2011 5758 1 PB PDF
2011 5758 1 PB PDF
2011 5758 1 PB PDF
Hassan Daraee*
M.A. in Administrative Management, Central Branch, Islamic Azad University, Tehran, Iran
Abstract
1. Introduction
Nowadays, organizations are faced with vast challenges surviving in the instable and competitive
world markets. For overcoming these challenges and gaining success in the competition arena,
organizations should take advantage of some sort of programming which is prospective and
environment-oriented in a way that while identifying the environmental change factors, in a
long-term time horizon allows for determining their effects on the organization and the way
organization interacts with them. (Yang et al, 2010) The organizations persistence and survival
and their development as well requires the in-time understanding of the environmental
opportunities, changes in the market and strategic programming and the selection of the
appropriate and effective strategy. Effective strategy is a strategy which provides the
organization with competitive advantage and strategic superiority (Ko and Lee, 2000). The
effective strategy uses strategy compilation approaches and by relying on the mathematical
models along with discretion and intuition tries to compile strategy. In this case, the basis of the
compiled strategies is based on the reality and the organizational conditions and in case of proper
implementation, the conditions and terms would be provided for the organizational success and
the creation of competitive advantages (Mintzberg et al, 2001). Organizations having the
competency of understanding the market norms and regulations will have more chance for
enjoying the opportunities. Modern technologies, new speculations and novel methods all can
change the extant rules and create absolutely new conditions. (Andersen, 2004; Chen and Weng,
2006) Since no one organization has the limitless resources and the governing atmosphere is a
competitive one, the compilation of the correct and competitive strategies which gets the
organization to its macro-objectives is of the greatest importance. Spending the limited resources
on inessential subjects has a penalty and this penalty is leaving the competition arena to a
competitor which has focused its limited resources on essential grounds. (Searcy, 2004)
According to the topics mentioned it can be stated that having a guideline and strategic
programming is considered as the best tool for all of the organizations that are about, not to give
up in confrontation with the change, rather to have a conscious and informed presence in the
market. Strategic programming is a collection of the theories and frameworks which are designed
along with other tools and hi-tech technologies in order to create a will and inclination for the
managers to think, program and perform strategically. Creative and unique strategies which are
consequents of the strategic thought should be operationalized via convergent thought and
analysis; or in other words, via strategic programming (Nieboer, 2011). The objective of the
strategic programming process is the compilation of the competitive strategies. The most
important part in the compilation of the strategies and guidelines is the correct selection of the
strategies; since firstly no one organization owns limitless and infinite resources and secondly
through the implementation of a single wrong strategy the company may find itself in such an
irreversible vortex which has no return path. (Acur and Englyst, 2006 and Searcy, 2004) Strategy
is a comprehensive program for operations which indicates the general and major orientation of
an organization and introduces guidelines for the allocation of the resources in the course of
getting to the organizational long-term targets. The proper strategy selection is a complicated and
even adventurous task; because each strategy leads the organization towards a special
competitive environment. An organization strategy determines the way that the organization is
going to create value for the shareholders, customers and the citizens. Before developing a
strategy, managers should analyze the competitive market dynamicity in the respective industry
and the company’s resources and capabilities as well, and gain a clear-cut and straightforward
understanding in respect to it (Lee and Sai On Ko, 2000). Strategies can be defined at least from
two perspectives: 1. What is the organization up to? 2. What will the organization be finally
doing? From the first perspective the strategy is a comprehensive program regarding the
definition and the organizational goals achievement and performing its mission and the strategy
compilation should be conducted in the format of a process and from the second strategy
perspective point of view the strategy is the response patterns of the organization to its
environment during the passage of time (Ip and Ko, 2004 and Lee et al, 2000).
The most important objectives (major objectives) which are paves the way for the
implementation of CRM studies are:
- The growth in the company’s revenues due to the increase in the customers’ satisfaction by
making use of tangible and intangible factors.
