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Formulating A Strategy For A University

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Formulating A Strategy For A University

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Adam Echaouqui
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© © All Rights Reserved
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Australian Journal of Basic and Applied Sciences, 5(12): 264-276, 2011

ISSN 1991-8178

Formulating a Strategy for a University Using SWOT Technique: A Case Study


1
Kambiz Hamidi, 2Vahideh Delbahari
1,2
Department of Accounting and Management, Hamedan branch, Islamic Azad University,
Hamedan, Iran.

Abstract:Today many organizations are functioning in highly challenging, competitive and volatile
environments. In such situations, having a long-term planning based on a realistic approach about
internal characteristics of organization and its compatibility with the environmental conditions is
essential for their continued survival and development. During the process of strategic planning, the
SWOT analysis is neither the first nor the last step. The first step in the strategic planning process
should be a thorough analysis of the organization’s mission or vision statements. These statements
should serve as a foundation of all planning activities. If the organization does not have a mission or
vision statement, the development of such a statement should precede any further plan development
activities. In very broad terms, for any organization, overall objectives or‘missions’ have to be defined,
then internal resources need to be assessed and relevant parts of external environment need to be
analyzed before conducting a SWOT analysis and following planning steps (Schraeder, 2002). To
understand SWOT in the whole process of strategic planning, it is essential to position this step into a
relevant framework. One useful model developed by (Johnson and Scholes, 1993) is used popularly.
The model consists of three main areas arranged in a triangular form. They are: strategic analysis,
strategic choice and strategy implementation, and all these areas are closely interlinked. In this study
main required factors for desigining an strategy such as vision, mission, values and the general goals
for Hamedan Branch Islamic Azad University (HBIAU) were developed by using the SWOT
technique, and try to select and present the most appropriate strategies through making necessary
adaptations of strongths and weakness points of internal environment of the organization with the
threats and opportunities of external environment, so that the organization will be able to effectively
reach to its goals by implementing them. The findings of this study has shown that, in the SWOT table
in the SO strategies group, the following strategies can be seen which are used in the QSPM table
because of their compliance with the offensive strategies situation. Strategy 1: Focus on educational
aspects using the latest knowledge and modern skills technologies. Strategy 2: diversification of
income sources and creating Economic deputy. Strategy 3: Accepting students in disciplines requiring
serious educational and research facilities. Strategy 4: Cooperating with credible scientific-research
centers in Tehran and creating scientific-research centers.

Key words: Educatio, Organization Theory, Strategic planning, Vision; Mission, SWOT, Islamic Azad
University, Hamedan Branch (HBIAU).

INTRODUCTION

In the information and electronic communications era, all organizations are influenced by challenges like
improving quality, increasing competitiveness, and extensive changes in the economic, social, demographic,
cultural and technological fields. Therefore, they must adopt certain strategies to guide them in the growing
competitions and guarantee their survival. Meanwhile, the subject of resources and references of the science and
technology production has been widely put into consideration and regardless of their national and international
significance which are considered as a reputation and pride for the world’s nations, also they have become one
of effective centers in the global arena. Among these resources and references are the universities and high
education centers in the country. The Islamic Azad University is a category of Iranian universities and high
educational centers, which undoubtedly plays a pivotal role in strengthening the position and situation of our
country, Iran, in the international area.
Islamic Azad University has several units in different parts of the country. One of these units is located in
Hamedan.
Hamedan province and city possesses suitable potential facilities to develop high education and this
indicates the importance of Hamedan Branch Islamic Azad University (HBIAU), among the various universities
in the province. This research project is intended to present a comprehensive analysis of the current position of
HBIAU, and to determine its perspectives in the next 5 years as well as in the year 2025through using strategic
planning and SWOT technique. (see www.irane1404.com).

Corresponding Author: Kambiz Hamidi, Department of Accounting and Management, Hamedan branch, Islamic Azad
University, Hamedan, Iran.
E-mail: [email protected]
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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

Literature Review:
The internal and external factors most important to the enterprise’s future are referred to as strategic factors
and they are summarized within the SWOT analysis (kahraman, et al, 2007).
Pike suggested that a SWOT analysis is an effective tool for achieving strategic objectives that correspond
with an organization’s resources and environmental opportunities in destination marketing (Pike, 2008)
Gosset, et.al in their study strategies for income generation at the university of technology, Jamaica, and
their conclusions is that the university must position itself so that it can assist policy makers to make informed
decisions that will positively impact on industries, and the region. In order for the university to generate the
income it requires to maintain sustainability, it must ensure that internal units have sufficient funds with which
to create wealth/revenue (Gosset, et al., 2008)
Sotiriadou et.al. In a study aims to assess the implementation of the program in Greece, in order to identify
and address strategic issues which could define its future course. Results this study. The “Home Care” program
in Greece is a successful social support program, valued very positively by the local communities. However,
there are substantial problems, the most important of which concerns is the uncertainty about the program’s
future funding, and then its viability. Other problems relate to the program’s technological infrastructure, which
is in many cases nonexistent, and to the inadequate training and further education for the program’s personnel.
Strategic planning for a destination could be a challenging process since there are many possible strategies
derived from the evaluation of environmental factors. (Sotiriadou, et al., 2003)

