exercise v.docx
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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 Strategic intent factor A
will influence or enhance
strategic intent related
Factor B.
How or in what
ways will Strategic
intent factor A will
influence or enhance
strategic intent
related Factor B
C1 R & D (Research and
Development)
C2 Financial Leverage
C3 Marketing Budget
C4 Expenditure
Interpretive Logic-Knowledge Base:
S.No. Elements Paired comparison Y/N Interpretation
1 C1-C2 R&D will influence/enhance
financial leverage
Y Help introduce new product so that
company has competitive advantage andgenerates more capital and thus financial
leverage is increased.
2 C2-C1 N
3 C1-C3 N
4 C3-C1 N
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5 C1-C4 R&D will enhance/ influence
expenditure
Y R & D costs money.
6 C4-C1 Expenditure will enhance /
influence R & D
Y 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 C2-C3 Financial leverage will
enhance/influence marketing
Y Financial leverage determines the
marketing budget
2 C3-C2 N
3 C2-C4 Financial leverage will
enhance/influence expenditure
Y Financial leverage determines our
spending power
4 C4-C2 Expenditure will
enhance/influence financialleverage
Y By spending we lose our financial
leverage.
C3 - Marketing budget
1 C3-C4 Marketing budget
influences/enhance
expenditure
Y Merketing requires money
2 C4-C3 N
C4 – Expenditure
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Structural Self-interaction Matrix:
C4 C3 C2 C1
C1 X O V X
C2 X X X
C3 V X
C4 X V
Reach ability Matrix:
C1 C2 C3 C4
C1 1 1 0 1C2 0 1 1 1
C3 0*=1 0 1 1
C4 1 1 0 1
*TRANSITIVITY RELATION C1-R-C3; C3 R C4
Reach ability Matrix (With Transitivity):
C1 C2 C3 C4
C1 1 1 0 1
C2 0 1 1 1
C3 1 0 1 1
C4 1 1 0 1
Partitioning Matrix (i):
Variable
no.
Reachability Set Antecedent Set Intersection Level
C1 1,2,4 1,4 1,4 II
C2 2,3,4 1,2,4 2,4 II
C3 1,3,4 2,3 3 I
C4 1,2,4 1,2,3,4 1,2,4 II
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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
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