar turnover rates relative to the FTSE/JSE All Share Index. The South African RAFI Composite Index also outperformed the FTSE/JSE All Share Index by 5.48% p.a. compounded during the measurement period when investment income is included. The Fundamental Index outperformance clearly disproves the efficient market hypothesis. According to modern portfolio theory it is impossible to earn abnormal profits in excess of a market capitalisation index. The success of Fundamental Indices proves that market capitalisation indices are not optimal and deliver sub-optimal returns. Specifically, it can be seen that the South African market is inefficient and that the FTSE/JSE All Share Index is not the best tool for measuring the performance of the financial markets in South Africa.