Indian J.Sci.Res.

7 (1): 136-144, 2014 ISSN: 0976-2876 (Print)

ISSN: 2250-0138(Online)

UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT

STRATEGIES IN AHVAZ TUBING COMPANY

TAHEREH SALEHIa1 AND FATEMEH KARIMIb

a
Sama Technical and Vocational Training College, Islamic Azad University, Ahvaz Branch, Ahvaz, Iran
b
Department of Environmental Science, College of agriculture and natural resources, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

ABSTRACT
The present study is an attempt that has been made for more and more empowerment of HSE system in Ahvaz Tubing
Company. In this study, for codification and implementation of legal requirements of HSE in the company and also for
presentation of management solutions and codification of proper strategies, measures have been taken to indentify and analyze
internal factors (strengths and weaknesses) and external factors (opportunities and threats) of the company. Subsequently, by
means of the SWOT model, the opposition of all internal and external factors took place for extraction and codification of proper
strategies in order to enhance opportunities and strengths and analyze the weaknesses and threats. After codification of strategies,
utilization of QSPM matrix is another attempt which in this study has been made for prioritization of selected strategies.
KEYWORDS: HSE system- management strategies- strengths, weaknesses, opportunities, threats- SWOT model

Management system of health, safety and strategic management. SWOT is a regulated analysis for
environment is a manifestation of full adherence of the identification of internal factors (weaknesses and
policies of an organization to the world policy of strengths) and external factors (opportunities and threats)
sustainable development and the environment expresses of every company and organization and iscapable of
the central role of humans in the issue of safety and presenting and codifying a strategy that establishes the
necessity of preservation of his/her livelihood and health best compliance and interaction among these factors. In
in interaction with the workplace and the environment. By this model it is attempted to codify and implement proper
establishment of management system of health, safety and strategies in order to use the opportunities and prepare for
environment and comprehensive compliance with its removing the threats according to the strengths and
principles and elements we will witness a reduction in weaknesses within the system by identifying the
costs that is imposed on the industry due to emergence of environmental trends of a system, recognition of threats
occupational diseases, environmental events and damages and opportunities of the external environment and also
[5]. recognition of the strengths and weaknesses of the
internal environment. According to this view, this model
As at present there is no world standard
is a strategy that maximizes the strengths and
regarding management of integrated system of HSE, thus
opportunities and minimizes the weaknesses and threats
Ahvaz Tubing Company, like different organizations,
[7].
strives to make use of a proper form and structure for
management of its integrated system of HSE according to CONCEPT OF STRATEGIC MANAGEMENT
its interests, limitations, operating nature, strengths and
Management and strategic management can be
the like.
known as a group process to determine the strategies for
Planning and strategic management are the most survival and growth of the organization according to a
important pillars of management systems in an deep understanding of mission and external and internal
organization; therefore, for better management of HSE factors. Recognition of environmental environments and
system in every organization, planning and strategic selection of proper strategies according to the capabilities
management can have a positive effectiveness over and weaknesses of very organization can be effective in
control of technical and non-technical parameters of the coordination of that organization with environmental
system at all levels and in final results and estimates of conditions [8].
the organization [9].
The matrix of weaknesses, opportunities and
threats is one of the famous models of planning and

1
Corresponding author
 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

MAIN MODEL OF STRATEGIC of strengths and weaknesses of the company (all stages of
MANAGEMENT [4] doing this study are aimed at conducting this stage).

