One of the methods in formulating strategies is Adaptive Search Method. This method uses a search procedure in arriving at a strategy. This is accomplished through a ‘cascade’ approach: at the outset possible decision rules are formulated in gross terms and are then successively refined through several stages as the solution proceeds. For example, a civil contractor may analyze its past performance and prospects and arrive at a decision to seek diversification. As the second step it would decide that a closely related industry is the natural direction to follow and pick real estate development as its preferred arena. This … Continue reading →