Decision Tables and Dependency Diagrams

An expert system is used to determine whether the recommended entry strategy into international markets should be Investment (I), Contractual (C), or Export (E).

This recommendation is based on internal factors as well as external factors. Both internal and external factors are rated as Strong (S), Average (A), or Weak (W).

As long as the external factors are weak the recommended strategy is export. As long as the external factors are strong the recommended strategy is investment. When the external factors are average the strategy should be Export if the internal factors are weak but contractual otherwise.

1.      Represent the above decision situation as a decision table.

Simplify the table as much as possible

2.      Express the results of the above decision table as IF ... THEN Rules. Avoid using ELSE statements. The outcome should not be affected by the ordering of the rules.

External Factors are determined by Foreign Country factors (S/A/W) and Home Country Factors (S/A/W). External factors are considered strong if both Foreign and Home Country factors are strong. If Foreign Country factor is weak then External Factor is considered weak. Otherwise External Factor is considered average.

3.      Construct a decision table to determine whether External Factors are S, A, or W. Simplify the table as much as possible.

Foreign Country Factors are determined by:

Target Country Market Factors, Target Country Environmental factors, and Target Country Production Factors.

Home Country Factors are determined by:

Market Size, Competition, Production Cost, and Government Regulations.

4.   Construct a dependency diagram to represent the entire decision process used to recommend strategies for International Market Entry.