A. Habib and M. M. Hasan, Business strategy, overvalued equities, and stock price crash risk, Research in International Business and Finance, vol. 5, pp. Strategy is the main concept of the contemporary era [1] that has come to replace previous management activities such as administration or planification. According to [2, 3], the meaning of the word strategy originated in the military field and comes from the word strategos meaning general in Greek. B. Sharma and T. Fisher, Functional strategies and competitiveness: an empirical analysis using data from Australian manufacturing, Benchmarking for Quality Management and Technology, vol. 25, no. Power and D. Waddell and D. Coghlan[77, 78] analyzed the relation between self-managed work and the organizational learning capacity as indicators of performance in the improvement of the innovative capacities of the companies. 633645, Coimbra, Portugal, September 2017. The operation strategy starts from an analysis of the environment, the market and the competitors, as well as a study of the available internal resources, to fix objectives and plans of route. C. Bianchi and G. B. Montemaggiore, Enhancing strategy design and planning in public utilities through dynamic balanced scorecards: insights from a project in a city water company, System Dynamics Review, vol. 15, no. Different authors have defined the concept of organizational structure. R. Nag, D. C. Hambrick, and M.-J. 96107, 2008. The Risk Management Process] [7. 7083, 2017. 3, p. 56, 2013. According to Allen [158], this matrix represents a tool to evaluate an organization, taking into account their internal factors (strengths and weaknesses) and their external factors (opportunities and threats); the IE matrix is similar to BCG matrix since both tools register the divisions of a company in a schematic diagram; this is the reason for which both are known as portfolio matrices [159]. 395406, 2016. Strategy as perspective: it is particularly inherent way of industrial organizations in their way of perceiving the world; it looks towards the interior looking for ways in which things are carried out in a company. The classic approach of the strategic formulation is based on the rational methods of planning, resource allocation, and profitability. These can be general or specific. R. Whittington, What is Strategyand Does it Matter? H. Mintzberg, B. Ahlstrand, and J. Lampel, The Strategy Safari: A Guided Tour through the Wilds of Strategic Management, Free Press, New York, NY, USA, 1998. According to Wheelwright [117], it is necessary to design and implement operation strategies coherent with the business mission, always supporting the corporative objectives [118]. The searching engines used were Proquest, Scopus, EmeraldInsight, Science Direct, and Google Scholar. 780817, 2013. The secondary challenge is to optimize the allocation of necessary inputs and apply them to Copyright 2020 Guillermo Fuertes et al. 603619, 2018. On the contrary, [130] states that the strategies must not necessarily be formulated by the senior managers but initiated by the lower levels of the organizations; this type of strategy is known as emergent. 327, 2016. : caveat emptor and the risk of romance with economic models for strategy and policy research, Organization Science, vol. 11, pp. 3, pp. Each SBU will have its own distinctive mission and different competitors; this allows it to have an independent strategy from the other business of the organization. Zapisz si do naszego newslettera, aby otrzyma informacj, w jaki sposb za darmo otrzyma Riot Points i skiny CS:GO. Sharp, Business strategy, financial reporting irregularities, and audit effort, Contemporary Accounting Research, vol. It allows to summarize and evaluate external factors (opportunities and threats) that impact the company in a negative or positive way [140]. H. I. Ansoff, Corporate Strategy: An Analytic Approach Tobusiness Policy for Growth and Expansion, McGraw-Hill, Arbor, MI, USA, 1965. 11, no. 37, no. Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. It increases the public confidence among customers and other stakeholders as it demonstrates the organizations capabilities in mitigating internal and external threats. 2, pp. 55, no. Improve your short and long range strategic planning by seamlessly integrating planning and execution in to a single data model. Thompson and Strickland [134] state that the SA model has a fundamental purpose to convert the administrative guidelines of the strategic vision and the mission of the business in indicators of specific performance, in results and consequences that the organization wants to achieve. 168170, 2013. 