The Concept Of Strategy and Strategic Planning:


Strategy is a key concept of organization theory. Much of today’s strategy knowledge is the culmination of
organizational research and theory that has developed over the past forty-five years (Jarzabkowski, 2006).
According to, to Ansoff (Ansoff, 1988) "Strategy is one of several sets of decision-making rules for
guidance of organisational behaviour. For example: (1) Yardsticks by which the present and future performance
of the firm is measured… (2) Rules for developing the firm's relationship with its external environment… (3)
Rules for establishing the internal relations and processes… (4) Rules by which the firm conducts its day-to-day
business.strategic planning process achieves a good fit between the external environment and the internal
capabilities of the organisation”, “strategic planning has resulted in rigidity and inflexibility of response to the
changing environment”, and “the implementation of strategy has been effective"(Glaister, 2009). Recent studies
on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to
the problem of improving the quality of management decisions (Jarzabkowski, 2006).
In summary, “strategic planning is the process by which an organization envisions its future and develops
the necessary procedures and operations to achieve that future...It requires the clear setting of goals and
objectives [which] provide the organization with its core priorities and a set of guidelines for virtually all day-to-
day managerial decisions”(see Fig 1), (Goodstein, 1986).

External

Vision Analysis Strategy Tactics

Internal

Fig. 1:The strategic planning process, (May, 2010).

A vision statement is developed by the top management of an organization to define the organization's
future state ;it is a dream. Organizational vision has been defined as"…the over arching purpose of an
organization and the means it intends to use to achieve that en (Lee, 1992). A mission statement reveals the
current reason for the existence of an organization , and is developed by the top management of an organization
on the basis of the stated vision (Calfee, 1993; Campbell, 1991; Dymowski,1992; Lammers,1992).
The mission statement provides management with aframework for decision making. Finally, effective
mission statement serve to align strategy with the culture of the organization, a process which Campbell
describes as in stilling a " sense of mission " minds and hearts of employees –a feeling that what they do makes
difference in the world (see Fig 2), (Campbell, 1992; Campbell, 1991)

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

Who is the
customer ?

How do
we satisfy Where is
Mission
the the
Statement
customer’ customer ?
s need?

What dose
the
customer
buy?

Fig, 2. Dimensions of a mission statement (May, 2010).

SWOT approach:
There exists a wide variety of strategy tools including mission statements, competitive intelligence,
environmental scanning, technology assessment, portfolio matrices SWOT core competencies, the value chain,
scenario analysis and stakeholder mapping (Drew, 1999).
The SWOT approach involves systematic thinking and comprehensive diagnosis of factors relating to a
new product, technology, management, or planning (Weihrich, 1982). It is used extensively in strategic
planning, where all factors influencing the operational environment are diagnosed in great detail (Kotler,1994).
Specifically, SWOT(see Fig 3) allows analysts to categorize factors into internal (strengths, weaknesses) or
external (opportunities, threats) as they relate to a decision, enabling comparison of opportunities and threats
with strengths and weaknesses, respectively. One of the main limitations of this approach, however, is that the
importance of each factor in decision-making cannot be measured quantitatively, and it is difficult to assess
which factor has the greatest influence on the strategic decision (Pesonon, et al., 2001) Improve the usability of
SWOT analysis, several attempts have been made to expand SWOT with quantitative methods recently (Arslan,
2008; Amin, 2011)

INTERNAL

Weakness
Strength
-Staff
- Staff
-Profit Margins to
-Customer Base
Low
- Market Position
- Competitive
- Financial Resources
Vulnerability
-Sales Channels
- Market Position
-Products/Services
NEGATIVE

-Lack of New
- Profitable
Products/ Services
POSITIV E

-Growing
- Sales Channels

SW
Opportunity
- New OT Threat
-Economy
Complimentary -Lose of Key Staff
Market -Lack of Financial
- Strategic Alliance Resources
- Funding - Cash Flow
- Sales - New Technology
- Products/Services - Increased
- Merger/Acquisition Competition
-Market Poised for - New Government
Grown Regulations
-Competition - Falling Sales
Weaknesses - Decreasing Profits

