Use of ODSS in Strategic Planning

Finland is one of the biggest exporters of paper and board in the world. A competitive forest industry is a necessity for the economy of the country. Strategic planning and decision making must cover the whole organization in the industry, where for example investments are extremely large. Therefore there is a need to synthesize all available knowledge, experience, and expertise. Substantively the focus of this study is on the financial expansion strategies of a growing forest company. Although the emphasis is on financial strategies, the effects of these strategies are evaluated using multiple, diversified criteria. The first major aspect is that an industrial firm has several strategies for financing the required funds, working capital as well as production fixed capacity. In this study, special emphasis is placed on depreciation, retained earnings, and gearing strategies. The second major aspect of this study is that the effects of different strategies cannot be evaluated according to a single criterion; the strategic decision making concerning the whole company must be performed according to multiple criteria. Methodologically, in order to meet this twofold end, we have developed an ODSS by combining a dynamic corporate model with a hierarchical evaluation procedure.