An application of logarithmic fuzzy preference programming-based AHP and FRS techniques to develop and prioritize strategic objectives

Document Type : Research Paper

Authors

Faculty of Management, University of Tehran, Iran

Abstract

Vital decisions made at the strategic level in an organization are not only intricate but also costly to alter. It is therefore important to find a comprehensive approach to deal with such a possibility. One of the major problems of a common balanced scorecard (BSC)-based model in strategic management is lack of a ranking system for strategic objectives in order to enable prioritization of the operational actions for strategy development. In this paper, we have proposed an approach to apply the Logarithmic Fuzzy Preference Programming (LFPP) and the Fuzzy Ratio System (FRS) techniques to resolve this issue. To propose a comprehensive approach, the strategy canvas concept, the four actions framework of the blue-ocean strategy model, and the competitive strategy development techniques of the Judo Strategy model can be employed for problem formulation. To check for applicability, the proposed model was applied to a case of X Tile and Ceramics Company. This research applied a combination of the Judo Strategy and the blue-ocean model in the form of a BSC strategic planning to develop strategic objectives as well as utilized the LFPP and FRS techniques to rank the objectives based on their strategic goals.

Keywords

Main Subjects

References

Baležentis, T. (2011). “A farming efficiency estimation model based on fuzzy multimoora”. Management Theory and Studies for Rural Business and Infrastructure Development, 29(5), 43-52.
Baležentis, A.; Baležentis, T. & Brauers, W. K. M. (2012). “Personnel selectionbased oncomputing with words and fuzzy MULTIMOORA”. Expert Systemswith Applications, 39(9), 7961-7967.
Baležentis, T. & Zeng, S. (2013). “Group multi-criteria decision making based upon interval-valued fuzzy numbers: an extension of the MULTIMOORA method”. Expert Systems with Applications, 40(2), 543-550.
Bozbura, F. T.; Beskese, A. & Kahraman, C. (2007). “Prioritization of human capital measurement indicators using fuzzy AHP”. Expert Systems with Applications, 32(4), 1100-1112.
Cebeci, U. (2009). "Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard". Expert Systems with Applications, 36(5), 8900-8909.
Chang, S.-C. (2010). "Bandit cellphones: A blue ocean strategy". Technology in society, 32(3), 219-223.
Dyson, R. G. (2004). "Strategic development and SWOT analysis at the University of Warwick". European journal of operational research, 152(3), 631-640
Fathi, M. R.; Reza, S.; Javadin, S.; Behrooz, A. & Sadeghi, M. R. (2013). "Human Resource Manager Selection Based on Logarithmic Fuzzy Preference Programming and TOPSIS Methods". International Journal of Human Resource Studies, 3(2), 14-27.
Fathi, M. R.; Ebrahimi, E. & Avazpour, R. (2014). "Applying Logarithmic Fuzzy Preference Programming and VIKOR for Ranking the Solutions of Knowledge Management Based on Critical Success Factors".World Applied Programming, 4(7), 161-171
Helms, M. M. & Nixon, J. (2010). "Exploring SWOT analysis–where are we now?: A review of academic research from the last decade". Journal of Strategy and Management, 3(3), 215-251.
Jian-quan, Z. (2004). "Application of Analytic Hierarchy Process to Determining Entrepreneur Evaluation Index Weight [J]". Journal of Nanjing University of Science and Technology, 1, 021.
Kangas, J.; Kurttila, M.; Kajanus, M. & Kangas, A. (2003). "Evaluating the management strategies of a forestland estate—the SOS approach". Journal of Environmental Management, 69(4), 349-358.
