Identifying Factors of Interest in Organizations' Strategic Objectives (Case Study: Iranian Financial Services Industry)

Document Type : Original Article

Authors

1 Master of Business Administration Department, Faculty of Management and Accounting, Shahid Beheshti University,

2 Associate Professor, Department of Business Administration, Faculty of Management and Accounting, Shahid Beheshti University

3 Ph.D student of Department of Business Administration, Faculty of Management and Accounting, Shahid Beheshti University

Abstract

Aim and Introduction: Considering the important role of vision and mission statements in articulating strategic goals, guiding organizational direction, inspiring employees, and attracting customers, analyzing the content of these documents is essential. Therefore, this research aims to examine the strategic objectives, including the vision, mission, and values of financial services companies. Given the significant importance of these companies, assessing their direction can establish new foundations for their future growth.
Methodology: The current research is a type of library research, as it focuses on analyzing the strategic objectives of financial service companies. Also, since the current research aims to identify the factors of interest in the strategic objectives of financial services companies and to utilize the existing knowledge at the company level, it is classified as applied research. It is important to note that the current research employs a field study design in terms of data collection methods. The statistical population for this research comprises all financial service companies. The sampling method employed was judgmental sampling; thus, only companies that feature at least one dimension of their strategic purpose on their websites were considered. Ultimately, 36 companies were selected for the study. The focus of this research is the strategic objectives of financial services companies. Additionally, the study encompasses all types of financial service providers. The time frame of the research began in August 2022 and concluded in February 2023. The research community consists of 36 financial service companies, including 11 banks, 11 insurance companies, and 14 leasing companies. A qualitative content analysis was conducted for companies whose information was publicly accessible.
Finding: For financial services companies, differentiation has been identified as the most critical factor for success. In the banking sector, indicators related to customer orientation, differentiation, and competition are essential. For insurance companies, geographical location serves as a foundational element, while for leasing companies, the highest percentage of focus is on differentiation and competition. In the mission statements of financial services companies, the most frequently mentioned dimensions are related to the products offered and the organization's philosophy. For banks, the product and market area is the most prominent aspect in their mission statements. In the case of insurance companies, the focus is primarily on the product. Meanwhile, leasing companies emphasize their organizational philosophy as the most significant factor. Overall, the organizational values of all financial services companies are centered around customer satisfaction. Also, for banks, the customer is the primary focus, while for insurance companies, employees are prioritized after the customer. Finally, for leasing companies, the highest percentage of emphasis is placed on employees and processes.
Discussion and Conclusion: This article explores the various dimensions of mission statements in financial services companies. After analyzing the theoretical literature and relevant models, we select the basic models for each dimension. Subsequently, we review the websites of each company to identify their vision, mission, and values. Content analysis has been conducted using both quantitative and qualitative methods. The purpose of this study is to enhance the understanding of the mission of each selected financial services company. At first, manifest analysis was used to identify observable phrases in the mission statement. This analysis examines the usage of specific phrases and calculates the frequency of these phrases or content. Since this type of analysis does not provide a complete picture, the findings from quantitative content analysis should be further examined to uncover the underlying meanings of the terms in relation to the principles. In the banking sector, central differentiation and competition are prominent, with all institutions prioritizing customer-centricity as the foundation of their vision. For insurance policies, the geographical area serves as a fundamental criterion, with approximately 72% of these policies incorporating a geographical area index in their assessments. For leasing companies, the highest percentage was associated with core differentiation and core competition. In the mission statements of all financial services companies, the most frequently mentioned dimensions were related to the product and the organization's philosophy. For banks, the dimension related to the product and market area is the most frequently observed, while for insurance companies, the product dimension is predominant. In the case of leasing companies, the organization's philosophy dimension is the most prevalent. For all financial services companies, customer orientation has been a foundational value. Seventy-three percent of banks have incorporated customer-related indicators into their organizational values. For insurance companies, the focus is also customer-centric, with approximately 64% incorporating a customer dimension into their core values. In contrast, leasing companies place the highest emphasis on employees and processes.

Keywords

References

 
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Commercial Strategies
Volume 20, Issue 22
June 2023
Pages 1-20

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