BSQ strategic formulation BSQ strategic formulation … › lckoo › 2004BSQstrategicformulationframework.pdfstrategic formulation framework. Nevertheless, many modern practitioners

BSQ strategic formulationframework

A hybrid of balanced scorecard SWOTanalysis and quality function deployment

YK Ip and LC KooAsia International Open University (Macau) Hong Kong

Peoplersquos Republic of China

Keywords Balanced scorecard SWOT analysis Quality function deploymentStrategic objectives

Abstract The hybrid of the balanced scorecard SWOT analysis and quality function deploymentcreates a pragmatic approach for managerial and consultant practitioners to translate vaguestrategy into action Sun Tzursquos Art of War is further incorporated to develop a more structuredstrategic formulation framework Nevertheless many modern practitioners are in factunfamiliar with this profound principle of strategy that was written some 2400 years backDespite the establishment of a theoretical framework so far there have not been many publishedpapers about the pragmatic implementation and holistic strategy development Thus a case studyin the form of a strategy workshop of a professional institute in Hong Kong has been used todelineate the aforesaid translation of strategy

IntroductionThe combination of balanced scorecard (BSC) SWOT analysis and quality functiondeployment (QFD) provides a pragmatic approach for managerial and consultantpractitioners to build a strategic framework (Koo 1998) The term ldquoBSQrdquo strategicformulation framework adopted in this paper is an acronym for the above threeseparate strategic approaches being merged into one single effective tool

In addition to the aforesaid hybrid Ko and Lee (2000) further incorporate Sun TzursquosArt of War (STAW) to demonstrate a comprehensive strategic formulation framework(SFF) for the banking industry of Hong Kong STAW is recommended to people whoare interested in strategy (Chen 1994 Vroman 1997) STAW has also been formattedin various principles applicable to business people (McNeilly 1996) This masterpieceof strategy as one of the worldrsquos earliest and certainly its most unusual militarytreatise help readers improve their negotiating skills develop self-discipline andpinpoint obstacles that block opportunity (Wing 1988)

Nevertheless it is important to note that this profound 5600-word classic ofstrategy written by Sun Tzu centuries back was dedicated to ancient warfare notbusiness (Rarick 1996) The translated opening statement of STAW is ldquoWar is amatter of vital importance to the state the province of life or death the road to survivalor ruin It is mandatory that it is thoroughly studiedrdquo (Griffith 1982) The originalcontents were all about war military tactic combat battle weapon conflict and soforth The supreme aim of war according to STAW was not to win 100 victories in 100battles but to subdue the enemy without fighting Recent leading English translations

The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at

wwwemeraldinsightcomresearchregister wwwemeraldinsightcom0268-6902htm

The authors would like to thank Hong Kong Quality Management Association for its support

BSQ strategicformulationframework

533

Managerial Auditing JournalVol 19 No 4 2004

pp 533-543q Emerald Group Publishing Limited

0268-6902DOI 10110802686900410530538

user
文字方塊
Ip Y K Koo L C (2004)rdquoBSQ strategic formulation framework A hybrid of balanced scorecard SWOT analysis and quality function deploymentrdquo Managerial Auditing Journal Vol 19 No 4 pp 533-543

have been written in a more general universal style that lend themselves to theapplicability of the Art of Strategy to anyone at anytime in any situation (McNeilly1996 Rarick 1996 Wing 1988) For instance the translation by Wing (1988) is inclinedto strategic management Take the same opening statement as an example ldquoStrategyis the great Work of the organization In Situations of life or death it is the Tao ofsurvival or extinction Its study cannot be neglectedrdquo If we read through the originalChinese script there are no supplementary comprehensible headings as are found inmost English translations Thus the suitability of translating the 13 themes exactlyinto 13 ldquoHowsrdquo for formulating a strategic framework is debatable (Ko and Lee 2000)

Sun Tzu expounded on the philosophical concept of strategy implicationspracticality and subtlety the latter being deeply rooted in Chinese intellectual traditionand historical past (Chang 1976) Not many Western modern practitioners are capableof formulating organizational vision by means of eg the profound philosophy of Taothe strategy of destroying and decision (Ko and Lee 2000) the use of camouflage andthe creation of illusion (Wing 1988)

User-friendliness as a prerequisite for a strategic management tool is gaining inpopularity It is risky for practitioners to employ the entire military strategy to SFF incase they are not sure about the underlying thoughts Even though STAW offersrichness of management thought and there must be parts of STAW which can beincorporated into SFF the application of the aforesaid hybrid model without STAW iscomplicated enough to confuse the average practitioner Thus use of SFF withoutSTAW the primitive model developed by Koo (1998) is recommended

