Identifying and prioritizing the critical success factors in Iran's lubricants industry using the network analysis process method (with a competitive advantage approach)

Number of pages: 191 File Format: word File Code: 30634
Year: 2012 University Degree: Master's degree Category: Management
  • Part of the Content
  • Contents & Resources
  • Summary of Identifying and prioritizing the critical success factors in Iran's lubricants industry using the network analysis process method (with a competitive advantage approach)

    Dissertation for Master Degree, Business Management

    (International Marketing Orientation)

    Abstract

    Today, the speed of changes and the intensity of competition between organizations in various industries have made them face limited resources, and the sustainability and survival of organizations depends on achieving a competitive advantage in cost, quality, innovation and delivery simultaneously, and on the other hand, gaining a competitive advantage in discovering the areas and sectors in which organizations excel. Experts believe that in industries, there are always areas called critical success factors that create a competitive advantage for organizations and stabilize the organization's position compared to competitors in the environment and increase the return on investment; Accordingly, in this research, for the first time, it has been tried to identify these factors in the lubricants industry of Iran. To conduct this research, the Thomson and Strickland model has been used as the basis of the work, this model has defined the critical factors of success in seven different dimensions and specified indicators for each. Based on the confirmed factors, a questionnaire based on the network analysis process method was prepared and given to industry experts. The information obtained was analyzed using the Super Decision software, and five factors of "product innovation experience", "technical knowledge", "production quality", "access to raw materials and additives" and "access to skilled labor" were identified as critical factors for the success of this industry. Therefore, companies in this industry are considered successful and can gain a competitive advantage by investing in these factors.

    Introduction

    In today's world, we are witnessing tremendous changes and developments in various fields. In this respect, the globalization of markets, the knowledge of economics, e-commerce and the introduction of new technologies have created many challenges for organizations, regardless of their size, to be sustainable in a competitive environment. In order to compete effectively in global markets, organizations need flexibility and quick response to customers' desires, and this cannot happen unless the organization knows its environment and plans to achieve its goals. This planning should be done for the factors that are vital for the industry and can create a competitive advantage for the stability and competitiveness of organizations in the market.

    In this chapter, the researcher first, considering the topic of the research, states the main research problem, its necessity and importance, the goals and questions, the research method, comprehensive statistics, and at the end, specialized terms and vocabulary are presented and examined. It has forced them to emphasize the strengths that will give them a competitive advantage. Organizations may use these points as capacities or positions to strengthen competition with other organizations, because in the long term, the success of organizations and industries requires obtaining a stable and continuous competitive advantage.

    In this research, the point of view of those who believe that there are always industries, sectors and areas that industry managers should pay special attention to in order to gain a competitive advantage and improve their company's position compared to other competitors, has been used in this research and achieve good performance in those sectors compared to competitors. These experts refer to these factors and parts as "critical success factors". Critical success factors are limited and specific factors that ensure the successful movement of a manager or an organization. (Benton[1] et al., 1984) These factors are the main part of competitive advantage for industries. And identifying these factors allows organizations to decide whether they have the ability to create the necessary conditions to respond to critical success factors. It gives and also helps them and the employees to understand the critical areas for the allocation of resources and time. Several definitions have been made of the critical success factors and the use of this word goes back to 1961, it was first created by Ronald Daniel [2] McKinsey. (Daniel, 1961) This process by John. F Rokart [3] was redefined in 1981. (Rokart, 1981) and in 1995, James Johnson [4] and Michel Friesen [5] applied it to many sector settings.(Johnson and Friesen, 1995)

    One of the most important definitions was provided by Rokart in 1979: (Rokart, 1379)

    "Critical success factors refer to limited areas in any project or business that, if they lead to desired results, will guarantee a suitable competitive advantage and efficiency for the organization" and also these factors as terms for elements that are essential for organizations or projects.

    As you know, Iran has rich natural resources, the most important of which is oil, which is also known as black gold. The existence of this God-given blessing has created a platform for the production of petroleum products. Lubricants industry is one of the industries that produce petroleum products. The existence of such an industry can have a valuable contribution to the economic cycle and help to create employment in the country. Also, the export of these products helps the country's foreign exchange reserves. Therefore, the success of this industry is vital for the country.

    This study tries to identify the critical factors of success for this industry using the Thompson and Strickland model.

