CPS model

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 and is widely used for assessing the sustainability and competitive ability of an organization.[1]

Versions

The CPS model has several published versions, the latest revision being the one developed by Dr. P. V. Lele in August 2006.[2]

Frameworks

The CPS model, in its most popular version, has five frameworks:

  • MAN-CHA
  • BOSH value
    • SAC score
    • ENPT 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 and fast-moving consumer goods industries. However, the model fails to be effective in manufacturing industry. In several emerging businesses such as software services and business process outsourcing, the DVD index returns a negative value, making the model redundant.

Notes

  1. The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses, Robert E. Gunther, Hubert Gatignon, John R. Kimberly, ISBN 0-521-83571-2
  2. ESMT Competition Analysis – European School of Management and Technology

References

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