Exercise V Application of TISM

Context: Develop Strategic Intent for an organization of your choice.

Factors Related to strategic intent: 1 R & D as a percentage of sales 2 Financial leverage 3 Marketing and Advertising budget. 4 Projected capital Expenditure.

Table showing Contextual Relationship:

Element No. Element Contextual Relationship Interpretation

Strategic Intent Factors C1 C2 C3 C4 R & D (Research Development) Financial Leverage Marketing Budget Expenditure

Strategic intent factor A will influence or enhance and strategic intent related Factor B.

How or in what ways will Strategic intent factor A will influence or enhance strategic intent related Factor B

Interpretive Logic-Knowledge Base:

S.No. Elements 1 C1-C2 Paired comparison Y/N Interpretation Help introduce new product so that company has competitive advantage and generates more capital and thus financial leverage is increased.

R&D will influence/enhance Y financial leverage

2 3 4

C2-C1 C1-C3 C3-C1

N N N

5 6

C1-C4 C4-C1

R&D will enhance/ influence Y expenditure Expenditure will enhance / Y influence R & D

R & D costs money. More money spend on R&D, More money generated through it by introduction of innovative products which generates monopolies by patents.

C2 - Financial leverage 1 2 3 4 C2-C3 C3-C2 C2-C4 C4-C2 Financial leverage will Y enhance/influence marketing N Financial leverage will Y enhance/influence expenditure Expenditure will Y enhance/influence financial leverage Financial leverage marketing budget determines the

Financial leverage determines our spending power By spending we lose our financial leverage.

C3 - Marketing budget 1 C3-C4 Marketing influences/enhance expenditure budget Y Merketing requires money

C4-C3

C4 Expenditure

Structural Self-interaction Matrix: C4 C1 C2 C3 C4 X X V X C3 O X X V V X C2 X C1

Reach ability Matrix:

C1 C2 C3 C4

C1 C2 C3 1 1 0 0 1 1 0*=1 0 1 1 1 0 *TRANSITIVITY RELATION C1-R-C3; C3 R C4

C4 1 1 1 1

Reach ability Matrix (With Transitivity): C1 C2 C3 C4 C1 1 0 1 1 C2 1 1 0 1 C3 0 1 1 0 C4 1 1 1 1

Partitioning Matrix (i):

Variable no. Reachability Set Antecedent Set Intersection Level

C1 C2 C3 C4

1,2,4 2,3,4 1,3,4 1,2,4

1,4 1,2,4 2,3 1,2,3,4

3

1,4 2,4 3 1,2,4

II II I II

Partitioning Matrix (ii):

Variable no. Reachability Set Antecedent Set Intersection Level

Partitioning Matrix (iii):

Variable no. Reachability Set Antecedent Set Intersection Level

Partitioning Matrix (iv):

Variable no. Reachability Set Antecedent Set Intersection Level

Level Matrix:
Variable no. Variable Name Level