Kaplan and Norton (1996) emphasize that financial perspective should be theultimate goal in BSC This paper also illustrates how Koorsquos model can be used totranslate the strategy into action for a non-profit-making organization A case study ofHKQMA in the form of a strategic workshop has been used to demonstrate the powerof the BSQ model Parts of the data have been altered to protect HKQMArsquos interestsHopefully this paper can serve as a piece of knowledge providing another pragmaticstrategic formulation framework using a similar but simpler approach

Review of BSC SWOT and QFDSWOT analysisSWOT analysis has been a popular platform of environmental analysis after JackWelch tripled General Motorrsquos productivity growth rate (Slocum et al 1994) Weihrich(1982) has further developed the model into a well-structured matrix Due to theemphasis on the influences of external factors threats and opportunities the analysisis also called ldquoTOWSrdquo The standalone conventional SWOT analysis composed largelyof catchall guidelines lacking explicit underpinnings is always challenged forgenerating shallow misleading results (Hill and Westbrook 1997 Valentin 2001)Thus integrating contemporary strategic management theory into SWOT analysis isproposed to gain more penetrating strategic insights (Valentin 2001)

Balanced scorecardBSC is considered as a radical approach to measurement and management (Hepworth1998) and enables linkage between an organizationrsquos strategies aiming at ultimatevision (Gadd 1995) The merits of BSC have been well documented (Brown andMcDonnell 1995 Kaplan and Norton 1996 Noci 1995) A holistic balanced

MAJ194

534

measurement of the four perspectives namely financial customer internal businessprocess and learning provides a better indication of the performance of an organizationthan merely the traditional financial data (Hepworth 1998)

Quality function deploymentQuality function deployment (QFD) has been used extensively in a manufacturingsetting for years The strength of QFD originally linked up direct customerrequirements with production design (Akao 1990) Koo (1998) inter alia pioneered theapplication of ldquoWhatsrdquo and ldquoHowsrdquo of QFD to BSC In his model QFD quantifies andprioritizes the relationships of (internalexternal) factors and actions structurally infinancial customer process and learning perspectives

BSQ methodologyBSQ frameworkThe methodology is based on an integrated framework composed of BSC SWOT andQFD HKQMA a non-profit-making association is used as a case study to demonstratehow to build an organizational strategic plan

Major assumptionThe executive committee (Exco) is composed of 13 members who are assumed torepresent ldquothe voice of the customerrdquo (Akao 1990) Through a two-day workshop thesurvey obtained through focus groups is able to translate the voice of the customer asper the horizontal portion of Figure 1

RatingIn contemporary quality management four response categories from strong frac14 9 tono frac14 1 (Ko and Lee 2000) are always used to indicate a contrasting degree ofagreement or disagreement In order to compare the findings with HKQMArsquos previoussurvey a ten-point Likert scale in which 1 refers to least important and 10 refers tomost important is used in this case

The strategic workshopThe Exco members of HKQMA a non-profit-making association in Hong Kongconvened a two-day strategic workshop at the end of 2002 to formulate and review itsstrategy and tactics for the coming year Through the focus group meetings with Excomembers they developed BSC measures It may not be easy for outsiders to fullyunderstand the below-mentioned headings written and shown on tables but theemphasis of this paper is on demonstrating procedural guidelines rather than ondisclosing the real strategy deployed by HKQMA Steps taken in developing BSC areshown as follows

The first step generating salient external factors by prioritizationBy means of nominal group technique tentative external factors of opportunitiesthreats were identified for the SWOT analysis Using the guideline of STEP (socialtechnical economic and political) the participants voiced their perceptions of externalfactors and voted on the rating of each attribute (Table I) The columns successprobability and attractiveness shown in Table I are calculated based on a ten-point


535

Figure 1Building the house of QFDfor HKQMA

MAJ194

536

Likert scale The score of each success probability and attractiveness column is theaverage of the participantsrsquo rating

The importance-ranking (or priority) of Table I is operationally defined as theproduct of success probability and attractiveness In order to simplify the strategicformulation at this stage opportunities are rank-sorted in descending order and thoseof less importance are excluded The participants have agreed to eliminate those salientfactors with a probability ranking below the importance score of 42

