GEOMETRIC-ANALYTICAL ASSESSMENT OF THE STRATEGIC POTENTIAL OF CONSTRUCTION COMPANIES USING QUALITATIVE METHODS
GEOMETRIC-ANALYTICAL ASSESSMENT OF THE STRATEGIC POTENTIAL OF CONSTRUCTION COMPANIES USING QUALITATIVE METHODS

Summary/Abstract: Many years of experience show that in most cases the company's development strategies, which are an essential condition for their competitiveness, have been unsuccessful. The main reason for this situation is that the possibilities of implementing such strategies have not been properly assessed. This is a difficult task, as it includes both internal and external situations of the company, which are reflected by many indicators. The company's ability to properly evaluate them can be described by the concept of its strategic potential. By its very nature, it is a complex phenomenon, so multi-criteria methods are suitable for quantitative assessment of its condition. Today, they are all based on linear estimation, i.e. the importance of the indicator does not depend on its value. In real life, everything happens non-linearly, so it is appropriate to integrate such an approach into the assessment of the state of socioeconomic phenomena or processes. In this case, the transformed value of the indicator follows a double exponential distribution, which is one of the three limiting cases of the distribution of statistics, corresponding to the curve. The assessment of the strategic potential of four construction companies was carried out based on the known four linear multi-criteria evaluation methods, both those that do not require and those that do require knowledge of the weights of the indicators ‒ sum of places, geometric mean, SAW, TOPSIS and PROETHEE. Non-linear evaluation was carried out in a geometric-analytical way. The obtained results, expressed in ratings, are the same when evaluated by PROMETHEE II and the geometric-analytical method and are equally different compared to the SAW and TOPSIS methods. On the other hand, compared to the PROMETHEE II method, the geometric-analytical method is much simpler and therefore easily automated. In addition, it can be applied in cases where some of the indicator values are negative.

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