Journal of Administrative Management,

Education and Training (JAMET)

ISSN: 1823-6049 Volume (13), Special Issue (1), 2017, 409-422

Available online at http://www.jamet-my.org

Citation:

H.N. Hezarjribi, Z.Bozorgpour, Optimized Business Management by Using SWOT and QSPM Matrices,

Case Study: Mazandaran Wood and Paper Industries, Journal of Administrative Management, Education

and Training, Volume (13), Special Issue (1), 2017, pp. 409-422

409

Optimized Business Management by Using SWOT and QSPM Matrices

(Case Study: Mazandaran Wood and Paper Industries)

H.N. Hezarjribi, Z.Bozorgpour

ABSTRACT Considering the contemporary transformations, it is predicted that the successful organizations

of the future are those who have a clear insight of what must be done. Good leadership is among

competitive tools and they must support the achievement of the organizations missions and

objectives, directly. For this reason, it is necessary for any organization to specify a reliable

strategy for its exports to be able to achieve the related marketing goals and sell its products.

Mazandaran Wood and Paper Industries which is largest paper production manufacture in Iran,

attempted to develop its market and compile & execute its exports strategy. In this research, we

have described the subject matters of strategy and the method of performing the strategy process

in one case study. The case study company reviewed the effective internal and external factors,

while identifying the SWOT matrix for executing related strategy and continued this trend to

identify the attractive strategies resulting from the a/m matrix by the aid of quantitative strategic

programming matrix (QSPM). By using this combination and suitable approaches for reducing

the find price and development of paper exportation, the company obtained valuable results. We

shall then present these findings in the conclusion part.

Key words: Strategy, Business Management, Paper Production Industry, SWOT, QSPM

Introduction

The direction of any system is not known, unless a specific goal is determined for it. But if the

goal is specified with any programming, the system will not know how to reach its goals.

Therefore, if we want to have a successful system, we must have specific goals for it and the time

for reaching the goals must also be determined in order to act based on the considered program

and consequently the program will always control its own actions to identify possible deviations

(Hasangolipur, 2006). The strategy of organizations specifies how organizations plan to create

value for their shareholders, customers and citizens. The strategy develops gradually for tacking

the changing conditions resulting from outside environment and local capacities (Kaplan and

Norton, 2004). In fact, all organization must go through environmental changes and tackle the

challenges caused by those changes (Aliahmadi and et al, 2008). Paper production industry by

using continues production line, in among very complicated industries. The growth rates of social

knowledge and culture in all countries are estimated by the rate of paper consumption in them and

by considering the role of paper in printing and publishing cultural affairs and its important place

as the raw material for packaging industries, it is considered strategic goods in commercial arena

of any country (Soodmand, 2008). The growing rate of global commerce has increased at

international levels by using active commercial strategies, revolution in IT and communications

and elimination of commerce obstacles. As a result, active presence at global commerce does not

Journal of Administrative Management, Education and Training (JAMET)

410

need to be justified (Madhooshi and Tari, 2008). Paper is not an exception and it is necessary for

the manufacturing mills to have a look on foreign markets, will trying to supply the local needs

and establish a reliable export strategy for their products considering all the factors and apply

those strategies as well. In the present research, by compiling a business strategy for paper

manufacturing industry, we shall assess and identify the degree of importance for each of the

factors influencing the internal and external environment of paper production industry in one of

the real organizations (Mazandaran Wood and Paper Industries) to enable ourselves to specify a

suitable strategy for exportation of paper through different marketing strategies. We shall to use

available capacities in a suitable manner and ultimately to obtain a desirable share of paper

market in the regional markets.