3, pp. Table 7 classifies the thirty-two studies categorized in Table 1 (strategic formulation), taking into account the organizational characteristics and the different typology of strategies. A. Rowe, R. Mason, and K. Dickel, Strategic Management and Business Policy: A Methodological Approach, Addison-Wesley Publishing Company, Boston, MA, USA, 1982. Platts [122] suggests an approach based on the audit to develop the production strategy. 5, pp. S. Tzu, The Art of War, e-artnow, Beijing, China, 2012. A. Presley, L. Meade, and J. Sarkis, A strategic sourcing evaluation methodology for reshoring decisions, Supply Chain Forum: An International Journal, vol. (2)Customers: measurements that reflect the impact of the strategy on customers (how do clients see us?), market segmentation, customer profitability, customer acquisition, and customer satisfaction [187]. R. Zare, M. Jajarmizadeh, and N. Abbasi, Relation between job characteristics model (JCM) and learning organization (LO), World Applied Sciences Journal, vol. 1-2, pp. 7, pp. 1, pp. Main BSC indicators and classification of investigations strategic evaluation area. Lee and Lin [163] develop a hybrid method AHP-SWOT, based on the GSM model, to evaluate the competitive position of the containers port in the east of Asia. 3, pp. 241, no. B. Haynes, N. Nunnington, and T. Eccles, Corporate Real Estate Asset Management: Strategy and Implementation, Taylor & Francis, Abingdon, UK, 2017. Unlock the power of Strategic Planning & Enterprise Risk Management by integrating them in a cloud platform that will engage everyone. It looks towards the outside looking for placing the organization in an external environment in concrete positions placing determined products or services in particular markets. Some elements that must be considered within an organizational structure are: (1) geography: it refers to the location of the company, the nearby companies necessaries, and the geographic distribution of the areas of the organization with an effective communication network [88]; (2) number of employees: in order for the organization to work efficiently, it must have clearly defined the number of employees that are required [89]; (3) evolution of the product: the organization must evolve to the extent its product does, being able to start as a small line and then diversify as needed; (4) distribution of the authority: it must be established if the organization works in a centralized or decentralized way [85]; (5) control: it refers to the requirements and regulations that must be implemented in function of the type of product that the organization offers, with the purpose of complying with them and offering a competitive product; and (6) market: the organizational structure of the institution must rotate around the suppliers and the consumers, and it must have a marketing team and adequate selling force. [147], the strategists considering the factors contained in the SWOT matrix propose the design of four strategies:(i)Strategy strength-opportunity (SO). With the aim of linking and tracking the investigations Table 2 shows the number of publications per journal, and Table 3 shows the number of publications by country and the affiliations of universities by country of each author. 142, no. 774791, 2016. 1, pp. 257272, 1985. 4, no. 13, no. Zosta lepszym graczem. 115, pp. M. Pazouki, S. A. Jozi, and Y. 4, pp. The formulation of strategies allows companies to stand out the addresses or course of action in the future, indicating the action guidelines, marking a behavior in time, defining the internal management of the company with the objective of placing the organization in the best competitive environment to achieve the success. David et al. They are developed consciously and with a specific purpose. The coherence and the advantage are based on the external evaluation of an organization, while concordance and viability are mainly based on the internal evaluation Balanced Scorecard. M. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, Simon and Schuster, New York, NY, USA, 2008. 1, pp. It is that the value added to the product or service offered justifies a higher price in the final product that the customer is not only willing to pay, but satisfied to do it. 244259, 2004. R. Allio and M. Pennington, Corporate Planning: Techniques and Applications, Amacom, New York, NY, USA, 1979. [166] use QSPM two strategies of alternative commercialization. 446473, 2011. Theorists of the strategies based on the resources as [41] state that the managers owe their strategies to competitive advantages of the organizations and the market processes, insisting on the informal learning and the personal vision [42]. 