Journal of Administrative Management, Education and Training (JAMET) ISSN: 1823-6049 Volume (13), Special Issue (1), 2017, 409-422 Available online at http://www.jamet-my.org Citation: H.N. Hezarjribi, Z.Bozorgpour, Optimized Business Management by Using SWOT and QSPM Matrices, Case Study: Mazandaran Wood and Paper Industries, Journal of Administrative Management, Education and Training, Volume (13), Special Issue (1), 2017, pp. 409-422
15
Embed
Journal of Administrative Management, Education and ... · Distribution of Benefits ... Organizational Limitations and Strengths ... QSPM matrix was formed and some strategies with
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Journal of Administrative Management,
Education and Training (JAMET)
ISSN: 1823-6049 Volume (13), Special Issue (1), 2017, 409-422
Available online at http://www.jamet-my.org
Citation:
H.N. Hezarjribi, Z.Bozorgpour, Optimized Business Management by Using SWOT and QSPM Matrices,
Case Study: Mazandaran Wood and Paper Industries, Journal of Administrative Management, Education
and Training, Volume (13), Special Issue (1), 2017, pp. 409-422
After determining the strategy based on SWOT matrix and then specifying the strategies
attractions, we performed the prioritized strategies resulting from QSPM matrix in the case study
company. On one hand, MWPI attempted to establish a scheduled plan based on ST2 and WT2
strategies for the purpose of reducing its products final price to benefit from a production with
competitive price in foreign markets and on the other hand, attempted to develop its foreign
market and performing basic changes in marketing and sales constructs for paper products based
on strategies WO2 and WO1. The highest priority is the ST2 strategy which after its
implementation, MWPI installed pulper no. 2 in its production line in 2005. This change enabled
the company to use its waste paper in its production lines. The final price of the recycled goods
had a considerable difference compared to that of papers produced from wood and it was much
more economical. Even it was possible to produce variety of products with a combination of
waste papers with proportional prices and attracted the customers' attention considerably. In next
Figureure, the company's total production from waste papers during recent years is shown.
419
Figure 3:The Company's Production Trend from Waste Paper in Tons during Recent Years
In continuation and based on the strategies for using waste paper in productions, MWPI followed
the strategy of collecting and purchasing waste papers. Figureure no. 4 shows the trend of
consuming waste paper in MWPI in line with high priority strategy (WT2) during recent years.
Figure 4:The Company's Consumption Trend from Waste Paper in Tons during Recent Years
It is worth mentioning that Figureure no. 3 includes the total productions from waste paper with
different combination percentages and comparing it with Figureure no. 2 shows the increasing
role of waste paper in this company's production lines. In respect of performing WO2 strategy,
MWPI attempted to identify and set goals for foreign markets and creation of the required infra-
structures for exporting its products. Considering the high quality of products, especially fluting
paper, products marketing has a desirable condition and in addition, by improving part of the
process, including altering the packaging methods of the export and improving special quality
indices, it was tried to attract foreign customers. The trend of exports was growing and some of
the products were exported to Europe and other paper producer countries. But unfortunately
because of economical depression at goal level and flow of Chinese paper products, which had a
much lower price and despite of having not such a high quality captured the markets, the exports
48500
170400
174200
157800
175800
151200
179000
176000
0
50000
100000
150000
200000
To
n
2005 2006 2007 2008 2009 2010 2011 2012
935414111
16920
24581
33384
38326
45637
31793
0
8000
16000
24000
32000
40000
48000
To
n
2005 2006 2007 2008 2009 2010 2011 2012
Journal of Administrative Management, Education and Training (JAMET)
420
in MWPI couldn't continue its growing trend. Considering the above mentioned points, effort to
presence in global markets had valuable achievements and was a preventive factor in importation
of foreign papers by the traders with the excuse of not presenting desirable paper products by
MWPI. The trend of exportation volume and the economical value of exporting this product for
MWPI during the recent years have been shown in Figureures no. 5 and 6.
Figure 5: The Company's Exportation Trend in Tons during Recent Years
Figure 6:The Company's Exportation Trend in Dollars during Recent Years
It is worth mentioning that MWPI received the country's pioneer exporter award in 2008. Another
highly attractive strategy included changing the commercial and sales structures of MWPI (WO1)
and to achieve this goal some changes were imposed in the company and its activities of which
the most important are: Transfer of company's sales activities to outside sources
Establishing sales engineering department in the organizational chart under the direct supervision of
commerce deputy
Specifying an agent in the south of Iran to expedite and coordinate customs and exportation activities
Presenting training related to marketing and sales by the exports at different levels of expertise
0
3000
6000
9000
Ton 59 8599 6533 932 1220 1314 2160
2006 2007 2008 2009 2010 2011 2012
0
500000
1000000
1500000
2000000
2500000
3000000
Dollar 18300 288530 278610 465000 615400 662800 110160
2006 2007 2008 2009 2010 2011 2012
421
Discussion
Exports development can be considered one of the ultimate goals of industrial sectors, including
paper production industry in Iran. This objective will not be achieved without a long term
strategic plan. Reviewing all aspects of the related activities and analyzing the internal and
external environmental conditions of the company is essential in establishing effective
approaches.Based on the described methodology, by performing a research in 2006, the specified
strategies and their priorities were determined. To achieve the goals, practical approaches were
presented to the management and the company's top management considered the above
mentioned strategies in its future agenda. Since considering the strategies obtained, the orientation
of MWPI has been toward exporting fluting paper and on the other hand, since this type of paper
has the same design and color, its only attraction and advantage is the finished price and quality in
global markets. These factors by themselves confirm the priority of the specified strategies.
