Article ID: | iaor2001461 |
Country: | Netherlands |
Volume: | 35 |
Issue: | 6 |
Start Page Number: | 357 |
End Page Number: | 364 |
Publication Date: | Mar 1999 |
Journal: | Information and Management |
Authors: | Chien T. William, Lin Chinho, Tan Bertram, Lee Wen Chuan |
Keywords: | 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.