Comparing strategic triangle and SWOT organizational performance models

Organizational Analysis

Models of organizational performance

Organizational performance relates to how successfully an organized group of people with a particular purpose perform a function. It comprises an actual output of an organization measured against its intended outputs. It encompasses three areas of firm outcomes which include; financial performance, product market performance and shareholder return (Charles, Hill and Jones, 2004). There are various models of organizational performance which include strategic Triangle Model, SWOT model, rational model, Natural System Model, Cognitive model and many others. However, in this case, only two models of organizational performance will be discussed as well as, comparing and contrasting them by evaluating their differences and similarities. The two models to be discussed include strategic Triangle model and SWOT model.

The differences between Triangle model and SWOT model is that, Strategic Triangle Model relies on three major key calculations to determine the efficiency along with the effectiveness of an organization while SWOT model is used to evaluate the strengths, weaknesses, opportunities as well as, threats involved in a business venture. The similarities of the two models above are that, both models help in sorting out the information as well as making it easier to draw connections.

Performance measurement provides a stage for managers and performance of its employees. Customers' satisfaction is always the company's ability to generate teamwork in the organizations. As a result, the organizations are finding that teams are a way to improve communication and servicing customers more effectively. The key premise in customers' satisfaction is by understanding the needs or the expectations of customers. Conversely, managers may opt to measure performance in organization by determining the quality of services, highlighting potential quality concerns as well as, identifying areas that need further investigation. Other examples of quality indicators include reliability and validity, implementation and cost and feasibility.

Part two: Operations Strategy

Federal Express (FedEx) is a global shipping corporation which provides services to businesses worldwide while United Parcel Service Inc. (UPS) is a package delivering company that provides transportation, logistics and financial services in the United States and internationally. Both FedEx and UPS are competitors in the package delivery industry. Studying on the two, their competitive relationship gives a good insight for the companies' future (Barr, 2013).

Professor Hill's Strategy Development Framework includes operation design choices and infrastructure. The framework helps the managers to understand various ways in which competitive advantage can be achieved in any organization. For example, operation design choices are decisions management make as to what type of process structure is best suited to produce goods while infrastructure mainly focuses on the non-process features and capabilities of the organization, these include workforce, quality control, organizational structure and support services.

For many years, FedEx have been of a great benefit to its customers. Not only the customers are confronted with the choice of carrier, but they are also confronted with the way the company does its shipment making the competition in the package delivery service to be very global. However, UPS uses similar zones for domestic ground delivery services. One similarity about these two sectors is that they both set their fees according to zones which correspond to the distance the packages have to travel (Barr, 2013).

Part four: Service Positioning vs. Product Process

Product process matrix analyzes the relationship of product life cycle and technological life cycle whereas service positioning matrix shows how desired nature of customer's service encounter activity into a recommended service system design. Service positioning matrix helps the managers to think about marketing as well as, operation linkages. Product process matrix facilitates understanding of strategic options which is available to an organization. The tool was created with manufacturing in mind; however, most companies still use it to their own tasks and projects. Each matrix is unique in the way it addresses the needs of the customers.

The example below describes Mary's case; an example of a product-process matrix and how it is significant in addressing the needs of the customers. Mary who is a college student has just opened a small bicycle shop and her bikes are custom designed for clients, which is an expensive process. Her business is in a 1a square on the matrix; and this makes her to sell one bike at a time, therefore operating a low volume job shop. Her business with time starts to improve given that her customers place more orders for her custom bikes, however she does not change her process. This therefore means that Mary has to move to the 3a square and change her product process and if she fails to do so, then she might go out of business or lose customers who would not wish to wait for bikes. In summary, it is evident that both product process matrix and service positioning matrix are important in evaluating the customers' needs in an organization.

d. continuous flow

No companies

c. connected line flow

Bike factory b Disconnected line flow

Mary's bike shop in the future

a.Job shop

Mary's current bike shop

No companies

1. Low volume, low standardization

2. Low medium volume, multiple products

3. High volume, a few major products

4. High volume, high standardization