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Defining Strategic Processes in Organizations

The article by Hanafizadeh and Moayer on methodologies used to define the strategic processes that are defined on the basis of the qualitative and quantitative data analysis drawn from a relevant case study of a holding company (HC) defines a positivist environment that is driven by the discourse of motivating factors on how to optimise the company’s limited resources (2). Despite the budgetary constraints, an investigation was conducted on the use of the balanced scorecard (BSC) framework to develop a holistic view of an organization to crystalize the critical strategic processes recommended for organizations to adopt in the pursuit of their business goals and objectives for competitive advantage.

Hanafizadeh and Moayer define the primary and secondary activities that are defined in the value chain model as the main processes that capture sales, inbound and outbound logistics, and services for optimal operations and organizational efficiency (3). Besides that, it is necessary to incorporate the supportive services that include procurement, human resource management, strategic development, technology improvement, and infrastructure processes as the main functions of a successful organization. The goal is to enable organizations to use the right processes to develop their own business competencies.

Competent organizations gain the use of appropriate methodologies by use of the balanced score card framework to define the requisite information for evaluating the performance of the organization against its short term and long term business goals and objectives.

That requires the necessary language to communicate strategy, customer perspectives, market segments, performance targets, learning and growth, and the critical internal processes which constitute the elements that are within the constituent ability of the organisation to manipulate for competitive advantage.

The strategic processes definition methodology constitutes a framework of high steps that depict the processes and their categorization based on the key elements of process determination and categorization on the BSC framework using a statistical analysis tool to generate numerical data for ranking the elements into their respective categories. In conclusion, the ranking is done by factoring the organizational manager’s point of view as detailed in the following case study.

Hanafizadeh and Moayer explain the methodology for the definition of strategic processes in organizations for managerial holding companies using a case study approach of HCs companies (4). Holding companies in their diverse description and nature have attributes that can be applied on other companies such as the ability to derive profits from investments made in the securities of their subsidiary companies or by investing in securities.

Here, the methodology is defined using the key processes of the managerial holding companies that are constituted in their portfolio management for the identification of key products and services that generate optimum value for the company and its subsidiaries using minimum resources. The licensing strategy constitutes the key factors of intellectual assets, patents, brand information, and licensable technologies.

However, because the organization works in teams, it is necessary to use the negotiation support component to ensure that appropriate financial models are developed by the value holding company to hold. Besides, financial management is a necessary prerequisite for HCs to use in monitoring the portfolio of agreements, asset and monetary recovery, and quality of tax benefits besides supporting the assessment of intellectual property holdings.

The HCs can adopt a prevention of infringement mechanism for effective dispute resolution standards that define methods for avoiding patent grants that could escalate to legal battles. Appraisals of the performance of subsidiary companies should be a regular trend which the company has the requisite ability to evaluate accurately.

Capacity planning of subsidiaries, effective accommodation of HCs, and common project execution strategies underpin the abilities to control different types of projects. Hanafizadeh and Moayer factor the export development capabilities, the ability to execute projects with the same attributes, and the use of innovation strategies to foster competitive advantage into the BSC framework (6). The second step in BSC framework being one of the methodology components is defined by process categorization.

The effective use of the methodology is demonstrated by successful companies such as the Mobil Nam & R Company, which used the BSC framework to optimise its resources (Hanafizadeh and Moayer 7). The defining elements of the successful implementation of the BSC framework are effective branding system that captures customer attitudes and feelings about a service or a product that is easy to quantify (Hanafizadeh and Moayer 9).

On the basis of HCs companies, the key elements to search for are customer perspectives and orientation, execution of common projects, the performance appraisal of subsidiary companies, portfolio management, and export development. Here, long term growth provides the foundation for process improvements based on the acquisition of relevant knowledge and skills.

The last step concludes the discourse of the right strategic processes that are consistent with the demands of the company which reflect the true nature of a company’s strategy (Hanafizadeh and Moayer 10). Conclusions drawn on the basis of statistical analysis provide empirical evidence of the methodology for ranking the metrics for the right strategy.

Work Cited

Hanafizadeh, Payam, and Sorousha Moayer. “A methodology to define strategic processes in organizations: An exploration study in managerial holding companies.” Business Process Management Journal 14.2 (2008): 219- 227.Print.