Despite of this, it is necessary to explain that the declining trend of this company's exports during
the recent years is due to various factors. The reviews show that the determined strategies are
suitable and proper. Uncontrolled effective factors such as recession of global markets, keeping
value of Dollars unrealistically by the government (during the three past years, the inflation rate
has been 20% but the value of Dollar hasn't changed), which caused a high profitability for export
against imports and incapability of competing in prices with foreign markets, the extensive
presence of Chinese products in the regional markets and … have showed down the effectiveness
trend of the strategies and have caused some obstacles.The utilized methodology and combination
of the two QSPM and SWOT Matrices and the resulting desirable achievements in one practical
sample, shows the high capability of strategic management tools in determining suitable
approaches for achieving the considered perspectives of any organizations. The occurrence of out
of control factors has created some problems for paper exportation and MWPI has attempted to
eliminate them and consequently has initiated new strategies. But following a logical direction
and using ST2 and WT2 strategies reduced the production and finished prices of the company's
products considerably and these products have desirable capabilities compared to the imported
papers. The fundamental changes in commercial affairs have also facilitated sales activities,
eliminating bureaucracy, improving relationships with local and foreign customers, reinforcement
of marketing and … which ultimately increased company's capabilities.
Journal of Administrative Management, Education and Training (JAMET)
422
References Akhavi A (2005). International Business: Business Strategy and Economical Development. Business Studies and
Researches Center Pub., Tehran.
Aliahmadi AR and et al (2007). A Comprehensive Approach to Strategic Management. 5th Pub., Tolid-e-Danesh Pub.,
Tehran.
Aliahmadi AR and et al (2008). Presentation a Trend Analysis Methodology to Strategy Forming. Iranian Journal of
Tomorrow Management, 18: 4-14.
Alvani SM (2007). General Management. 3rd Edition, 28th Pub., Ney Pub., Tehran.
Bauer Schmidt A, Sullivan D, Gillespie K (2004). Common Factors Underlying Incentive to Export: Studies in the US
Paper Industry. Journal of International Business Studies, 16: 11-23.
Cooper RG, Klein Schmidt E (2005). The Impact of Export Strategy on Export Sale Performance. Journal of
International Business Studies, 16: 37-56.
David FR (2001). Strategic Management. Translated By Ali Parsaeian and Seyyed Mehdi Arabi, 7 th Pub., Cultural
Researches Office, Tehran.
Gaffarian V, Emadzadeh M (2007). The New Meaning of Strategy. 2nd Pub., Industrial Management Organization
PUB., Tehran.
Gazizadeh M (2004). Reviewing and Establishing the Influential Factors on Iranian Exportation Companies Success in
Middle-Asian Markets and Presenting Suitable Strategies for increasing non-Oily Products. Thesis of PhD,
Department of Business Management, Tehran University
Goharian ME (2000). Non-Oil Exportation Management. Business Studies and Researches Center Pub., Tehran.
Hasangolipur T (2006). Strategic Planning for Medium Institutes. Iranian Journal of Trade Studies, 35: 65-100.
Kaplan R, Norton D (2004). Strategy Maps: Converting Intangible Assets to Tangible Outcomes. Harvard Business
School Press.
Madhooshi M, Tari G (2008). Mazandaran Non-Oil Exportation Development Management. Iranian Journal of Trade
Studies, 44: 195-233.
Mahdavinia SM (2004). Designing a Global Marketing Pattern for Exporting Iran's Cherry Product, Iranian Journal of
Marketing, 25: 47-62.
Mirzaei Ahranjani H (2004). Reviewing and Establishing Organizational Cultures of Basis Science and Technological
Departments of Tehran University. Center of Functional Researches, Management Department.
Mogimi SM (2002). Organization and Management: Research Approach. Termeh Pup., Tehran.
Rezaian A (2007). Fundamentals of Organization and Management. SAMT Pub.
Soodmand R (2008). Establishing Exportation strategies in MWPI. Thesis of M.A., Department of Business
Management, Azad University Babol Branch.
Spencer B (1988). What Should Trade Policy Target, Strategic Trade Policy and New International Economics. MIT
University Press, 69-88.
Zali MR (2006). Interaction between Organizational Culture and Learning. Mesbah: Iranian Journal of Management,
31: 25-36.
Zarezadeh A (2001). Analyzing the Function of Iran's non-Oil Exportation Plans. Thesis of M.A., Department of
Business Management, Emam Sadegh University.
Zargar Azad MR (2002). Utilization of AHP for Designing Strategic Marketing of Exportation Agricultural Companies
Products. Thesis of M.A., Department of Business Management, Tehran University. LIZETH
DEMETRIADIS, Immaculata University, Immaculata, PA
HABIBALLAH NAJAFI HEZARJRIBI, Professor Department of Psychology and Educational Sciences Payame Nor University(Pnu), Tehran, Iran Correspinding Author Email: [email protected] BOZORGPOUR, Department of Management Payame Nor University(PNU), Tehran, Iran