Likewise the calculations of probability of occurrence and seriousness of threats areshown in Table II on the basis of the participantsrsquo perceptions similar to Table I Thosethreat rankings with less priority the boxes are excluded in Table II

The second step environmental analysis of internal factorsExternal factors opportunities and threats shown in Tables I and II are thoseuncontrollable factors while internal factors strengths and weaknesses are to acertain extent controllable and changeable within the control of the organization

Kotlerrsquos checklist for performing strengthsweaknesses analysis provides an effectivepreliminary identification of core performance measures (Kotler 2000 p 78) Organizationsusing this checklist should review the original measures and make necessary amendmentsif needed After minor modifications to meet HKQMArsquos needs the perceived importance ofeach measure in descending order is listed (Table III) The descriptions in Table III are inline with BSC perspectives eg financial customer internal process and learning

In addition to QFDrsquos strategic prioritization six sigma a rigorous and disciplinedmanagerial practice also emphasizes that identifying the critical to quality (CTQ) takesprecedence over all quality-management processes When applying the concept of CTQ

OpportunitiesSuccess

probability AttractivenessImportance-

ranking

O1 Lack of recognized certifications in HK 67 80 54O2 The demands of quality service 64 79 51O3 (Quality Award Index (QAI) 66 70 46O4 Lack of operational standards for SMEs 69 64 44O5 The cooperation between China HK and Macau 61 69 42O6 SME grants 44 71 32O7 Popularity of the Internet 47 63 30O8 Government recommendations for high-tech 31 43 13

Table IImportance-ranking of

opportunities

ThreatsProbability

of occurrence SeriousnessImportance-

ranking

T1AIndividual financial deterioration 77 79 61T2AEconomic recession 77 79 61T3ARetrenchments of corporate members 76 79 59T4ALess support from local government 57 60 34T5ACompetitions 54 46 25T6AHigh-tech 39 41 16

Table IIImportance-ranking of

threats


537

to the service industries HKQMA has to exclude less important factors the boxes sothat HKQMA can focus on those really ldquoimportantrdquo internal factors There might bedangers in excluding if HKQMA was a newly born association Nevertheless HKQMAhas been established for more than 20 years and it has kept records of all thesestrategic workshops longitudinally Reviewing these records can minimize the risk ofexcluding In addition HKQMA is navigated by a team of experienced practitionersand academics It is fair to assume that the Exco is unlikely to exclude significantfactors from the strategic formulation framework

ldquoPerformance gaprdquo is operationally defined as the difference between importancescore and performance score The higher the performance gap the higher the need forHKQMA to improve in that particular aspect This is shown in Table IV

To classify the internal factors into strengths and weaknesses as per SWOT thosefactors scoring lower than 68 were agreed by the HKQMA Exco members asweaknesses The results are shown in Table V

The third step completing the development of the SWOT matrixThe third step is to combine high priority importance ranking of opportunities withinternal factors based on BSCrsquos four perspectives to develop the SWOT matrix inwhich a set of strategies is identified as per Table VI After completing thedevelopment of the matrix it is always meaningful to compare the latest SWOT matrixwith the previous one so as to trace the longitudinal trend of HKQMA In this aspectHKQMA has adopted SWOT analysis to develop its strategies over the past few years

Performing strengthsweaknesses analysis Importance score Performance score Performance gap

Income (financial) 94 A ANumber of membership (financial) 90 A ACustomer retentionAcustomerA 88 A AVisionary capable leadershipAlearningA 83 A ACustomer satisfactionAcustomerA 81 A AService quality AcustomerA 81 A ACompany reputationAcustomerA 76 A AFlexible or responsiveAlearningA 71 A AGeographical coverageAcustomerA 65 A AVision (learning) 65 A AFinancial stabilityAfinancialA 64 A AEntrepreneurial orientation AlearningA 64 A AProduct quality AcustomerA 64 A ASales force effectiveness AcustomerA 59 A AInnovation effectiveness AcustomerA 59 A APromotion effectivenessAcustomerA 56 A ACash flowAfinancialA 55 A AAbility to produce on timeAprocessA 54 A ATechnical manufacturing skillAprocessA 50 A ADistribution effectiveness AcustomerA 49 A APricing effectiveness AcustomerA 48 A AMarket share AcustomerA 41 A AFacilities AprocessA 41 A ACapacity AprocessA 36 A AEconomics of scale AprocessA 25 A A