    3-1 The importance and necessity of research

    The speed of changes and the intensity of competition between organizations in different industries have faced them with limited resources, and the stability and survival of organizations depends on them achieving a competitive advantage in cost, quality, innovation, and delivery simultaneously, and on the other hand, gaining an advantage It is competitive in discovering the areas and sectors in which they excel. Because experts believe that there are always critical success factors in industries, areas and sectors that create a competitive advantage for organizations. As Rokart mentions in his book about these factors under limited areas, if they lead to desirable results, they guarantee a suitable competitive advantage and efficiency for organizations, and managers should have a special look at these factors in order to improve the current position of their organization compared to other competitors. On the other hand, organizations and institutions considering these factors can correctly and accurately compare their situation with similar organizations at the national and international level in the future and continuously improve it. According to many experts, an organization having a distinct position compared to other competitors in one or more of the critical success factors of the relevant industry creates a golden and exceptional opportunity to gain a competitive advantage for that organization. When the critical factors are identified, they are identified according to the areas that need investment, and they can be used as a criterion for the optimal allocation of resources in order to increase efficiency. On the other hand, when organizations realize and invest in the factors that are vital for the success of the organization, they can improve the quality of their products; Increasing quality helps organizations to reach global markets. It is also effective in reducing pollution and gasoline consumption. Finally, the prioritization of critical success factors can help practitioners to understand their relative importance and develop improvement programs in cases where there are insufficient resources. If organizations do not pay attention to these factors, they will have a significant effect on their failure. Therefore, knowing these factors is essential in formulating an organizational strategy. 4-1 Research Background As the title "Critical Success Factors" shows, various organizations and industries must identify these factors for their success, and this issue is considered vital for them. There are many articles in order to identify and prioritize these factors using different approaches. But currently, with the searches done by the researcher, no systematic research has been done regarding the identification of critical success factors in the lubricants industry.

  • Contents & References of Identifying and prioritizing the critical success factors in Iran's lubricants industry using the network analysis process method (with a competitive advantage approach)

    List:

    Table of Contents

    Title .. Page

    Chapter 1: General Research

    1-1 Introduction. 1

    2-1 statement of the research problem. 1

    3-1 Importance and necessity of research. 3

    4-1 Background of the research. 4

    5-1 research objectives. 6

    Chapter Two: Subject Literature

    2-2 Planning. 13

    2-2-2 The importance and necessity of planning. 15

    3-2-2 Planning principles. 16

    4-2-2 Planning obstacles and limitations. 17

    5-2-2 Evolution of planning. 17

    1-5-2-2 Product orientation. 18

        2-5-2-2 market orientation. 18

        3-5-2-2 ultra-industrial. 18

    6-2-2 types of planning trends. 19

        1-6-2-2 reactionary tendency. 19

        2-6-2-2 passive tendency. 20

        3-6-2-2 active tendency. 21

        4-6-2-2 interactive tendency. 22

    7-2-2 types of planning methods. 23

        1-7-2-2 Specialized planning. 23 2-7-2-2 operational planning (executive) 24 3-7-2-2 strategic planning 24 1-3-7-2-2 importance of strategic planning. 27