Description of the Subject and the Necessity of Research

Continues escalation in oil prices caused from controlled crisis, are always a warning for our

country and shows that how harmful it is to rely on oil incomes. As a result, we have to create a

single-commodity economy and expedite exporting industrial and non-industrial goods. We must

have extensive presence in regional and international markets. Lack of sufficient opportunities in

local markets, changing our needs to requests and creation of varieties in consumption pattern and

the role of different tastes in selection of goods, increasing the income & consumers' buying

power and increasing the welfare level of people in the world, is among the incentives and

opportunities to enter foreign markets (Goharian, 2000). Company who don't have any plans for

the future, prefer local markets to the foreign ones. In local markets, activities are performed

easier, but in foreign markets, merchants must be familiar with the language, culture, commerce

laws, more competition and different currencies but in return they will gain better bonus by

working harder in foreign markets (Mahdavinia, 2004). The lack of safety margin for all

institutions, even the exclusive ones, causes possible changes in the future and creates more

competition for achieving limited resources and / or to be better than competitors and gaining

more share, smart companies are found to take proper measures and thoughts for survival against

threats and developing their market shares. That's why informed companies attempt to consider

different strategies in various areas (Gaffarian and Emadzadeh, 2007). But the presence of one

strategy on an organization is considered a desired condition and attempting to reach the desirable

condition from a non-strategic condition, specifies the generality of this project in the Figureure 1

below:

Figure 1:The Subject of Research

Problem

The Present Condition

Lack of a strategic Plan for Business in MWPI

The Desired Condition

Presence of a strategic Plan for Business in MWPI

411

Any problem has a conceptual model in itself. The conceptual model is the starting and basis

point for performing the related studies and researches, such that the considered variables,

specifies the research subjects and their relationships with each other. In fact, the ideal conceptual

model includes the mental plan (Cooper and Klein, 2005) and its analysis tools (Mirzaei,

2004).strategies are the starting point of doing researches, such that the researchers are expected

to review and test the variables, their relationships and interactions and it necessary, some

correction are also made. The present conceptual model includes a combination of different

documentary resources (Zali, 2006), (Mogimi, 2002) which is shown in next Figureure (Figure 2).

Literature Review

Extensive researches were performed regarding determination of business strategy. The strategy

policy makers for commercial affairs believed that the stage of strategy making includes selecting

leader industries and setting goals for the selected industries through commercial and industrial

tools foe strategic policies during the beginning of the 80's. They contended that supporting

industries high profitability increases the incentive for production and exportation (Spencer,

1988).

Figure 2: The Conceptual Model of Research

Opportunities, Threats, Trends and Strategic

Questions

Strength, Weakness, Problems, Limitations and

Strategic Questions

Selection of Attractive Strategies among the

Possible Methods by the aid of QSPM

Consumer Parts, Incentives and Unknown Requirement

Competitor Identification, Strategic Groups, Functions Image, Strategic

Goals, Culture and the Structure of Costs

Market Market Size, Predicted Growth Rate, Cost Structure,

Profitability, Distribution System, Key Factors of Success

Environment Technological, Governmental, Economical and Cultural

Environment Approach

Analysis of Functions

Profitability Capabilities, Expenses Construct, Man Power,

Quality, Process, Production, Function and Employee's

Insights

Financial

Decision Making about Financing, Financial Supply and

Distribution of Benefits

Marketing & Sale

Marketing investigations, New Services and Sales

Strategic Determinations

Organizational Limitations and Strengths

Analysis of Internal Environment

Compiling the Strategy whit Assessment External &

Internal Factors Matrix (SWOT)

Analysis of External Environment

Application of Selected Strategies for Developing the

Business in MWPI

Journal of Administrative Management, Education and Training (JAMET)

412

In a research which was performed in the country, it was indicated that the most import reasons of

failing to achieve the specified goals for non-oil products in Iran include (Zarezadeh, 2001):

Not recognizing the relative advantage of export

Not observing the quality standards and loosing part of the market

Inconsistency in the currency policies and not having precise information about exportation goods market

Optimistic goal setting and lack of coordination between different departments

Mohammad Reza Zargar Azad used the technique of hierarchy analysis for designing marketing

strategies of business institutes (Zargar Azad, 2002). In his PhD thesis, Ghazizadeh studied four

effective variables in success of exports which include the desired market environment, national

environment, company's internal environment and the marketing Mix. He also proved the

existence of a logical relationship between political, economical and competitive components,

provision of information and the technology of the markets' environment, the components of

financial affairs management, marketing and organizational culture of company's internal

environment and the product's elements, price, distribution channels and promotion activities in

the markets (Gazizadeh, 2004). Madhooshi and Tari in their research studied the methods of

developing exportation of non-oil products in Mazandaran province and reviewed the strength,

weakness, opportunities and the threats in some sample studies. They revealed comparative

advantage (RCA) for each calculation by using the SWOT technique for each desirable sample

has been presented (Madhooshi and Tari, 2008).

