The Use of Analytic Hierarchy Process to Analyse International Corporations’ Operating Environment
The Use of Analytic Hierarchy Process to Analyse International Corporations’ Operating Environment

Summary/Abstract: The paper analyses the main determinants of International Corporations’ behaviours using the Analytic Hierarchy Process method. The study focuses primarily on describing the business environment of international companies. Following H. Deresky’s concept of the open systems model, it has been divided into three groups – the operating environment, the host-country environment and the global environment. The following section is a presentation of T. L. Saaty’s analytic hierarchy process method. In the following chapter the author proposes the application of AHP method for decision making in the turbulent environment international corporations operate in. The basic assumption of the paper is that correctly identifying relevant groups of environmental factors allows for better decision making by choosing appropriate solutions from a set of alternatives. The analytic hierarchy process is a useful tool for ranking the relevance of particular elements of hierarchical problems. At the same time it helps managers choose the correct problem solving path, leading to better management in complex environments.

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