    2-3-7-2-2 levels of strategic planning. 28

          3-3-7-2-2 characteristics of strategic planning. 28

    4-3-7-2-2 Advantages and limitations of strategic planning. 29

    3-2 strategy. 30

    2-3-2 The concept of strategy and its history. 31

    3-3-2 What is the strategy? 32

    4-3-2 three patterns of strategy making. 34

        1-4-3-2 bureaucratic model. 34

        2-4-3-2 adaptive pattern. 34

        3-4-3-2 planning template. 35

    5-3-2 Techniques for developing and adjusting strategy. 36

        1-5-3-2 BCG model. 36

        2-5-3-2 matrix for determining the direction of policies (DPM) 39

        3-5-3-2 SWOT model. 41

        4-5-3-2 Hofer analysis model. 43

        5-5-3-2 situation assessment model and strategic action  (SPACE) 43

        6-5-3-2 ADL model. 45

    6-3-2 Dimensions of the concept of strategy. 47

    4-2 Definition of competition and competitiveness. 48

    5-2 Definition and concept of competitive advantage. 49

    1-5-2 Definitions of competitive advantage. 52

    6-2 types of competitive advantage theory. 53

    1-6-2 Theory of industrial organization. 54

        1-1-2-6 Porter's strategy framework. 57

      2-6-2 circuit resource theory 60

        1-1-6-2 dimensions of competitive advantage. 67

        2-1-6-2 The fundamental weaknesses of the circuit source perspective 67

    3-6-2 Schumptrin's theory. 68

    4-6-2 Sources of creating competitive advantage. 69

    7-2 Critical Success Factors (CSF) 70

    1-7-2 Existing views on critical success factors. 71

    2-7-2 definitions of critical success factors. 73

    3-7-2 Ways to identify critical success factors. 74

    4-7-2 critical success factors and key competencies. 75

    5-7-2 basic steps of the critical success factors method. 75

    6-7-2 Application of success factors in strategic management. 77

    7-7-2 characteristics of critical success factors. 78

    8-7-2 The origin of the critical success factors of the organization. 78

    8-2 Lubricants and their definitions. 84

    9-2 Multi-criteria decision making and network analysis process. 84

    1-9-2 multi-criteria decision making 85

    1-1-9-2 types of multi-criteria decision making. 86

    2-9-2 Analytic Network Process (ANP) method 87

    3-9-2 Difference between AHP and ANP. 89

    4-9-2 method steps of network analysis process (ANP) 90

    5-9-2 Characteristics of network analysis process. 93

    Chapter Three: Research Method

    1-3 Introduction. 96

    2-3 conceptual model of research. 97

    3-3 stages of research. 97

    4-3 research methodology. 99

    5-3 statistical population. 103

    6-3 statistical sample. 103

    7-3 information gathering methods. 103

    1-7-3 Library methods. 104

      2-7-3 interview. 105

    3-7-3 Questionnaire. 106

    8-3 validity (reliability) and reliability. 108

    1-8-3 narrative. 108

      2-8-3 Reliability. 109

    9-8 statistical data analysis methods. 111

    Chapter Four: Information Analysis

    1-4- Introduction. 113

    Part I. 114

    2-4 demographic analysis. 114

    1-2-4 Frequency of age answer114

    1-2-4 Frequency of age of respondents. 114

    2-2-4 frequency of education level. 115

      3-2-4 service history of the respondents. 117

    4-2-4 frequency of service experience in the lubricants industry 118

    Part II 118

    3-4 Identification and prioritization of critical success factors using the network analysis process method. 119

    1-3-4 first step: building the model and organizing the problem into a network structure. 119

    2-3-4 Second step: formation of pairwise comparison matrices and priority vectors. 121

        1-2-3-4 First step: pairwise comparison of main criteria. 122

        2-2-3-4 The second stage: pairwise comparison of period dependencies between the main criteria. 123

        3-2-3-4 The third step: pairwise comparison of the sub-criteria of each of the main criteria. 124

        4-2-3-4 The fourth step: pairwise comparison of the internal dependencies of the sub-criteria 126

    3-3-4 formation of the decision matrix (super matrix) 127

    4-4 Examining the research questions. 133

    Chapter Five: Conclusions and Suggestions

    5-1 Introduction. 137

    2-5 summary and conclusion. 137

    3-5 suggestions. 139

    1-3-5 suggestions based on research findings. 140

    3-3-5 suggestions for future research. 143

    4-5- Research limitations. 144

    Persian sources. 145

    Latin sources. 150

    Appendices 

    Source:

    Latin sources

     

    Chourides, P., Longbottom, D., Murphy, W. (2003). "Excellence in knowledge Management: an Empirical Study to Identify Critical Factors and Performance Measures", Measuring Business Excellence", Vol. 7 No.2, pp. 29-45.

    Hung, Y.C., Huang, S.M Lin, Q. Tsai, M.L, (2005)., "Critical Factors in Adopting a Knowledge Management System for the Pharmaceutical Industry", Vol.105, No.2, pp. 164-168.

    Denni-Fiberesima, Nazatul Shima, (2011)., "An evaluation of critical success factors in oil and gas project portfolio in Nigeria". African Journal of Business Management Vol.5 (6), pp. 2378-2395 for effective program management: a pragmatic approach". The Built & Human Environment Review, Vol 2.

    Eren, Koksal,(2007)., "Critical Success Factors For Partnering Industry", Middle East Technical University.

    Méndez, Edumilis. Pérez, Mar?a. Mendoza, Luis E and Ortega, Maryoly, (2006)., "Critical Success Factors To evaluate information technology outsourcing projects", Proceedings of the twelfth Americas conference on information systems. Acapulco.

     

    Plant, Robert. Willcocks, Leslie, (2007)., "Critical Success Factors in international ERP implementation: A Case Research approach". Journal of Computer Information Systems.

    K. Singh, Rajesh & K. Garg, Suresh, (2007)., "Modelling of critical success factors for implementation of AMTs". Journal of Modeling in Management, Vol. 2 no. 3, pp. 232-250.

    Chin, Kwai-sang,. L. Chan, Boris & lam.Ping-kitlan,( 2008)., "Identifying and prioritizing critical success factors for cooperation strategy. Industrial" Management & Data Systems Vol. 108 No. 4, pp. 437-454.

    Lou, Shun-Nian,. Chen, Ying-Te & Zhang, You-Sen.(2006)., "Prioritizing critical success factors for online game industry-A fuzzy AHP analysis".

    Quesada, Henry. Gazo, Rado.( 2007)., "Methodology for determining key internal business processes based on critical success factors A case study in furniture industry", Business Process Management Journal Vol. 13 no. 1, pp. 5-20.

    Boynton.A.C. & Zmud, R.W. (1984)., "An Assessment of critical factor's. Sloam Management Review". Summer.pp.17-27.

    http://rapidbi.com/criticalsuccessfactors/.

    Daniel, D. R. (1961)., "Management Information Crisis. In: Harvard Business Review, 39(5),111-116.

    Rockart, John F, (1986)., "A Primer on Critical Success Factors" published in The Rise of Managerial Computing: The Best of the Center for Information Systems Research, edited with Christine V. Bullen.

Identifying and prioritizing the critical success factors in Iran's lubricants industry using the network analysis process method (with a competitive advantage approach)