Method

In this research a combination of QSPM and SWOT matrices have been considered in order to

achieve a suitable strategy for business. Mazandaran wood and paper industries were selected as

the case study of this project. First extensive and laboratory field studies were carried out for

collecting the information and reviewing internal and external effective factors on the company's

business. In the negotiation meetings, the related experts and elites of the production, supply,

sales department, etc were specified with their weights. The combination of these factors resulted

in formation of SWOT matrix and determining the suitable strategies for each domain. Then some

ideas were exchanged regarding details of each strategy and its rate was also determined. The

QSPM matrix was formed and some strategies with high attraction were obtained. According to

the priorities, attractive strategies were used in the under-study company. The research

emphasized on the case study and the analysis of experimental results due to combining these two

matrices and selecting the suitable strategy shows the considerable capabilities of this

combination and is extendable in other organizations.

The Strategy

Goal-oriented thoughts, shows the ability of forecasting the future and recognizing the

environments dynamics and the effective role of organizations for achieving continues success

during a time span. By definition, strategy is a complete plan for operations which determine the

main orientation of organizations (Rezaian, 2007) and strategic management has a generalized,

systematic and infra-insight to programs. In this report, we shall adjust the real strategies of

413

organizations considering the internal facilities and external opportunities to insure the

organizations' achievements (Alvani, 2007). In fact, after assessing the organizations' resources

and environment, the selection of a suitable approach for using the requirements will be possible.

Selection of appropriate methods or strategies requires proper recognition of situations (Rezaian,

2007). Establishing the strategies of any organization, means determining the strategic variables

and then modeling of the considered subject in the form of a matrix and / or a decision making

model which leads to making the proper decision and / or approach to be able to determine the

method of achieving the organization's objectives and its interactions with the environment by

using the most suitable strategy (Aliahmadi and et al, 2007). In this regard, different tools such as

SWOT matrix can be used. The final stage includes prioritization of strategies and applying the

strategy with high priority. One of the suitable tools of this stage includes the quantitative

strategic planning Matrix (QSPM).

SWOT Matrix

After assessing internal and external factors which are called stage, the required information are

specified for determining the strategy. In the SWOT matrix, there is a balance between internal

and external factors of the institution (David, 2001). By using the above mentioned matrix, four

types of general strategies can be presented:

A. Strategies resulting from adaptation of internal strength with environmental opportunities (SO)

B. Strategies resulting from adaptation of internal weakness with environmental opportunities

(WO)

C. Strategies resulting from adaptation of internal strength with environmental threats (ST)

D. Strategies resulting from adaptation of internal weakness with environmental threats (WT)

In order to apply the A type, organizations try to use external opportunities by utilizing internal

strength. All managers prefer their organizations to be in such a superior condition to be able to

more in the direction of growth and perfection. The goal of strategy type B is that organizations

improve their weakness by using the available opportunities in their external environment. In type

C, organizations try to use their strengths in order to reduce the effects of the threats available in

their external environment and / or eliminate them and ultimately by using strategy type D, they

try to reduce the effects of external threats and compensate the internal weakness. Such a position

is not desirable for any organizations (Soodmand, 2008).

Quantitative Strategic Planning Matrix (QSPM)

This matrix is used during decision making stage and for specifying the relative attraction of

strategies. This technique determines which of the selected strategy options are possible and in

fact it prioritizes the strategies (Aliahmadi and et al, 2007). QSPM is an analytical frame which is

used for coordination among strategies resulting from SWOT (Madhooshi and Tari, 2008). The

process of preparing this matrix is as follows:

Stage no. 1: the main opportunities, threats, strength and weakness are indicated in the left hand

column.