Kaplan, R. S. & Norton, D. P. (1996a). The balanced scorecard: translating strategy into action: HarvardBusiness Press.
Kaplan, R. S. & Norton, D. P. (1996b). "Using the balanced scorecard as a strategic management system". Harvard business review, 74(1), 75-85.
Khanmohammadi, E.; Momeni, M. & Fathi, M. R. (2012). " Fuzzy Preference Programming and ELECTRE Methods". New York Science Journal, 5(5).
Kim, W. C. & Mauborgne, R. (2002). "Charting your company's future". Harvard business review, 80(6), 76-85.
Kim, W. C. & Mauborgne, R. (2005a). Blue Ocean Strategy: From Theory to Practice. California Management Review, 47.
Kim, W. C. & Mauborgne, R. (2005b). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Boston Harvard Business School Press.
Kim, W. C. & Mauborgne, R. ( 2004). Blue Ocean Strategy. HARVARD BUSINESS REVIEW, 82.
Ko, A. S. O. & Lee, S. (2000). "Implementing the strategic formulation framework for the banking industry of Hong Kong". Managerial Auditing Journal, 15(9), 469-477.
Lee, A. H. I.; Chen, W.-C. & Chang, C.-J. (2008). "A fuzzy AHP and BSC approach for evaluating performance of IT department in the manufacturing industry in Taiwan". Expert Systems with Applications, 34(1), 96-107.
Li, T.-S. & Huang, H.-H. (2009). "Applying TRIZ and Fuzzy AHP to develop innovative design for automated manufacturing systems". Expert systems with applications, 36(4), 8302-8312.
Mikhailov, L. (2003). "Deriving priorities from fuzzy pairwise comparison judgments". Fuzzy Setsand Systems 134 365–385.
Momeni, M.; Sasani, A.; Fathi, M. R. & Khanmohammadi, E. (2012). "Applying Logarithmic Fuzzy Preference Programming for Ranking of Effective Organizational Factors on Creativity: A Case Study.International". journal of Business and Social Sience, 3(14), 83-94.
Quan, B. (2011). "China car industry's fighting back with Judo Strategy and Collectivistic mindset". Paper presented at the E-Business and E-Government (ICEE), 2011 International Conference on.
Rezaei, J.; Ortt, R. & Scholten, V. (2013). "An improved fuzzy preference programming to evaluate entrepreneurship orientation". Applied Soft Computing, 13(5), 2749-2758.
174 (IJMS) Vol. 9, No. 1, Junuary 2016
Sharma, V.; Seth, P. & Niyazi, S. (2010). "Blue Ocean Strategy: A Vehicle for Entrepreneurship Development and Economic Growth in Rural Areas". International Journal of Asian Business and Information Management (IJABIM), 1(1), 32-41.
Van de Kaa, G.; Rezaei, J.; Kamp, L. & de Winter, A. (2014). "Photovoltaic technology selection: A fuzzy MCDM approach". Renewable and Sustainable Energy Reviews, 32, 662-670.
Wang, Y. M. & Chin, K. S. (2011). "Fuzzy analytic hierarchy process: A logarithmic fuzzy preference programming methodology". International Journal of Approximate Reasoning, 52, 541–55.
Wu, H.-Y.; Tzeng, G.-H. & Chen, Y.-H. (2009). "A fuzzy MCDM approach forevaluating banking performance based on Balanced Scorecard". Expert Systems with Applications, 36(6), 10135-10147.
Yoffie, D. B. & Kwak, M. (2001a). Judo Strategy. Boston: Harvard Business School Publishing.
Yoffie, D. B. & Kwak, M. (2001b). "Mastering strategic movement at Palm". MIT Sloan Management Review, 43(1), 55-63.
Yoffie, D. B. & Kwak, M. (2002). "Judo Strategy: 10 techniques for beating a stronger opponent". Business Strategy Review, 13(1), 20-30.
Zolfani, S. H.; Sedaghat, M. & Zavadskas, E. K. (2012). "Performance evaluating of rural ICT centers (telecenters), applying fuzzy AHP, SAW-G and TOPSIS Grey, a case study in Iran". Technological and Economic Development of Economy, 18(2), 364-387.
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 9, Issue 1 - Serial Number 1
January 2016
Pages 149-174

Files

Share

How to cite

Statistics