- The reduction of the sales and distribution sectors expenses by BSC approach
- The reduction of the after-sale services and supports sectors expenses
2. Literature Review
2-1. Studying the theories and concepts
2-1-1. CRM
CRM is a struggle for the identification, maintenance and building the communication network
with the personal consumers and the constant enhancement of this network for a win-win
relationship with bilateral profits and based on such an interaction the value added will be
obtained by both of the parties. CRM is a comprehensive strategy and process for obtaining,
maintenance and participation with the selected customers in order to make a high value for the
company and the customer as well (Berson & Smith, 2001). CRM generally is considered as the
design process of the organization with respect to its customers in a way that the customers’
needs and wants are the main focus in each and every one of the organizational decision-
makings.
From the Sapinet consultation company perspective “CRM is a customer-oriented organizational
model which utilizes the customer information in a structured way to create a customized
strategy.”
The pivotal objective of the CRM is to maximize the customer’s long term value for the
organization. Current customers are more profitable than the new customers since selling a
newly-emerged product to the current customers on the side is less costly, while attracting new
customers is expensive.
Gartner consultation group, a reputable company in the field of information technology, defines
CRM as “an occupational approach which results in profitability, income and customer
satisfaction through organizing the customer classification, the promotion of behaviors leading to
customer satisfaction and the implementation of customer-oriented processes. CRM technologies
should allow for a more complete identification of the customer, more customer availability,
efficient interaction with the customer and integration among all of the communication channels
and operations before the organization sight.”
Scott realizes CRM as a collection of business processes and general policies for obtaining,
maintenance and the preparation of services designed for the customers. CRM (Scott, 2001) is
the group of the processes and its potential and existing associated technologies and the
apportionment of the company to the users of the services, sales and marketing units along the
communicational channels. (Injazz & Karen, 2004) From Mr. Greenberg’s point of view CRM
system provides the following three cases: (Greenberg, 2001)
1. Having integrated single view towards the customer by applying analytical tools.
2. The management of the relationship with the customer along the communicational channels
such as telephone, web site etc.
3. The improvement of the effectiveness and efficiency of the customer relationship processes
Through the implementation of the CRM the organizational change and the companies’
operations will be practically improved and the competitive advantage is created and the most
significant improvement estimable are the followings: (Bergeron, 2001):
1. More customer satisfaction
2. More association with the customer
3. Management for increasing the number of the customers
4. Improvement and inclination towards the customer relationships
5. Recognizing the customer sectors
6. The increase in the customer service effectiveness
7. Costs reduction
8. The available and on time information from marketing and sales segments regarding the
customers’ requirements, expectations and estimations.
The customer relationship management is a commercial program for increasing the transaction
value the objective of which is the increase in profits, revenues and customer satisfaction. CRM
is comprised of three components: customer, relationship and management (Robert & Witt,
2000)
Table 1. The differences between two modern and traditional perspectives in the performance
evaluation (Rahimi, 2006, 30)
Attributes Traditional perspective Modern perspective
Judgment and the
Assessor’s role measurement of the Advisor and facilitator of the performance
performance (Judge)
Evaluation
Past Future
period
Evaluation The superior managers and
Self-standardization
standards organization ideas
Evaluation’s The assesses growth and guidance and
Assesses control
main objective developing his or her capacity
System output Performance control Growth, development and improvement
Offering consultation services to constantly
Determination and
and increasingly improve the activities
Evaluation identification of the most
(creation of continuous motivation for the
outcomes successful financial reward
improvement of services and activities
to the managers
qualities)
Interview style
after the Imperative (like a trial) Conversation
evaluation
indicated from the studies performed on 83 companies the balanced score card is a system which
relates macro-objectives, standards, quantitative objectives, programs and innovations. This
collection explains the organization strategy and how the organization strategy is going to be put
into action as well (Lamotte & Carter, 2000, 8). The balanced score card is a framework which is
used by the companies for nourishing individuals, unidirectioning, and commitment to the
strategy (Lamotte & Carter, 2000, 7). Moreover, BSC is a comprehensive system which puts
performance standards and strategies in one direction. (Decoene & Bruggeman, 2006, 9). In
other words, BSC makes it easier to translate the avocation and transaction strategies into a
controllable performance.
