To support decision making process this paper presents a new strategic decision making model (SDM). The purpose of this paper is to develop and apply a new model of decision making of corporate and business strategic level, using scenario planning and design experiments method.
It is getting harder to forecast the change of business environment. To overcome this problem in this study, SDM adapts Scenario Planning method to generate uncertainty axis which reflects the important impact factors widely and Design Experiments to evaluate scenario statistically.
The criteria of the scenario evaluation are the probability of scenario's occurrence and the degree of fit between the scenario and the core competence of a company. SDM provides a chance of evaluation the two characteristic values at the same time. This is the advantage of this model. By the evaluation of the scenarios, a company could establish the strategic direction to survive and grow in the rapidly changing business circumstances.
To evaluate the usefulness of the SDM, in the second part of this paper, SDM is applied to the decision making process of a company that has the decision problem how drive the new business successfully.
