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Identifying the Criteria Set for Multicriteria Decision Making Based on SWOT/PESTLE Analysis: A Case Study of Reconstructing A Water Intake Structure

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  • Zorica Srdjevic
  • Ratko Bajcetic
  • Bojan Srdjevic

Abstract

This paper proposes an approach for defining the criteria set required for multicriteria decision making. An approach is developed for a specific class of water management problems, and a SWOT/PESTLE analysis is recommended for identifying the internal and external factors that influence a given water system. The factors are grouped into six categories: political, economic/financial, social, technical, legal, and environmental (PESTLE), and separated afterwards according to their positive or negative influence on the system. All factors are filtered by a proposed elimination algorithm to identify the non-inferior factors and declare them as candidates for inclusion into the criteria set. An approach is applied to the real-life problem of how to define the criteria set and enable the selection of the optimal reconstruction solution of a water intake structure within a regional hydro-system in Vojvodina Province, Serbia. To verify the developed approach, an independent expert is invited to asses all factors identified by the SWOT/PESTLE analysis using the analytic hierarchy process (AHP) and to rank factors by order of preference. The outcome is satisfactory because the seven top-ranked factors from AHP completely matched the list of factors derived from the elimination algorithm. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Zorica Srdjevic & Ratko Bajcetic & Bojan Srdjevic, 2012. "Identifying the Criteria Set for Multicriteria Decision Making Based on SWOT/PESTLE Analysis: A Case Study of Reconstructing A Water Intake Structure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(12), pages 3379-3393, September.
    • Handle: RePEc:spr:waterr:v:26:y:2012:i:12:p:3379-3393
    DOI: 10.1007/s11269-012-0077-2
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