A neural networks-based approach for strategic planning

We establish a systematic approach that incorporates neural networks in conjunction with portfolio matrices to assist managers in evaluating and forming strategic plans. Based on the principle of dispersing risks, we also provide a linear integer programming model, which helps in allocating the annual budget optimally among proposed strategies. The approach has been successfully implemented for a major food industry leader in Taiwan for its annual strategic planning. Although a particular portfolio matrix model was adopted in our approach, the framework proposed here can be modified to incorporate other strategy-evaluation measures.

[1]  Arnoldo C. Hax,et al.  The Use of the Industry Attractiveness-Business Strength Matrix in Strategic Planning , 1983 .

[2]  古川 公成.  Derek F.Abell and John S.Hammond:Strategic Market Planning--Problems and analytical Approaches,1979 , 1981 .

[3]  Pi-Sheng Deng,et al.  Experimentation with a back-propagation neural network: An application to planning end user system development , 1993, Inf. Manag..

[4]  Bernard Widrow,et al.  Neural networks: applications in industry, business and science , 1994, CACM.

[5]  Teuvo Kohonen,et al.  An introduction to neural computing , 1988, Neural Networks.

[6]  Rajendra K. Srivastava,et al.  Market Structure Analysis: Hierarchical Clustering of Products Based on Substitution-in-Use , 1981 .

[7]  C. F. Phillips.  Industrial Market Structure and Economic Performance , 1971 .

[8]  Eldon Y. Li.  Artificial neural networks and their business applications , 1994, Inf. Manag..

[9]  Arnoldo C. Hax,et al.  The Use of the Growth-Share Matrix in Strategic Planning , 1983 .

[10]  Vijay Mahajan,et al.  An Empirical Comparison of Standardized Portfolio Models , 1983 .

[11]  Arnoldo C. Hax,et al.  The Strategy Concept and Process: A Pragmatic Approach , 1991 .

[12]  Jacek M. Zurada,et al.  Introduction to artificial neural systems , 1992 .

[13]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[14]  Linus E. Schrage.  LINDO : an optimization modeling system , 1991 .

[15]  Vijay Mahajan,et al.  Strategic Market Planning: Problems and Analytical Approaches , 1979 .

[16]  R. Tibshirani,et al.  An introduction to the bootstrap , 1993 .

[17]  Geoffrey E. Hinton,et al.  Learning internal representations by error propagation , 1986 .

[18]  William E. Rothschild.  HOW TO ENSURE THE CONTINUED GROWTH OF STRATEGIC PLANNING , 1980 .

[19]  Y. Braunstein,et al.  Information management , 1996 .

[20]  Egill Másson,et al.  Introduction to computation and learning in artificial neural networks , 1990 .