Table IIIInternal (strengths andweaknesses) analysis

MAJ194

538

The fourth step building the house of qualityBased on the data collected from the previous steps the elements are accommodated inthe house of quality of QFD shown in Figure 1 QFD was used to developsystematically subjective cause-and-effect relationships among the BSC financialperspective In other words financial stability income and number of members are theldquoWhatsrdquo on the horizontal portion while geographical coverage organizationreputation service quality and the like are the ldquoHowsrdquo on the vertical portion Thebottom of the figure provides more detailed explanations of the ldquoHowsrdquo

In this case the circular spots shown on the roof of the house are the correlationsamong ldquoHowsrdquo Having the attitudinal ratings on causal relationship in numericalvalue in the middle of the house HKQMA can prioritize the actual implementations

The final step strategic prioritizationIn Figure 2 the higher score has the higher importance for the HKQMA The boldarrows represent the scores of 10 the highest causal linkage as perceived by theHKQMA Exco members


Income (financial) 94 63 31Number of membership (financial) 90 43 47Customer retentionAcustomerA 88 40 48Visionary capable leadershipAlearningA 83 69 14Customer satisfactionAcustomerA 81 56 25Service quality AcustomerA 81 63 18Company reputationAcustomerA 76 70 06Flexible or responsiveAlearningA 71 60 11Geographical coverageAcustomerA 65 71 206Vision (learning) 65 64 01Financial stabilityAfinancialA 64 78 214Entrepreneurial orientation AlearningA 64 68 204Product quality AcustomerA 64 70 206

Table IVVariation of importancendash performance analysis

Internal measures Importance score Performance score Performance gap

StrengthsS1 Financial stabilityAfinancialA 64 78 214S2 Geographical coverageAcustomerA 65 71 206S3 Company reputationAcustomerA 76 70 06S4 Product quality AcustomerA 64 70 206S5 Visionary capable leadershipAlearningA 83 69 14S6 Entrepreneurial orientation AlearningA 64 68 204Weaknesses A A AW1 Vision (learning) 65 64 01W2 Income (financial) 94 63 31W3 Service quality AcustomerA 81 63 18W4 Flexible or responsiveAlearningA 71 60 11W5 Customer satisfactionAcustomerA 81 56 25W6 Number of membership (financial) 90 43 47W7 Customer retentionAcustomerA 88 40 48

Table VPerformance gap


539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

rnin

g)

S2

Geo

gra

ph

ical

cov

erag

eAcu

stom

erA

W2

Inco

me

(fin

anci

al)

S3

Com

pan

yre

pu

tati

onA

cust

omerA

W3

Ser

vic

eq

ual

ityA

cust

omerA

S4

Pro

du

ctq

ual

ityA

cust

omerA

W4

Fle

xib

leor

resp

onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

ersa

tisf

acti

onA

cust

omerA

S6

En

trep

ren

euri

alor

ien

tati

onA

lear

nin

gA

W6

Nu

mb

erof

mem

ber

ship

(fin

anci

al)

W7

Cu

stom

erre

ten

tionA

cust

omerA

Opp

ortu

nit

ies

Maxi

Maxi

Min

iM

axi

O1

Lac

kof

reco

gn

ized

cert

ifica

tion

sS

OO

1O4S

1-S

6O

rgan

ize

loca

lp

rofe

ssio

nal

exam

WO

W2O

1A

pp

lyIS

Oce

rtifi

cati

onfo

rH

KQ

MA

O2

Th

ed

eman

ds

ofq

ual

ity

serv

ice

O2O

4S1-

S6

Reg

ula

tese

rvic

ein

dex

W3W

5W6W

7O2

En

han

cese

rvic

eto

mem

ber

O3

Qu

alit

yA

war

dIn

dex

(QA

I)O

4O3S

1-S

6P

rov

ide

pro

fess

ion

alaw

ard

sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

Es

O4S

1-S

6E

xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s

Table VIHKQMA SWOT matrixfor the year 2002-2003

MAJ194

540

Figure 3 shows how each strategy is compared to one another on a pair-wise basis Asa result the top strategies are (a) local qualification in quality (g) enhance membershipservice (i) life long learning for members and so forth in descending order

After the participants had formulated the holistic strategic plan for HKQMA at thetop level the Exco then initiated a more detail action plan and assigned its members totake action accordingly Another similar framework can be formulated beginning withSWOT analysis to further develop the specific strategy at an operational level

ConclusionTheoretically Ko and Lee (2000) using 13 ldquoHowsrdquo of STAW into SFF are impressiveNevertheless it is complicated for the average Western practitioner to master this