1, pp. A. Valdez, G. Cortes, S. Castaneda, L. Vazquez, J. Medina, and G. Haces, Development and implementation of the balanced scorecard for a higher educational institution using business intelligence tools, International Journal of Advanced Computer Science and Applications, vol. 9, pp. A. 1, pp. G. Jamali, E. Karimi Asl, S. Hashemkhani Zolfani, and J. aparauskas, Analysing larg supply chain management comoptitive strategies in iranian cement industries, E+M Ekonomie a Management, vol. G. Genoveva and S. T. Siam, Analysis of marketing strategy and competitive advantage, International Journal of Economic Perspectives, vol. L. E. Quezada, F. M. Crdova, S. Widmer, and C. OBrien, A methodology for formulating a business strategy in manufacturing firms, International Journal of Production Economics, vol. 3, no. To identify these factors, it must be analyzed that the objectives set are the right ones that the observable results are consistent with the initial states, and the analysis of the plans and politics implemented are the right ones [171]. The techniques for formulating strategies can be integrated into a three-stage framework for decision making. 11071129, 2003. Those are guides to address a specific situation. Several authors have used systematic review of literature to carry out their research, for example, Crossan and Apaydin [20] proposed to synthesize several perspectives through an integral multidimensional framework on organizational innovation; Peres and Fogliatto [21] showed the current state of the integration of the methods of selection of variables for the multivariate statistical process control; Nguyen et al. F. R. David, How companies define their mission, Long Range Planning, vol. Integrating risk management into system development life cycle Asset, and Vulnerability Evaluation (OCTAVE SM) approach defines a risk-based strategic assessment and planning technique for security. 47, no. 98107, 2015. According to Sharma and Fisher [107], the main types of functional strategies are: production strategies [108], I+D strategies [109], marketing strategies [110], human resources strategies [111, 112], technological strategies [113], organizational strategies [114], and financial strategies [115]. Maintain that the economic development, considering the environmental and social factors, is the new concept of sustainability balanced scorecard (SBSC) [200]. R. S. Kaplan and D. P. Norton, Using the balanced scorecard as a strategic management system, Harvard Business Review, vol. R. M. Grant, Contemporary Strategy Analysis: Text and Cases Edition, John Wiley & Sons, Chichester, UK, 2016. Just as the personality type defines the behavior of the individuals, the type of strategy defines the behavior of the organization. This matrix made the matrices SWOT, SPACE, BCG, and the IE matrix; GSM becomes an instrument to formulate strategies of an alternative character, placing the company in one of the four strategic quadrants of the matrix [161]. [181], 75% of the companies that have a formal process of measurement of performance (46% of all the companies surveyed) use BSC as main method of strategic evaluation. The following are the requirements for the implementation of an organizational structure: (1) hierarchy of power and authority for the establishment of responsibilities and goals, which must be verifiable, accurate, and achievable [85], for them to be precise they must be quantitative and for being verifiable they must be qualitative. 4, pp. According to Freeman and Hannan [32], the organizational selection processes favor them and the organizations that can change the strategy and the structure as their environment change. 4352, 2008. R. Rumelt, Good strategy/bad strategy: the difference and why it matters, Strategic Direction, vol. In the same way, supported on the evolutionary approach, Williamson [34] states that the strategy in the classic sense of rational planning oriented to the future is often irrelevant; this assertion is supported by Gotcheva et al. This is an open access article distributed under the. Chang, A fuzzy AHP and BSC approach for evaluating performance of IT department in the manufacturing industry in Taiwan, Expert Systems with Applications, vol. According to Granovetter [37], a central principle of the systemic theory is to observe the decision makers as complex individuals, whose decisions are not based exclusively on economical conceptions, and understand the interrelation of the multiple variables of the society and its effect with the environment. 70, pp. 124143, 2010. R. Simons, Performance Measurement and Control Systems for Implementing Strategy: Text and Cases, Prentice-Hall, Upper Saddle River, NJ, USA, 2000. 8, no. Upon completion of this program, you will be able to: Help clients take steps to achieve their life goals through an integrated approach to the management of all their financial affairs, including such areas as: In addition, ISO 31000s best practices allow organizations to develop a desired risk management culture. 