EXTERNAL

Fig. 3: SWOT Analysis Example.

besides classic external factor evaluation (EFE) matrix and internal factor evaluation (IFE) matrix(Kurttila,
2000).In the SWOT analysis, available resources and their potential utilization are studied from the viewpoints
of economic, ecological and social sustainability. However, its main purpose in the planning process is to obtain
decision support that is to be utilized in the choice of strategy to be followed. In a decisiontheoretic study, a

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

decision is considered as a choice between two or more alternative measures (Arslan, 2008) SWOT can be used
for the analysis of internal and external environments in order to attain a systematic approach and support for
decisionmaking and, if used correctly, it can provide a good basis forsuccessful strategy formulation. It was
intended that the SWOT analysis would provide: a framework for analyzing a situation and developing suitable
strategies and tactics; a basis for assessingcore capabilities and competences; and the evidence for and the key to
change and success; and a stimulus to participate in a group experience (Schmoldt, 2000).

Clarifying The Mission, Vision, Values And General Goals of HBIAU up to 2025 Horizon:
Prior to planning and executing a strategy, we must clearly define the mission, that is the raison d’etre of an
institute and constitutes the basis of priorities, strategies, plans and responsibilities of the organizations, as well
as the vision which sets out the future strategies of the organization (where we are going) and directs the
activities and provides the main basis of cooperation among the staff and the general goals of the HBIAU must
provide by a clear approach. Hence, their descriptions and specifications are presented below:

Mission, Vision, Values And General Goals Of HBIAU up to 2025 Horizon:


The Mission of The HBIAU:
The HBIAU, is on the belief that developing the human resources is one of the most valuable aims of
civilization, therefore its mission is to provide an environment for growth and strengthening human capabilities
and nurturing committed, expert and enterprenure humans in order to scientific and cultural independence of the
Islamic nation and distribution of services for development of knowledge and modern technologies to supply for
related demands in the country as well as the region and south-west Asia. Consequently, this university sees
itself obliged to perform the following tasks:
 Having advanced knowledge, and capable of producing science and technology, with considering superior
share of human resources and social capital in the national productions.
 Having satisfied staff, having work ethic, discipline, cooperation, social adaptability; being committed to
the Islamic revolution and proud of their Iranian nationality.
 Achieving a high status in the field of science and technology in the region and country with emphasis on
the science and software production.
 Directing the training and research of HBIAU to move toward solving current and future problems of
country along with innovations in knowledge boundaries in line with the nation’s comprehensive scientific
map.
 Training faithful, healthy, creative, lenient to criticism, critical, self-confident and embellished with moral
values based on the Islamic teachings.
 Developing higher education and research activities of HBIAU, with taking into account the development
potentials of Hamedan province by its national and international functions.
 Expanding purposeful material and spiritual support of the genius and innovators in science and technology
through promoting social status, scientific and competence level; removing the concern of financial risk-
taking in research and analysis of innovations; and contribute to the commercialization of their
achievements.
 To attract talented and motivated people, revision of textbooks and educational programs and methods,
quantitative and qualitative improvement of branches and related research activities and acculturating the
idea of theorizing, criticizing and freethinking.
 Establishing effective relations among the HBIAU and its branches and research centers on the one hand
and the industry and other relevant sectors of the society on the other in order to promote entrepreneurship
in Hamedan province in line with the fifth development plan .

The Vision of the HBIAU:


An effective entrepreneurial university in the economic development of the country; getting the highest
university degree in the educational and research services in society and pioneers in the science, theories and
ideas production and promote science and technology in national and regional level and Southwest Asia
(including Middle East and neighboring countries) in 2025 Horizon and enjoys educational opportunities in the
cause of the Islamic Azad University’s goals and missions, so as to be able to create the required power and
knowledge to cope with the challenges and possible changes in the future.

The Values of the HBIAU:


They provide guiding principles that help individuals make decisions, solve problems, and take actions that
are consistent with the vision avd mission of the business. Organizational values can be an important source of
competitive advantage. (May, 2010)
 Paying attention and respecting to the creative thought and innovation as well as freethinking.
 Valuing honesty and responsibility.

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

 Considering human resources as the most valuable resource in productivity.


 Taking into account the changes as an opportunity for using latent potentials.
 Praising human dignity and respecting the customers by considering the Islamic rules.
 Publiction and promotion the Islamic culture.
 Holding and expanding theorizing meetings.

