Strategic planning of Shahid Bahonar wood industry company using the combined approach of SWOT and AHP analysis

Number of pages: 243 File Format: word File Code: 31181
Year: 2013 University Degree: Master's degree Category: Management
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  • Summary of Strategic planning of Shahid Bahonar wood industry company using the combined approach of SWOT and AHP analysis

    Dissertation

    Master's Course

    Department: MBA Executive Management

    (to obtain a master's degree in MBA)

    Abstract

    Changes in the internal and external environments of organizations are one of the most important features of the attention of managers and strategic planners, so managers are facing the challenge of how to face them in order to reduce the vulnerability of the organization. Capabilities, long-term growth and survival and reduction of operational risk require strategic planning. In the upcoming research, the researcher has tried to monitor and evaluate the long-term goals of the mentioned company by using strategic planning techniques, including the identification of internal factors (strengths and weaknesses) and external factors (opportunities and threats). However, to achieve these goals, the lack of identifying the importance of ranking for environmental analysis factors caused the researcher to propose a multi-criteria decision-making combination called (hierarchical analysis process) in order to improve the SWOT analysis. By using this method, it is possible to compare factors or criteria in order to prioritize them and use them in the form of data and calculation values, and the purpose of implementing the combination of this method (combined method) was to improve strategic planning quantitatively, so that in the end, after determining the strategies, in addition to the prioritization made by the QSPM quantitative strategic planning matrix and comparing them with the prioritization of factors effective in planning through the hierarchical analysis process of AHP, appropriate solutions can be proposed.

    Key words:

    Strategic planning, environmental analysis, hierarchical analysis process

    Chapter One

    Introduction and research overview

    1-1 Preface

    Environments that are constantly changing with increasing speed Changes always challenge factors. Among these factors are organizations that are interdependent with these environments and changes. Organizations seek to adapt to these changes in order to maintain their survival, so it is obvious and necessary to anticipate and be aware of these changes. Therefore, the concern of the managers in order to achieve the organizational goals as best as possible, with attention to the mentioned changes, requires a systematic effort. An effort that doubles the importance of planning. Therefore, strategic planning in the form of a systematic and targeted effort as an effective tool in macro-organizational management makes it possible to adapt to these changes and gain competitive advantage. For this purpose, the researcher has used strategic planning as an effective tool in the field of management in order to try to formulate and implement the principles and foundations of this science in the organization with a case study in a manufacturing company active in the country's wood industry, while having an overview of the issues raised in strategic management. 

    1-2 Introduction

    This chapter includes a report on the research and management and strategic planning project in the Shahid Bahonar board company of Gorgan, which includes the description of the problem and the importance of conducting research in this organization, as well as the general and specific goals that are pursued in the implementation of this project. Also, in this chapter, under the title of research assumptions and existing limitations, questions have been raised that the researcher has tried to find a suitable answer for by explaining the process and techniques of strategic planning in the following chapters of this thesis, while providing the context for proper understanding and analysis. In order to meet these needs, only the training of management theory and techniques will not be the solution, and it must be based on the current and future competitive advantages that the competitors will have and how they can be achieved and realized by experts, and that is through targeted and effective planning and actions, in addition to explaining the contents to companies and organizations, how to predict the future and mobilize their structures and policies in order to achieve their visions. It is important that the past happened with all its importance and lessons and with all the impact it can have on the future, and no human force can repeat it again.It is important that the past happened with all its importance and lessons and with all the impact it can have on the future, and no human force can create it again; But the future is coming, and an important part of it depends on what is happening today. However, even today, the changes and developments are such that there is no other way but modernization and conscious and systematic competition in order to continue the stability and survival of organizations in the way of responding correctly to these developments and remaining in the field of competition; Therefore, in this challenging path, the lack of management sciences and techniques, including strategic planning, as one of the most effective and efficient tools, does not guarantee any future success. This technique is based on information obtained from the evaluation of internal and external factors and compares external opportunities and threats with internal strengths and weaknesses in order to obtain strategies that are appropriate to the internal conditions of the organization and include the effects of the situation around the organization. Strategic planning is a structured effort to make basic decisions and perform actions that shape and guide the nature of the organization, the type of activities and the reason for performing those activities by the organization. According to the importance of the topic in this research, we decided to identify the competitive environment and shortcomings of Shahid Bahonar board company in Gorgan and after drawing the desired future, implement strategic management concepts in line with drawing the organization's path towards success and its research goals. It is not possible and having such characteristics requires the design, implementation and implementation of a set of necessary measures in the form of detailed and reviewed programs and procedures. Therefore, the importance and necessity of the discussion prompted us to conduct a research for the studied organization, Shahid Bahonar Board Company, which, like many other active and leading industries in the country's wood industry, is active in order to establish and strengthen strategic management and also obtain impressive performance results in this field, taking into account the challenges and issues that all companies are facing. Make strategic planning and formulation. It is hoped that by conducting this research, while identifying the leading challenges and also providing suitable solutions in order to face them and solve them, the organization can take an effective step towards the implementation of its strategic plans as well as possible and achieve success by obtaining favorable performance results in this way. The results of this research can be considered for managers and experts of the company and others in the field of wood industry, and at the end, new plans and programs will be presented by comparing the obtained strategies with previous strategies. 

