A New Model for Strategy Formulation Using Mahalanobis-Taguchi System and Clustering Algorithm
- 1
- 2
Abstract
The devastating complexity of decision making in severe dynamic competitive environment of the universe, has forced the wise managers to have relevant strategic plans for their firms. In this paper, a new approach by utilizing Mahalanobis-Taguchi System (MTS) and clustering algorithm in formulating the strategy has been proposed. In this approach, first by performing environmental analysis all internal and external factors affecting organization will be listed. Then the long range goals will be identified by top managers. By applying MTS the main set of factors affecting goals will come out. By identifying main factors, the goal-factor matrix will be formed. At this stage, by using clustering algorithm the proper clusters containing goals and factors influencing them will be constructed. Finally, from the created clusters the appropriate strategies would be generated. The advantage of applying this method is its accuracy and ease of applications in the environment with plenty of goals and numerous factors with interactions among them.
- T. Hill and R. Westbrook, “SWOT Analysis: It’s Time for a Product Recall,” Long Range Planning, Vol. 30, No. 1, 1997, pp. 46-52. doi:10.1016/S0024-6301(96)00095-7
- M. Ka-janus, J. Kangas and M. Kurttila, “The Use of Value Focused Thinking and the A’WOT Hybrid Method in Tourism Man-agement,” Tourism Management, Vol. 25, No. 4, 2004. pp. 499-506. doi:10.1016/S0261-5177(03)00120-1
- G. Houben, K. Le-nie and K. Vanhoof, “A Knowledge-Based SWOT-Analysis System as an Instrument for Strategic Planning in Small and Medium Sized Enterprises,” Decision Support Systems, Vol. 26, No. 2, 1999, pp. 125-135. doi:10.1016/S0167-9236(99)00024-X
- M. H. B. McDon-ald, “The Marketing Planner,” Butter-Worth-Heinemann, Ox-ford, 1993.
- M. K. Masozera, J. R. R. Alavalapati, S. K. Jacobson and R. K. Shresta, “Assessing the Suitability of Community-Based Management for the Nyungwe Forest Re-serve,” Fwanda, Forest Policy and Economics, Vol. 8, No. 2, 2006, pp. 206-216. doi:10.1016/j.forpol.2004.08.001
- R. K. Shrestha, J. R. R. Alavalapati and R. S. Kalmbacher, “Exploring the Potential for Silvopasture Adoption in South-Central Florida: An Applica-tion of SWOT-AHP Method,” Agricultural Systems, Vol. 81, No. 3, 2004, pp. 185-199. doi:10.1016/j.agsy.2003.09.004
- K.-L. Lee and S.-C. Lin, “A Fuzzy Quantified SWOT Procedure for Environmental Evaluation of an International Distribution Center,” Informa-tion Science, Vol. 178, No. 2, 2008, pp. 531-549. doi:10.1016/j.ins.2007.09.002
- S. J. Chen, C. L. Huang and F. P. Huang, “Fuzzy Multiple Attribute Decision Making Methods and Applications,” Springer, Berlin, 1992.
- F. R. David, “Strategic Management,” 7th Edition, Prentice-Hall, Upper Saddle River, 1998.
- B. Wernerfelt, “A Re-source-Based View of the Firm,” Strategic Management Jour-nal, Vol. 5, No. 2, 1984, pp. 171-180. doi:10.1002/smj.4250050207
- R. E. Hoskisson, M. A. Hitt, W. P. Wan and D. Yu, “Theory and Research in Strategic Management, Swings of a Pendulum,” Journal of Management, Vol. 25, No. 3, 1999, pp. 417-456. doi:10.1177/014920639902500307
- G. Taguchi, S. Chowdhury, Y. Wu, S. Taguchi and H. Yano, “Taguchi’s Quality Engineering Handbook,” John Wiley & Sons, Hoboken, 2005, pp. 397-421.
- P. Mahalakshmi and K. Ganesan, “Mahalanobis Taguchi System Based Criteria Selection for Shrimp Aquaculture Development,” Computers and Electron-ics in Agriculture, Vol. 65, No. 2, 2008, pp. 192-197.