Procedia Social and Behavioral Sciences 15 (2011) 2068–2073
A proposed comprehensive framework for formulating strategy: a
Hybrid of balanced scorecard, SWOT analysis, porter`s generic strategies and Fuzzy quality function deployment
Nikzad Manteghia *, Abazar Zohrabib a b
Associate professor, Industrial Management Dept, Islamic Azad University, Shiraz, Iran
M.A. Student of Industrial Management, Industrial Management Dept, Islamic Azad University, Shiraz, Iran
This paper is proposing a comprehensive framework in order to formulate strategy in organizations. This approach is based on generic strategies as criteria for selecting competitive strategies. In this method, firstly, we have studied Porter`s five competitive forces to determine the nature of competition in the industry. Then by using SWOT matrix, we have formulated initial strategies of the organization. After that, we have allocated these strategies to four BSC perspectives. Then making use of these strategies in the HOQ as "Hows/ alternatives", we subsequently considered generic strategies with the role of "Whats/ criteria” in the HOQ as a criteria for selection of strategies. Finally we performed screening and selection of initial strategies by using fuzzy screening technique. A case study is utilized to show the efficiency of the proposed model.
© 2011 Published by Elsevier Ltd.
Keywords: SWOT analysis, balanced scorecard, generic strategies, fuzzy quality function deployment
Many researches were done for formulating strategy whereby the model offered by Lee and KO (2000) is one of the most famous one. They proposed the combination of balanced scoredcard (BSC), SWOT analysis and quality function deployment (QFD) as comprehensive strategic formulation framework. But they also applied the same concept of Sun Tzu`s art of war (STAW). Sun Tzu described the philosophical concept of strategy. STAW is rooted in ancient China, as applied in battlefield. When preparing a SFF the necessity of using this concept is in doubt (Ip
& Koo, 2004). However in this paper, we have proposed a similar framework, by using Porter`s generic strategies instead of ancient strategies. Generic strategies are very famous as a prominent model in strategic management in modern management and most managerial texts. The other dominant characteristic of generic strategies is the case where it empowers the company to challenge with the Porter's five competitive Forces and prepares the situation to surpass other competitors. These characteristics create the motivation of choosing generic strategy as criteria for choosing and screening competitive strategies which was formulated by SWOT matrix. Although the model proposed by Lee and Ko (2000) applied the traditional QFD method , the proposed model in this paper apply fuzzy
* Nikzad Manteghi. Tel.:+98-711-6279142; fax:+98-711-6281744.
1877–0428 © 2011 Published by Elsevier Ltd. doi:10.1016/j.sbspro.2011.04.055 Nikzad Manteghi and Abazar Zohrabi / Procedia Social and Behavioral Sciences 15 (2011) 2068–2073
QFD for decreasing the lack of certainty in data that increases the ability and efficiency of this model in comparison with Lee and Ko`s model. Moreover, as another prominence, in order to increase the ability in strategy formulation, we propose to study competitive situation for the organizations according to Porter's Five Competitive forces. This paper also illustrates how the proposed model can be used to formulate the strategy into function for an educatonal organization. 2. Literature review
2.1. Porter`s Five Competitive Forces
Porter (1998) states that the nature of competition in one industry depends on the basic competitive factors which consist of the following competitive factors such as new sellers threat, the threat of substitute products, the supplier`s bargaining force, the power exerted by the customers in the…