Strategy formulation through SWOT analysis : a case study of three rural people business organizations in Northeast Thailand | |
| Author | Nuntiya Hutanuwatr |
| Call Number | AIT Diss. no.AC-98-01 |
| Subject(s) | Rural development--Thailand, Northeastern Business enterprises--Thailand, Northeastern |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy, School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Abstract | Rural people business organizations (RPBOs), like business organizations, need appropriate strategies to keep their organizations vital. This study was conducted with the following objectives-J.) to investigate the compositions, relationships, and formulation process ofthe current strategies employed by three selected RPBOS, and 2) to investigate the SWOT (strengths, weaknesses, opportunities, and threats) process as a tool for formulating the future strategies of the RPBOs and investigate its resultant strategic compositions and relationships. Qualitative approaches, case studies, and action research were employed under the conceptual framework built from business strategy and formulation, and people organization in Thai rural contexts. The three selected RPBOs, located in the Northeast of Thailand, were native weaving Prae Pan Group, Trasang Credit Union C00perative, and Rice Mill of Naso Farmer Association. The future strategies of the three RPBOS, formulated through the SWOT process, not only retained most of the relevant current strategies but also contained a number of important additional strategies. These additional strategies were either revised versions of some current strategies or new strategies. Restructuring organizations, develOping younger generations and the members, improving incentive for key staffs, and strengthening allied network were additional group development strategies to cope with the growth of their businesses or organizations. Developing new products or services and reducing production cost were their additional production strategies to increase their competitive edge. Building brand names and having sale persons were their additional marketing strategies to penetrate their markets more offensively. These future strategies were defensively constructed based mainly on solving their weakness. This is in contrast with those of general business organizations whose strategies are offensively constructed based mainly on their strengths and opportunities. This can be a reflection of their differences in socio economic backgrounds. The rural people grown up peacefully in peasant farming culture of rural society are more generous and less competitive when compared with businessmen who have to struggle severely in city. However, comparing with the current strategies, the resultant future strategies were more competitive. This can be due to their gain in experience received from handling their businesses for some time. The SWOT process a systematic strategy formulation procedure which is generally employed bybusiness Organizations was modified and introduced for formulating the future strategies of the RPBOs. This study demonstrated that at least three Thai RPBOs were able to successfully use the SWOT process as a tool for formulating their strategies with certain limitations, conditions, and techniques. Leaders of all the RPBOs, based mainly on their own initiation and decision making, were able to pursue the whole process of the SWOT actively and consistently. Among the limitations and conditions identified, limited ability in perceiving future socio economic changes was the main limitation in identifying “Opportunities” and “Threats”, particularly those relating to marketing and technology. Similar to business IVorganizations, the realization of the need of significant changes of their organizations by the key leaders was an essential condition. In contrast to business world, the SWOT process applied has to be harmonized well with rural socio-cultural context language, timing, place, gender, familiarity, and farming orientation. This was another set of the conditions. The useful techniques enabled the RPBOS to use the SWOT process successfully were priority rating. modified SWOT matrix, and identifying key success factors. At least two additional sets of evidences derived from this study have convinced that the SWOT process is a potential tool for formulating strategies of Thai RPBOs. First, the SWOT process proved itself that it facilitated highly active participation, enabled systematic strategy formulation, made good use of information, stimulated thoughts of the participants, revealed hidden issues of an organization, provided effective educational process, created the sense of belonging and commitment, and resulted in immediate implementation of crucial issues. Second, from comparing the future strategies with the current strategies of the RPBOs, it indicated that most of relevant current strategies were remained in the fiJture strategies. Furthermore, new strategies for solving hidden weakness or urgent problems were added to the future strategies. |
| Year | 1998 |
| Type | Dissertation |
| School | School of Environment, Resources, and Development |
| Department | Department of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB)) |
| Academic Program/FoS | Agricultural, Conservation and Rural Development (AC) |
| Chairperson(s) | Sheng, Yap Kioe; |
| Examination Committee(s) | Weber, Karl E.;Soparth Pongquan;Igel, Barbara; |
| Scholarship Donor(s) | Royal Thai Government (RTG);National Research Council of Thailand; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 1998 |