A Strategy Map of Balanced Scorecard in Academic Institutions for Performance Improvement

-- Umayal Karpagam P L and Suganthi L

Traditional ways of measuring an institutions’ performance have given way to more broad and comprehensive models like the balanced scorecard. The need for balancing short-term compulsions with long-term survival made organizations commit themselves to more pervasive and comprehensive models that captured among others the financial, customer, internal process and learning perspectives. In doing so, the traditional disregard for intangible processes and outcomes was overcome and the notion that value lay in intangible resources was reinforced yet again. Traditionally, the balanced scorecard has been used in performance evaluation of an organization’s strategy. It is observed overtime that its applicability to nonbusiness situations has gained ground. In this study, we discuss the importance of the balanced scorecard using strategy maps. These maps describe how the four perspectives: financial, customer, internal process, learning and growth are linked and how they create a balance between the more tangible outcomes through intangible resources. Lists of objectives in each perspective were identified using past literature and linkages between each perspective were illustrated to indicate a strategy map for an educational institution. Although the number of objectives in each perspective cited in this paper is not conclusive, we believe the model is a beginning of a change in thinking in that direction.

© 2012 IUP. All Rights Reserved.

Relationship Between Entrepreneurial Orientation and Business Performance: A Review of Literature

-- Sandeep Vij and Harpreet Singh Bedi

The purpose of this paper is to provide a review of literature on developments in entrepreneurship theory and emergence of Entrepreneurial Orientation (EO) construct. It also explores and presents the literature on the relationship between entrepreneurial orientation and business performance. Three models—the construct model, the EO-Strategy model and the performance model—were identified as the lines of research on EO. The paper reviews a range of publications describing the methodology, findings and alternative approaches to study the performance model. It suggests that a strong entrepreneurial orientation results in high business performance. EO is a multidimensional construct operationalized in terms of variables ‘innovativeness’, ‘risk-taking’, ‘proactiveness’, ‘autonomy’ and ‘competitive aggressiveness’. A combination of subjective and objective measures of performance should be used for accurate measurement of performance. Various organizational and environmental elements should be introduced as moderating and mediating variables while studying the relationship of EO with performance.

© 2012 IUP. All Rights Reserved.

The Battle of Private and National Brands: Strategies to Win a Losing Battle Against the Private Brands in India

-- A Shivakanth Shetty and S Manoharan

Private brands which were once treated as inferior, substandard and poor man’s products are now proving to be the new game changers in the vibrant Indian retail sector, threatening to pose an existential threat to the various national brands. By adopting value pricing, better quality through upscaling, high safety standards, customized packaging, differentiation, and leveraging the brand equity of the retailers, they have significantly grown over the last decade across the world in general, and particularly in India. This sudden surge of private brands in India has necessitated a new strategy paradigm for the national brands which are increasingly facing a tough situation of eroding market share, dwindling profits and increased hostility with the retailers, who were once their loyal customers. This new strategic reality facing the national brand manufacturers is to find answers to pertinent questions like: Should they fight the expansion of private labels aggressively or adopt a defensive position? Should they risk the symbiotic relationship with retailers by taking aggressive measures against the private labels? and Should they partner with the big retailers and cash in on the market opportunity, or resort to discounting to stem the decline in market share? Therefore, the present paper intends to probe the emergence and surge of private brands in India, the reasons for their astounding success in India, and recommend strategies for the national brands to stem the onslaught of private brands in the vibrant Indian retail sector.

© 2012 IUP. All Rights Reserved.

Change and Competitive Advantage: An Investigative Study of Indian Pharmaceutical Industry

--J K Sharma and A K Singh

Year 2005 was an important milestone for the Indian pharmaceutical companies. With the start of the year, Indian pharmaceutical companies had to fall in line with its commitments to the World Trade Organization (WTO). The strategies pursued by the firms for the past 40 years after the implementation of the Indian Patents Act, 1970 must be reviewed for its relevance in the changed context. Current literature in strategic management focuses on dynamic capability as a source of competitive advantage. Earlier studies focused their attention on direct relationships among a few selected factors only; therefore the lack of clarity can be traced to under-specification of the models that the previous studies have examined. Specifically, studies provide limited view of change capability by ignoring the constituting factors which should be integrated. Dynamic capability as a construct involves framework for managing knowledge, ability to combine the existing and acquired knowledge and leveraging knowledge through learning for innovation. Every firm learns through firm-specific methods, and this learning process is operationalized by the firm’s knowledge management practices that result in successful learning. Using change capability as a mediator, a model to understand the drivers of competitive advantage in the Indian pharmaceutical industry is developed.

© 2012 IUP. All Rights Reserved.