DEVELOPING A STRATEGIC PLAN OF EASTERN ALBORZ COAL COMPANY USING SWOT METHOD

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1 ISSN: (Print) ISSN: (Online) DEVELOPING A STRATEGIC PLAN OF EASTERN ALBORZ COAL COMPANY USING SWOT METHOD 1 ELAHE HASSANI Master of Major Branches of Government Management of Change, Islamic Azad University, Shahrood Eastern Alborz Coal Company Employee ABSTRACT The subject of the research design appropriate strategic planning and Eastern Alborz Coal Company is a case study using the SWOT. In this context, a preliminary interview with experts in Eastern Alborz Coal Company, they were asked to rate the strengths, weaknesses, opportunities and threats facing companies that think their lists. The numbers of factors that influence the preparation of strategic planning have been selected on the basis of two questionnaires, each containing 31 questions they were designed. After these steps, the first questionnaire, among 74 managers and experts, and the second questionnaire was distributed among 25 managers. Analysis of data was performed using the SWOT matrix, and the results of the study in four general strategy ST, SO, WO, WT and SWOT hybrid strategy are proposed. KEYWORDS: Strategic Planning, Strengths, Weaknesses, Opportunities, Threats, Internal Environment, External Environment Organizations to maintain and achieve growth and development should pay special attention to the environment in which they are located. Organizational environment composed of the elements and factors that directly and indirectly affect the organization. These effects are concretized in the form of environmental opportunities and threats. The tools is to deal with the opportunities and threats, strategic planning. Strategic planning by examining the internal and external environment of the organization, opportunities and threats to the environment, and to identify internal strengths and weaknesses, and with regard to the organization's mission, long-term goals for the organization sets, and to achieve these goals, the strategic options for action selection strategies, which rely on strengths and taking advantage of opportunities, weaknesses eliminated, and avoid threats to the proper conduct of the competition will lead to organizational success. Eastern Alborz Coal Company, as well as a system that will work in this turbulent environment, are no exception to this rule. The company, despite its long history, has been seeking a strategic plan to continue their activities, so it appears that the implementation of the strategic planning of the scientific method, to solve a lot of problems. Strategic planning is a continuous process through targeted strategies to enhance and improve the performance of the organization. This process requires a comprehensive look at the routes that the company would be in addition to assessing the current position of the company and also create and implement such an approach is that for the Advancement of moving forward (Elizabeth Frizsell et al.: 2004). Strategic planning process is a systematic program that includes the current state of knowledge of the procedures and steps that organizations such missions, visions of future performance values, needs (strengths and weaknesses, opportunities and threats), goals, prioritized actions and strategies, action plans and programs are run and display (Rob Felix et al, 2001). Many companies SWOT analysis as part of the strategic planning process to do so before making your strategy, identify strengths and weaknesses, opportunities and threats organizations (Edward Bernroider, 2002). SWOT analysis is a useful method for concise analytical model which reflects the findings of each of the factors identified strengths and weaknesses and the opportunities and threats, and strategies appropriate to the current status of the profession (Ahmadi, 2003). According to the material, the purpose of the study was to determine the effectiveness of strategies in Eastern Alborz Coal Company is using SWOT method. 1- What are the opportunities and threats of the external environment as the Eastern Alborz Coal Company's strategic plan exist? 2- What are the internal environmental factors in the judgment of the strengths and weaknesses of the Eastern Alborz Coal Company's strategic plan exist? 3- According to the existing conditions ahead, what are the effective strategies used in Eastern Alborz Coal Company SWOT? 1 Corresponding author

