Strategic Planning for Agriculture Section using Swot ...ijamad.iaurasht.ac.ir/article_540494_af8192054b605d913aabac85ab2d3... · In this study, to determine some strategies for Eshraq

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Strategic Planning for Agriculture Section usingSwot, QSPM and Blue ocean- case Study: EshraqAgro-industry company

Mohammad Abdolshah *, Babak Fazli Besheli, Shabnam Fazli Besheli and Ali Norouzi

Keywords: Eshraq agro-industry, QSPM,strategic management,SWOT

Received: 15 May 2016,Accepted: 20 April 2017 Strategic management is defined as a set of management de-

cisions and actions that determine a company's long-termperformance and lead and control the organization so that itcan quickly respond to some internal and external environmentalchanges. Obviously, the agricultural sector and natural resourcesare one of the most significant economic sectors of the countrybecause of their vital role in providing the required food andnutritional safety. The present study aims to determine the ap-propriate strategies for Eshraq agro-industry Company. In thisstudy, agricultural sector and animal husbandry strategies aredetermined simultaneously. The SWOT analytical frameworkhas been used to determine the appropriate strategies. Eventually,after assessing the situations and strategic actions by theSPACE method using the QSPM strategic approach, the deter-mined strategies have been sorted according to importanceand priority which include small livestock, aviculture, aquaculture,establishing dairy plants and value-added production, developingthe existing dairy cattle, increasing milk and meat productionand changing land uses from farms to gardens respectively.

Abstract

International Journal of Agricultural Management and Development (IJAMAD)Available online on: www.ijamad.iaurasht.ac.irISSN: 2159-5852 (Print)ISSN:2159-5860 (Online)

1 Department of Engineering, Semnan Branch, Islamic Azad University, Semnan, Iran* Corresponding author’s email: [email protected]

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IntroDuctIonModern business have been transformed by

digital technologies into global marketplaces.Rapid changes that are taking place in organizations’environments prove the necessity of using strategic,comprehensive plans. The foundations of strategicmanagement are based on managers' understandingfrom important, critical factors such as: competingcompanies, markets, prices, raw material suppliers,distributors, governments, creditors, shareholdersand customers. Strategic planning address thequestion of management capabilities in an organ-ization. Questions like “What is the main goal ordestination for a specific company?”, and “Whatis the most efficient way for the company in theprogress of reaching for the goal? Strategicplanning selects joint decisions to determine theappropriate framework to achieve the strategicposition for the organization.

A good strategy will balance revenue and pro-ductivity initiatives (Gupta et al., 2015). Orga-nizational goals are the purposes which man-agement system follows. Inputs, processes andoutputs of an organization are all in order toachieve the organizational goals. This studyaims to increase sales volumes and monetaryvalues, improving the organization of the marketshares, credibility and good name, brand orbrands, products, diversification of productsand to export the products. Food is one of theessential needs. Due to the growing populationand shortage of water resources, agriculturalproduction is difficult. A good part of agriculturecauses to improve food security, to reduce foodprices, to increase employment and incomelevel, and to create important economic links inproduction chain, and will help make a positiveimpact on the environment. In order to achievefood security, adopting good policies and adequateresources are important to meet the communityneeds. In Iran, 9.3% of GDP (in current prices),20.8% of workers and 20 percent of the valueof non-oil exports are engaged in agriculture.Planning adopted for agricultural sector has in-creased production in Iran. Crop productionreached to 77.2 million tons in 1390, animalproduction to 14.35 million tones and fish andshrimps to 735.1 thousand tons. Therefore, it is

necessary to develop agricultural policies toovercome the problem.