Strategic management is constituted of four basic Strategy implementation

elements: Strategy implementation is a process through
Environmental investigation which strategies and policies are considered and
implemented in all stages of preparation of plans, budgets
Environmental investigation refers to and procedures.
monitoring, evaluation and publication of the data related
to internal and external environments of the organization Evaluation and control
among the key employees of the company. External Control and evaluation is a process by which the
environment includes variables (opportunities and threats) activities and results of company's performance are
that are outside the organization and outside the monitored so as to be able to compare the real
continuous control area of senior management of the performance of the company with the optimal
organization. performance.
Internal environment of a company includes variables In diagram 1, the model of strategic management
(strengths and weaknesses) that exist inside the is illustrated. This model includes a feedback/learning
organization and are usually in the continuous and long- process in which the data obtained from every element of
term control area of senior managers. the process is used as an adjustment for each of the
Strategy formulation previous elements. The same time the company or firm
codifies and implements the strategies, it must review and
Strategy formulation refers to the designing of revise the former decisions and take measures so as to
long-term plans for effective management of correct them.
opportunities and environmental threats and investigation
Diagram 1: Basic elements of the strategic management process

Evaluation and Strategy Strategy Environmental

control implementation formulation investigation

RESEARCH METHODOLOGY prioritization of internal factors, the freedman test with

the Chi-square statistic has been utilized. After that
Using the SWOT model for strategy formulation
according to the rate of rank, priority and type of every
for strategic management of HSE system (which is the
factor (S, W) steps were taken for listing the factors in the
main goal of this study) is one of the basic tools of doing
evaluation table of internal factors. In order to investigate
this study based on David's model. In this regard in this
external factors (O,T) also according to the views of
study primarily in order to use the views of the experts
experts and specialists and by means of the studies and
and prepare the current situation of HSE system in Ahvaz
projects related to the subject and also inspiration by
Tubing Company and determination of the most
some questions of the questionnaire the external variables
important internal factors and external factors effective in
were prepared and listed and regulated in the evaluation
the planning and strategic management of the system and
table of external factors. After that, the data obtained was
their prioritization, the questionnaire was used. It can be
transferred to the SWOT table for strategy formulation
said that all variables related to internal factors and some
and eventually also for the strategies formulated for
variables of the external factors are the basis of
prioritization, the table input was evaluated based on
formulation of questions of the questionnaire. In order to
QSPM [7].
determine the possibility or lack of possibility of

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

In Table 1: the visual plan of SWOT matrix has been presented

weaknesses ‫ ـ‬W strengths ‫ ـ‬S Matrix SWOT
list the weaknesses List the strengths
strategiesWO strategiesSO lists ‫ ـ‬O
destroy the try to utilize the list the opportunities
weaknesses by opportunities by
making use of making use of
opportunities strengths
strategiesWT strategiesST threats ‫ ـ‬T
reduce the use the strengths in List the threats
weaknesses and order to avoid the
avoid threats threats
Source: T.L Wheelen and J.D Huger, “Internal Factor Analysis Summery (IFAS).”Copyright 1991by Wheelen and Hunger
Associates.
Matrix houses of SO, WT, ST, WT determine responders in this study the Freedman test with the Chi-
strategies and the company can select the most square statistic was used. The results obtained confirm the
appropriate strategy and evaluate and formulate a proper fact that due to the rejection of the H0 hypothesis based on
strategy for itself. the equal priority of the variables, there is a difference
among the factors in terms of priority; thus, in table no.2
FINDINGS
(IFE Matrix) all variables have been inserted and scored
In order to determine the priority of internal in terms of priority. Table no.3 is also EFE Matrix in
factors effective in HSE system, in the internal which the external factors have been determined and
environment (strengths and weaknesses) according to the scored.
Table 2: IFE Matrix
Internal factors
Score Rank Weight Row
Strengths
0.2 4 0.05 Acceptance of scientific communications with scientific assemblies 1
0.2 4 0.05 Doing period examinations of the personnel 2
0.2 4 0.05 Adequacy of control plans of the system 3
0.12 3 0.04 Existence of committees related to the system 4
0.18 3 0.06 Quality of the risk management 5
0.15 3 0.05 Increase of safety and health of employees 6
0.15 3 0.05 Following the related regulations 7
0.09 3 0.03 Preparation of the presence of personnel in emergencies 8
0.06 2 0.03 Interaction and communication with related assemblies 9
0.04 2 0.02 Developing R&D 10
0.04 2 0.02 Flexibility of the system in encountering the changes 11
0.02 1 0.02 Using modern technology in the company 12
0.02 1 0.02 Knowledge acceptability and related corrections 13
0.02 1 0.02 Presence of related specialists 14