General Goals of HBIAU:


Long term goals are results which organization pursues in a multi year period. These goals in HBIAU are as
followes:
 Increasing share of HBIAU in scientific productions.
 Training the experienced ,skilled and committed human resources for society.
 Promotion the qualitative level of education and members of the scientific board with a high quality in
order to support the University’s objective.
 Increasing the national and international scientific- research cooperation.
 Establishing and supporting science and technology parks and research centers in the HBIAU.
 Taking the modern skills and knowledge in the educational and research activities.
 Strengthening and establishing cultural occasions and performances with regard to Islamic-Iranian
ideology.
 Development of the national- scientific cooperation and effective attendance in the international level.
In this process the mission, perspective and general aims of the HBIAU, until the 2025 horizon have been
discussed. In the second process, in order to formulate HBIAU's strategies, we must analyze the inputs related
to strategy formulation including the analysis of external and internal factors. First, through studying the
University’s environment we must identify the internal environmental factors to determine the strong and weak
points as well as the management value system.
These two factors display the internal facilities for a meticulous and realistic planning and identification of
aims and strategies. Then it is necessary to identify and determine the opportunities and threats of the external
environment (that greatly effect procedural functioning and trends) as well as the influential social obligations
and responsibilities carefully.
For this purpose, various meetings were convened by the authorities and experts from different sections of
the University, and especially by the simultaneous sessions formation of planning and budget committee as well
as the administrative council meetings, the experts and authorities express their opinions and comments in
determining the opportunities and environmental threats and the internal weak and strength points and also
completing the analysis of the external and internal factors as well as dedicating weight and ranking to the
relevant matrix and following the classification of these comments we embarked on making the external factors
evaluation matrix (EFE) and the internal ones (IFE). After this stage the SWOT matrix was formed and the
strategies were proposed and selected.

Methodology:
In this study, in order to strategy compilation, after defining mission, vision, values and goals of Islamic
Azad University of Hamedan, external and internal environment of organization (the university) was evaluated
based on Swot’s patterns and opportunities and external environmental threats (which severely affect on
organization performance and operating procedures) as well as effective social obligations and responsibilities
were recognized and determined. After that intgernal environment factors was accurately identified through
university environment study in order to identifying strengths and weaknesses and to clarify the management
value system. These two activities, were demonstrated internal resources for determining and exact and realistic
design of strategies and goal settings. Then some meetings were held by officials and experts of various
university sectors and especially with concurrent meetings of the Planning and budget Committee and
administrative board,their opinions were used to determine environmental opportunities and threats and internal
strengths and weaknesses and internal and external factor evaluation and grade and weight allocation to
respective matrices. After this phase, the SWOT matrix was formed and the strategies were selected.

Method Of Studying The Status Quo:


There are different methods to conduct a research. One method is the Survey approach which has been used
in the present research.
The Survey research is one of data collecting, organizing, and analyzing methods. Therefore, it can be said
that Survey consists of collecting information which can be done through planning and mapping as a practical
guideline for description or prediction or analysis of the relations between some variables.
Survey is usually conducted in a large scales and is opposite point of laboratory experiments which are
principally focussed on smaller scales. In this method the researcher himself embarks on producing information.

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

As a result the aim of Survey research is to reach a scientific inference through a careful comparison of the
various features of the particular case in study. Survey consists of two general types: descriptive and analytical.
The present research is an applied and descriptive one. The aim of this research is to present an objective,
realistic and regular description of the features of a situation or subject.

Tools For Studying The Status Que:


In order to study the status que it is necessary to use indicators. The most important required indicators have
been formally introduced by Office of Research and Planning of the HBIAU in the strategy formulation plan.
These indicators study the status que in different affairs including student, cultural, civil, administrative,
financial, educational, human resources, scientific board and research affairs, etc.
Also, in order to get more informatiom of this status , the views and comments given by various experts and
university authorities were used in determining the status que of mentioned affairs.

Method Of The Data Analysis:


For data analysis, the SWOT analysis method has been used. In this method external and internal factors are
analyzed to identify the organization’s opportunities, threats, strengths and weaknesses in the future and to
formulate suitable strategies for better handling these factors. The SWOT matrix is used to carry out this
analysis(see Table 1). This matrix is an important tool used by managers to compare the related information to
the internal and external factors and to offer a variety of possible strategies based on the main strategies.

Analysis Of External Factors Of The HBIAU:


Through studying and analysis of the external environment of HBIAU, opportunities and threats can be
surveyed. An opportunity is an external mode that can positively affect on the functional parameters of the
HBIAU(see Table 1), and improves the competitive advantages which creates affirmative actions in the
appropriate time. A threat is an external mode that can negatively affect on the functional parameters of the
HBIAU, and decrease the competitive advantage that creates affirmative actions in the appropriate time (see
Table 1).