Nowadays some companies have come to theconclusion that the application and implemen-tation of the strategy can improve their per-formance and capability to succeed in competitivemarkets. Companies can carry out effectivestrategies and many of them believe that strategicperformance significantly affect the success ofthe company (Kim & Mauborgne, 2004). Thereare no companies with the constant record ofexcellent activities and stability. A specific com-pany may have experience inconsistency in theirperforming record. Company relative attractive-ness and efficiency are shaped almost by creatinga blue ocean strategy (Rowe et al., 1982). Thisstrategy represents a new approach in manage-ment science that can be created through inno-vation market value in which no competitor isinvolved and sustained growth and profits canbe achieved. Space such as ocean blue in 2004by Chan Kim and Renee Mauborgne was intro-duced. In blue oceans, there is a high potentialfor growth and profitability and great potentialdemand for products and services of ocean.Blue Ocean can determine the rules and bound-aries of industries. In recent years, researchersin the field of strategic management are constantlylooking to combine the classical tools of strategicmanagement together. But so far no research hasattempted to use a combination of classical in-struments with new tools such as Blue OceanStrategy in the agricultural industry. So in thisstudy, we tried to take into account the potentialopportunities and threats of agro-industrial complexand peripheral illumination, using a combinationof Strategic Planning Tools of Premier strategyin order to keep the collection in the field of pro-duction and increase its profitability offered.

Strategic management includes the managementdecisions and actions that determine a company'slong-term performance. So strategic managementactivities related to the review, evaluation andselection of strategies adopt any measures toimplement the strategies and the internal andexternal control encompassed activities. So, oneof the most important tools for success that or-ganizations can benefit from will be "strategic

Strategic Planning for Agriculture Section Using SWOT ... / Abdolshah et al.

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management". Shojaei et al. (2010) consideredstrategic management for food industry. The aim ofthis study has been to determine the strategies for a40 year-old factory in which SWOT and QSPMmatrices are used. Siavashan and Khari (2012)considered exports as a strategy in SWOTmatrix. Also reduction of dairy prices is one ofthe foreign threats of this matrix. In this article,some other strategies are the empty capacitiesof the company, using technology and new tools,using financial supports, and various products.The main objective of this study was to determineappropriate strategies for Pegah Company. Ac-cording to the results, market development wasone of the main strategies of this company. Man-ufacturing various products and eliminating com-petitors are two other strategies which have beenproposed in this study. Ommani (2011) usedSWOT matrix for agriculture and business man-agement systems. According to this study, agri-cultural activities have a vital role in food security.

Population growth plays an important role infood and products’ needs. Hashemi et al. (2015)in a study on glass industry considered neighboringcountries and population growth as strategies.Also, hiring experienced managers is consideredas one of the strengths of this study. Finally, byusing the SWOT and QSPM matrixes, strategiessuch as founding new manufacturing units havebeen adopted. Zowain and Ismail (2015) con-sidered water shortage as a threat. Seventeenstrategies related to the issues of water and soilsalinity have been regarded and show the needfor investment in irrigation systems such as dripirrigation and modern agricultural technologiesare urgent to control salinity. Gupta et al. (2015),considered fluctuations in raw material as oneof the threats. Poor marketing considered as aweakness related to strategic management inIndia is a study. Moghaddaszadeh et al. (2015)considered using additional capacities for pro-duction, modern and efficient equipment as in-ternal strengths. They used SWOT matrix forstrategic planning. Oktaviani et al. (2015) con-sidered the lack of skilled workers as an internalweakness. In this study, abundant raw materialsand labors are considered as situations. Thisstudy used SWOT matrix to develop some

strategies. Sarma and Raha (2015) consideredgovernment support as an opportunity and alsoincreasing prices as a threat. This study aims todetermine the best business strategies for tradingbeef in Bangladesh.

Achmad et al. (2013) determined the Beef busi-ness strategy in South Svlavzy's. In this study,overpopulation, the availability of perfect productsand financial support of the government are con-sidered. Burke et al. (2016) has been tested thevalidity of Blue Ocean Strategy versus competitivestrategy. Kamal and Dionne-Odom (2016) appliedBlue Ocean Strategy in palliative care sector inUSA. The main question of their study was"How might be Blue Ocean Strategy in palliativecare?" and finally they showed the Blue OceanStrategy is a good framework for palliative care.

