Organizations that want to achieve their potentials must embrace the best business models and practices. Business Excellence (BE) is defined as ‘a powerful framework used to manage organizations in order to produce the best results’ (Hohan, Olaru & Pimea 2015, p. 353). BE models are usually defined by various values and concepts. Several BE models are currently used in order to produce high-performance organizations (HPOs).
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Companies that embrace the power of business excellence have increased chances of achieving their business potentials. This study focused on the basic principles of business excellence. The study analyzed the major BE aspects embraced by Al Ghurair Group. This United Arab Emirates-based conglomerate operates in different parts of the world, such as North America, Europe, North Africa, and the Middle East (Al Ghurair: The Group 2016). The study was important because it explored the relevance of BE towards delivering positive results. Business excellence is a topic that continues to dictate the performance of many global corporations. The ideas obtained from the study can support the goals of many organizations.
Research Questions, Objectives, and Aims of the Report
The research questions presented below were used to guide this study.
- Why are the implications of business excellence for corporations and organizations?
- How does Al Ghurair Group of the United Arab Emirates (UAE) embrace the principles of BE to realize its business potentials?
- What lessons can be derived from the case of the Al Ghurair Group in an attempt to promote business performance?
The first objective was to explore the major aspects associated with BE. The second objective was to understand how global corporations use various BE principles to realize their goals.
Aims of the Report
The main aim of this report was to examine the effectiveness of BE for different business organizations. The paper was also aimed at outlining the major approaches and changes that can promote organizational performance.
The wave of globalization has transfigured the manner in which businesses focus on their organizational goals (Hohan et al. 2015). Many private and public firms encounter a wide range of tests and challenges. For instance, many global firms are forced to embrace powerful business processes that can deal with competition. Some firms have formed new partnerships in order to increase their competitiveness. Leadership theories have always focused on the best approaches that have the potential to deliver positive results (Hasan & Hannifah, 2013). Different societies have also established powerful models that can increase the level of productivity.
Business excellence models emerged in order to ensure more companies were embracing powerful ideas that can increase the level of performance. Palka (2012) argues that the use of business excellence models is something that can support the changing needs of different firms. A business excellence model (BE Model) is a framework that guides firms to implement systematic actions for efficient performance. Such models promote the best dimensions, values, and areas that can improve profitability. These globally-accepted models provide powerful guidelines that make it easier for companies to adopt the best excellence principles (Senova & Antosova, 2010).
Senova and Antosova (2010) outline eight principles for effective business excellence. Companies guided by BE models tend to have leaders who can set the right examples and provide effective instructions. They also focus on different goals that can result in business sustainability. Corporations should also be aware of the needs of different markets, stakeholders, and customers. This knowledge has the potential to drive organizational change, strategy, and design.
The innovative products should also be dictated by consumer value. Workers should also be developed using the best skills and resources in order to become more productive. The right individuals should be identified whenever implementing a new change. Corporate social responsibility (CSR) is also a unique principle of effective BE. The practice makes it easier ‘for business firms to focus on the most desirable and sustainable results’ (Hasan & Hannifah 2013, p. 33).
One of the widely used EB models is called EFQM. The EFQM Excellence Model provides a detailed and holistic view of an organization. Companies use this model to examine the major methods that complement and work together to produce the most desirable goals. This model can be combined with different tools depending on the targeted organizational goals. The goals will, therefore, dictate the most appropriate model that can develop sustainable excellence (Akyuza 2015).
The EFQM Foundation was started to identify and promote the best principles that can produce sustainable goals for different firms. The model has different process enablers that make it possible for corporations to focus on their objectives. These enablers include ‘people, partnerships, policies and strategies, leadership, and processes’ (Akyuza 2015, p. 12).
The model focuses on the needs of different societies, people, and customers. As well, there are fundamental concepts that make this model effective for different firms. These concepts include ‘customer focus, results in orientation, management using verifiable facts, continuous improvement and learning, and public responsibility’ (Palka 2012, p. 206). Successful businesses focus on these concepts in order to achieve their goals.
The model treats organizations as dynamic systems characterized by different players. Various models can, therefore, be applied depending on the functions and needs of the targeted company. The framework will then be ‘combined with various business philosophies in order to develop sustainable excellence’ (Hasan & Hannifah 2013, p. 33).
Sustainable performance is something beneficial because it improves the image of an organization (Hasan & Hannifah 2013). Various benefits have been associated with the use of various EB models. For instance, organizations using these models find it easier to record positive financial gains. Hasan and Hannifah (2013) argue that EB models result in enhanced performance and innovation. New ideas are also generated, thus increasing the level of customer support or satisfaction.
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The concepts also develop more employees, thus resulting in positive performance. Improved effectiveness and product reliability have also been outlined as critical benefits of business excellence. Different EB models are therefore used to guide individuals and corporations that want to achieve sustainable success.
A systematic case study focusing on the Al Ghurair Group was done in order to understand the firm’s business model. The purpose of the study was to explore the group’s use of business excellence (BE). The targeted information was obtained from the company’s website and annual publications.
A Brief Profile of Al Ghurair Group
Al Ghurair Group is a successful conglomerate based in Dubai. Experts believe that the group embraces some of the best business practices in order to achieve its potentials. The group operates three different divisions. These include ‘investments, real estate, and manufacturing’ (Al Ghurair: The Group 2016, para. 3). The major businesses in the manufacturing division include packaging, petrochemicals, and steel.
