A Framework for the Analysis of the Structure of Diversified Business Groups

A framework is proposed for analyzing the structure of a diversified business group, according to the function of firms in the group. The areas are: cash sources, financial firms (that facilitate cash flows among firms), firms allowing to keep property and control of the group, high expected profitability firms, firms with political importance, and low profitability firms that are not in the other areas. The group is composed of a network of firms linked to one of people. Studying the group amounts to studying the structure, behavior and evolution of these networks