Point Rank Weight Row

0.24 4 0.06 Lack of adequacy of attention to ergonomics issues by establishment of the system 1
0.16 4 0.04 Lack of enough information regarding the performance of the system 2
0.2 4 0.05 Change of coefficients of HSE indexes by outsourcing the activities 3
0.1 2 0.05 Lack of formulation of proper methods in order to receive related suggestions and recommendations 4
0.1 2 0.05 Lack of allocation of enough resources 5
0.1 2 0.05 Lack of adequacy of educational plans in order to change the data into knowledge 6
0.1 2 0.05 Lack of deployment of punishment and encouragement 7
0.1 2 0.05 Lack of adequacy of specialists related to the system 8
0.1 2 0.03 Lack of attention to the considerations of the change management 9
Lack of deployment of necessary arrangements for evaluation of the change in approach of the
0.08 2 0.04 10
customers
Lack of assessment of performance of rivals and comparison with the internal performance of the
0.02 1 0.02 11
company
2.79 - 1 Sum of squares of internal factors

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

Table 3: EFE Matrix

Score Rank Weight Opportunities Row

0.08 4 0.02 The possibility of change in the approach of customers according to the performance of the system 1
0.28 4 0.07 The needs of the beneficiary groups and attention to that 2
0.04 2 0.02 Possibility of establishing confidence-building communications among the neighbors 3
0.016 4 0.04 The possibility of partnership with internal and external co-family producers 4
Providers (encouragement of the providers to presentation of high quality product due to existence of
0.12 4 0.03 5
HSE requirements
Customers (establishment of strong work relations with the company due to the existence of HSE
0.12 4 0.03 6
requirements)
Local emergency services (cooperation with the company in determining advanced HSE services and
0.06 3 0.02 7
facilities)
0.06 3 0.02 Holding of national and international seminars and conferences related to the HSE topics 8
The possibility of increasing the competitive power of the company through HSE performance at the
0.06 3 0.02 9
national level
The possibility of using international tools for improvement of the workforce conditions such as 5S
0.06 3 0.02 10
nationwide
0.04 2 0.02 Insurers (possibility of having premium discounts with covering of risk by the insurers 11
0.12 3 0.04 Non-governmental pressure groups (supporting the organization in improving HSE issues) 12
0.12 4 0.03 Existence of standards related to the system 13
Establishment of the relationship between scientific centers and industries for establishment and
0.06 3 0.02 14
exchange of data
0.15 0.05 The possibility of increasing the credit of the country in terms of performance among the neighbors 15
0.06 2 0.03 Having tax breaks with optimal performance 14
0.03 3 0.01 The media (creation of good spirit by the media due to good performances of the company) 15
0.02 2 0.01 Necessity of insuring all those employed nationwide 16
0.12 3 0.04 Growth of HSE system culture in national and international associations 17
‫امتياز‬ ‫رتبه‬ ‫وزن‬ Threats
0.24 4 0.06 Active presence of leading competitors in acting by HSE requirements in the tube market 1
Establishment of regulations and standards of health and safety adjusted to the international standards by
0.08 4 0.02 2
the state
0.12 3 0.04 Lack of distribution of financial facilities by the state for the HSE system of every organization 3
Lack of formation of specialized conferences for comparison and ranking of the performance of the
0.02 2 0.01 4
system among co-family producers
0.03 3 0.01 Lack of right implementation of HSE management system in the country 5
Lack of existence of legal requirement for punishment and encouragement in compliance with the HSE
0.15 3 0.05 6
principles nationwide
0.16 4 0.04 Technology changes 7
0.08 4 0.02 Propagation of culture of outsourcing of activities in the country 8
0.04 4 0.01 The climactic conditions present in the region and impact on the performance of the system 9
0.04 2 0.02 Pressures of organizations supporting issues related to the system (e.g. increasing efficiency, etc,) 10
0.09 3 0.03 Delay in implementation of HSE plans nationwide 11
0.12 3 0.04 Lack of proper balance in organizational structure and HSE system nationwide 12
0.02 2 0.01 Lack of adequate attention to the education plan of ergonomics issues at recruitment in the country 13
The media (creation of bad public mentality and loss of work opportunities in case of inaccurate
0.09 3 0.03 14
performance)
0.04 2 0.02 Insurers (possibility of presenting heavy insurances for hedging) 15
Local emergency services (validation of fine and punishments due to inaccurate performance and exact
0.02 2 0.01 16
monitoring and monitoring over HSE activities of the company)
0.03 3 0.01 Non-governmental pressure groups (measures against lack of compliance of the company with HSE) 17
0.06 3 0.02 The providers (encouragement for presentation of low quality product due to lack of HSE requirements) 18
0.03 3 0.01 Customers (selection of other alternative companies with good HSE record) 19
3.22 - 1 Sum of scores of external factors

