The capital resources, performance and scalability (CPS) model is a set of case analysis frameworks recommended by the Global Alliance for Strategy in collaboration with

European School of Management and Technology The European School of Management and Technology, also known as ESMT Berlin, is a private non-profit business school based in Berlin, Germany. The business school was founded in 2002 by 25 global companies and institutions including McKinsey & Co ...

and is widely used for assessing the sustainability and competitive ability of an organization.

Versions

The CPS model has several published versions, the latest revision being the one developed by Dr. P. V. Lele in August 2006.ESMT Competition Analysis – European School of Management and Technology
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Frameworks

The CPS model, in its most popular version, has five frameworks: * MAN-CHA * BOSH value ** SAC score ** EMPT score ** Y.U.K.U. Score * Differential derivation value (DVD) index * tri-VIN framework * Technology polarization at normal purchasing power

Applications and criticism

CPS has been very useful in

consumer durables In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be consid ...

and

fast-moving consumer goods Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, cand ...

industries. However, the model fails to be effective in

manufacturing industry Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a rang ...

. In several emerging businesses such as software services and

business process outsourcing Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...

, the DVD index returns a negative value, making the model redundant.

Notes

References

* ''Competition Analysis, ESMT'', http://www.esmt.org/eng/consulting/esmt-competition-analysis/ * Robert E. Gunther,

Hubert Gatignon Hubert Gatignon is a professor of marketing at INSEAD, Fontainebleau, France. According to Google Scholar, Gatignon has an i10-index of 57. Education Hubert Gatignon received his Baccalauréat, Série C at the Lycée Pierre et Marie Curie in C ...

, John R. Kimberly, ''The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses'', {{ISBN, 0-521-83571-2 Management systems