Stage no. 2: weights are assigned to each of these factors. These rations are rated from zero (not

important) to 1 (very important) and show the relative importance of each factor. The factors

which create opportunities or situations are often assigned more rations, but if the threatening

factors are sever, they must be given high ratios (David, 2001).

Journal of Administrative Management, Education and Training (JAMET)

414

Stage no. 3: strategies resulting from SWOT matrix are indicated in the upper row of QSPM. If

possible, these strategies must be incompatible or non-accumulative.

Stage no. 4: the attraction grades shall be specified. This numerical amount shows the attraction

rate of each strategy in one set of strategies. For determination of the attraction points, internal

and external attraction factors which play a role in the institution's position shall be reviewed to

determine whether these factors have any roles in the process of selecting the strategies or not ?

The attraction points are as follows:

1 = No attraction, 2 = little attraction, 3 = average attraction & 4 = very attractive

If any of the factors don't have a role in selecting the strategies, no points shall be considered for

that factor (Aliahmadi and et al, 2007).

Stage no. 5: the total points are calculated which includes adding the product of ratio (Stage 2) to

the attraction points (Stage 4).

Stage no. 6: the total attraction points are calculated. It is necessary to obtain the total points of

attraction for each column. Higher points indicate that the related strategy is more attractive, of

course considering all the internal and external factors which can influence strategic decisions

(David, 2001).

Business (Exportation Approach)

The most traditional method of entering global markets is by exportation of goods. During the

world's entire history of commercial affairs, people exchanged the goods manufactured in one

country with those produced in other countries and by doing so they took advantage of

geographical specialization, which means more brand types were obtained with a cheaper price

compared to the local prices (Goharian, 2000). The general rule of market is that any company

who intends to penetrate in the existing markets, they must present goods with more values

(better competitive advantages, lower prices and / or both) then the competitors (Bauer and et al,

2004). Non-oil exports have a high importance in Iran and any attempt to increase the exportation

rates is a big step toward improving the deficiency of Iran's economy (Madhooshi and Tari,

2008). The policy of developing exports, strengths free foreign trade. Free foreign trade will

guide the production and allocation of resources in a direction that based on classics' opinions the

country will have relative advantage compared to foreign countries. Specialty in the most efficient

production branches will cause such an increase in internal productions and exports incomes, such

that they cannot be supplied other by foreign trade method (Akhavi, 2005) based on the studies in

the USA, each one Billion Dollars of increase in exports will increase incomes and income taxes

by 2 Billion and 400 Million Dollars respectively and will create about 50000 to 70000 new jobs

(Madhooshi and Tari, 2008).

Mazandaran Wood & Paper Industries (Case Study)

The above mentioned complex is the largest paper production company in Iran. With an annual

production capacity of 180000 tons of different types of newsprint, writing, printing papers and

craft liner in line no. 1 and 105000 tons of fluting (with a corrugating layer of carton) in line no.

2. This company has about 41.7% of the local market share and 15% of the total country's

consumption rate. About 10% of the produced fluting paper was exported to different countries in

2007 and by considering the annual consumption rate of 107 million tons of paper in Asia, it must

be admitted that this amount is too low and MWPI has a much higher export capacity and

415

capability considering the availability of raw materials, suitable quality and competitive price of

fluting paper produced in the company.

Business Strategy (Exportation Approach)

Because of the importance of having a reliable approach for exports and the necessity of paying

attention to foreign markets and developing the exportation of the this company's paper products,

by coordination with the company's top manager's order, it was decided that a work group to be

formed consist of the company's experts and authorities and by covering some meetings and

consulting with the exportation experts, a desirable strategy for business with exportation

approach, to be introduced and ultimately executed. In this process, we have used different

documents and statistics related to paper industries and the information about exportation laws

and etc. decisions were made based on the meetings and minutes of meeting and / or design and

distribution of questionnaires. In this questionnaire, the reader was asked to specify the strength

and / or weakness (internal factors), opportunities and / or the threats (external factors) together