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

Determining the strategic status of the company DRAWING THE DIAGRAM OF STRATEGIC
As in the framework of strategic management STATUS OF THE COMPANY
and formation of strategies, it has been attempted to The explanations of the previous section are
present the best possible strategies according to the based on the fact that the number 4 will be complete for
current situation, therefore it is desired to primarily internal factors of strength and complete for external
determine the strategic situation and position of the factors of opportunity; also, number1 regarding internal
company so as to take actions with more might regarding factors will state absolute weakness and regarding
formulation of strategies and eventually take steps external factors absolute threat; thus, it can be concluded
regarding prioritization of strategies [7]. that the scores between the numbers 2 and 3 can express
Based on David's model in the method of average conditions for each of the factors. Using this
provision of IFE and EFE Matrixes, regardless of the discussion, steps can be taken for drawing of a matrix for
number of factors that is contained in IFE and EFE more complete understanding of this discussion and
Matrixes, the sum of final scores of each of these matrixes determination of the strategic status of the company.
will be between 1 to 4 and their mean will be 2,5. In order to draw the diagram of strategic
If the final score of participation in the IFE situation of the company, we act as below:
Matrix is lower than 2,5, it means that in terms of internal 1. We call the X-axis as the external factors and divide
factors the organization has a weakness and if this score is the axis to four equal sections; based on David's
over 2, 5, it means that in terms of internal factors it has model number 1 expresses absolute threat and
strength [9]. According to the results obtained and using number 4 expresses complete opportunity; we call the
table no. 2 which is the table of evaluation of internal range of numbers 2 and 3 average conditions and also
factors, the sum of scores of internal factors of the determine the mean which is the number 2,5.
company is 2, 79 and this means that in terms of internal 2. We call the Y-axis as the internal factors and divide
factors the company is at an average state but isn't the axis to four equal sections; based on David's
satisfactory. model number 1 expresses absolute weakness and
Also, the sums of final score of EFE Matrix for number 4 expresses complete strength; we call the
the company never reaches more than 4 and never lower range of numbers 2 and 3 average conditions and also
than 1 either. Then the mean of this sum is 2,5. If this determine the mean which is the number 2,5.
number reaches 4, it means that the organization greatly 3. We divide the coordinate by connection of the 4
reacts to the factors that cause threat and opportunity. In points and connection of the mean points into 4
other words, in its strategies the company uses the regions and based on the position of each area in the
available opportunities successfully and reaches the effect coordinate (regarding placement in the range of
of factors that cause threat to the lowest rate possible. external and internal factors), the regions OS, ST,
Number 1 expresses the fact that in formulation of its WO, WT are distinguishable.
strategies the company hasn't been able to utilize the 4. Based on the findings obtained from IFE and EFE
factors that cause opportunity or position or avoid the Matrixes (tables no. 2 and 3), we determine the sum
factors that lead to threat [9]. of scores of external factors on the X-axis and sum of
scores of internal factors on the Y-axis and depict
Based on the results obtained and by means of their commissure in the coordinate. Depending on in
the table no. 3, sum of scores of external factors of the which region the commissure of external and internal
company is 3,22 and it means that in terms of external factors scores is placed the strategic situation of the
factors the company is in an optimal state and it signifies company is determined.
the company's good reaction to factors that lead to threat
or opportunity; to be precise, the company uses the Diagram no. 2- shows the strategic situation of
available opportunities well and avoids the threats. the company in the OS region.

