Using the Simple Additive Weighting (SAW) Multi-Criteria Analysis Methodology for Selecting the Optimal Strategy for Creating a Production Alliance

Abstract

The aim of the study is to adapt the method of multi-criteria analysis of alternatives SAW (simple additive weighing), as considered in both domestic and foreign publications, for the possibility of creating a production alliance of «Chumak» PJSC; to carry out an assessment of the prospects for the use of such a methodology in domestic practice; further, an identification of its strengths and weaknesses; outlining the main aspects of using strengths and minimizing weaknesses in Ukrainian business practice. The article is devoted to the issue of creation of production alliances among Ukrainian enterprises in order to overcome the consequences of russian aggression, stimulate innovative processes in the management of operational activities of enterprises and further creation of strategic alliances for mutual promotion and sale of goods and services, i. e. affiliate marketing. The methodology of multi-criteria analysis of alternatives SAW (simple additive weighing) was used stage by stage to select the optimal strategy for creating a production alliance. For this purpose, the problematic issue of advanced analysis has been identified, a system of alternatives, criteria for evaluating alternatives and a system for determining assessments of criteria based on qualitative and quantitative indicators has been formed. An integrated grading scale has been developed. A quantitative assessment of alternatives according to the proposed criteria has been carried out. The Altman model and the financial stability coefficient are applied as criteria for alternatives. A matrix of decisions has been built, its normalization has been implemented by certain weighting coefficients of criteria. Based on the calculations, a possible order of alternative options for creating a production alliance between «Chumak» PJSC and enterprises operating in the food market of Ukraine has been derived. The relevance of the problem of forming a strategic alliance is attested, given the presence of different approaches to choosing partners and the impossibility of allocating a single correct approach to determining groups of criteria without adapting to each individual industry.