The group is also known to manage various shopping malls such as the luxurious Reef Mall and BurJuman Centre (Al Ghurair: The Group 2016). The firm has been in operation since the year 1960. The group operates numerous subsidiaries, thus being one of the biggest businesses in the UAE. Every division and subsidiary promotes appropriate strategies that can support the ever-changing needs of the targeted clients. The firm has always established new partnerships and ventures. Such developments show clearly that the group has a successful business model.
Al Ghurair Group has been a successful conglomerate that embraces the best business practices. The leaders at the firm use powerful practices to achieve every targeted goal. A set of values and concepts are implemented in order to achieve the best results. Al Ghurair Group has a unique reputation because of its values and practices. The firm’s management commits itself to every business activity. The firm uses ‘a diamond-square model that makes it possible to promote the best organizational practices’ (Al Ghurair: The Group 2016, para. 4).
The diamond symbol is usually used to reflect quality and resilience (Al Ghurair: The Group 2016). The completed case study has identified the best values that define the group’s image. Such values include commitment, unity, purpose, focus, and quality (Al Ghurair: The Group 2016).
The case of Al Ghurair Group explains why businesses should embrace the major principles of business excellence in order to achieve their potentials. The values defining the firm’s performance have always shaped its performance (Al Ghurair: The Group 2016). The group uses the basic principles of business excellence. Al Ghurair Group also has competent leaders who lead by example, understand the targeted goals, and promote the best practices (Al Ghurair: The Group 2016).
Employees are developed and equipped with the best resources. Continuous analyses of different markets are done in order to understand the future expectations of different stakeholders. The case study therefore shows clearly that Al Ghurair Group is an excellent organization. The group has recorded an outstanding performance by addressing the needs of the targeted customers and stakeholders.
Discussions and Conclusions
Al Ghurair Group’s EB concept has remained a powerful balanced scorecard that outlines the most desirable goals and current gaps. World-class competitors are used as benchmarks in order to promote the best functions. Majority of the group’s stakeholders continue to record increased levels of satisfaction (Al Ghurair: The Group 2016). The other benefit observed from this case study is that BE results in idea generation. Al Ghurair Group innovates and engineers superior products. Such products define the group’s responsibility, excellence, and trust (Al Ghurair: The Group 2016).
This analysis shows clearly that Al Ghurair Group embraces most of the principles and values associated with the EFQM model. The major process enablers used by the group include effective leadership, powerful policies, partnerships, and provision of resources. The targeted results are founded on the needs of different customers and stakeholders. The ultimate goal is to ensure the group’s performance remains sustainable (Palka 2012). The needs of the community are also considered whenever implementing various projects. This approach is done in order to ensure the firm promotes the best principles.
The organization also uses a powerful business excellence (BE) model in order to improve the level of trust. The group always commits itself towards improving the lives of different customers and communities. Continuous improvement is a powerful culture that promotes responsiveness, adaptability, and agility at the group (Akyuza 2015). Learning is promoted thus developing every worker at the group. These aspects explain why Al Ghurair Group has remained successful within the past five decades. The continued use of BE will make it possible for the group to achieve its business potentials.
The case study indicates that Al Ghurair Group uses a powerful BE model in order to achieve its business objectives. The group portrays the rich heritage associated with the UAE. The above model has made it possible for different employees to come up with innovative ideas that can result in excellence. The ‘three divisions enhance life in every community served’ (Akyuza 2015, p. 11). However, new initiatives are essential towards making the group more competitive. Al Ghurair Group can adopt a new model characterized by the best BE principles.
The group should identify new practices that have the potential to produce better results. For instance, Al Ghurair Group can promote various ethical and environmentally-responsible initiatives. These measures will ensure the group becomes results-oriented. As well, Al Ghurair Group can use new knowledge and data to improve the performance of its major divisions (Senova & Antosova 2010). The move will result in strategic decision-making.
The managers at the firm should design a powerful philosophy that can guide behavior. The workers will be ready to form new teams, establish a positive culture, and act in an ethical manner. These recommendations will ensure Al Ghurair Group develops new fundamental values that can eventually produce positive results.
List of References
Akyuza, G 2015, ‘Quality excellence in complex supply networks: EFQM excellence model reconsidered’, Total Quality Management & Business Excellence, vol. 26, no.1, pp. 11-12.
Al Ghurair: The Group. 2016. Web.
Hasan, M & Hannifah, H 2013, ‘A Study of Australian Business Excellence Award Winners’, Journal of Service Science and Management, vol. 6, no. 1, pp. 31-37.
Hohan, A, Olaru, M & Pimea, I 2015, ‘Assessment and Continuous Improvement of Information Security Based on TQM and Business Excellence Principles’, Procedia Economics and Finance, vol. 32, no. 1, pp. 352-359.
Palka, P 2012, ‘Using the EFQM Excellence Model in the Process of Company Valuation’, Advances in Finance and Accounting, vol. 1, no. 1, pp. 205-210.
Senova, A & Antosova, M 2010, ‘Business Performance Assessment and the EFQM Excellence Model 2010: Case Study’, Management, vol. 20, no. 1, pp. 183-190.