2 MATERIALS AND METHODS This paper describes a practical view of the process - is a survey. The population of this thesis is two groups: 1- Experts Eastern Alborz Coal Company that their number is 270 people. 2- The number of directors is 25 people. The data gathering tool was a questionnaire. In order to answer the research questions, a preliminary interviews with experts in Eastern Alborz Coal Company, they were asked to rate the strengths and weaknesses, opportunities and threats facing the company is that they think should be listed. The numbers of factors that influence the preparation of strategic planning have been selected on the basis of two questionnaires, each containing 31 questions they were designed. After these steps, the first questionnaire, among 74 managers and experts, and the second questionnaire was distributed among 25 managers. In order to determine the validity of a questionnaire prepared by the researcher (1), a preliminary test was done, in the sense that the first time, a preliminary questionnaire among 15 samples collected and distributed, and obscure questions, communication and discretion of the faculty supervisor and consultant, were reviewed, and then the second time, the final questionnaire was developed and distributed the new edition (the initial inventory adjustment). To determine the reliability of the questionnaire, the Cronbach alpha was used, the results of the prototype questionnaire 1 shows the Cronbach's alpha coefficient is 98.0, which indicates that it is acceptable for credit. Analysis of data was performed using the SWOT matrix. FINDINGS Evaluation Matrix The opportunities and threats are identified, these factors have been isolated, and external factors evaluation matrix was formed to organize the terms of opportunity or threat is detected. Table 1: Evaluation Matrix of Eastern Alborz Coal Company Coefficient Rank Score Opportunities 1 - skilled manpower and cheap Due to state laws in the country enough to risk their lives and property in Coal Mines temperate climate city anymore rich in minerals Geographical Mines Take advantage of the private sector to invest Threats 1 - Limits of Labor Law and Social Security to adjust staffing inefficient low competitiveness Take advantage of low foreign exchange reserves of the facility and long-term environmental impacts caused by the formation of acidic wastewater Being single customer provisions limiting Grand Total The final of 2.5, indicates that the chances of further threats and take advantage of these opportunities can provide a better future for the company. 53 < 4. = 2EFE 1 < As a result, Eastern Alborz Coal Company according the external factors are higher than average, which means it has more chances. Internal factor evaluation matrix of Eastern Alborz Coal Company

3 Table 2: Evaluation Matrix Internal Factors Eastern Alborz Coal Company Internal factors Coefficient Rank Score Strengths 1 - Senior Manager with experience communication between managers and employees There are many highly educated professionals and Increase the amount of Increase the amount of extracted Equipped with kaizen, and certificates OH SAS 18001, ISO 9001/2000, P.M Changes in opening mining methods and extraction methods Quality of Coal Having the reputation of Esfahan Steel Company legally and practically possible to convert assets to cash covered to be eligible to participate in the Exchange There are health and safety, working conditions Weaknesses 1 - sales and lower profits liquidity problems Lack of job security postponement or delay in payment of salaries and the demands of the employees and workers high costs for setting up the projects and transport Increased risk of investment in industrial projects The use of low- technology and technical knowledge Total The final of 2.5 is the organization that represents me as a whole in terms of internal factors have strength. 61 < 4. = 2IFE 1 < As a result, Eastern Alborz Coal Company's internal factors are higher than average, which means facing organized strengths will outweigh its weaknesses. Table 3: SWOT analysis matrix of Eastern Alborz Coal Company Internal factors Opportunities: 1- Skilled manpower and cheap Strengths: 1 - Senior Manager with experience 2 - communication between managers and employees 3 - There are many highly educated professionals 4 - Increase the amount of product 5 - Increase the amount of extracted 6 - Equipped with kaizen, and certificates OH SAS 18001, ISO 9001/2000, P.M 7 - Changes in opening mining methods and extraction methods. 8 - Quality of Coal 9 - Having the reputation of Esfahan Steel Company 10 - legally and practically possible to convert assets to cash covered 11 - to be eligible to participate in the Exchange 12 - There are health and safety, working conditions SO Strategies: 1 - National support through an emphasis on quality

4 2- Due to state laws in the country enough to risk their lives and property in Coal Mines 3- Temperate climates of Shahroud City 4- Rich in minerals 5- Geographical Mines 6- Take advantage of the private sector to invest 2 - assignment of mine covering the private sector 3 - Develop capital investment activities through the establishment of coke plant, for a revival of the mining area and create added value 4 - Entry into global markets through export surplus for development activities in the field of international 5 - exploration of coal reserves and resources and focus on equipping and preparing deposits Continued Table 3: SWOT Analysis Matrix of Organization Internal factors Threats: 1 - Limits of Labor Law and Social Security to adjust staffing inefficient 2 - low competitiveness 3 - Take advantage of low foreign exchange reserves of the facility 4 - and long-term environmental impacts caused by the formation of acidic wastewater 5 - Being single customer 6 - provisions limiting Strengths: 1 - Senior Manager with experience 2 - communication between managers and employees 3 - There are many highly educated professionals and 4 - Increase the amount of 5 - Increase the amount of extracted 6 - Equipped with kaizen, and certificates OH SAS 18001, ISO 9001/2000, P.M 7 - Changes in opening mining methods and extraction methods. 8 - Quality of Coal 9 - Having the reputation of Esfahan Steel Company 10 - legally and practically possible to convert assets to cash covered 11 - to be eligible to participate in the Exchange 12 - There are health and safety, working conditions ST Strategies: 1 - Current product offerings into new geographic areas and new customers 2 - Corporate restructuring and cuts inefficient 3 - Create more green space to reduce environmental impact 4 - Regarding the issue of competitiveness in domestic and foreign markets and enhance the quality of engagement with the global competition Continued Table 3: SWOT Analysis Matrix of Organization Internal factors Opportunities: 1 - skilled manpower and cheap 2 - Due to state laws in the country enough to risk their lives and property in Coal Mines 3 - temperate climates of Shahroud City 4 - rich in minerals 5 - Geographical Mines 6 - Take advantage of the private sector Weaknesses: 1 - sales and lower profitability 2 - liquidity problems 3 - Lack of job security 4 - postponement or delay in payment of salaries and the demands of the employees and workers 5 - high costs for setting up the projects and transport 6 - Increased risk of investment in industrial projects 7 - The use of low-technology and technical knowledge WO Strategies: 1 - increase sales through improved product or a new type of supply 2 - Improving the conditions and laws relating to workers 3 - Attracting new investors plan to replace old units with new technology and new machines to replace old technology