Literature review illustrates that there aresome common factors in determining strategies.But finally we found that there is no studyaimed at linking SWOT with blue ocean strategy.Table 1 shows a brief literature review aboutstrategic management.

MAtErIALS AnD MEtHoDSIn this study, to determine some strategies for

Eshraq agro-industry, internal and external effectivefactors have been identified by the experts andwere used in EFE and IFE matrices. After scoringthese factors by SWOT matrix, SPACE methodwas used to detect the orientation of the organi-zation and selection of strategies then by usingthe QSPM matrix, prioritization of strategies waspresented. The computational results related tothese tools have been shown in Section 5. Inorder to identify the internal and external factorsaffecting the company's strategy, agricultural andlivestock experts’ opinions were collected. Then,based on factors, a questionnaire was developedin which each factor was scored from 1 to 10 ac-cording to the experts’ ideas. Finally, after nor-malizing the scores and assigning weights tothem, each weighted score was examined.

This research utilized different factors suchas internal factors evaluation matrix (IFE), ex-ternal factors evaluation matrix (EFE), SPACEgraph, SWOT matrix, and QSPM matrix. Nextsubsections were used to introduce these tools.


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SwotAs stated internal evaluation matrix (IFE) is a

matrix for identifying the different internalfactors. Internal factors consist of strengths andweaknesses. These factors are weighted in a

way that the sum of these weights is equal toone. These scores range from 1 to 4. After iden-tifying the internal factors and the strengthsand weaknesses of each factor, a weight factorbetween zeros (unimportant) to one (very im-


TitleAuthors

YearField

Methods

Strategic planning for a food Industry Equipment m

anufacturing fac-tory, U

sing SWOT Analysis, Q

SPM, and M

AUT m

odels,Citeseer

Strengths, weaknesses, opportunities and threats (SW

OT) analysis

for farming system

businesses managem

ent: Case of w

heat farmers

of Shadervan District, Shoushtar Tow

nship

Strategic Planning in Iran Milk Industries

Model policy design for the beef cattle ranch developm

ent in southSulaw

esi

The effect of application of Indonesia national standard on cocoa in-dustry and strategy to face the Asean econom

ic community in 2015

Managem

ent of Salinity Issues in Iraq's Agricultural Sector Using

Strategy Formulation for Perform

ance Improvem

ent of Indian Corru-

gated Industry: An Application of SWOT Analysis and Q

SPM Matrix

An integration of SWOT and factor analysis to determ

ining and pri-oritizing strategies: case study of a Persian food industry

A formulating and choosing strategies using SW

OT analysis and

QSPM

matrix: A case study of M

ahadan glass company

Strategies of Beef Cattle D

evelopment Enterprise in Selected Areas

of Bangladesh,

Testing the Validity of Blue Ocean Strategy versus C

ompetitive Strat-

egy: An Analysis of the Retail Industry

A Blue Ocean Strategy for Palliative C

are: Focus on Family C

aregivers

Shojaei et al.

Ommani et al.

Siavashan et al.

Achmad et al.

Oktaviani

Zowain et al.

Gupta et al.

Moghaddaszadeh

et al.

Hashem

i et al.

Sarma et al.

Burke et al.

Kamal and

Dionne-O

dom

2010

2011

2012

2013

2015

2015

2015

2015

2015

2015

2016

2016

Food industry

Food industry and agriculture

Dairy

Beef

Cacao

Agriculture

Corrugated Industry

Food industry

Glass industry

Beef

Retail Industry

Palliative Care

SWOT

QSPM

SWOT

SWOT

QSPM

SWOT

QSPM

SWOT

QSPM

--

SWOT

QSPM

SWOT

SWOT

QSPM

SWOT

QSPM

BlueOceanCS

BlueOcean

Table 1Literature R

eview

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portant) is assigned to each of them. Experts’opinions are used to determine the weight ofeach factor and also important factors. EFEmatrix is also one of the methods used toorganize external factors as a way to analyzethe opportunities and threats and how to respondto opportunities and threats. This matrix stagesare similar to the IFE matrix which is resultedin the determination of thestatus. Once weightis multiplied by score, attractiveness can be as-sessed. If the sum of all effective factors is lessthan 2.5, it is understood that the weaknessesare more than the strengths (Nouri et al., 2008).

