A new approach to developing and optimizing organization strategy based on stochastic quantitative model of strategic performance

Abstract

Abstract. This paper presents a highly formalized approach to strategy formulation and optimization of strategic performance through proper resource allocation. A stochastic quantitative model of strategic performance (SQMSP) is used to evaluate the efficiency of the strategy developed. The SQMSP follows the theoretical notions of the balanced scorecard (BSC) and strategy map methodologies, initially developed by Kaplan and Norton. Parameters of the SQMSP are suggested to be random variables and be evaluated by experts who give two-point (optimistic and pessimistic values) and three-point (optimistic, most probable and pessimistic values) evaluations. The Monte-Carlo method is used to simulate strategic performance. Having been implemented within a computer application and applied to solve the real problem (planning of an IT-strategy at the Faculty of Economics, University of Split) the proposed approach demonstrated its high potential as a basis for development of decision support tools related to strategic planning.

Strategic Management of Educational Institutions Enabling Transformation to Excellent Education Innovative Centers in India

“…Mintzberg (1987) from the creative perspective identifies strategy as '…both plans for the future and patterns from the past'. Chandler (1962) defines Organizational Strategy "as the determination of the basic long term goals and objectives of an enterprise and the adoption of course of action and allocation of resources necessary for carrying out goals" [55]. Various strategies like Competitive or red ocean strategy [56], Monopoly of blue ocean strategy [57], Sustainability or green ocean strategy [58], Survival or black ocean strategy [59][60][61], Ideal or white ocean mixed strategy [6], and Alternative strategy to achieve the goal [62] are identified in the literature for handling the organizational problems.…”