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 SALEHI AND KARIMI: UTILIZATION OF SWOT MODEL FOR CODIFICATION OF HSE SYSTEM MANAGEMENT…

Diagram no. 2- determining the strategic situation of HSE system

Internal
factors(Y)

3 S S
2.
2.

2
W W
External factors
(X)
1 2 2.5 3 3.22 4

As is clear also in diagram no.2, the HSE system participation in conferences and establishment of
situation of the company is in the OS section and this interactions with relevant associations for this
issue demands the company's need for implementation of purpose.
strategies related to the same house in SWOT matrix. For 2. Attempts for providing and meeting of the needs of
this purpose, for strategic management of HSE system, beneficiary groups with the help of R & D and by
the company must use the external opportunities in the means of modern technologies
best way or in other words actualize it by means of its 3. Increase of partnership and establishment of
strengths. Thus, by means of the contrast of external confidence-building communications among the
factors and internal factors in the SWOT matrix, the best neighbors
strategies that can be formulated for strategic 4. Growing partnership with internal and external co-
management of HSE system, were selected. family producers and accordance with them in the
performance method of the system
FORMULATED STRATEGIES OF OS (OFFENSIVE
5. Encouragement of providers for presentation of high
STRATEGIES)
quality products through exertion of HSE system
OS strategies which are also called offensive requirements
strategies are the result of confluence of strengths of the 6. Encouragement of customers for establishing strong
company and the opportunities available and effective in work relations with the company though exertion of
the system. These strategies are formulated based on HSE system requirements
investigation of ways through which the company can go 7. Effort for growing presentation of emergency local
through for utilization of its strengths in order to benefit services and increase of credit among the neighbors
the opportunities [7]. 8. Necessity of presence and participation of specialists
The most significant offensive strategies that can in scientific associations, conferences and seminars
be formulated for strategic management of HSE system of related to HSE topics
the company include: 9. Increase of competitive power and advantage of the
company in the tube market through the optimal
1. Change in the attitude of the customers with optimal method of performance of the HSE system
performances of HSE system and assistance of the 10. Using the international tools for improvement of the
research and development unit (R & D) and workforce

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11. Encouragement of non-governmental pressure groups formulation of strategies it is attempted to present the best
for supporting the company in the society strategies possible, thus it is appropriate to take steps
12. Establishment and increase of scientific regarding their prioritization after formulation of the
communications with scientific centers and industries related strategies, so that actions are taken regarding their
for establishment and contrast of information and implementation, based on the rate of priority and
informing of the performance of the system and preference of each one.
raising the level of knowledge and system culture in
QSPM is a table whose column is constituted by
the company and society
internal and external factors and all determined strategies
13. Following the regulations and requirements related to
are placed at its row. In table 4, visual plan of QSPM is
the system in order to have tax breaks
presented.
14. Participation in HSE culture distribution in national
and international associations with the custodians This matrix is provided for prioritization of the
15. Improvement and increase of safety and health of the determined strategies. In fact, this matrix states which one
personnel through adequacy of HSE plans and of the formulated strategies has the possibility of
presentation of insurance services widely implementation according to the available conditions, and
in other words, which strategy is preferred to other
PRIORITIZATION OF THE STRATEGIES BY strategies.
MEANS OF QUANTITATIVE STRATEGIC
PLANNING MATRIX (QSPM) All offensive strategies (OS) formulated in the
QSPM were evaluated and based on the results and the
As the implementation of all the strategies above score obtained from this matrix, the strategies have been
won't be applicable at the same time and in a certain range presented in order of priority and by mentioning the score
and as in the framework of strategic management and in the table no.5.
Table 4: Visual plan of QSPM
Types of applicable strategies
Nth strategy Second strategy First strategy
Coefficient Main factors
Score of Score of Score of
Sum of scores Sum of scores Sum of scores
attraction attraction attraction
Main internal
factors
Sum of internal
1 factors
Main external
factors
Sum of external
1 factors