SWOT analysis is a powerful analyticalscale for decision-makers to use the strategicmanagement process. This analysis considersthe strengths, weaknesses, opportunities andthreats of an organization. Many researchesused quantitative data in this matrix but thesemethods are not exhaustive. SWOT has foursections which present different strategies(Moghaddaszadeh et al., 2015).

● SO shows the most favorable conditionsfor organization.

● ST presents the strengths and capabilitiesof the organization.

● WT shows the opportunities and preciousenvironment are provided for the organizationbut, on the other hand, it has serious weaknessesand vulnerabilities disabilities and it is derived.

● WT shows the worst and the most difficultand the most threatening conditions for the ac-tivities of the organization draws.

QSPM matrixQSPM matrix tries to choose the best strategies

by using simple calculations. In other words,this tool can be effective on both internal andexternal changes (Zowain & Ismail, 2015). Ituses a three-step approach to make decisions.At first, key factors are identified. Next, thesignificant factors and the most favorable strate-gies will be selected (Nouri et al., 2008). Externalstrategic factors listed in the first column ofthe matrix include all threats and opportunitiesand internal strategic factors within the or-ganization include all strengths and weak-nesses. Weighted scores in each strategic el-ement are inserted in the second column.Next columns of SWOT matrix include a va-riety of strategies WO, ST, WT and SO thatare obtained from this matrix. Each columnof strategies is divided into two sub-columns.The ratings are determined based on the ef-fectiveness of the factors obtained. Table 3shows scores.

Different stages used in this paper as shownin Figure 1.

External factors evaluation of Eshraq agro -industry

By using experts’ opinions a number of externalfactors are collected then using EFE matrixthese factors are analyzed. This matrix includesopportunities and threats for company as shownin the Table 4.

According to EFE matrix and organizational


Score 1 2 3 4Status Severe weakness Common weakness Common strength Important strength

Table 2EFE and IFE Matrices’ Scores

Definition ScoreNot attractiveSomewhat attractivesufficiently attractiveVery attractive

1234

Table 3QSPM Scores

Nouri et al., 2008

Ghorbani et al., 2015

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conditions, the score for Eshraq agro -industrywould be 2.64. This score suggests the companyneeds to do more to maintain its position andby choosing appropriate strategies, it can achievean appropriate goal.

Internal factors evaluation of Eshraq agro-industry

IFE matrix is formed according to the internalsituation as shown in the Table (5).

This matrix has a higher score (2.95) becauseof experts. There are some problems such asbureaucracy and overhead costs due to thecompany's dependence on the public sectorwhich affects decision-making and agility ofthe organization.

Swot matrix of Eshraq agro-industry SWOT matrix presents pair-wise comparison

of internal and external factors. Four createdcategories of matrix are ST, OS, WT and WOwhich are shown in the Table 6.

Finally, a number of strategies are selectedregarding to threats, opportunities, weaknessesand strengths of SWOT matrix.

SPAcE diagramIn this section, company's strength and com-

petitive advantages are scored according to thefactors related to financial solvency and stabilityconditions. To do this, brainstorming method isutilized. The variables representing financialstrength, competitive advantage, environmentalsustainability and industrial power were selected.For two arms of FS and IS scores were awardedfrom 1 (worst) to 6 (best). The two arms S andCA have been conducted in a similar way. Thevalues for each variable on each axis arm weregathered together and then divided by a numberof variables. The averages were obtained oneach of the axes. Scores on the horizontal axisand the vertical axis were also gathered togetherand belonging points to these two axes weredetermined. Then a line is connected to thepoint from the origin. Considering the conditionsof mechanization, financial strength, competitivemarket and environmental balances, obtainedscores for each of the mentioned matters are 5,4, 2, and 3. Thus the need for using aggressivestrategies is proved which are shown in theFigure 2.