Table 1: SWOT Analysis.


Weakness Points (W) Strength Points (S)
Internal Factors 1- Lack of a comprehensive plan and 1- The administrative board
Evaluation Matrix formulated strategy. attention and vision to the
(IFE) 2- Weak performance appraisal of changes,growth and development.
staff and scientific boards. 2- The existence of fairly suitable
3- Lack of popular, experienced dependable financial resources, as
members of the scientific board well as exact and integrated
marked with scientific findings and financial system.
explorations and expert in 3- Having potential facilities for
enterpreneurial.. economic activities and earning
4- Low participation of members of income through hotel management
scientific board in the various system and tourism.
students’ counseling programs and 4- The existence of efficient field
lectures of study and educational levels
5- Lack of growth in the members of meeting society demands.
the scientific board as well as the 5- Offering a variety of
External Evaluation students’ abilities through educational services for the
Factors participation in national projects. scientific board and the staffs.
Matrix (EFE) 6- Few full-time assistant professor 6- Capability of executing
scientific board members in some national, regional and international
majors. congress.
7- Weakness in recruiting scientific 7- The existence of skillful, expert
board members and the full-time ones and interested staff.
in Ph.D level 8- Having a vast amount of
suitable lands for development of
university activities in the region.
9 - Having dormitories with a
suitable capacity and good quality
for the students

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

Opportunities (O) WO strategies SO strategies


1-Selection of Hamedan province and city as the best 1-Promoting educational quality (W1, 1-More focus on educational
tourism center 1-Selection of O6,O7,O10) aspects using the latest knowledge
Hamedan province and city as the best tourism center 2-Improving quality in various levels and modern skills technologies
in Iran. through comprehensive quality (virtual training, part-time and
2- The possibility to absorb foreign financial resources assessment programs. distant learning)
through fast-benefit corporations. (W1,W2,W3,O7,O10) (S1, S2 , O10)
3- The Islamic azad university of Hamedan Branch is 3-Improving the scientific board 2-variety in earning resources and
located in a sterategic region for educational centers. combination pyramid to higher creating financial deputy
4-Low educational and research facilities and lack of grades (PHD) (S1 ,S2,S7,S7,S8,
diversify academic levels in city. (W6,W10,O6,O9) ,O1,O2,O3,O6,O7,O8,O9,O10)
5- Giving a suitable image of the university to the 4-Creating a bilingual website 3-Accepting students in majors
Hamedan’s physical education authorities / athletic (W1,W1,O6,O10) requiring serious training and
authorities for hosting various sports events. research facilities (especially
6- Suitable geographical situation in the western part of technical and engineering and
the country toward the capital city Tehran as well as medicine fields).
suitable climate in Hamedan (S4 ,S10,O4, O7,O10)
7- The position of the University in the center of the 4-Cooperating with credible
province which facilitates the possibility of scientific-research centers in
communications and administrative activities as well as Tehran and creating scientific-
absorption of facilities. research centers
8- The possibility of physical expansion of the (S1,S2,S6,S8,O7,O8,O9)
University to the neighboring lands. 5-Expanding and strengthening
9- Effective cooperation between the University and relations and cultural performances
the city and province officials and the ability of with an Islamic-Iranian viewpoint
attracting their contributions and support. for the students (S1, S7
10- Applying modern methods of education based on ,O5,O7,O8)
new technologies for offering various educational
services and receiving less tuition
Threats (T) WT strategies ST strategies
1- The existence of inflation and rapid increase in costs 1-Promoting productivity through 1-Training the staff and the
and expenditures compared with the tuitions income. using and improving administrative scientific board members, creating
2- Lack of students’ satisfaction because of high systems a learner organization
tuitions. (W1,W2,W3,W10,W11,T1,T4,T5,T6, (S2,S3,S4,S11,T2)
3- The existence of governmental and non- T10) 2-Qualitative and quantitative
governmental competitors (Payame-Noor and 2-Formulating policies to promote the expansion of the academic majors
Comprehensive scientific and applied Universities, scientific board members and their related to industry and vocations.
etc.) participation in the projects. (S2,S4 ,S7 ,T3,T8)
4- The existence of limiting policies of government. (W5,W6,W7,W8,W9,W10T4,T9,T5)
5- The limits due to adopting bureaucratic in the 3- Earning the government’s support
central organization as well as region. to establish, attract and develop the
6- Decreasing the population rate (less applicants) university comprehensively
7- Lack of social awareness and industry managers (W1,W4,W10,T1,T5)
from research potentials in the University. 4-Comprehensive development of
8- Advancement in information and communication higher educational levels for the
technology resulted in high increasing virtual training required majors (Masters degree and
and distant learning PHD)
W4,T5,T6,T7)

Analysis of internal factors of the HBIAU:


Through studying and analysis of the internal environment of the HBIAU, the strength and weakness points
can be analyzed. The strength point of the University is a successful application of a merit or a usage of a key
factor for University competitiveness development (see Table1). The weakness point of the University,
however, is an unsuccessful application of a merit or lack of usage of a key factor that decreases the
University’s competitiveness (see Table 1). The strength and weakness points can be presented in a table as
follows.

