Strategy Performance Evaluation of a Port Organisation based on Multi-Criteria Decision Making using Fuzzy Logic Method

Abstract

The importance of measurement of strategy performance has long been acknowledged by researchers and industrial experts from various organisations. A better approach would be to focus on the performance measurement system design rather than details of specific measures. Measuring the strategy of an organisation can help in terms of strategy reformulation while implementation pertains to better growth of the organisation. This perspective validates the fundamental approach to organisational control design involving design effort at various levels of the organisation. A multi-criteria decision making analysis using fuzzy logic is an effective tool to measure the industry performance strategy. This measurement system includes both financial and non-financial performance with multi-criteria decision making. This can help improve the organisational set up of the industry and provide the ability to change and adopt. This approach will consider the preferences of port organisations regarding strategic objectives. The main aim of this paper is to design a strategy performance measurement system for port organisations using MATLAB. The result shows that multi-criteria decision making analysis using the fuzzy logic system designed by MATLAB works effectively and the results provided by the analysis are consistent. This design is the best tool to help a port organisation evaluate and revise its strategy and to adopt a modern management approach. This design can be modified for various organisations depending on their strategy performance.

Introduction

Many companies are using new strategies for growth such as value addition in products and services, rather than cost reduction. To assess whether these strategies are working, evaluation of strategy performance is essential. In this paper, we have used the organisation Tuticorin Port as a model for designing a strategy performance measurement system using the MATLAB R2011b software. Normally a port organisation focuses on cost reduction, economy and best services. Using this approach, the port organisation is unable to assess future performance and growth opportunities. Multi-Criteria Decision making (MCDM) analysis is the best measurement system for measuring the strategy performance of various industries or any profitable or non-profitable organisation. Fuzzy analysis uses linguistic variables unlike any other optimization tools which use numerical variables, and provides a unique solution for measuring strategy performance. The MCDM by fuzzy logic analysis can be applied in case of port organisations to increase the financial turnover, customers’ satisfaction and growth of the industry. By adopting the MCDM fuzzy methodologies, we can assess the growth opportunities and analyse future performance. The MCDM fuzzy analysis can be the best strategic performance management system for industry, government, and non-profit organisations. The proposed design will be a framework for designing a performance measurement system for various organisations by modification of the performance pointer. This method also helps strategy planners to identify the best performance pointers for their organisations.

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