Figure 1: Stages of methodology

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QSPM MatrixAs a result, after determining strategic analysis

matrix, its components are registered in QSPMmatrix and the total score has been obtained.Table 7 shows QSPM matrix of the case study.According to QSPM matrix the four selectedstrategies with higher priority are livestock andpoultry, construction and production of value-added dairy factory, development of dairy cowsto increase milk and meat production, and agri-cultural land to increase profits respectively.

QSPM matrix representing strategy number 4

with the score of 3.61 is the most importantone. Priority of strategies in Table 7 is shown inTable (8).

Blue ocean strategyBlue Ocean strategy is resulted from many

studies on different industries for more than twodecades. In Mr. Kim's research, global marketshave been divided into red and blue oceans. Redoceans and blue oceans mean industries that existtoday, and all industries that currently do not exist.Nuradli et al. (2009) used the blue ocean strategy


Explanation Weighted score

Score weight External strategic factors

Removing some of the competitors hasprovided new space for illuminationHaving good relationship with relevantgovernment agencies because of KosarcompanyPossibility of increasing exports and in-creasing sales prices by livestockIncreased consumptionseeking cooperation with foreign companies

The possibility of selling to the govern-ment as a potential customerusing the cost of transportation and in-creasing selling prices

0.18

0.24

0.09

0.040.24

0.04

0.06

3

4

3

14

1

2

0.06

0.06

0.03

0.040.06

0.04

0.03

Opportunities

Closure of some livestock units

Relationship with government insti-tutions

Iranian trade relations with neigh-boring countriesPopulation growthAbility to import new technologies tothe countryMilk distribution program in schools

Increased purchase of raw milk byfamilies

Out of controlCompanies seeking to buy directly fromfarmersCan be controlled by stop sellingWould impose a financial burden to thecompanysuccessful in controlling diseasesFind new breeds and produce more for-age for cattleGood plans for next 15 years

The company's ability to create a dairyfactoryIs somewhat controllable

0.090.27

0.180.06

0.180.24

0.36

0.16

0.21

13

31

33

4

2

3

0.090.09

0.060.06

0.060.08

0.09

0.08

0.07

Threats

Low tariffs on imported milk powderAnimal feed market dealers

Fluctuations in the price of meatRemoval of government subsidies

The high cost of medicines and vet-erinary services

high cost of medicines and veteri-nary servicesDroughtDairy plant abuseclimate changes

2.64 1 Total weight

Table 4EFE Matrix

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to develop Halal products. Hong et al. (2014)used quantitative approaches in their study toprove the validity of the key factors in the com-petitiveness canvas strategy.

Blue ocean strategy for Eshraq agro -industry Agricultural and animal husbandry activities

are different. Eshraq agro-industry due to itspotential can benefit from the advantages ofaviculture. Although the initial forecast will below, but because of the high price and low costof the final product a significant profit will bemade. This advantage ensures the survival ofcompany.

Step decision-making pattern of Eshraq cul-tivation and industry

Four measures framework or model in orderto restructuring components to create valuefor the customer in the creation of a newvalue curve has been created. There are fourkey questions in industrial strategic challengesand business models need to be answered inorder to violate tradeoff between differentiationand cost reduction and to achieve a newvalue curve:

− Which factor should be eliminated amongthe factors that the industry presupposed?