Simultaneous analysis of Internal and External Factors using Internal-External (IE) matrix:
In order to analyze the internal and external factors simultaneously we use a tool called internal-external
matrix, by which, the HBIAU, can identify its position and being able to adopt a suitable strategy (see Fig 2).

RESULTS

Final score of Internal Factor Evaluation (IFE) matrix: 2.72


Final score of External Factor Evaluation (EFE) matrix: 2.53
Consequently, through the analysis of the above-mentioned table we can conclude that the appropriate
strategy for the HBIAU, is the Offensiveone.

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Fig. 4: Matrix EFE,IFE.

Decision Making Phase:


Quantitative Strategic Planning Matrix (QSPM):
1- Input stage: using the EFE matrix and the IFE matrix and the competition surving matrix, the main
information required for strategy formulation can be provided.
2- Comparison stage: a comparison will be made between the internal and external factors according to the
information obtained in stage one and based on created balance, some possible strategies will be extracted.
This technique identifies the possibility of the selected strategic options and in fact it prioritizes the
strategies.
The Quantitative strategic programming matrix (QSPM) uses the information from stage one (information
input) and the information from stage two (comparison) for this purpose.
Like most other techniques and tools, this technique requires a fair judgment, efficiency and awareness.
This matrix is designed to evaluate the feasibility and stability of the proposed strategies in the face of the
environmental conditions and the status quo of the organization. If a certain strategy in this survey cannot meet
the internal and external conditions of the organization, it must be deleted from the priority strategies list.

Implementation of Quantitative Strategy Planning Matrix (QSPM):


First step:
List the opportunities and external threats as well as internal strengths and weaknesses of the organization
in the right column of the QSPM. These information must be directly derived from EFE and IFE matrix. At least
10 critical factors of external success and 10 critical factors of internal success must be presented in the QSPM
matrix (see Table 2, Table 3).

Table 2: Quantitative Strategic Planning Matrix (QSPM).


Second step strategy 1 Strategy2 Strategy3 Strategy4
focus on educational diversification of Accepting students in Cooperating with
aspects using the income sources and majors requiring credible scientific-
importance

latest knowledge and establishing serious training and research centers in


First step modern skills economic deputy research facilities Tehran and creating
technologies scientific-research
centers
Attractiveness sum Attractiveness sum Attractiveness sum Attractiveness sum
score score score score
Strength
1- The administrative
board attention and
vision to the
changes,growth and
development 0.05 3 0.15 4 0.2 4 0.2 4 0.2
2- The existence of fairly
suitable dependable
financial resources, as
well as exact and
integrated financial
system. 0.2 4 0.8 3 0.6 2 0.4 3 0.6

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

3- Having potential
facilities for economic
activities and earning
income through hotel
management system and
tourism. 0.2 1 0.2 4 0.8 3 0.6 2 0.4
4- The existence of
efficient field of study
and educational levels
meeting society
demands. 0.07 2 0.14 1 0.07 3 0.21 1 0.07
5- Offering a variety of
educational services for
the scientific board and
the staffs. 0.04 1 0.04 1 0.04 2 0.08 2 0.08
6- Capability of
executing national,
regional and international
congress. 0.02 2 0.04 2 0.04 3 0.06 3 0.06
7- The existence of
skillful, expert and
interested staff. 0.04 2 0.08 3 0.12 2 0.08 2 0.08
8- Having a vast amount
of suitable lands for
development of
university activities in
the region. 0.09 2 0.18 4 0.36 3 0.27 3 0.27
9- Possessing suitable 1 1
sports facilities and
equipments 0.03 0.03 4 0.12 2 0.06 0.03
10 - Having dormitories 1
with a suitable capacity
and good quality for the
students 0.02 0.02 3 0.06 4 0.08 2 0.04
Weakness
1- Lack of a
comprehensive plan and
formulated strategy. 0.03 1 0.03 2 0.06 2 0.06 1 0.03
2- Weak performance 2 2
appraisal of staff and
scientific boards. 0.02 2 0.04 0.04 0.04 2 0.04
3- Lack of popular,
experienced members of
the scientific board
marked with scientific
findings and explorations
and expert in
enterpreneurial.. 0.05 2 0.1 4 0.2 3 0.15 4 0.2
4- Low participation of
members of scientific
board in the various
students’ counseling
programs and lectures 0.03 3 0.09 1 0.03 3 0.09 3 0.09
5- Lack of growth in the
members of the scientific
board as well as the
students’ abilities
through participation in
national projects. 0.02 1 0.02 2 0.04 2 0.04 4 0.08
6- Few full-time assistant
professor scientific board
members in some majors. 0.03 2 0.06 2 0.06 4 0.12 4 0.12
7- Weakness in
recruiting scientific
board members and the
full-time ones in Ph.D
level 0.06 3 0.18 4 0.24 3 0.18 4 0.24
Sum 1 2.2 3.08 2.72 2.63

