Application of the Multiattribute Decision-Making Model to Five Proposed Strategies by Hoffman-LaRoche

Edwards (1994) is credited with developing the model called SMARTS (Simple Multiattribute Rating Technique Swing Weights) in the 1980s as a system to assist business people to better prioritize their criteria and more accurately evaluate options. 1 The model devised by Edwards (1994) calls for the fractalization of a problem into component parts, making use of the fact that no decision happens in a vacuum, but has impact on other decisions. Rowe and colleagues (1994) expanded this theory into a Multiattribute Decision-Making Model (MDMM), which enabled a company's decision-makers to break down a complex decision into smaller components, making each one easier to analyze. 2

A decision for a company to launch an R & D program, for instance, has impact on a number of other operations of that company. Human Resources would have to hire the researchers, Accounting would have to modify or expand payroll, Operations personnel would have to allot or create space, buy equipment, and so on. In addition, the decision has impact on a wide number of stakeholders ranging from the shareholders in the company to the competition. It is the purpose of this analysis to apply the MDMM to five proposed strategies being considered by Roche holdings, the parent company of Hoffman-La Roche. Each of the five strategies will be considered and analyzed within the framework of se