Figure 2A strategy into action

Figure 3Pair-wise comparison of

strategies


541

ancient strategy which was originally applied to warfare When preparing a SFF thenecessity of using STAW is in doubt The authors have delineated a similar strategicformulation framework without STAW ldquoHowsrdquo developed in this case are largelybased on Kotlerrsquos checklist for performing internal (strengths and weaknesses)analysis Having a well-structured framework with using familiar managerialterminology such as market share customer satisfaction and product quality thechecklist provides practitioners with an effective preliminary identification of coreperformance measures at an early stage

Managerial implicationsBSQ framework is a powerful management tool Compared with Ko and Leersquos model itis easier for participants to develop their own BSQ frameworks However it still takestime for the average participant to digest these quantitative processes In such a case itis recommended to invite someone knowledgeable about the quality tools to sit in thestrategic formulation meetings

This strategic formulation framework is developed on the basis of perceivedimportance and performance This is because ldquorubbish in ndash rubbish outrdquo amisinterpretation of the environmental external and internal factors by theparticipants may derail an organization from the right track Remedial actions suchas leading the meeting by an experienced moderator lecturing the participants aboutthe methodology asking the participants to prepare for the meetings in advanceencouraging the involvement of the participants making an interactive discussion andexhausting more environmental factors for selection can minimize the derailment

HKQMA a small non-profit-making association is a kind of unitarist organizationwhere there is no conflict of interests among the members However in the pluralistenterprises strategic prioritization is sometimes subjected to the aforesaid conflict Acertain group of participants may dominate the enterprisersquos directions against ldquothevoice of the customerrdquo

Using traditional focus groups is an effective strategy to produce data and insightsNevertheless with facial expressions and body language a small group of memberscan dominate the ways of translating strategy into action It may be the case that thosewho desire to please the interested party involved may second the proposal for nothingmore than a political reason If not properly managed a well-structured managerialapproach can be distorted into a political tool that tells ldquotrue liesrdquo in a convincingformat Thus the moderator has to judge if a secret ballot or any other appropriateform of voting is needed

References

Akao Y (1990) Quality Function Deployment Integrating Customer Requirement intoProduction Design Productivity Press Cambridge MA

Brown JB and McDonnell B (1995) ldquoThe balanced scorecard short-term guest or long-termresidentrdquo International Journal of Contemporary Hospitality Management Vol 7 No 2

Chang YN (1976) ldquoEarly Chinese management thoughtrdquo California Management ReviewVol XIX No 2

Chen M (1994) ldquoSun Tzursquos strategic thinking and contemporary businessrdquo Business HorizonsVol 37 No 2 00076813

MAJ194

542

Gadd KW (1995) ldquoBusiness self-assessmentrdquo Business Process Re-engineering and ManagementJournal Vol 1 No 3

Griffith S (1982) Sun Tzu The Art of War Oxford University Press London

Hepworth P (1998) ldquoWeighting it up ndash a literature review for the balanced scorecardrdquo Journal ofManagement Development Vol 17 No 8

Hill T and Westbrook R (1997) ldquoSWOT analysis itrsquos time for a product recallrdquo Long RangePlanning Vol 30 pp 46-52

Kaplan RS and Norton DP (1996) The Balanced Scorecard Translating Strategy into ActionHarvard Business School Press Boston MA

Ko ASO and Lee SF (2000) ldquoImplementing the strategic formulation framework for thebanking industry of Hong Kongrdquo Managerial Auditing Journal Vol 15 No 9 pp 469-77

Koo LC (1998) ldquoBuilding balanced scorecard on the house of qualityrdquo The 1st IndustrialEngineering and Management (IEM) Symposium Transformational Strategy towards the21st Century Hong Kong 20-21 November

Kotler P (2000) Marketing Management Analysis Planning Implementation and ControlMillennium ed International Series in Marketing Prentice-Hall Englewood Cliffs NJ

McNeilly MR (1996) Sun Tzu and the Art of Business Oxford University Press Oxford

Noci G (1995) ldquoAccounting and non-accounting measures of quality-based performances insmall firmsrdquo International Journal of Operations amp Production Management Vol 15 No 7

Rarick CA (1996) ldquoAncient Chinese advice for modern business strategistsrdquo SAM AdvancedManagement Journal (1984) Vol 61 No 1

Slocum JW Jr and McGill M (1994) ldquoThe new learning strategy anytime anythinganywhererdquo Organizational Dynamics Vol 23 No 2 pp 33-47

