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 companies and institutions and offers a range of Master o ...
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
/ref>
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 conside ...
and fast-moving consumer goods
Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG) or convenience goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beve ...
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 the
secondary sector of the economy. The term may refer to a ...
.
In several emerging businesses such as software services and business process outsourcing, 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, John R. Kimberly, ''The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses'', {{ISBN, 0-521-83571-2
Management systems