Abstract
In the current market economy, alliances play a key role in developing strategies across fields. In order to have a good partner, managers have used both qualitative and quantitative methodologies. This paper proposes a mathematical model to figure out the most suitable strategic partners. With input data from published financial reports, the authors use the data envelopment analysis (DEA) to evaluate the business efficiency of the steel companies in the period of 2011–2019. Then, Grey system theory is applied to predict their performance in the future period. The findings recommend the two leading steel manufactures but having ineffective performance, the Hoa Sen Group, and the Pomina Steel Corporation, as the most feasible beneficial partnership. Managers and the government can take advantages of the model in order to implement and have overall plans of steel enterprise in the future.
Highlights
In any market, steel industry is one of the viral fields contributing in the development of the country and Vietnam is not an exception
This paper proposes a novelty model in selecting alliances among Vietnamese steel manufacturers
A strategic partner is recommended for the target company if their alli ance significantly improves the performance scores of both
Summary
Steel industry is one of the viral fields contributing in the development of the country and Vietnam is not an exception. According to a report by Grand View research, the global steel market is able to reach USD 1.01 tribillion with 2.6% in CAGR by 2025 (GVR, May, 2017). This paper proposes a novelty model in selecting alliances among Vietnamese steel manufacturers. The model uses the input data from financial reports in the period 2011–2019 to evaluate the business efficiency and predict their performance in three years. The author would select a target firm which is one of the top leading in the sector but having a low efficiency score over the period. Virtual combinations between the target firm and other alliances are supposed to run again the evaluation model. A strategic partner is recommended for the target company if their alli ance significantly improves the performance scores of both
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