5 Continued Table 3: SWOT Analysis Matrix of Organization Internal factors Threats: 1 - Limits of Labor Law and Social Security to adjust staffing inefficient 2 - low competitiveness 3 - Take advantage of low foreign exchange reserves of the facility 4 - and long-term environmental impacts caused by the formation of acidic wastewater 5 - Being single customer 6 - provisions limiting Weaknesses: 1 - sales and lower profitability 2 - liquidity problems 3 - Lack of job security 4 - postponement or delay in payment of salaries and the demands of the employees and workers 5 - high costs for setting up the projects and transport 6 - Increased risk of investment in industrial projects 7 - The use of low-technology and technical knowledge WT Strategies: 1 - reduce ongoing costs and reduce the cost of product 2 - Taking advantage of the technological benefits of mining companies renowned for mechanized mining activities to reduce costs and enable greater productivity Integration of regional strategies SWOT: 1- Using Customer comments to improve the system and out of respect for the perspectives and customer approach in all aspects and periods 2- Financial reform and practices capital increase in exchange for accepting 3- Call out to select a qualified consultant to renovate and rebuild the factories 4- Improve the ability to increase production capacity Internal and external analysis of Eastern Alborz Coal Company According to the final grade evaluation matrix of internal and external factors that are defined in Tables 4-4 and 4-8, Matrix plaid interior and exterior of Eastern Alborz Coal Company is formed in accordance with Figure 4-1 and the position of the main points to be determined. Figure 4.1: The four external and internal matrixes of Eastern Alborz Coal Company According to the organization in the position of the SO (aggressive strategy) has been used strategies are: 1- National support through an emphasis on quality 2- Assignment of mine covering the private sector

6 3- Develop capital investment activities through the establishment of coke plant, for a Revival of the mining area and create added value 4- Entry into global markets through export surplus for development activities in the field of international 5- Exploration of coal reserves and resources and focus on equipping and preparing deposits Quantitative Strategic Planning Matrix of Eastern Alborz Coal Company represents the power and potential strategies to deal effectively with internal and external factors (opportunities and taking advantage of the strengths and eliminate weaknesses and avoid threats). It is not attractive / Rating 1 It is somewhat interesting / Rating 2 The acceptable range is attractive / Rating 3 It is very interesting / Rating 4 The strategies used are obtained according to the position include: 1- National support through an emphasis on quality 2- Assignment of mine covering the private sector 3- Develop capital investment activities through the establishment of coke plant, for a revival of the mining area and create added value 4- Entry into global markets through export surplus for development activities in the field of international 5- Exploration of coal reserves and resources and focus on equipping and preparing deposits Table 4: Quantitative Strategic Planning Matrix of Eastern Alborz Coal Company Main factors determining success Importance Coefficient Applicable strategies types Strategy 1 Strategy 2 Strategy 3 Opportunities : 1 - skilled manpower and cheap state attention temperate climates anymore rich in minerals Geographical Mines Take advantage of the private sector Threats : 1 - labor law limits to adjust staffing inefficient low competitiveness Take advantage of low foreign exchange reserves of the facility Formation of environmental impacts resulting from wastewater Being single customer provisions limiting Total Strengths: 1 - Senior Manager with experience communication between managers and employees There are many highly educated professionals and Increase the amount of Increase the amount of extracted Equipped with kaizen certification and Changes in opening mining methods and extraction methods Quality of Coal Having the reputation of Esfahan Steel