Valentin EK (2001) ldquoSWOT analysis from a resource-based viewrdquo Journal of Marketingpp 52-69

Vroman HW (1997) ldquoReviews the book Sun Tzu and the Art of Businessrdquo Academy ofManagement Executive Vol 11 No 1 p 129

Weihrich H (1982) ldquoThe TOWS matrix ndash a tool for situational analysisrdquo Journal of Long RangePlanning Vol 15 No 2

Wing RL (1988) The Art of Strategy The Leading Modern Translation of Sun Tzursquos ClassicDoubleday New York NY

Further reading

Koo LC (1997) ldquoImproving quality service through balanced scorecardrdquo The 2nd InternationalConference on Quality and Reliability Transactions of Nanjing University of Aeronauticsand Astronautics China (TNUAA) Vol 15 No 1 pp 147-53

Kotler P (1999) ldquoBoards should tune in to corporate marketing programsrdquo Directorship Vol 25No 7 pp 12-16


543

have been written in a more general universal style that lend themselves to theapplicability of the Art of Strategy to anyone at anytime in any situation (McNeilly1996 Rarick 1996 Wing 1988) For instance the translation by Wing (1988) is inclinedto strategic management Take the same opening statement as an example ldquoStrategyis the great Work of the organization In Situations of life or death it is the Tao ofsurvival or extinction Its study cannot be neglectedrdquo If we read through the originalChinese script there are no supplementary comprehensible headings as are found inmost English translations Thus the suitability of translating the 13 themes exactlyinto 13 ldquoHowsrdquo for formulating a strategic framework is debatable (Ko and Lee 2000)

Sun Tzu expounded on the philosophical concept of strategy implicationspracticality and subtlety the latter being deeply rooted in Chinese intellectual traditionand historical past (Chang 1976) Not many Western modern practitioners are capableof formulating organizational vision by means of eg the profound philosophy of Taothe strategy of destroying and decision (Ko and Lee 2000) the use of camouflage andthe creation of illusion (Wing 1988)

User-friendliness as a prerequisite for a strategic management tool is gaining inpopularity It is risky for practitioners to employ the entire military strategy to SFF incase they are not sure about the underlying thoughts Even though STAW offersrichness of management thought and there must be parts of STAW which can beincorporated into SFF the application of the aforesaid hybrid model without STAW iscomplicated enough to confuse the average practitioner Thus use of SFF withoutSTAW the primitive model developed by Koo (1998) is recommended

Kaplan and Norton (1996) emphasize that financial perspective should be theultimate goal in BSC This paper also illustrates how Koorsquos model can be used totranslate the strategy into action for a non-profit-making organization A case study ofHKQMA in the form of a strategic workshop has been used to demonstrate the powerof the BSQ model Parts of the data have been altered to protect HKQMArsquos interestsHopefully this paper can serve as a piece of knowledge providing another pragmaticstrategic formulation framework using a similar but simpler approach

Review of BSC SWOT and QFDSWOT analysisSWOT analysis has been a popular platform of environmental analysis after JackWelch tripled General Motorrsquos productivity growth rate (Slocum et al 1994) Weihrich(1982) has further developed the model into a well-structured matrix Due to theemphasis on the influences of external factors threats and opportunities the analysisis also called ldquoTOWSrdquo The standalone conventional SWOT analysis composed largelyof catchall guidelines lacking explicit underpinnings is always challenged forgenerating shallow misleading results (Hill and Westbrook 1997 Valentin 2001)Thus integrating contemporary strategic management theory into SWOT analysis isproposed to gain more penetrating strategic insights (Valentin 2001)

Balanced scorecardBSC is considered as a radical approach to measurement and management (Hepworth1998) and enables linkage between an organizationrsquos strategies aiming at ultimatevision (Gadd 1995) The merits of BSC have been well documented (Brown andMcDonnell 1995 Kaplan and Norton 1996 Noci 1995) A holistic balanced

MAJ194

534









535


MAJ194

536









ranking



opportunities

ThreatsProbability


ranking



threats


537








MAJ194

538











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

rnin

g)

S2

Geo

gra

ph

ical

cov

erag

eAcu

stom

erA

W2

Inco

me

(fin

anci

al)

S3

Com

pan

yre

pu

tati

onA

cust

omerA

W3

Ser

vic

eq

ual

ityA

cust

omerA

S4

Pro

du

ctq

ual

ityA

cust

omerA

W4

Fle

xib

leor

resp

onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

ersa

tisf

acti

onA

cust

omerA

S6

En

trep

ren

euri

alor

ien

tati

onA

lear

nin

gA

W6

Nu

mb

erof

mem

ber

ship

(fin

anci

al)