with their quantities. By using the SPSS software package, we have analyzed the results of

questionnaires and based on statistical calculations, weights of the factor were determined such

that total points of each of the internal and external factors become one. Finally, the desirable

strategies were introduced by exchanging ideas in the meetings and through discussion and

interpretation of information by using SWOT analysis. Considering that the available documents

are valid, their correctness has been confirmed during exchange of views with the experts and

managers and Alfa (α) ratio has been used to measure the reliability of the questionnaire. 40

questionnaires were distributed of which about half of the questions were related to the analysis

of internal environment and the other half were used for analyzing external environment. The

result of assessing questionnaires' α ratio is shown in the below table:

Table 1 :The Questionnaires' α Ratios Dimensions Number of Questionnaires Number of Variables α Ratio

Internal Environment 20 22 81.20%

External Environment 20 22 89.40%

The result of the group's effort after analyzing the input included determining strength and

weakness of the internal environment and opportunities and threats of external environment

which will be presented later for drawing the QSPM matrix, the obtained weights were used.

Internal Factors

Based on the results obtained from the questionnaires the company's internal environment was

analyzed based on four dimensions of strategic analysis, financial, marketing & sales and other

determinant internal factors and the relative weight of each one was also specified such that the

total weight of internal factors was equal to unity. The result of this review is indicated in table

no. 2.

Journal of Administrative Management, Education and Training (JAMET)

416

Table 2: The Determinant Factors on Company's Internal Environment from Different Aspects

and the Weight of Each 0.2 S1. The company's flowing capital Financial

Str

en

gth

0.09 S2. The rate of using company's available financial potentials

0.04 S3. The coordination rate between departments and the existence of systematic

insight

Analysis of

Functions

0.08 S4. The effectiveness of using company's incomes for supplying the cost

0.03 S5. The expertise available in the company's different departments Strategic D.

0.06 W1. The effectiveness of Marketing and sale programs inside & outside the country Marketing & Sale

Weak

ness

0.08 W2. The position of company's brand for entrance into foreign competitive markets

0.09 W3. The present condition of company's marketing researches regarding exports

0.07 W4. The rate of available share in the regional market resulting from selling the

products

0.08 W5. The rate of sales & marketing departments effectiveness

0.08 W6. The technology of the present equipment & machineries of the production line Analysis of

Functions 0.06 W7. Variety of productions at the present condition

0.04 W8. The number of employees in the company at the present time (Man Power)

1 Total

External Factors

Similar to what we did for analyzing the internal environment and its factors, the factors

influencing the external environment were also assessed and weighted considering the aspects of

consumer analysis, competitor analysis, market analysis and the result is shown in table no. 3.

Table 3: The Determinant Factors on Company's External Environment from Different Aspects

and the Weight of Each 0.04 O1. Geographical situation of the mill in the country considering topography Competitor

Op

po

rtu

nitie

s

0.09 O2. Concentration on fluting paper & strategic orientation on the production in

the future

Market

0.09 O3. Concentration on the present sales market of exports & the present customers

0.07 O4. Entering new markets & spending costs for new customers outside the

country

0.06 O5. Obtaining different national & international certificates Consumer

0.07 T1. Lack of coordination between different administration regarding importation

of paper

Environment T

hreats

0.05 T2. Reduction of tariff for paper imports by the government

0.07 T3. Not joining Iran to the World Trade Organization (WTO)

0.09 T4. The present inflation & profit rates in the country

0.09 T5. Sanctions against our country by the United Nations Security Committee

0.09 T6. Increasing paper production units inside the country & the regional countries Competitor

0.03 T7. Paper importation to the country by the competitors

0.07 T8. Analyzing absolute and / or relative competitive advantages of competitor

companies

0.09 T9. The potentiality of consumers & regional markets regarding using replaceable goods

Consumer

1 Total

417

Determination of Strategy

In the next stage which is called the comparison stage, by preparing the SWOT matrix, different

possible strategies are considered (David, 2001). By considering the effective internal and

external factors in the case study company, determination of possible matrixes is done in the

frame of comparing the factors. After analyzing the questionnaires and its results, during

coordination meeting with the experts, different export oriented strategies were determined for

various conditions of comparing environmental factors of which the results are show in table no.