0-8 0-8 0-8 Total sum of

2 strategy score

Table 5: Prioritization of offensive strategies (OS) for strategic management of the system by means of QSPM matrix

Score Offensive Strategies Priority

6.07 Providing and meeting of the beneficiary groups with the help of R & D unit and using modern technologies 1

4.91 Using the international tools for improvement of the workforce 2

4.53 Participation in HSE culture distribution in national and international associations with the custodians 3

Improvement and increase of safety and health of the personnel through adequacy of HSE plans and presentation of
4.52 4
insurance services widely

4.38 Encouragement of non-governmental pressure groups for supporting the company in the society 5

Encouragement of customers for establishing strong work relations with the company though exertion of HSE system
4.17 6
requirements

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Increase of competitive power and advantage of the company in the tube market through the optimal method of
4.13 7
performance of the HSE system
Change in the approach of the customers with proper performances of the HSE system and assistance of the research
3.93 and development unit (R & D) and participation in conferences and establishment of interactions with related 8
associations for this purpose
3.70 Following the regulations and requirements related to the system in order to have tax breaks 9

3.68 Encouragement of providers for presentation of high quality products through exertion of HSE system requirements 10
Establishment and increase of scientific communications with scientific centers and industries for establishment and
3.67 contrast of information and informing of the performance of the system and raising the level of knowledge and system 11
culture in the company and society
3.45 Increase of partnership and establishment of confidence-building communications among the neighbors 12

3.17 Effort for growing presentation of emergency local services and increase of credit among the neighbors 13
Necessity of presence and participation of specialists in scientific associations, conferences and seminars related to
3.17 14
HSE topics
Growing partnership with internal and external co-family producers and accordance with them in the performance
3.11 15
method of the system

DISCUSSION AND CONCLUSION that it presents the best strategies possible and this
prevents the loss of excessive and management losses of
In this study, by numerous studies of the internal
organizations. Also, it causes every company to try to
and external environments and determining the factors
overcome its shortcomings by implementing the
effective in every environment on the tubing company for
Formulated Strategies Beside Its Other Activities.
strategic management of HSE system and by establishing
relationship and contrast of these factors with one another SUGGESTIONS
and determining the best strategies possible and also their
Based on the conducted analyses, for strategic
prioritization, it was attempted to take effective steps
management of HSE system in Ahvaz Tubing Company,
regarding the decision-making of experts and decision-
the following cases can be presented as suggestions:
makers of the company for improvement of the current
status of the system and effective strategic management. 1. Implementation of the formulated strategies based on
By a precise and close observation, it was determined that the priority and growing attention to the needs of the
the current status of the company is in a proper strategic beneficiary groups
position and the best strategy possible for more and more 2. Correction of present management processes using
enhancement of these conditions was recognized to be the current strategic status of the company
"providing and meeting the needs of the beneficiary 3. Investigation of trend of environmental developments
groups" that include" shareholders, managers, employees, at different time period in order to follow the time
customers, providers, media and non-organizational trend and investigation and prediction of different
pressure groups. states of the future and presentation of proper
strategies of that time
For strategic management of this system, the
4. Investigation and research regarding the application
SWOT management model was used and according to the
of different models of SWOT model and comparison
passing of all stages related to this method and
with the results of application of David's model in
recognition of the best strategies, the capability of this
this study
method in the strategic management was proved. It is by
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