W7

Cu

stom

erre

ten

tionA

cust

omerA

Opp

ortu

nit

ies

Maxi

Maxi

Min

iM

axi

O1

Lac

kof

reco

gn

ized

cert

ifica

tion

sS

OO

1O4S

1-S

6O

rgan

ize

loca

lp

rofe

ssio

nal

exam

WO

W2O

1A

pp

lyIS

Oce

rtifi

cati

onfo

rH

KQ

MA

O2

Th

ed

eman

ds

ofq

ual

ity

serv

ice

O2O

4S1-

S6

Reg

ula

tese

rvic

ein

dex

W3W

5W6W

7O2

En

han

cese

rvic

eto

mem

ber

O3

Qu

alit

yA

war

dIn

dex

(QA

I)O

4O3S

1-S

6P

rov

ide

pro

fess

ion

alaw

ard

sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

Es

O4S

1-S

6E

xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543









535


MAJ194

536









ranking



opportunities

ThreatsProbability


ranking



threats


537








MAJ194

538











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

rnin

g)

S2

Geo

gra

ph

ical

cov

erag

eAcu

stom

erA

W2

Inco

me

(fin

anci

al)

S3

Com

pan

yre

pu

tati

onA

cust

omerA

W3

Ser

vic

eq

ual

ityA

cust

omerA

S4

Pro

du

ctq

ual

ityA

cust

omerA

W4

Fle

xib

leor

resp

onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

ersa

tisf

acti

onA

cust

omerA

S6

En

trep

ren

euri

alor

ien

tati

onA

lear

nin

gA

W6

Nu

mb

erof

mem

ber

ship

(fin

anci

al)

W7

Cu

stom

erre

ten

tionA

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omerA

Opp

ortu

nit

ies

Maxi

Maxi

Min

iM

axi

O1

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kof

reco

gn

ized

cert

ifica

tion

sS

OO

1O4S

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rgan

ize

loca

lp

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ssio

nal

exam

WO

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1A

pp

lyIS

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onfo

rH

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MA

O2

Th

ed

eman

ds

ofq

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ity

serv

ice

O2O

4S1-

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Reg

ula

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dex

W3W

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7O2

En

han

cese

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eto

mem

ber

O3

Qu

alit

yA

war

dIn

dex

(QA

I)O

4O3S

1-S

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ide

pro

fess

ion

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ard

sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

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O4S

1-S

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xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543


MAJ194

536









ranking



opportunities

ThreatsProbability


ranking



threats


537








MAJ194

538











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

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g)

S2

Geo

gra

ph

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cov

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stom

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Inco

me

(fin

anci

al)

S3

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W3

Ser

vic

eq

ual

ityA

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omerA

S4

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du

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ual

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W4

Fle

xib

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veA

lear

nin

gA

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Vis

ion

ary

ca

pab

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ader

shipA

lear

nin

gA

W5

Cu

stom

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acti

onA

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omerA

S6

En

trep

ren

euri

alor

ien

tati

onA

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nin

gA

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mb

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mem

ber

ship

(fin

anci

al)

W7

Cu

stom

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ten

tionA

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omerA

Opp

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nit

ies

Maxi

Maxi

Min

iM

axi

O1

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gn

ized

cert

ifica

tion

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OO

1O4S

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rgan

ize

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lp

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pp

lyIS

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rH

KQ

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Th

ed

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ds

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ity

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ice

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Reg

ula

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En

han

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mem

ber

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sch

eme

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Es

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ice

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eg

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erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543









ranking



opportunities

ThreatsProbability


ranking



threats


537








MAJ194

538











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

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ion

(lea

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g)

S2

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gra

ph

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me

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onA

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vic

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ual

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du

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W4

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xib

leor

resp

onsi

veA

lear

nin

gA

S5

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ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

ersa

tisf

acti

onA

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omerA

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ren

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mb

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ber

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Maxi

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iM

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ize

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Th

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ber

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dex

(QA

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sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

Es

O4S

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6E

xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543








MAJ194

538











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

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S2

Geo

gra

ph

ical

cov

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me

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al)

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Com

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pu

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vic

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omerA

S4

Pro

du

ctq

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ityA

cust

omerA

W4

Fle

xib

leor

resp

onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

ersa

tisf

acti

onA

cust

omerA

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En

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onA

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mb

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Opp

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Maxi

Maxi

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iM

axi

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Th

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ds

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ice

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4S1-

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Reg

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tese

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En

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Qu

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dex

(QA

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sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

