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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
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
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Journal of Administrative Management, Education and Training (JAMET)

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:

The Present Condition


Lack of a strategic Plan for Business in MWPI

Problem

The Desired Condition


Presence of a strategic Plan for Business in MWPI

Figure 1:The Subject of Research

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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).

Analysis of External Environment Analysis of Internal Environment

 Consumer  Analysis of Functions


Parts, Incentives and Unknown Requirement Profitability Capabilities, Expenses Construct, Man Power,
Quality, Process, Production, Function and Employee's
 Competitor Insights
Identification, Strategic Groups, Functions Image, Strategic
Goals, Culture and the Structure of Costs  Financial
Decision Making about Financing, Financial Supply and
 Market Distribution of Benefits
Market Size, Predicted Growth Rate, Cost Structure,
Profitability, Distribution System, Key Factors of Success  Marketing & Sale
Marketing investigations, New Services and Sales
 Environment
Technological, Governmental, Economical and Cultural  Strategic Determinations
Environment Approach Organizational Limitations and Strengths
Opportunities, Threats, Trends and Strategic Strength, Weakness, Problems, Limitations and
Questions Strategic Questions

Compiling the Strategy whit Assessment External &


Internal Factors Matrix (SWOT)

Selection of Attractive Strategies among the


Possible Methods by the aid of QSPM

Application of Selected Strategies for Developing the


Business in MWPI

Figure 2: The Conceptual Model of Research

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Journal of Administrative Management, Education and Training (JAMET)

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

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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).

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Journal of Administrative Management, Education and Training (JAMET)

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

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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.

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Table 2: The Determinant Factors on Company's Internal Environment from Different Aspects
and the Weight of Each
Financial S1. The company's flowing capital 0.2
S2. The rate of using company's available financial potentials 0.09
Strength

Analysis of S3. The coordination rate between departments and the existence of systematic 0.04
Functions insight
S4. The effectiveness of using company's incomes for supplying the cost 0.08
Strategic D. S5. The expertise available in the company's different departments 0.03
Marketing & Sale W1. The effectiveness of Marketing and sale programs inside & outside the country 0.06
W2. The position of company's brand for entrance into foreign competitive markets 0.08
W3. The present condition of company's marketing researches regarding exports 0.09
Weakness

W4. The rate of available share in the regional market resulting from selling the 0.07
products
W5. The rate of sales & marketing departments effectiveness 0.08
Analysis of W6. The technology of the present equipment & machineries of the production line 0.08
Functions W7. Variety of productions at the present condition 0.06
W8. The number of employees in the company at the present time (Man Power) 0.04
Total 1

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
Competitor O1. Geographical situation of the mill in the country considering topography 0.04
Opportunities

Market O2. Concentration on fluting paper & strategic orientation on the production in 0.09
the future
O3. Concentration on the present sales market of exports & the present customers 0.09
O4. Entering new markets & spending costs for new customers outside the 0.07
country
Consumer O5. Obtaining different national & international certificates 0.06
Environment T1. Lack of coordination between different administration regarding importation 0.07
of paper
T2. Reduction of tariff for paper imports by the government 0.05
T3. Not joining Iran to the World Trade Organization (WTO) 0.07
T4. The present inflation & profit rates in the country 0.09
Threats

T5. Sanctions against our country by the United Nations Security Committee 0.09
Competitor T6. Increasing paper production units inside the country & the regional countries 0.09
T7. Paper importation to the country by the competitors 0.03
T8. Analyzing absolute and / or relative competitive advantages of competitor 0.07
companies
Consumer T9. The potentiality of consumers & regional markets regarding using replaceable 0.09
goods
Total 1

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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
SO1. Extending the goods varieties and influence in new WO1. Re-organizing the company's commercial
foreign markets management considering new scientific methods of
Opportunities

marketing and sale of paper products and improving


the productivity of resources
External Factors

SO2. Purchasing small new units of paper production WO2. Reconstructing and market recycling in the
and optimizing their production process by the regional countries (Middle Asia) for selling newsprint
company's specialized personnel and allocating their
product to exportation
ST1. Financing in the foreign countries markets while WT1. Updating and re-organizing the newsprint
prioritizing the regional countries in respect of supplying production line for improving the quality, reducing
Threats

the raw materials (wood & pulp) the final price for entrance into competitive arenas
ST2. Capitalization and creation of paper production WT2. Forming of branches and agents in capital of
lines from waste papers and baggass pulp and complete provinces for purchasing waste papers
allocation of its products to exportation

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).

