Modelling the market position risk of firms in the plastic industry

• Main Author: Yartey, Philip Asibu
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Plastics industry and trade; Risk management; Mathematical models; Strategic planning; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3300; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/10138/viewcontent/CDTG003920_P.pdf
• Institution: De La Salle University

Current global trends in the business as well as the public sector has made strategic management an indispensable process for future growth and success. To achieve a firms objective, however, it is necessary to assess the firms performance and guide it towards that goal. This study sought to model the risk associated with market position which is necessary to give managers a clear picture of the uncertainty and changes in their environment and how they are affecting their performance relative to their intended goal. The methodology employed followed the risk definition, interpretation and measurement procedures outlined by Bedford and Cooke. The risk factors spelled out in the definition includes the firm potential, planning period, market goal, number of firms in the segment and firms rank per period. Using Collins and Rueflis information theoretic approach, a new algorithm that employs a multivariate weighted entropy function is developed. Later on, numerical data from the plastic industry in Ghana was used to demonstrate the use of the model and further validate the model.