The Importance of Business Models for Private Sector Organizations
Organizations’ overall competitiveness was often evaluated with the help of such indicators as profit, return on investment, market share, and sales. Kassem et al. claim that the modern business world requires a more complex assessment that involves such categories as corporate citizenship, public opinion, customer service, and organizational performance (734). Companies and corporations no longer focus on the financial domain but have to consider their input related to social and environmental aspects.
The introduction of business excellence in the early 1980s, as well as the launch of several management quality awards, encouraged organizations to be more committed to their impact and total quality principles (Mann et al. 1237). Business excellence is associated with such major themes as leadership, customer focus, strategic alignment, organizational learning, people focus, results focus, partnership development, social responsibility, and fact-based processes management (Porter and Tanner 6).
Some businesses pay more attention to certain themes, which is associated with their strategic goals, organizational cultures, capacity, and other characteristics (Kassem et al. 735). Organizations tend to adhere to these principles due to external and internal factors.
This is specifically important for private-sector companies that have to address fierce competition (Saizarbitoria Iñaki et al. 807). As far as the external factors affecting companies, governmental regulations, public opinion, and competitors’ focus on excellence have proved to be instrumental in making organizations adopt the model and comply with existing quality standards. It is also noteworthy that the development of networks where partners follow specific guidelines and standards based on business excellence models has become common. These networks are positively viewed by the public and customers are more willing to buy from the companies that show their corporate citizenship.
Saizarbitoria Iñaki et al. also state that internal factors vary significantly across companies and depend on numerous aspects (819). Some businesses adopted the excellence model in order to gain a larger market share while others concentrated on the quality of their products and services. Some companies try to improve their employees’ motivation and their overall performance. Companies operating in different regions also have different approaches to business excellence.
Evidence from an Emirati Organization
Grand Stores is one of the most successful retailers and distributors of technology, beauty, luggage, and home sector products in the United Arab Emirates that has embraced business excellence principles (“The Label of Trust”).
Bitar claims that the UAE aims at becoming one of the countries where businesses completely comply with business excellence principles. This strategic goal is regarded as a way to the country’s economic stability and its leading position in the global economy. Emirati people share this view and try to consume the products and services of organizations that follow the established standards. Grand Stores earned Business Excellence Awards several times, which shows its focus on total quality and the transformation into a leading corporate citizen in the country.
The constant growth of the company and its leading position in the market shows that the chosen strategy is effective. The company was established in the 1980s, but it faced the need to change significantly in the 2010s due to its expansion and considerable competition (“The Label of Trust”). Grand Stores pays their most attention to such business excellence themes as customer focus, leadership, organizational learning, people focus, partnership development, and social responsibility.
The company tries to ensure the provision of high-quality services and products to its clients, and it also pays considerable attention to its partners’ business practices, cultures, and their compliance with the existing standards (“The Label of Trust”). The adherence to the principles of the business excellence model enables the company to address such issues as total quality control, employee motivation and retention, and employee development. The company provides extensive training to its employees who are motivated to follow the principles of business excellence.
However, there is still the need to increase transparency and improve the company’s communication with its customers and the public. The growing bulk of studies shows that business excellence involves close contact between the organization and people. The communication within the company, its interactions with partners, and the public ensure the development of the community where people’s needs are understood and met while business goals are sustainable and achievable (Saizarbitoria Iñaki et al. 814). The use of social networks can be one of the most effective strategies to improve Grand Stores’ interactions with customers and the public.
Conclusion
To sum up, it is necessary to note that the use of the business excellence model is beneficial for private-sector companies in many ways. In the western world, the models contributed to the improvement of numerous companies’ performance in the 1990s. Middle Eastern companies also have found their way in the global market by following the principles that have proved to be effective.
Grand Stores, a leading Emirati retailer, is one of the illustrations of the successful implementation of the model as the company has earned a substantial market share and the recognition of the public and the government. The compliance with standards and adherence to business excellence model enables the organization to provide high-quality services as well as ensure the most favorable working environment for its employees who constantly improve their skills.
Works Cited
Bitar, Zaher. “Dubai Recognises 32 Companies and Entities for Business Excellence Awards.” Gulf News. 2013. Web.
Kassem, Rassel, et al. “The Relationship Between Organizational Culture and Business Excellence: Case Study from United Arab Emirates.” Organizational Culture and Behavior: Concepts, Methodologies, Tools, and Applications, IGI Global, 2017, pp. 732-751.
Mann, Robin, et al. “Awareness and Impact of Business Excellence in Asia.” Total Quality Management & Business Excellence, vol. 22, no. 11, 2011, pp. 1237-1258.
Porter, Leslie J., and Steve J. Tanner. Assessing Business Excellence. 2nd ed., Routledge, 2012.
Saizarbitoria Iñaki, Heras, et al. “A Delphi Study on Motivation for ISO 9000 and EFQM.” International Journal of Quality & Reliability Management, vol. 23, no. 7, 2006, pp. 807-827.
“The Label of Trust.” Grand Stores, n.d. Web.