− Which factors should be reduced to signifi-


Explanation Weighted score

Score weight External strategic factors

Company’s personnel are highly skilled interms of specialized knowledgeEquipment and conditions for construc-tion of small livestock and poultryA good flow of information and coopera-tion among peopleKosar is a reliable investor and sponsororganizationHaving a mechanization level higher thanthe average for large farmsProduction of milk, meat, live animals andvarious agricultural products

0.48

0.36

0.27

0.18

0.24

0.300.36

4

3

3

3

3

34

0.12

0.12

0.09

0.06

0.08

0.100.09

Strengths

Employing specialists

The existence of suitable infrastruc-ture for the arrival of the new branchesCoordination of management teamand staffPossibility of financial support fromKosarAppropriate relationship with the BankKeshavarziHigh mechanization levelMulti production

Multiplicity of small livestock and lack suf-ficient knowledgeTemperature, salinity and ...

Natural state of systems

One of the reasons for not entering intonew branches of livestock production andagricultureOverhead cost of office is one of theweaknesses

0.08

0.21

0.18

0.050.08

0.10

0.06

2

3

3

12

2

2

0.04

0.07

0.06

0.050.04

0.05

0.03

Weakness

Workers and middle class managerslow wageHigh level contamination of livestockin the regionHigh cost of animal husbandry inVaraminAdministrative bureaucracyLack of attention to cost reductionstrategiesPoor marketing in product sales

High overhead costs

2.64 1 Total weight

Table 5IFE Matrix

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cantly below levels than the industry standard?− Which factors should be defined based on a

specific industry?− Which factors should be raised to a signifi-

cantly higher level than the industry standard?In this model it is assumed that the or-

ganization that follows this pattern wouldescape from the red ocean and find its wayto the blue ocean that is unmatched envi-ronment. Interesting thing is that factorsthat are considered in this context are de-rived by Matrix Strategy SWOT. In fact

SWOT matrix of blue ocean strategy willhelp to improve the quality of the proposedmodel.

A comparison of value curves between Eshraqagro -industry and other organizations

This section compares the company with sim-ilar companies in the region. The amount ofaverage annual production in each of thebranches is compared with the average pro-duction of other large-area companies. Generally,animal husbandry units only produce certain


Opportunities(O)Closure of some livestock unitsRelationship with governmentinstitutionsIranian trade relations withneighboring countriesPopulation growthAbility to import new technolo-gies to the countryMilk distribution program in schoolsIncreased purchase of rawmilk by families

:O1:O2

:O3

:O4:O5

:O6:O7

Threats(T)Low tariffs on imported milkpowderAnimal feed market dealersFluctuations in the price of meatRemoval of government subsidiesHigh cost of medicines andveterinary servicesHigh cost of animal feedDroughtAbuse of dairy plantClimate changes

:T1

:T2:T3:T4:T5

:T6:T7:T8:T9

S.w.o.t

Matrix OSDevelopment of livestockproductionLivestock and Poultry

Strong imports and high producingdairy cattle breedsDairy Plant

O1S1O2S2O5S1O2S4

Matrix STRegional agriculture and directpurchase animal feedDevelopment of farmers toprovide forageDifferent use of agricultural landto garden with aim of reducingwater consumption and produc-ing more valuable productsConstruction of fattening unitsfor utilizing red meat market

S5T2

S7T2

S7T7

S2T3

Strengths (S)Employing specialistsThe existence of suitableinfrastructure for the ar-rival of the new branchesCoordination of man-agement team and staffPossibility of financialsupport from KosarAppropriate relationshipwith the Bank KeshavarziHigh mechanization levelMulti production

:S1:S2

:S3

:S4

:S5

:S6:S7

Matrix WOTrying to sell more volume ofmilk and increasing revenueImport of equipment, technologyand knowledge of Europeancountries

W6O7W3O3

Matrix WTHaving more health principlesto reduce health care costsClosure of animal husbandryand invest in other branchesA radical revision of businessand new customersSmaller administrative division

W2T5

W3T9

W6T8

W7

Weaknesses(W)workers and middle classmanagers low wageHigh level contaminationof livestock in the regionHigh cost of animalhusbandry in VaraminAdministrative bureau-cracyLack of attention to costreduction strategiesPoor marketing in prod-uct sales

:W1

:W2

:W3

:W4

:W5

:W6

Table 6SWOT Matrix

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products such as raw milk, meat and crops.Figure 3 shows the current status of Eshraqcompared to other companies in area. The com-parison is done using quantitative data and theinformation is obtained from available dataand expert opinion.

