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Euclid: Strategic alternative assessment matrix. (English) Zbl 1037.90548

Summary: The vast amount of information that must be considered to solve inherently ill-structured and complex strategic problems creates a need for tools to help decision makers (DMs) recognize the complexity of this process and develop a rational model for strategy evaluation. Over the last several decades, a philosophy and a body of intuitive and analytical methods have been developed to assist DMs in the evaluation of strategic alternatives. However, the intuitive methods lack a structured framework for the systematic evaluation of strategic alternatives while the analytical methods are not intended to capture intuitive preferences. \(Euclid\) is a simple and yet sophisticated multiobjective value analysis model that attempts to uncover some of the complexities inherent in the evaluation of strategic alternatives. The proposed model uses a series of intuitive and analytical methods including environmental scanning, the analytic hierarchy process, subjective probabilities, and the theory of displaced ideal, to plot strategic alternatives on a matrix based on their Euclidean distance from the ideal alternative. \(Euclid\) is further compared to the quantitative strategic planning matrix in a real world application. The information provided by the users shows that \(Euclid\) can significantly enhance decision quality and the DM’s confidence. Euclid is not intended to replace the DMs, rather, it provides a systematic approach to support, supplement, and ensure the internal consistency of their judgments through a series of logically sound techniques.

MSC:

90B50 Management decision making, including multiple objectives
91B06 Decision theory
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