7 Company 10 - legally and practically possible to convert assets to cash to be eligible to participate in the Exchange There are health and safety, working conditions Weaknesses: 1 - sales and lower profitability liquidity problems Lack of job security postponement or delay in payment of salaries and the demands Staff and Workers high costs for setting up the projects and transport Increased risk of investment in industrial projects The use of low- technology and technical knowledge Total Main factors determining success Continued Table 4: Quantitative Strategic Planning Matrix Importance Coefficient Applicable strategies types Strategy 1 Strategy 2 Strategy 3 Opportunities : 1 - skilled manpower and cheap state attention temperate climates anymore rich in minerals Geographical Mines Take advantage of the private sector Threats : 1 - labor law limits to adjust staffing inefficient low competitiveness Take advantage of low foreign exchange reserves of the facility Formation of environmental impacts resulting from wastewater Being single customer provisions limiting Total Strengths: 1 - Senior Manager with experience communication between managers and employees There are many highly educated professionals and Increase the amount of Increase the amount of extracted Equipped with kaizen certification and Changes in opening mining methods and extraction methods Quality of Coal

8 9 - Having the reputation of Esfahan Steel Company legally and practically possible to convert assets to cash to be eligible to participate in the Exchange There are health and safety, working conditions Weaknesses: 1 - sales and lower profitability liquidity problems Lack of job security postponement or delay in payment of salaries and the demands Staff and Workers high costs for setting up the projects and transport Increased risk of investment in industrial projects The use of low- technology and technical knowledge Total CONCLUSIONS The purpose of this research is to create a set of strategies so that the company can and components in order to apply it opportunity, and the strengths and remove limitations and weaknesses can help. In this regard, the following strategies to identify formulate and recommend. SO Strategies: 1- National support through an emphasis on quality 2- Assignment of mine covering the private sector 3- Develop capital investment activities through the establishment of coke plant, for a revival of the mining area and create added value 4- Entry into global markets through export surplus for development activities in the field of international 5- Exploration of coal reserves and resources and focus more on equipping and preparing deposits ST Strategies: 1- Current product offerings into new geographic areas and new customers 2- Corporate restructuring and cuts inefficient 3- Create more green space to reduce environmental impact 4- Regarding the issue of competitiveness in domestic and foreign markets and enhance the quality of engagement with the global competition WO Strategies: 1- Increase sales through improved product or a new type of supply 2- Improving the conditions and laws relating to workers 3- Attracting new investors plan to replace old units with new technology and new machines to replace old technology WT Strategies: 1- Continuous cut costs and reduce product cost 2- Exploiting the benefits of mineral technology company known for mechanized mining activities to reduce costs and enable greater productivity Integration of regional strategies SWOT: 1- Using Customer comments to improve the system and out of respect for the perspectives and customer approach in all aspects and periods 2- Financial reform and practices capital increase in exchange for accepting 3- Call out to select a qualified consultant to renovate and rebuild the factories

9 4- Improve the ability to increase production capacity According to the final matrix to evaluate external and internal factors evaluation matrix, which indicates that the Eastern Alborz Coal Company in terms of external factors, have more opportunities and in terms of internal factors as a whole, I have to be strong, and also according to the results of internal and external checkered Matrix Quantitative Strategic Planning, Status of the Eastern Alborz Coal Company in the position of SO (aggressive strategies) has been a strategy used by companies in priority order are: First strategy: Development activities through established investment coke plant, for a revival of the mining area and create added value. Second strategy: Entry into global markets through export surplus for development activities in the field internationally. Third strategy: Exploration of coal reserves and resources and focus on equipping and preparing mines. REFERENCES Ahmadi, Ali, Alireza and Fatollah, Mehdi, Tajoddin and Iraj (2003) "A comprehensive approach to strategic management", Tolid Danesh Publications. Edward, Bernroider,( 2002,October ). Factors in SWOT Analysis Applied to Micro,Small-to Medium, and Large Software Enterprises : An Austrian Study ". European Management Journal Vol.20,No.5,pp ,Elsevier Science Ltd Elizabeth, Frizsell, & Mary, O,Brien & Lynda, Arnold. (2004, January ). "Strategic Planning for Child Welfare Agencies. Retrieved from Rob, Felix, & Judy, Farrah, & Jo-Ann, Greenstein & Ellen, Hirsch de Haan & Mike, Levin & Eric, Matsumoto, & Debra, Warren,(2001). Strategic Planning " by Foundation for Community Association Research. Fourth Strategy: National support by emphasizing quality. Fifth Strategy: Assignment of mine covering the private sector.