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Table 5 :Quantity Strategic Planning Matrix (QSPM)


Strategic Factors Weight SO1 SO2 WO1 WO2 ST1 ST2 WT1 WT2
AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS AS TAS
O1 0.04 2 0.08 0 0 2 0.08 0 2 0.08 2 0.08 3 0.12
Opportunities

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


O3 0.09 0 2 0.18 3 0.27 3 0.27 0 4 0.36 1 0.09 3 0.27
O4 0.07 4 0.28 1 0.07 4 0.28 4 0.28 4 0.28 3 0.21 2 0.14 3 0.21
O5 0.06 4 0.24 1 0.06 1 0.06 4 0.24 1 0.06 3 0.18 3 0.18 1 0.06
T1 0.07 2 0.14 0 1 0.07 3 0.21 3 0.21 2 0.14 0 1 0.07
T2 0.05 0 2 0.1 2 0.1 1 0.05 1 0.05 1 0.05 1 0.05 1 0.05
T3 0.07 2 0.14 1 0.07 2 0.14 4 0.28 4 0.28 3 0.21 2 0.14 1 0.07
T4 0.09 3 0.27 3 0.27 1 0.09 3 0.27 3 0.27 4 0.36 3 0.27 4 0.36
Threats

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


T6 0.09 2 0.18 4 0.36 4 0.36 2 0.18 2 0.18 4 0.36 2 0.18 4 0.36
T7 0.03 0 2 0.06 2 0.06 0 0 0 3 0.09 3 0.09
T8 0.07 4 0.28 1 0.07 4 0.28 4 0.28 4 0.28 2 0.14 1 0.07 0
T9 0.09 2 0.18 2 0.18 2 0.18 4 0.36 1 0.09 4 0.36 2 0.18 2 0.18
S1 0.2 3 0.6 4 0.8 2 0.4 2 0.4 2 0.4 4 0.8 4 0.8 4 0.8
S2 0.09 1 0.09 3 0.27 0 2 0.18 4 0.36 4 0.36 3 0.27 4 0.36
Strength

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


S4 0.08 0 0 3 0.24 2 0.16 0 4 0.32 2 0.16 4 0.32
S5 0.03 1 0.03 4 0.12 4 0.12 0 0 3 0.09 3 0.09 0
W1 0.06 4 0.24 0 4 0.24 3 0.18 2 0.12 0 3 0.18 1 0.06
W2 0.08 4 0.32 3 0.24 2 0.16 4 0.32 0 2 0.16 2 0.16 3 0.24
W3 0.09 4 0.36 2 0.18 4 0.36 4 0.36 0 4 0.36 3 0.27 1 0.09
Weakness

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


W5 0.08 3 0.24 0 4 0.32 4 0.32 1 0.08 3 0.24 3 0.24 2 0.16
W6 0.08 3 0.24 3 0.24 0 1 0.08 0 4 0.32 4 0.32 3 0.24
W7 0.06 4 0.24 2 0.12 3 0.18 2 0.12 0 4 0.24 4 0.24 3 0.18
W8 0.04 0 4 0.16 3 0.12 1 0.04 1 0.04 4 0.16 1 0.04 4 0.16
Total 4.47 4.28 4.76 5.54 3.19 6.48 4.66 5.18

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.

418
200000

179000
150000

176000
170400

174200

175800
157800

151200
Ton
100000

50000

48500
0
2005 2006 2007 2008 2009 2010 2011 2012

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.

48000

40000 45637

32000 38326
33384 31793
Ton

24000
24581
16000
16920
8000 14111
9354
0
2005 2006 2007 2008 2009 2010 2011 2012

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

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Journal of Administrative Management, Education and Training (JAMET)

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.

9000

6000

3000

0
2006 2007 2008 2009 2010 2011 2012
Ton 59 8599 6533 932 1220 1314 2160

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

3000000

2500000

2000000

1500000

1000000

500000

0
2006 2007 2008 2009 2010 2011 2012
Dollar 18300 288530 278610 465000 615400 662800 110160

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

420
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.

421
Journal of Administrative Management, Education and Training (JAMET)

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

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