Dynamic Criteria Decision-Making Model for Business Development Recommendations Using Macbeth and Surrogate Weighting Procedures

Abstract

Recommendations in business development are important for entrepreneurs in allocating resources in determining the appropriate type of business.  In carrying out business development, a decision-making model is needed for entrepreneurs to produce decision recommendations regarding the type of business that has prospects for sustainability.  In determining a decision with various criteria and alternatives can apply the Multi Criteria Decision Making (MCDM) decision-making technique. The complexity in multi-criteria and multi-alternative decision making can be solved by the application of MCDM, this is due to the alternative selection process based on the number of interrelated quantitative and qualitative criteria and the calculation of weight values objectively. The combination of Measuring Attractiveness by a Categorical Based Evaluation Technique (MACBETH) and Surrogate Weighting Procedures technique is applied in forming a business type decision model. MACBETH method is used to perform scoring or ranking, as well as determining the final value based on the nature of qualitative and quantitative criteria. Surrogate Weighting Procedures technique that aims to determine the preference value of decision makers based on the priority order of the criteria, so as to determine the appropriate weight according to the number of criteria available. The result of this research is to determine the best alternative based on 3 quantitative criteria and 2 quantitative criteria dynamically, the criteria scoring process is successful, and the final alternative ranking process can be used as a recommendation in business development.