Each index of this graph shows the differ-ence between Eshraq agro -industry andother regional farms. In the past, it was sup-posed the company should produce at anaverage level, But QSPM matrix strategiesshow the changes including goat milk andmeat production, reducing the productionof crops and farms, development and in-creasing its annual production volume.

Figure 4 shows Eshraq agro- industry canhave different products. Obtained strategiesfrom QSPM matrix show different activities forthis company that make it to survive in a com-petitive situation.

But relying solely on descriptive statisticsdoes not seem very reasonable. To ensure im-proved Eshraq of complex position than othermanufacturers after the implementation of BlueOcean Strategy, we take help from inferentialstatistics.

For this purpose, we have used two-sampleStudent t test. This is a significant differencetest of two communities which null hypothesis

and the alternative hypothesis of it is as follows:H0: Average rating of Eshraq complex pro-

duction after the implementation of Blue OceanStrategy has no significant difference the scoresof other manufacturers.

H1: Average rating of Eshraq complex pro-duction after the implementation of Blue OceanStrategy is significantly different from the scoresof other manufacturers.

If the test result indicates a significanterror in the 0.05 show, the null hypothesis(H0) is rejected and with 95% confidence in-terval we will accept hypothesis H1. The fol-lowing table shows the results of Student'st-test.

According to Table 10, significance levelLevine' test showed a concurrence variance inthe two communities. Therefore, assuminghomogeneity of variance and taking intoaccount the results of the first row, a significantlevel test indicates that the average scores ob-tained for the two communities is significantlydifferent and that means an average rating ofproduction of Eshraq complex after the im-plementation of Blue Ocean Strategy will besignificantly different from the rating of othermanufacturers. Therefore, inferential statisticsresults also support the hypothesis suitabilityof blue ocean strategy.


Figure 2. SPACE Diagram

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ffective FactorsWeight

FactorStrategy1

Strategy 2Strategy 3

Strategy 4

OpportunitiesClosure som

e livestock unitsRelationship w

ith government institutions

Ability to import new

technologies to the countryIncreased direct purchases of household production unitsThreatsHigh cost of m

edicines and veterinary servicesDroughtAbuse of D

airy PlantClimate changes

StrengthsThe existence of suitable infrastructure for the arrival of thenew

branchespossibility of financial support from

KosarMulti production

Weaknesses

high cost of animal husbandry in Varam

inTotal

0.110.080.080.05

0.070.10.050.07

0.16

0.080.11

0.031

Attraction

121114133223

Weighted

attraction0.110.160.080.05

0.070.40.050.21

0.48

0.160.22

0.092.08

Attraction

432221124212

Weighted

attraction0.440.240.160.1

0.140.10.050.14

0.64

0.160.11

0.062.34

Attraction

332212434332

Weighted

attraction0.440.240.160.1

0.070.20.20.21

0.640.240.33

0.062.8

Attraction

434333344444

Weighted

attraction0.440.240.320.15

0.210.30.150.28

0.640.320.44

0.123.61

Table 7QSPM Matrix

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Priority Score Strategy Rows

4321

2.082.342.893.61

Changing use of agricultural land to gardenDevelopment of dairy cows to increase milk and meat production

value-added from dairy plant Breeding livestock and poultry

1234

Table 8Strategies’ Priorities for Keshtosan’te Eshragh

Decrease1. Reduce office space complex2. Reduce reliance on external suppliers

Increase1. Advertising Products in the Industry2. testing more employees to mastering thetechnology of production3. appropriate incentive schemes providing anyinnovative proposals from staff

Elimination1. Remove some agricultural land into land forgardening2. Remove some customer loss and substitutionof new customers