    1- 5 general goal and partial goals

    General goal

    The main goal is to consolidate and survive the position of the Shahid Bahonar board company in Gorgan in the competitive market by designing and implementing a strategy with the SWOT method and evaluating with AHP that the implementation of this plan will lead to a better identification of the competitive environment and finally a favorable response to environmental changes and an increase in market share. Better recognition of the challenges facing the organization

    • Identification, formulation and selection of the most effective proposed strategies in order to determine the right path to realize the desired future of the organization

    With the achievement of the above goals, it is expected that the organization will operate as a successful organization in the field of production and supply of its products in the wood industry and markets related to the desired future by increasing the competitive advantage through the proper implementation of strategies. Also, future researches can be applied by using the fuzzy logic framework of AHP method in order to have a greater impact of analysis on cases with more uncertainty. (Images and diagrams are available in the main file)

    What are the environmental opportunities of the Shahid Bahonar board company of Gorgan?

    What are the environmental threats of the Shahid Bahonar board company of Gorgan?

    What are the appropriate strategies for the Shahid Bahonar board company of Gorgan?

    What is the prioritization of effective factors in strategic planning? 

    1- 8 research assumptions

    The research assumptions are listed below:

    1- The organization has vision, goals and values.

  • Contents & References of Strategic planning of Shahid Bahonar wood industry company using the combined approach of SWOT and AHP analysis

    List:

    Chapter One: Introduction and General Research

    1-1 Preface. 2

    1-2 Introduction. 2

    1-3 statement of the problem. 2

    1-4 The importance and necessity of research. 3

    1-5 general goals and partial goals. 4

    1-6 theoretical framework and research analytical model. 5

    1-7 research questions. 6

    1-8 research assumptions. 6

    1-9 areas of research. 6

    1-9-1 Subject area. 6

    1-9-2 spatial territory. 7

    1-9-3 Time realm. 7

    1-10 thesis structure. 7

    Chapter Two: Literature and Research Background

    2-1 Introduction. 10

    2-2 Definitions. 10

    2-2-1 Planning. 10

    2-2-2 strategy. 11

    2-2-3 strategic management. 12

    2-2-4 Strategic planning. 12

    2-2-5 strategist. 13

    2-2-6 mission statement. 14

    2-2-7 perspective. 14

    2-2-8 Long-term goals. 14

    2-2-9 internal strengths and weaknesses. 14

    2-2-10 External opportunities and threats. 15

    2-2-11 Environmental analysis. 15

    2-3 Necessity of strategic planning. 15

    2-4 Advantages of strategic planning. 16

    2-5 different styles of strategic planning and determining organizational strategies. 16

