Abstract—There is a clear lack of capacity at the organizational decision making level to develop a decision-making process based upon a complete and clear understanding of multiple potential outcomes derived from different strategic variables and actions. Existing analysis and scenarios creation models, used at the academic and practitioners fields, do not provide a single output that can be interpreted and taken as the final and relevant information output to be used at the decision-making moment, and are not or cannot be dynamic, turning any tentative to create scenarios based upon them impossible. Their lack of capacity to connect distinctive and still related variables creates great difficulty to decision makers when evaluating multiple business variables and producing action decisions. Current existing business simulation and diagnosis models only consider a reduced number of factors or variables, most only two variables represented by 2x2 matrices, not linking to any of them multiple existing factors and variables related to the business environment, in order to deliver a final and single output, which could be used as the core indication for the decision-making process. That has led to an important question: How can information represented in multiple 2x2 matrices be reduced to a single representation? Or, in other words, can we inter connect two or more 2x2 matrices and create a new and last matrix that represents all variables in place? The proposed model in this paper is a tentative to provide a solution to that problem, having a unique and unmistakable meaning, eliminating confusion and potential errors at the decision-making moment. Therefore, the final decision in a business strategy definition is based upon a unique and last result, represented by a single and unique position on the last matrix of the model (strategy).
Index Terms—decision-making, dynamic models, innovation,strategy.
M. T. Fernandes is with CAAM – Corporate Academy for Advanced Management, a division of Gestão Total, Samora Correia, Portugal (e-mail:firstname.lastname@example.org).
Cite: Manuel T. Fernandes, "Business Strategy Model," International Journal of Innovation, Management and Technology vol. 2, no. 4, pp. 301-308, 2011.