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Table 3: Quantitative Strategic Planning Matrix (QSPM).


Second step strategy 1 Strategy2 Strategy3 Strategy4
focus on educational diversification of Accepting students Cooperating with
aspects using the income sources and in majors requiring credible scientific-

importance
latest knowledge and establishing serious training and research centers in
modern skills economic deputy research facilities Tehran and creating
technologies scientific-research
First step centers
Attractiveness sum Attractiveness sum Attractiveness sum Attractiveness sum
score score score score
Opportunity
1-Selection of Hamedan 1
province and city as the
best tourism center in Iran. 0.05 1 0.05 4 0.2 4 0.2 0.05
2- The possibility to 1 1 1
absorb foreign financial
resources through fast-
benefit corporations. 0.03 0.03 4 0.12 0.03 0.03
3- The possibility of 1 1 1
income generating through
expansion of SAMA
institutes activities 0.09 0.09 4 0.36 0.09 0.09
4-Low educational and
research facilities and lack
of diversify academic
levels in city. 0.04 4 0.16 0 4 0.16 2 0.08
5- Giving a suitable image
of the university to the
Hamedan’s physical
education authorities /
athletic authorities for
hosting various sports
events. 0.08 4 0.32 4 0.32 2 0.16 3 0.24
6- Suitable geographical 1
situation in the western
part of the country toward
the capital city Tehran as
well as suitable climate in
Hamedan
0.07 0.07 4 0.28 3 0.21 2 0.14
7- The position of the 1
University in the center of
the province which
facilitates the possibility
of communications and
administrative activities as
well as absorption of
facilities. 0.05 0.05 4 0.2 4 0.2 4 0.2
8- The possibility of 1
physical expansion of the
University to the
neighboring lands. 0.04 0.04 4 0.16 3 0.12 2 0.08
9- Effective cooperation
between the University
and the city and province
officials and the ability of
attracting their
contributions and support. 0.02 1 0.02 3 0.06 3 0.06 2 0.04
10- Applying modern
methods of education
based on new technologies
for offering various
educational services and
receiving less tuition. 0.04 4 0.16 2 0.08 3 0.12 2 0.08
Threats
1- The existence of
inflation and rapid
increase in costs and 1
expenditures compared
with the tuitions income. 0.1 2 0.2 4 0.4 3 0.3 0.1
2- Lack of students’
satisfaction because of
high tuitions. 0.07 4 0.28 2 0.14 2 0.14 2 0.14

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

3- The existence of
governmental and non-
governmental competitors
(Payame-Noor and
Comprehensive scientific
and applied Universities,
etc.) 0.08 4 0.32 4 0.32 4 0.32 3 0.24
4- The existence of
limiting policies of
government. 0.1 3 0.3 4 0.4 4 0.4 2 0.2
5- The limits due to
adopting bureaucratic in
the central organization as
well as region. 0.03 2 0.06 2 0.06 4 0.12 2 0.06
6- Decreasing the
population rate (less
applicants) 0.03 1 0.03 4 0.12 4 0.12 2 0.06
7- Lack of social
awareness and industry
managers from research
potentials in the
University. 0.04 1 0.04 2 0.08 3 0.12 2 0.08
8- Advancement in
information and
communication
technology resulted in
high increasing virtual
training and distant
learning. 0.04 3 0.12 2 0.08 3 0.12 3 0.12
Sum 1 2.34 3.38 2.99 2.03

Second Step:
It should be considered a score for each critical success factor. These scores are based on the IFE and EFE
matrix and are placed in column two in front of the critical success factors.

Third Step:
Considering the second stage of the formulation process, i.e. integration and combination of strategies,
consider the feasible and executable strategies and write them in the upper row of the QSPM matrix. Put
uniform strategies in the same group if possible.