    2-6 levels of strategic management. 17

    2-7 Strategic management process. 18

    2-7-1 developing strategies 19

    2-7-2 implementing strategies 19

    2-7-3 evaluating strategies 20

    2-8 differences between strategic planning and operational planning. 21

    2-9 SWOT method in strategic planning. 21

    2-10 Introduction. 23

    2-11 History of strategic planning. 23

    2-11-1 Strategic management in Iran. 25

    2-12 strategic planning methods and models. 26

    2-12-1 Mission of the organization or company. 28

    2-12-2 Comparing the organization's prospects with the organization's mission. 29

    2-12-3 components of the organization's mission. 29

    2-12-4 environmental analysis. 30

    2-12-4-1 Examination of the external environment. 31

    2-12-4-1-1 Examining external factors. 31

    2-12-4-1-1-1 The first method. 32

    2-12-4-2 Checking the internal environment. 43

    2-12-4-2-1 Review of internal factors. 43

    2-12-5 Long-term goals. 49

    2-12-5-1 The nature of long-term goals. 50

    2-12-6 Types of strategies 50

    2-12-6-1 Integration strategies. 50

    2-12-6-1-1 vertical integration up. 50

    2-12-6-1-2 vertical integration down. 51

    2-12-6-1-3 horizontal integrity. 51

    2-12-6-2 Focused strategies. 51

    2-12-6-2-1 Rasukh in the market. 51

    2-12-6-2-2 Market development. 51

    2-12-6-2-3 Product development. 52

    2-12-6-3 Diversification strategies. 52

    2-12-6-3-1 homogeneous variety. 52

    2-12-6-3-2 heterogeneous variety. 52

    2-12-6-3-3 horizontal variation. 52

    2-12-6-4 Defensive strategies. 53

    2-12-6-4-1 Participation. 53

    2-12-6-4-2 decrease. 53

    2-12-6-4-3 handover. 53

    2-12-6-4-4 dissolution. 53

    2-12-6-5 Michael Porter's General Strategies. 53

    2-12-6-5-1 Cost leadership 54

    2-12-6-5-2 Differentiation. 54

    2-12-6-5-3 concentrated. 54

    2-13 Review and strategy selection. 55

    2-13-1 The process of presenting and choosing strategies 55

    2-14 Decision making by hierarchical analysis method. 56

    2-14-1 Introduction. 56

    2-14-2 Concepts. 56

    2-14-2-1 History. 56

    2-14-2-2 Types of decision-making modes. 57

    2-14-2-3 hierarchical analysis process model. 58

    2-14-2-3-1- Consistency in judgments 61

    2-14-2-4 The principles of the hierarchical analysis process. 62

    2-14-2-5- Advantages of hierarchical analysis process. 63

    2-15 Research background. 65

    2-16 Chapter summary. 81

    Chapter three: research method

    3-1 Introduction. 84

    3-2 research methodology. 84

    3-2-1 Research method. 84

    2-3-2-2 The statistical population of the research. 86

    3-2-3 sample volume and sampling method. 86

    3-2-4 The tools and method of data collection 86

    3-2-4-1 The method of information collection. 86

    3-2-4-2 Information gathering tools. 86

    3-2-5 validity and reliability86

    3-2-5 Validity and reliability of the questionnaire. 87

    3-2-6 Information analysis. 87

    3-3 comprehensive framework of strategy formulation. 88

    3-3-1 Entry stage. 88

    3-3-1-1 Mission statement. 89

    3-3-1-1-1 The process of determining and evaluating the mission of the organization. 89

    3-3-1-2 Examining external factors. 90

    3-3-1-2-1 Tools for checking the external environment. 91

    3-3-1-2-2 External factors priority matrix (identification of external strategic factors) 91

    3-3-1-2-3 External strategic factors. 92

    3-3-1-2-4 The evaluation matrix of external factors. 93

    3-3-1-3 Examination of internal factors. 94

    3-3-1-3-1 internal environment inspection tools. 95

    3-3-1-3-2 internal factors priority matrix (diagnosis of internal strategic factors) 95

