Formulating A Strategy For A University
Formulating A Strategy For A University
ISSN 1991-8178
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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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)
External
Internal
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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Who is the
customer ?
How do
we satisfy Where is
Mission
the the
Statement
customer’ customer ?
s need?
What dose
the
customer
buy?
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
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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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:
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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.
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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.
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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
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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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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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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.
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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
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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