A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company
The ever severe dynamic competitive environment has led to increasing complexity of strategic decision making in giant organizations. Strategy formulation is one of basic processes in achieving long range goals. Since, in ordinary methods considering all factors and their significance in accomplishi...
| Format: | Article |
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| Language: | English |
| Published: |
Iran University of Science & Technology
2012-06-01
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| Series: | International Journal of Industrial Engineering and Production Research |
| Subjects: | |
| Online Access: | http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-137&slc_lang=en&sid=1 |
| _version_ | 1811268586645225472 |
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| collection | DOAJ |
| description | The ever severe dynamic competitive environment has led to increasing complexity of strategic decision making in giant organizations. Strategy formulation is one of basic processes in achieving long range goals. Since, in ordinary methods considering all factors and their significance in accomplishing individual goals are almost impossible. Here, a new approach based on clustering method is proposed to assist the decision makers in formulating strategies. Having extracted the internal and external factors, after setting long range goals, the factor-goal matrices are generated according to the impact rate of factors on goals. According to created matrices, clusters including goals and factors are formed. By considering individual clusters the strategies are proposed according to the current state of clusters for the organization. By applying this new method the opportunity of considering the impact of all factors and its interactions on goals are not lost. Strategy-factor and strategy-goal matrices are utilized to validate the proposed method. To show the appropriateness and practicality of our approach, particularly in an environment with a large number of interacting goals and factors, we have implemented the approach in Mahmodabad Training Center (MTC) in Iran. The resulting goal-factor, current and dated states of clusters, also, strategy-goal and strategy-factor matrices for model validation and route branch indices for finding out how the organization achieved each goal are reported. |
| first_indexed | 2024-04-12T21:25:36Z |
| format | Article |
| id | doaj.art-4fa4d7fc79fa4dc283084972b9f0b64b |
| institution | Directory Open Access Journal |
| issn | 2008-4889 2345-363X |
| language | English |
| last_indexed | 2024-04-12T21:25:36Z |
| publishDate | 2012-06-01 |
| publisher | Iran University of Science & Technology |
| record_format | Article |
| series | International Journal of Industrial Engineering and Production Research |
| spelling | doaj.art-4fa4d7fc79fa4dc283084972b9f0b64b2022-12-22T03:16:11ZengIran University of Science & TechnologyInternational Journal of Industrial Engineering and Production Research2008-48892345-363X2012-06-01232125142A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company0123 The ever severe dynamic competitive environment has led to increasing complexity of strategic decision making in giant organizations. Strategy formulation is one of basic processes in achieving long range goals. Since, in ordinary methods considering all factors and their significance in accomplishing individual goals are almost impossible. Here, a new approach based on clustering method is proposed to assist the decision makers in formulating strategies. Having extracted the internal and external factors, after setting long range goals, the factor-goal matrices are generated according to the impact rate of factors on goals. According to created matrices, clusters including goals and factors are formed. By considering individual clusters the strategies are proposed according to the current state of clusters for the organization. By applying this new method the opportunity of considering the impact of all factors and its interactions on goals are not lost. Strategy-factor and strategy-goal matrices are utilized to validate the proposed method. To show the appropriateness and practicality of our approach, particularly in an environment with a large number of interacting goals and factors, we have implemented the approach in Mahmodabad Training Center (MTC) in Iran. The resulting goal-factor, current and dated states of clusters, also, strategy-goal and strategy-factor matrices for model validation and route branch indices for finding out how the organization achieved each goal are reported.http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-137&slc_lang=en&sid=1Strategy formulationClustering algorithm Strategy-factor matrix Route branch indices |
| spellingShingle | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company International Journal of Industrial Engineering and Production Research Strategy formulation Clustering algorithm Strategy-factor matrix Route branch indices |
| title | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company |
| title_full | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company |
| title_fullStr | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company |
| title_full_unstemmed | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company |
| title_short | A New Approach in Strategy Formulation using Clustering Algorithm: An Instance in a Service Company |
| title_sort | new approach in strategy formulation using clustering algorithm an instance in a service company |
| topic | Strategy formulation Clustering algorithm Strategy-factor matrix Route branch indices |
| url | http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-137&slc_lang=en&sid=1 |