4 (Next Page).

Table 4: SWOT Matrix and Determined Strategies SWOT Internal Factors

Strengths Weaknesses

Ex

ternal F

actors

Op

po

rtu

nitie

s

SO1. Extending the goods varieties and influence in new

foreign markets

WO1. Re-organizing the company's commercial

management considering new scientific methods of marketing and sale of paper products and improving

the productivity of resources

SO2. Purchasing small new units of paper production

and optimizing their production process by the company's specialized personnel and allocating their

product to exportation

WO2. Reconstructing and market recycling in the

regional countries (Middle Asia) for selling newsprint

Th

rea

ts

ST1. Financing in the foreign countries markets while prioritizing the regional countries in respect of supplying

the raw materials (wood & pulp)

WT1. Updating and re-organizing the newsprint production line for improving the quality, reducing

the final price for entrance into competitive arenas

ST2. Capitalization and creation of paper production lines from waste papers and baggass pulp and complete

allocation of its products to exportation

WT2. Forming of branches and agents in capital of provinces for purchasing waste papers

Prioritization of Strategies

After determining the strategies and formatting of SWOT matrix, it is necessary to select the most

valuable and most goal oriented strategies among the possible ones. Quantity strategic planning

matrix (QSPM) is a useful tool. In continuation of the activities, the working group attempted to

specify the attraction rate for each of the internal and external factors for each of the determined

strategies. The attraction rate is indicated in the related table from 1 to 4 which is shown by AS

and zero is allocated for not related cases. The product of the weight for each factor in its

attraction (the attraction grade which is specified with TAS), was also calculated. The total of

these points shows the attraction rate of the strategy. Based on the total points of each column, we

can prioritize the strategies. The calculations are shown in table 5. The results of attraction

calculations show the priority of strategies. Analysis of these results shows that MWPI must

attempt to reduce its products find price in the first stage (strategies ST2 & WT2) to be able to

compete other competitors in foreign markets and on the other hand to be able to analyze market

conditions in the region and create some basic transformations in its marketing and sales

constructs (strategies WO2 & WO1).

Journal of Administrative Management, Education and Training (JAMET)

418

Table 5 :Quantity Strategic Planning Matrix (QSPM) WT2 WT1 ST2 ST1 WO2 WO1 SO2 SO1 Weight Strategic Factors

