A New Model for Strategy Formulation Using Mahalanobis-Taguchi System and Clustering Algorithm

The devastating complexity of decision making in severe dynamic competitive environment of the universe, has forced the wise managers to have relevant strategic plans for their firms. In this paper, a new approach by utilizing Mahalanobis-Taguchi System (MTS) and clustering algorithm in formulating the strategy has been proposed. In this approach, first by performing environmental analysis all internal and external factors affecting organization will be listed. Then the long range goals will be identified by top managers. By applying MTS the main set of factors affecting goals will come out. By identifying main factors, the goal-factor matrix will be formed. At this stage, by using clustering algorithm the proper clusters containing goals and factors influencing them will be constructed. Finally, from the created clusters the appropriate strategies would be generated. The advantage of applying this method is its accuracy and ease of applications in the environment with plenty of goals and numerous factors with interactions among them.