91, no. We will assist you throughout the entire process in order to offer you a worthwhile experience. [100], different authors provide typologies that describe how companies compete in their respective market environments. 39, 1977. 6, pp. The risk management process can be applied on a strategic level and organization-wide, but it can also be applied on projects, products, and processes. IE is based on information generated by other matrices (IFE-EFE) capturing more information, quantifying them in an index that can be graphed, and locating in one of the nine quadrants of such matrix. Contemporaneously, a new wave of research studies was born that approach to the study of the theory of behavior and organization [1016], and these authors point out that the strategy is a coalignment or an adaptive coordination of various states and trajectories. The matrix is composed essentially of four quadrants, which in turn possess different strategies to develop. Shakerian et al. 7, pp. According to Ansoff [26], this approach places great confidence in the hierarchy or scorecard and trusts in the intelligence and ability of the leaders to adopt strategies that maximize long-term benefits; the control and knowledge are competence of the executive director. 3, pp. R. E. Miles and C. C. Snow, Organizational Strategy, Structure, and Process, Stanford University Press, Stanford, CA, USA, 2003. According to David [164], QSPM uses the obtained information at stage one to evaluate, in an objective way, the available alternative strategies identified in stage two. The quantitative approach allows understanding the results in light of the investment and the growth forecasts; the numerical part of the results is measured starting from the key performance indicators (KPI). D. H. Nguyen, S. de Leeuw, and W. E. H. Dullaert, Consumer behaviour and order fulfilment in online retailing: a systematic review, International Journal of Management Reviews, vol. Award Winning, purpose-built enterprise risk management software featuring unique risk bow tie functionality, risk appetite frameworks and thresholds, strategy centric risk, heat maps and more. Power and D. Waddell, The link between self-managed work teams and learning organisations using performance indicators, The Learning Organization, vol. 3, pp. 5373, 2008. The future situation that the company wants to have is defined and described. K. R. Andrews, The Concept of Corporate Strategy, Irwin, Homewood, IL, USA, 1971. A custom ERM framework supports the enterprise in integrating risk management into significant business activities and functions. The keywords used are industrial organizations, organizational behavior, strategic administration (SA), strategic approaches, and strategic evaluation. Approximately, 60% of the big North American companies and 53% of the companies in the whole world use BSC [182]. 12, Routledge, New York, NY, USA, 2017. The strategic formulation process continues with the implantation, evaluation, and control. M. Arabi, Manual of Strategic Planning, Cultural Research Office, Tehran, Iran, 2006. Examples of that are the competitive priorities, which are translated from the operative decisions derived from the corporative strategies and the client requirements [95]. Hazard mitigation planning reduces loss of life and property by minimizing the impact of disasters. 51695174, 2016. A. Neely, The evolution of performance measurement research, International Journal of Operations and Production Management, vol. 888907, 2015. For Hussein et al. 17, no. Strategy as a position: it is a means to place the organization in a competitive environment. J. Nouri, A. R. Karbassi, and S. Mirkia, Environmental management of coastal regions in the Caspian Sea, International Journal of Environmental Science and Technology, vol. 25, no. (iv)Strategy as perspective: it is particularly inherent way of industrial organizations in their way of perceiving the world; it looks towards the interior looking for ways in which things are carried out in a company. Johnston Thayer, director of clinical informatics and population health at Epic, describes new point-of-care tools that will take advantage of Cosmos research database Van der Stede, Management Control Systems: Performance Measurement, Evaluation and Incentives, Pearson Education, Harlow, UK, 2007. 12, pp. 629648, 2017. Section 6 inquires about the strategic evaluation, the Balanced ScoreCard (BSC) model, and its benefits and problems. 175194, 2016. (4)Innovation and learning: measures for training the organizations personnel with the necessary skills (can we continue improving and creating value?), technology, human resources, and training [189]. The defenders of BSC declare that each business unit must develop and use not only common but also unique measures [193]. To meet the objectives of the Strategic Plan in line with the 2030 Agenda, UNDP is implementing six cross-cutting approaches to development, known as Signature Solutions. Van Veen-Dirks and Wijn [210] affirm that BSC gives an inadequate feedback about the strategy content and does not give enough information about the external surroundings. 