tability Factors -- Is the decision applicable to only one process or situation, or does it have multiple possible benefits?
Work Load -- Will the decision negatively or positively impact the current workload of the company?
Organization -- To what extent will the decision impact the organization in terms of structure, morale, reputation, competition, marketing and so on?
Market Potential -- Is there a viable and long-term market potential for the business decision?
Naturally, each of these seven areas does not have the same weighted importance in each decision-making situation, which is where the efficacy of the Rowe model comes in. The first step in that model is to rank each of these categories in a weighted manner. The step-by-step methodology proposed by Rowe and colleagues is this.
1. Specify and identify the strategies.
2. Evaluate the alternatives in terms of risks and potentials.
3. Identify the criteria to be used (this will differ with each strategy).
4. Determine a consistent measurement for each criterion to assure statistical accuracy.
5. Rank the criteria to establish an equivalence of importance.
6. Establish the value for each criterion and its relationship to the strategic alternative.
7. Examine the sensitivity co-valence of each strategic alternative to variabilities within each criterion.
8. Determine the weighted score for each strategic alternative in each criterion.
9. Compute the weighted total score for each alternative.
10. Rank the strategic alternatives, based on their weighted totals.
11. Choose a strategic alternative, considering in turn the objective and subjective factors of each (Rowe et al. 629). 3
The seven attributes stated above will be used in this analysis to rank five potential strategic objectives being considered by Hoffman-LaRoche. Those strategies are:
Strategy #1: Acquisition of IDEC Pharmaceuticals
Strateg...