Fourth Step:
Determine the Attractiveness Scores (AS) and define them in figures indicating the relative attractiveness of
each strategy.
Attractiveness Score is obtained through the simultaneous consideration of the critical success factors and
asking the following question:
“Do these factors affect the choice of strategy?"
If the answer is ‘yes’, then the strategy will be compared with this key factor. Attractiveness scores must be
given in exclusive forms and with regards to the relative attractiveness of each strategy over other strategies.
Attractiveness scores are in the following form:
No attractiveness ……………………….….... 0 score
A little attractiveness ………………………... 1 score
Almost attractive ………………………...…... 2 scores
Acceptable attractiveness ……………….…. 3 scores
High attractiveness ……………………….… 4 scores

Fifth Step:
Obtain the total attractiveness scores.This can be done through each factor’s score multiplied by the
attractiveness score in each row and indicates the relative attractiveness of that strategy. A higher score shows
higher attractiveness of the strategy.

Prioritizing the Strategies:


Based on the above table we can present the following priority for implementation of strategies:
First Priority: Diversification of income sources and establishing economical deputy with 6.46 score
Second Priority: Accepting students in disciplines that require major educational and research facilities with
5.71 score

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Aust. J. Basic & Appl. Sci., 5(12): 264-276, 2011

Theird Priority: Cooperating with credible scientific-research centers in Tehran and creating scientific-
research centers with 4.66 score
Fourth Priority: Focus on educational aspects using the latest knowledge and modern skills technologies
with 4.54 score

Reasons For Selecting The Strategies In QSPM:


In order to analyze the internal and external factors simultaneously, the Internal -External (IE) factors
matrix is used, by which the HBIAU, has identified its main strategy so that it may be able to adopt suitable
strategies based on it. In this matrix the final score for the Internal Factor Evaluation (IFE) matrix is 2.72 and
the final score for the External Factor Evaluation matrix (EFE) is 2.53.
On the other hand, in the SWOT table in the SO strategies group, the following strategies can be seen which
are used in the QSPM table because of their compliance with the offensive strategies situation.
Strategy 1: Focus on educational aspects using the latest knowledge and modern skills technologies.
Strategy 2: diversification of income sources and creating Economic deputy.
Strategy 3: Accepting students in disciplines requiring serious educational and research facilities.
Strategy 4: Cooperating with credible scientific-research centers in Tehran and creating scientific-research
centers

Conclusion:
Having formulated the present design, through studying and analysis of the external and internal
environment of HBIAU, opportunities, threats and the strength and weakness points, we can conclude that since
the HBIAU, has suitable strength points as well as considerable prospective opportunities, hence the
offensivestyrategies are the best choice for it and the main strategies are as follows:
Strategy 1: Focus on educational aspects using the latest knowledge and modern skills technologies.
Strategy 2: diversification of income sources and creating Economic deputy.
Strategy 3: Accepting students in disciplines requiring serious educational and research facilities.
Strategy 4: Cooperating with credible scientific-research centers in Tehran and creating scientific-research
centers
Having emphasized on its strength points, the University must take advantage of the opportunities and
embarks on its overall development. It seems that this University has the potential to reach distinguished status
and supreme educational and research levels in the western part of Iran. Consequently, it is suggested that the
authorities and officials of the Univesity move toward the fulfillment of the supreme goals of the University fast
and meticulously enough through using the strategic management process so as to be able to reach the intended
goals in the forecasted time period.
As a suggest for the future researchs, one year after the plan, an evaluation of implementation of SWOT
technique in HBIAU is recommended.

ACKNOWLEDGEMENTS

The authors are grateful to HBIAU for financial support and Mr. Asghar Terohid, Head of the HBIAU, for
his generous help and also to Dr. Alireza Isfandyari-Moghaddam as well as Dr. Fereydoon Rahnamay-
Roodposhti for their helpful assistance.

Biographies:
Kambiz Hamidi employed by he Hamedan Branch Islamic Azad University AS the planning and budget
manager, received the BA from sanandaj Branch Islamic Azad University and MA from Arak Branch Islamic
Azad university (Iran) degrees in business management in 1995 and 1998, respectively. He is manager of
planning and budgeting Hamedan Branch Islamic Azad university. He is also a faculty member of the Islamic
Azad University, Hamedan Branch (Department of Accounting and Management). Hamidi is the corresponding
author and can be contacted at: [email protected].
Vahideh Delbahari holds a MA in industrial management in 2008. She is recently a faculty member at the
Department of Accounting and Management, Hamedan Branch Islamic Azad university, Iran. Her research
interests are marketing, entrepreneurship,business and management. She can be connected at:
[email protected].
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