Creation1. style livestock and poultry2. Plant and the production of value-added dairyproducts3. Development of dairy cows to increase milkand meat production

Table 9Four Action Framework

Figure 3. The comparison of the current status of Keshtosan’teEshragh with regional companies

Figure 4. Exclusive charts on four strategies for implementation

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concLuSIonThis paper utilized QSPM and SWOT matrices

to determine appropriate strategies for Eshraqagro -industry in Varamin. In order to survivein competitive environment, companies need touse their opportunities and strengths. They alsoneed to detect their weaknesses and threats allfor improving their conditions and to be moreeffective. These data are obtained from expertsfor Eshraq agro-industry. First strategies are se-lected and then their priorities are determined.Adopted strategies for this company are Smalllivestock and poultry and fish, dairy plants andvalue added products, development of dairycows to increase milk and meat production andchanging agricultural lands to garden respectively.This paper used Blue Ocean strategy to makethe company different from other competitors.

In other research that has been done abroad,Siavashan and Khari (2012) considered exportsas one of the strategies of strategic analysismatrix. Also reducing price of dairy is anotherstrategy of this matrix related to the externalthreats. In another study Ommani (2011) usedthe SWOT tool for agricultural and commercialmanagement. According to this article agriculturalactivities have a vital role in food security.Also population growth plays an important rolein the increased need for food and products.Sarma and Raha (2015) in a study consideredgovernment support as one of the external op-portunities and rise in prices as an existing threat.This study seeks to determine strategies fortrading beef in Bangladesh. Achmad et al. (2013)conducted a study to determine the businessstrategy veal in South Solavezy.

In this study, high population, the availabilityof quality product for export and financial supportfrom the government were considered as effectivefactors. But the important point in this investigationis that all of the classic strategic planning toolssuch as SWOT matrix are used and there is not

much of innovation. But, in the present study,we try to incorporate new tools such as strategicmanagement in classic Blue Ocean with othermethods. The new integrated approach for thestrategy need to be presented in terms of theagricultural products and the industry.

After implementing several strategic techniques,Oktaviani et al. (2015) also stated that nowadaysstrategic management requires the use of toolsthat look to the future and have superiority overother classical methods. But as the conclusionof this discussion, it can be stated that the futuredevelopment of the tool can be used to determinethe blue ocean strategies for a specific company.Therefore, it is highly recommended for com-panies to utilize the strategic models presentedin this study to achieve a better comprehensivevision for their company.

AcknowLEDgEMEntSThis research was supported/partially supported

by Keshtosan’te Eshragh Company. We thankour colleagues at there who provided insightand expertise that greatly assisted the research,although they may not agree with all of the in-terpretations/conclusions of this paper.

rEFErEncESAchmad, M., Hartoyo, S., Arifin, B., & Didu,

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Ghorbani, A., Raufirad, V., Rafiaani, P., & Azadi, H. (2015). Ecotourism sustainable development strategies using SWOT and QSPM model: A case study of Kaji Namakzar Wetland, South


Independent-sample t-test Levin's test Sig. t df P-value

Equality variance assumedEquality variance not assumed

0.025---

2.0252.038

120119

0.0110.015

Table 10Independent Sample t-test

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Gupta, M., Shri, C., & Agrawal, A. (2015). Strategy formulation for performance improvement of indian corrugated industry: An application of SWOT analysis and QSPM Matrix. Journal of Applied Packaging Research, 7(3), 60-75.

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How to cite this article:Abdolshah, M., Fazli Besheli, B., Fazli Besheli, S., & Norouzi, A. (2018). Strategic planning for agri-culture section using SWOT, QSPM and Blue Ocean- Case Study: Eshraq agro-industry company. In-ternational Journal of Agricultural Management and Development, 8(2), 149-162.urL: http://ijamad.iaurasht.ac.ir/article_540494_29c1bf8f28845c38b695e02dc99bdc59.pdf

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