TAS AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS AS

0.12 3 0.08 2 0.08 2 0 0.08 2 0 0 0.08 2 0.04 O1 Opportu

nities

0.36 4 0 0.36 4 0.09 1 0.36 4 0.18 2 0.18 2 0 0.09 O2

0.27 3 0.09 1 0.36 4 0 0.27 3 0.27 3 0.18 2 0 0.09 O3

0.21 3 0.14 2 0.21 3 0.28 4 0.28 4 0.28 4 0.07 1 0.28 4 0.07 O4

0.06 1 0.18 3 0.18 3 0.06 1 0.24 4 0.06 1 0.06 1 0.24 4 0.06 O5

0.07 1 0 0.14 2 0.21 3 0.21 3 0.07 1 0 0.14 2 0.07 T1

Threats

0.05 1 0.05 1 0.05 1 0.05 1 0.05 1 0.1 2 0.1 2 0 0.05 T2

0.07 1 0.14 2 0.21 3 0.28 4 0.28 4 0.14 2 0.07 1 0.14 2 0.07 T3

0.36 4 0.27 3 0.36 4 0.27 3 0.27 3 0.09 1 0.27 3 0.27 3 0.09 T4

0 0.27 3 0.36 4 0.36 4 0.27 3 0.18 2 0.36 4 0.18 2 0.09 T5

0.36 4 0.18 2 0.36 4 0.18 2 0.18 2 0.36 4 0.36 4 0.18 2 0.09 T6

0.09 3 0.09 3 0 0 0 0.06 2 0.06 2 0 0.03 T7

0 0.07 1 0.14 2 0.28 4 0.28 4 0.28 4 0.07 1 0.28 4 0.07 T8

0.18 2 0.18 2 0.36 4 0.09 1 0.36 4 0.18 2 0.18 2 0.18 2 0.09 T9

0.8 4 0.8 4 0.8 4 0.4 2 0.4 2 0.4 2 0.8 4 0.6 3 0.2 S1

Stren

gth

0.36 4 0.27 3 0.36 4 0.36 4 0.18 2 0 0.27 3 0.09 1 0.09 S2

0.16 4 0.08 2 0.12 3 0.04 1 0.04 1 0.16 4 0.12 3 0 0.04 S3

0.32 4 0.16 2 0.32 4 0 0.16 2 0.24 3 0 0 0.08 S4

0 0.09 3 0.09 3 0 0 0.12 4 0.12 4 0.03 1 0.03 S5

0.06 1 0.18 3 0 0.12 2 0.18 3 0.24 4 0 0.24 4 0.06 W1

Weak

ness

0.24 3 0.16 2 0.16 2 0 0.32 4 0.16 2 0.24 3 0.32 4 0.08 W2

0.09 1 0.27 3 0.36 4 0 0.36 4 0.36 4 0.18 2 0.36 4 0.09 W3

0.21 3 0.07 1 0.14 2 0 0.21 3 0.21 3 0.07 1 0.14 2 0.07 W4

0.16 2 0.24 3 0.24 3 0.08 1 0.32 4 0.32 4 0 0.24 3 0.08 W5

0.24 3 0.32 4 0.32 4 0 0.08 1 0 0.24 3 0.24 3 0.08 W6

0.18 3 0.24 4 0.24 4 0 0.12 2 0.18 3 0.12 2 0.24 4 0.06 W7

0.16 4 0.04 1 0.16 4 0.04 1 0.04 1 0.12 3 0.16 4 0 0.04 W8

5.18 4.66 6.48 3.19 5.54 4.76 4.28 4.47 Total

Results

After determining the strategy based on SWOT matrix and then specifying the strategies

attractions, we performed the prioritized strategies resulting from QSPM matrix in the case study

company. On one hand, MWPI attempted to establish a scheduled plan based on ST2 and WT2

strategies for the purpose of reducing its products final price to benefit from a production with

competitive price in foreign markets and on the other hand, attempted to develop its foreign

market and performing basic changes in marketing and sales constructs for paper products based

on strategies WO2 and WO1. The highest priority is the ST2 strategy which after its

implementation, MWPI installed pulper no. 2 in its production line in 2005. This change enabled

the company to use its waste paper in its production lines. The final price of the recycled goods

had a considerable difference compared to that of papers produced from wood and it was much

more economical. Even it was possible to produce variety of products with a combination of

waste papers with proportional prices and attracted the customers' attention considerably. In next

Figureure, the company's total production from waste papers during recent years is shown.

419

Figure 3:The Company's Production Trend from Waste Paper in Tons during Recent Years

In continuation and based on the strategies for using waste paper in productions, MWPI followed

the strategy of collecting and purchasing waste papers. Figureure no. 4 shows the trend of

consuming waste paper in MWPI in line with high priority strategy (WT2) during recent years.

Figure 4:The Company's Consumption Trend from Waste Paper in Tons during Recent Years

It is worth mentioning that Figureure no. 3 includes the total productions from waste paper with

different combination percentages and comparing it with Figureure no. 2 shows the increasing

role of waste paper in this company's production lines. In respect of performing WO2 strategy,

MWPI attempted to identify and set goals for foreign markets and creation of the required infra-

structures for exporting its products. Considering the high quality of products, especially fluting

paper, products marketing has a desirable condition and in addition, by improving part of the

process, including altering the packaging methods of the export and improving special quality

indices, it was tried to attract foreign customers. The trend of exports was growing and some of

the products were exported to Europe and other paper producer countries. But unfortunately

because of economical depression at goal level and flow of Chinese paper products, which had a

much lower price and despite of having not such a high quality captured the markets, the exports