74, no. M.-D. P. Lee, A review of the theories of corporate social responsibility: its evolutionary path and the road ahead, International Journal of Management Reviews, vol. In general, continuing with the order of importance are the technological strategy and the human resources strategy. 3, pp. The qualitative approach allows to understand causes and consequences and interpretation of situations beyond numbers; this type of analysis will serve to know the effectiveness of the strategy and the departments of the organization that need corrective actions. A correct FSP must start by identifying the current competitive position and market of the company, which allows guiding in a better way the destiny of the company. 3, pp. M. Treacy and F. Wiersema, The Discipline of Market Leaders, Addison-Wesley, Boston, MA, USA, 1995. It looks towards the outside looking for placing the organization in an external environment in concrete positions placing determined products or services in particular markets. In our new strategy we have set out three strategic goals underpinned by six commitments that cover leadership, equality, diversity and inclusion, Charters and Teaching and Learning Accreditation, professional development and governance to guide our work to 2024. Y.-C. Shen, P.-S. Chen, and C.-H. Wang, A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach, Computers in Industry, vol. One of the most distinguished frameworks to address risk is provided by ISO 31000, an international standard that incorporates principles, proven practices, and guidelines on managing risks faced by organizations. It maintains that while the mechanistic perspective for the formulation of strategies is discrete, directional, and differentiated, the organic perspective is dynamic, uncertain, interactive, and integrating. Initially, BSC focused on indicators of individual and group performance to measure and manage the implementation of the strategic objectives [178]. 5, pp. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements. G. Santarelli, H. Abidi, M. Klumpp, and A. Regattieri, Humanitarian supply chains and performance measurement schemes in practice, International Journal of Productivity and Performance Management, vol. J. Robert Baum and S. Wally, Strategic decision speed and firm performance, Strategic Management Journal, vol. 37, pp. 95, no. 21, no. 11, no. This strength-focused strategy maximizes own strengths and minimizes threats (maxi-mini strategy); the strategy can be chosen in rescue situations where maximizing the own strengths can be the only way to overcome substantial threats. 27, no. This advantage must be sustainable overtime and difficult to imitate, among other qualities. 6, pp. We at PECB are excited to welcome you to our global network. 230, pp. Inductive derivation of a consensus definition of the field, Strategic Management Journal, vol. In this article, the systemic literature review method was used to synthesize the result of multiple investigations and scientific literature. The corporative values serve as guide when planning the operation strategy. 3, no. ISO 31000 is an international standard that provides guidelines on managing any type of risk in any business activity. R. Whitley, How national are business systems? Porter [28] indicates that the process of a competitive strategy is the development of the wide formula of how a company is going to compete, which must be their objectives (mission or objective) and which policies will be needed to carry out those goals. The dynamic of system is a computer-assisted method that helps to understand the behavior of complex systems, and these techniques use tools such as diagrams of causal cycles, time delays, and stocks [214]. 8, p. 149, 2017. Due to the complexity and speed of the changes in the external environment of the industrial organizations, Korableva and Kalimullina [167] propose to use a hybrid model BSC-SWOT for the optimization of the organizations taking into account the basic approaches and the commercial goals of the business. 22, pp. D. S. Pugh, D. J. Hickson, C. R. Hinings, and C. Turner, Dimensions of organization structure, Administrative Science Quarterly, vol. 19, no. 3, no. K. A. S. Falle, R. Rauter, S. Engert, and R. Baumgartner, Sustainability management with the sustainability balanced scorecard in SMEs: findings from an Austrian case study, Sustainability, vol. R. Dubey and S. S. Ali, Study on effect of functional competency on performance of Indian manufacturing sector, Int.
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