    3-3-1-3-3 internal factors evaluation matrix. 96

    3-3-1-4- Competitive situation (competition review matrix) 98

    3-3-1-5 Long-term goals. 99

    3-3-1-5-1 Characteristics of long-term goals. 100

    3-3-1-5-2 Range of long-term goals. 101

    3-3-1-5-3 areas of long-term goals. 101

    3-3-2 Matching or comparison stage. 102

    3-3-2-1 matrix of internal-external factors. 103

    3-3-2-2 matrix of internal-external strategic positioning of the company. 104

    3-3-2-3 matrix of strengths, weaknesses, opportunities and threats. 107

    3-3-3 decision stage. 111

    3-4 Determining optimal strategies using quantitative strategic planning matrix (QSPM) 111

    3-5 Hierarchical analysis method. 114

    3-5-1 Consistency in judgments 117

    3-6 The final research model and its steps. 118

    3-7 Chapter summary. 119

    Chapter Four: Calculation and Research Findings

    4-1 Introduction. 122

    4-2 The collected data of the input phase of the model. 122

    4-2-1 Introducing Shahid Bahonar board company of Gorgan. 122

    4-2-2 Company vision. 123

    4-2-3 Statement of the company's mission. 123

    4-2-3-1 Statement of the mission of Shahid Bahonar board company of Gorgan. 125

    4-2-4 Identification of internal and external effective factors. 126

    4-2-4-1 priority matrix of internal factors (diagnosis of internal strategic factors) 131

    4-2-4-2 priority matrix of external factors (diagnosis of external strategic factors) 133

    4-2-5 evaluation matrices of internal and external effective factors. 134

    4-2-6 Competitive status. 136

    4-2-6-1 Advertising. 137

    4-2-6-2 Product quality. 137

    4-2-6-3 competitive price. 137

    4-2-6-4 brand. 137

    4-2-6-5 Financial status. 138

    4-2-6-6 customer loyalty. 138

    4-2-6-7 distribution channels. 138

    4-2-6-8 market share. 138

    4-2-7 Long-term goals. 139

    4-3 matching or comparison stage. 142

    4-3-1 matrix of internal-external factors. 142

    4-3-2 Environmental analysis matrix (SWAT matrix) 143

    4-3-2-1 Analysis based on SWOT and strategy proposal. 144

    4-3-3 Review of the internal and external strategic position of the company. 152

    4-3-5 Review of different strategies in Shahid Bahonar board company of Gorgan. 154

    4-4- Decision making and strategy selection stage. 156

    4-4-1- Determining the optimal strategy using quantitative strategic planning matrix (QSPM) 156

    4-4-2 Determining the optimal strategy using the analysis hierarchy method (AHP) 169

    4-4-2-1 Hierarchical construction or decision tree. 169

    4-4-2-2 Preference judgment (pairwise comparisons) 172

    4-4-2-3 Calculation of relative weights. 173

    4-4-2-3-1 Consistency in judgments 173

    4-4-2-4 Integration of relative weights. 181

    4-4-3 Chapter summary. 192

    Chapter Five: Conclusion and Suggestions

    5-1: Conclusion. 198

    5-1-1: Identification of strengths. 198

    5-1-2: Identification of weaknesses. 198

    5-1-3: Identification of environmental opportunities. 199

    5-1-4: Identification of environmental threats. 200

    5-1-5: Proposed strategies. 201

    5-2: Suggested strategies. 202

    5-2-1: Prioritization of the proposed strategies based on the quantitative strategic planning matrix (QSPM) 202

    5-2-2: Prioritization of the proposed strategies based on the analysis hierarchy method (AHP) 203

    5-2-3: Review of the most important strategies proposed.

Strategic planning of Shahid Bahonar wood industry company using the combined approach of SWOT and AHP analysis