48500

170400

174200

157800

175800

151200

179000

176000

0

50000

100000

150000

200000

To

n

2005 2006 2007 2008 2009 2010 2011 2012

935414111

16920

24581

33384

38326

45637

31793

0

8000

16000

24000

32000

40000

48000

To

n

2005 2006 2007 2008 2009 2010 2011 2012

Journal of Administrative Management, Education and Training (JAMET)

420

in MWPI couldn't continue its growing trend. Considering the above mentioned points, effort to

presence in global markets had valuable achievements and was a preventive factor in importation

of foreign papers by the traders with the excuse of not presenting desirable paper products by

MWPI. The trend of exportation volume and the economical value of exporting this product for

MWPI during the recent years have been shown in Figureures no. 5 and 6.

Figure 5: The Company's Exportation Trend in Tons during Recent Years

Figure 6:The Company's Exportation Trend in Dollars during Recent Years

It is worth mentioning that MWPI received the country's pioneer exporter award in 2008. Another

highly attractive strategy included changing the commercial and sales structures of MWPI (WO1)

and to achieve this goal some changes were imposed in the company and its activities of which

the most important are: Transfer of company's sales activities to outside sources

Establishing sales engineering department in the organizational chart under the direct supervision of

commerce deputy

Specifying an agent in the south of Iran to expedite and coordinate customs and exportation activities

Presenting training related to marketing and sales by the exports at different levels of expertise

0

3000

6000

9000

Ton 59 8599 6533 932 1220 1314 2160

2006 2007 2008 2009 2010 2011 2012

0

500000

1000000

1500000

2000000

2500000

3000000

Dollar 18300 288530 278610 465000 615400 662800 110160

2006 2007 2008 2009 2010 2011 2012

421

Discussion

Exports development can be considered one of the ultimate goals of industrial sectors, including

paper production industry in Iran. This objective will not be achieved without a long term

strategic plan. Reviewing all aspects of the related activities and analyzing the internal and

external environmental conditions of the company is essential in establishing effective

approaches.Based on the described methodology, by performing a research in 2006, the specified

strategies and their priorities were determined. To achieve the goals, practical approaches were

presented to the management and the company's top management considered the above

mentioned strategies in its future agenda. Since considering the strategies obtained, the orientation

of MWPI has been toward exporting fluting paper and on the other hand, since this type of paper

has the same design and color, its only attraction and advantage is the finished price and quality in

global markets. These factors by themselves confirm the priority of the specified strategies.

Despite of this, it is necessary to explain that the declining trend of this company's exports during

the recent years is due to various factors. The reviews show that the determined strategies are

suitable and proper. Uncontrolled effective factors such as recession of global markets, keeping

value of Dollars unrealistically by the government (during the three past years, the inflation rate

has been 20% but the value of Dollar hasn't changed), which caused a high profitability for export

against imports and incapability of competing in prices with foreign markets, the extensive

presence of Chinese products in the regional markets and … have showed down the effectiveness

trend of the strategies and have caused some obstacles.The utilized methodology and combination

of the two QSPM and SWOT Matrices and the resulting desirable achievements in one practical

sample, shows the high capability of strategic management tools in determining suitable

approaches for achieving the considered perspectives of any organizations. The occurrence of out

of control factors has created some problems for paper exportation and MWPI has attempted to

eliminate them and consequently has initiated new strategies. But following a logical direction

and using ST2 and WT2 strategies reduced the production and finished prices of the company's

products considerably and these products have desirable capabilities compared to the imported

papers. The fundamental changes in commercial affairs have also facilitated sales activities,

eliminating bureaucracy, improving relationships with local and foreign customers, reinforcement

of marketing and … which ultimately increased company's capabilities.

Journal of Administrative Management, Education and Training (JAMET)

422

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HABIBALLAH NAJAFI HEZARJRIBI, Professor Department of Psychology and Educational Sciences Payame Nor University(Pnu), Tehran, Iran Correspinding Author Email: hnh_dr@yahoo.comZEINAB BOZORGPOUR, Department of Management Payame Nor University(PNU), Tehran, Iran