Tangible
advantages
Customer
BSC
relationship
performance
management
Intangible
advantages
3. Methodology:
The present study is an applied study from the objective point of view and it is considered
causal-comparative from the data gathering perspective and the method of data collection is field
study. The study subjects refer to all of the individuals, events or things which the researcher
wants to study them. The study subjects is referred to the collection of individuals, things or
generally phenomena to which the results obtained by the researcher can be generalized and the
entire study subjects have a common attribute which discriminates them from the other
phenomena taking place outside the territory of the study subjects, this attribute is called the
common characteristic of the study subjects (Metani, 2007, 108). The study subjects of the
present research includes the group of managers, vice presidents, headquarter affair managers
which reaches the total number of 440 and because the entire study subjects are not accessible,
data collection was performed in a stochastic-systematic method. For the determination of the
sample volume the Cochran’s method was used which is as follows:
N Z 2
p . q
n
2
N 1 2
Z
2 p . q
2
N: the total number of the study subjects (here, totally 440 people).
Z: the amount of the significance level and degree of freedom in the table (1.96).
E: the maximum acceptable error which is assumed 5% here.
P: the success ratio among the sample subjects which is considered 50%.
Q: the lack of success ratio (1-p=q)
4401.96 . / 5 . / 5
2
n 205
440 1. / 052 1.962 . / 5 . / 5
For gathering the required data questionnaires were administered. The present study
questionnaire is the result of interviewing with some of the senior managers and experts
concerning the general combination and schema of the questionnaire and the design method and
regarding the general paradigm of the hypotheses and study questions and the questionnaire was
prepared by making use of Likert scale in the “attitude assessment questionnaire” and for
assessing the group of managers’ attitudes towards the study variables.
For ensuring of the study tool and the evaluation of its correctness, the questionnaire was
experimentally administered to 7 managers and after removing the errors and mistakes, the final
questionnaire was designed based on this logical basis that it is required to provide the researcher
with evaluations which are in a more precise format rather than a purely general assessment. To
evaluate the effect of the independent variables on the dependent variables the scoring method of
the questionnaire is from 1 to 5 and according to this fact that 200 questionnaires out of 205 were
returned the final assessment was also conducted on the sample of 200 questionnaires returned.
For the evaluation of reliability of the applied questionnaire the Cronbach’s alpha was used the
results of which are illustrated in the following table:
4. Research Findings
4-1. Correlation test
Before investigating the study hypotheses and determining the existence or nonexistence of the
effects of the variables on each other firstly it has to be clarified if there is a relationship between
the study variables. The Pearson test has been used to investigate the correlation among the
dependent variable and the independent variables. The results of the Pearson test are illustrated
in table 3. It is worth mentioning that in case a relationship between the dependent variable and
each of the independent variables cannot be figured out the hypothesis analysis would be ceased
and the hypothesis itself would be discarded.
According to the results obtained from the correlation test there is a correlation between all of the
independent variables and dependent variable, therefore, the study hypotheses can be
investigated.
As it is observed, the amount of significance level obtained for both of the models is lower than
0.05, so there is not sufficient document and evidence for confirming the null hypothesis,
therefore the null hypothesis is rejected in 95% confidence level and the contrary hypothesis is
confirmed. So, there exists a linear relationship between the independent variables and dependent
variable for both of the models.
4-3. Regression
The regression linear equation is as follows:
Y (performance) = 24.8 (intangible advantages) + 24.4 (tangible advantages)
Based on the results obtained, the components of growth and learning and the internal processes
have higher priorities.
company should consider these two components with greater importance and pays more attention
to the growth and learning and internal processes since these processes lead to performance
increase and improvement and eventually to customer satisfaction.
- Because there is a difference between job history and intangible factors it is proposed that the
managers learn about this discrepancy and work to eliminate such a difference.
- It is suggested that other factors and variables should be inserted to the model and be compared
with the results obtained from the above study.
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