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SM

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O4S

1-S

6E

xp

and

serv

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toth

eg

reat

erC

hin

are

gio

nO

2S1-

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Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543











539

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

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g)

S2

Geo

gra

ph

ical

cov

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erA

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Inco

me

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anci

al)

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Com

pan

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pu

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onA

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Ser

vic

eq

ual

ityA

cust

omerA

S4

Pro

du

ctq

ual

ityA

cust

omerA

W4

Fle

xib

leor

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onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

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acti

onA

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omerA

S6

En

trep

ren

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onA

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gA

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mb

erof

mem

ber

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(fin

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al)

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stom

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ten

tionA

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Opp

ortu

nit

ies

Maxi

Maxi

Min

iM

axi

O1

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gn

ized

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ifica

tion

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ize

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lp

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ssio

nal

exam

WO

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pp

lyIS

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cati

onfo

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O2

Th

ed

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ds

ofq

ual

ity

serv

ice

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4S1-

S6

Reg

ula

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rvic

ein

dex

W3W

5W6W

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En

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eto

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Qu

alit

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(QA

I)O

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ion

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ard

sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

Es

O4S

1-S

6E

xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543

HK

QM

AS

WO

Tan

aly

sis

2002

-200

3S

tren

gths

Wea

knes

ses

S1

Fin

anci

alst

abil

ityA

fin

anci

alA

W1

Vis

ion

(lea

rnin

g)

S2

Geo

gra

ph

ical

cov

erag

eAcu

stom

erA

W2

Inco

me

(fin

anci

al)

S3

Com

pan

yre

pu

tati

onA

cust

omerA

W3

Ser

vic

eq

ual

ityA

cust

omerA

S4

Pro

du

ctq

ual

ityA

cust

omerA

W4

Fle

xib

leor

resp

onsi

veA

lear

nin

gA

S5

Vis

ion

ary

ca

pab

lele

ader

shipA

lear

nin

gA

W5

Cu

stom

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tisf

acti

onA

cust

omerA

S6

En

trep

ren

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alor

ien

tati

onA

lear

nin

gA

W6

Nu

mb

erof

mem

ber

ship

(fin

anci

al)

W7

Cu

stom

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ten

tionA

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omerA

Opp

ortu

nit

ies

Maxi

Maxi

Min

iM

axi

O1

Lac

kof

reco

gn

ized

cert

ifica

tion

sS

OO

1O4S

1-S

6O

rgan

ize

loca

lp

rofe

ssio

nal

exam

WO

W2O

1A

pp

lyIS

Oce

rtifi

cati

onfo

rH

KQ

MA

O2

Th

ed

eman

ds

ofq

ual

ity

serv

ice

O2O

4S1-

S6

Reg

ula

tese

rvic

ein

dex

W3W

5W6W

7O2

En

han

cese

rvic

eto

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ber

O3

Qu

alit

yA

war

dIn

dex

(QA

I)O

4O3S

1-S

6P

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ide

pro

fess

ion

alaw

ard

sch

eme

O4

Lac

kof

oper

atio

nal

stan

dar

ds

for

SM

Es

O4S

1-S

6E

xp

and

serv

ice

toth

eg

reat

erC

hin

are

gio

nO

2S1-

S6

Ad

voc

ate

QC

Cto

sch

ools

inH

KO

5T

he

coop

erat

ion

bet

wee

nC

hin

aH

Kan

dM

acau

Min

iM

ini

Thre

ats

T1

Ind

ivid

ual

fin

anci

ald

eter

iora

tion

Maxi

Min

iS

TS

3S5S

6T1-

T3

En

han

ceco

nsu

ltan

cyse

rvic

eW

TW

1W2W

5W6T

1-T

3E

nh

ance

life

-lon

gle

arn

ing

serv

ice

tom

emb

erp

oten

tial

mem

ber

T2

Eco

nom

icre

cess

ion

T3

Ret

ren

chm

ents

ofco

rpor

ate

mem

ber

s


MAJ194

540






strategies


541






References





MAJ194

542

















Further reading




543






strategies


541






References





MAJ194

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Further reading




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References





MAJ194

542

















Further reading




543

















Further reading




543

BSQ strategic formulation BSQ strategic formulation … › lckoo › 2004BSQstrategicformulationframework.pdfstrategic formulation framework. Nevertheless, many modern practitioners

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