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International Journal of Research in Management & Business Studies (IJRMBS 2019) Vol. 6 Issue 1 Jan. - Mar. 2019 ISSN : 2348-6503 (Online)

ISSN : 2348-893X (Print)

Analysis and Performance Measurement of Successful Business Model

IV S Divyasre, IIDr. E.N.GaneshIAssistant Professor, Dept of Commerce, SRM Institute of Science and Technology, Chennai - 24, India

IIDean SOE, VISTAS, Pallavaram Chennai, India

I. IntroductionAn organization’s success depends on the environment, culture and operational context. Thus it needs to change and adapt rapidly. New ways of doing business activities impose the need to design organizations which implies the process of creating an organization with engineering dimensions. Organization design is not limited to technical aspects as technical systems are the easiest part of the mosaic for successful implementation of the business system. In design process the strategy represents a challenging aspect. Organizational culture is the most difficult part in the design process because it consists of social elements.There is one expression in the business environment that is more meaningful than any other and it implies change. Business processes and environments, which inhabit business worlds, change rapidly due to globalization, Internet, e-business, etc. Companies that do not keep pace with these changes in business activities lag behind their competition. This is why the following questions should be asked to maintain or improve both the present and future business success:

How to control and manage the business in today’s • conditions?Which methods and processes still work, and which ones • need to be developed further?To ensure successful business, managers set the following • as their goal:Design the process of business management.• Direct all the work units towards the same end goal - • vision!

Monitor whether the goal is being achieved. Continuous improvement.To establish the real basis for company’s development, throughout the whole process, constant communication between the management and all stakeholders is necessary. Managing performances implies the use of information about performance measurement to achieve positive effects in the business system, processes and organizational culture.Successful organizations create their own performance management system by: Transforming visions into clear measurable goals that

determine success; Ensuring tools for understanding, managing and improving

the business system; Transforming traditional organizations based on inspection

and control into modern organizations based on flexibility and innovation;

Measuring quality, price, speed, motivation and skills of the employees;

Changing the model of measuring performance from time to time to a model of continuous performance management.

Business management in a company refers to a process in which the management implements the company’s strategy through its employees. The process of business management is designed with the aim to increase flexibility and management in the unstable business environment. It enables the company to take the right course, depending on the type of business and the dynamics of the environment. It is a continued and incessant process of evolution, Figure 1.

Fig. 1 : The process of business management, transforming vision into measurable goals

II. The BSC MethodThe BSC method needs to provide a framework for transformation of the vision and strategy of the organization into measurable business goals, especially in reference to the key business processes. The success of the company’s business is measured from a few perspectives, namely: customer, internal processes, learning and growth, and financial perspective [1].

AbstractManagers in modern organizations are required to comprehend the processes of change and the application of adequate knowledge and techniques aiming at continuous increase of efficacy and efficiency of the organization. In order to continue to exist and to improve its business activities, it needs to apply modern quality tools and techniques as well as concept and methodologies relating to the management of business systems. This paper presents the process of business management starting from the vision to the measurable goals and products that customers anticipate.

Key wordsBusiness system, Process performance, Organizational culture

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International Journal of Research in Management & Business Studies (IJRMBS 2019)Vol. 6 Issue 1 Jan. - Mar. 2019 ISSN : 2348-6503 (Online)


To achieve the company’s vision, the following four perspectives should give answers to the questions given below:

Financial perspective • → Which financial results should be achieved from the owner’s and shareholders’ perspective?;Customers’s perspective • → How should customers perceive us?Internal processes perspective • → What aspect should be our best? andLearning and growth perspective • → What should be innovated and learned and how?

Based on theoretical and practical research, a fifth perspective • is introduced in this paper which should answer the following:How prepared and aware are we as individuals and organization • to accept change? → Organizational culture perspective [2].Figure 2 shows a layout of the BSC strategic map including • perspectives, and Figure 3 presents the success factors chart [3].

Fig. 2 : The perspectives of the BSC method




III. Performance In Business SystemsAfter the vision, the mission and key processes are defined, strategic goals and corresponding success factors (performance – criteria) are determined as well [4, 5]. The BSC concept is a model that includes measuring of financial and non-financial indicators in the business system management.The value of the BSC concept does not only lie in the indicators, but also in discussion that the concept is based on. The communication process initiates the exchange of thought and facts, thereby enhancing innovativeness and creativity in solution finding. Communicating between themselves, the employees exchange opinions thus generating new knowledge and experience.Softver Dialog Strategy designed for the application of the BSC method was used to process data in the companies. This paper shows only some of the goal criteria and their target values by using graphs grouped in five perspectives. The success criteria for the company under study are shown in Figure 4.

Fig. 3 : The success factors chart

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International Journal of Research in Management & Business Studies (IJRMBS 2019)Vol. 6 Issue 1 Jan. - Mar. 2019 ISSN : 2348-6503 (Online)


To study organizational culture in companies, the methods and tools of the global research project Worldwide Differences in Business Values and Practices were used in this paper [6, 7].

IV. ConclusionSustainable success of the organization can be achieved only by establishing an innovative and flexible company, easily adapted to the environment changes and ready to learn fast. The company can reach this level by applying the excellence model and its main principles. The key to success lies in the establishment of

organizational culture in which every employee feels the need, not the duty, to continuously innovate his/ her own work. This approach provides safe employment for employees, and the company remains on the market.The application of modern methods and adequate information systems for strategic analysis, the identification of processes and key performance with the aim to measure efficacy and effectiveness of the business systems is supplemented by the design process of a business system. These values affect the creation of the organizational culture and create the possibility for the employees

Fig. 4 : The company’s interna processes perspective: success factors, criteria and target values




to change their relationship towards the organization’s value.Organizational culture represents one of the key factors in the process of organization design and is subject of research and analysis in many of scientific papers. It determines the way in which the company analyses its internal and external environment and assess its resources and capacities. Also, it is the organizational culture that the coordination, communication and the process of creating an innovative organization depend on. Due to the turbulent environment, it is noticeable that the organizational culture is a factor most closely related to all the dimensions of organization design.

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Tanasić Z., Janjić G., Kosec B. (2016): Measuring the [2].performance of the business system process, Scientific Conference with International Participation - ETIKUM 2016, Novi Sad, Jun 23-25 ISBN 978-86-7892-826-0.

Kaplan, R., Norton D. (2003): The Strategy Focused [3].Organization, Boston, Massachusetts.

Janjić G., Tanasić, Z., Kosec B. (2015).: The Methodology [4].of Monitoring the Implementation of a Strategy in Electricity Distribution Enterprise, Transactions of Famena, XXXIX-3, pp. 61–75, ISSN 1333-1124, eISSN 1849-1391, Zagreb.

Arsovski, S. (2006): Menadžment procesima, Kragujevac.[5]. Hofstede, G. (1991): Cultures and Organisations: Software [6].of the Mind, McGraw Hil, London.

Robert, J. House, i dr. (2004): Culture, Leadership and [7].Organizations: The GLOBE Study of 62 Societies, Sage Publications.

Schain, E.(2009): The Corporate CultureSurvival Guide, [8].Jossey Bass, San Francisco.

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