25
External Factor
Opportunity
Internal Factor
Strength
External Factor
Threats
Internal Factor
Weakness
Quadrant-I
Strategy ? Aggressive
Quadrant-III
Strategy ? Turn-around
Quadrant-II
Strategy ? Diversifying
Quadrant-IV
Strategy ? Defensive
H. SWOT Analysis 1. SWOT Analysis Method
The development of strategy in the study is done by SWOT Strength, Weakness, Opportunity and Threats matrix analysis. Upon the results of SWOT
analysis, the target alternatives are squeezed necessary for finding the appropriate strategy in the study in quality assurance in agroindusty sector. Thus, SWOT
analysis can identify the related factors in the matrix, and provides the current potion and the strategies to be taken place, and also the weaknesses to be
minimized Rangkuti, 1998. There are four quadrants in the matrix along with the external factors
opportunity and threat and the internal factor weakness and strength as shown Figure 8. At each quadrant, there is own direction of strategy to be taken place as
shown Table 9. Quadrant-I
: Strategy Aggressive Quadrant-II
: Strategy Diversifying Quadrant-III : Strategy Turn-around
Quadrant-IV : Strategy Defensive
Figure 8 Quadrant matrix diagram and strategies provided
2. SWOT Matrix
Internal factor evaluation IFE and external factor evaluation EFE can be implemented by following table with weighting and rating, coming to the score
26 at each SWOT. The strategies will be formulated with the following matrix Table
11. Table 11 SWOT matrix table and appropriate strategies
IFA EFA Strengths S
Weaknesses W Strategy SO
Strategy WO Opportunities O
Strategy is to be developed maximizing strengths coinciding
with available opportunities and its advantages whenever the
position is in quadrant-I. Strategy is to be developed
minimizing weaknesses so as to apply available opportunities
whenever the position is in quadrant-III.
Strategy ST Strategy WT
Threats T Strategy is to be developed
maximizing strengths so as to overcome or contend the threats
whenever the position is in quadrant-II.
Strategy is to be developed minimizing weaknesses so as to
avoid threats whenever the position is in quadrant-IV.
Source: Marimin 2004 and Rangkuti 2006 To prepare SWOT matrix, all factors of four components are gathered
together, and elaborated and listed into the matrix table. By use of weight and rating for evaluation of the internal factors and the external factors, the two score
values will be gained as 1 IFEStrength – Weakness and 2 EFE Opportunity – Threat which are showing the current position of the target home industry in the
matrix quadrant. Consequently, the strategies can be provided indicating the directions
andor policies to be taken place in accordance with the existing strengths, weaknesses, opportunities, and threats, e.g., aggressive policy, diversifying policy,
turn around policy, and defensive policy in quadrant-I, quadrant-II, quadrant-III, quadrant-IV respectively. Upon the position and its policy, it is assumed that the
factors of strengths must be ma ximized as much as possible towards especially opportunities, and the factors of weaknesses must be minimized or overcome
towards opportunities and threats given Marimin, 2004. In case of tapioca industry, there are, in general, two manufacturing steps
which are consisted of crude tapioca production and fine tapioca production. Such two steps manufacturing pattern should be identified their strategy at each step
27 independently because of their different characteristics in their production each
other includ ing different marketing target. Thus, to identify their position in home industry and medium scale industry sector, a quadrant matrix is a starting point.
3. Internal and External Factors
