Alarc N, L F and Bastias, A (2000) A computer environment to support the strategic decision-making process in construction firms. Engineering, Construction and Architectural Management, 7(1), pp. 63-75. ISSN 0969-9988
Abstract
A computer environment to support the strategic decision-making process in construction firms is presented. The system implements modelling concepts originally developed to evaluate project execution strategies, extending and generalizing the modelling methodology to a broader range of strategic decisions. An application to a construction firm's strategic planning is used in this paper to illustrate the modelling process. The computer system is designed to help the users in building a conceptual model for the decision problem, this model is a simplified structure of the variables and interactions that influence the decisions being analysed, including internal as well as external factors. An analytical model is then designed to predict the impact of these strategies, integrating expert knowledge and assessments of the strategic planning team into a mathematical model. The mathematical component uses concepts of cross-impact analysis and probabilistic inference to capture uncertainties and interactions among project variables. The system provides multiple analysis capabilities, including sensitivity analysis, selected outcome prediction, isolated or combined effect of strategies and changes in performance due to changes in the external environment. The system allows management to test different combinations of long-term strategies and predict expected sales, market share or other measures of performance.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction firms; performance modelling; strategic decision-making process |
| Index terms: | mathematical model, sensitivity analysis, computer system, construction firm, strategy, methodology, impact analysis, analytical model, market share, decision-making process, strategic planning, interaction, modelling |
| Subjects: | management, theoretical framing, research methods, market analysis, decision analysis, behavioral psychology, environmental hazards, organization, mathematical modelling, computing systems, data analysis and analytics, analytical methods |
| Topics: | Sustainability, Risk Management, Engineering Principles, Research Practice, Business Strategy, Digital Applications |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here