Optimization of Corporate Reorganization Portfolios based on a Genetic Algorithm

Abstract

The reorganization of companies threatened by serious existential crises is a basic task of strategic management. Subjects of the strategic considerations are principally all business fields, which have to be audited under aspects of profitability as well as potentials of success. The actual portfolios of business fields have to be optimized as major elements of the reorganization concept with regard to their contributions to profitability and potentials of success in order to ensure the companies economic survival for the future. Due to the fuzzy and uncertain data we have to use, the optimization of reorganization portfolios can be characterized as a non-well-structured problem. Therefore, it requires not the best but pareto-optimal solutions. To find promising portfolio positions an optimization method is presented, which is based on a genetic algorithm.