a hybrid business strategy selection process for a textile company using swot and fuzzy anp–a case...
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7/30/2019 A HYBRID BUSINESS STRATEGY SELECTION PROCESS FOR A TEXTILE COMPANY USING SWOT AND FUZZY ANPA CA
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International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976
6510(Online), Volume 3, Issue 2, May-August (2012)
A HYBRID BUSINESS STRATEGY SELECTION PROCESS FOR A
TEXTILE COMPANY USING SWOT AND FUZZY ANPA CASE
STUDY
K.L. Jeyaraj*,a
, C. Muralidharanb, T. Senthilvelan
cand S.G. Deshmukh
d
aDepartment of Manufacturing Engineering, Annamalai University,Chidambaram608002, TamilNadu, India.Email: [email protected]
bDepartment of Manufacturing Engineering, Annamalai University,Chidambaram608002, TamilNadu, India.
cDepartment of Mechanical Engineering, Pondicherry Engineering College,Pondicherry605014, India.
dDepartment of Mechanical Engineering, Indian Institute of Technology Delhi, New Delhi110016, India.
AbstractMany companies are conducting a SWOT analysis as part of their strategic planning. This is
the process to identify the strengths (S), weaknesses (W), opportunities (O) and threats (T)
before proceeding to the formulation of their long and short term strategy. This work initiates
with the formation of SWOT matrix, which contains the SWOT factors, sub-factor and
strategies. To ensure the successful implementation of the best strategy, here raises a critical
issue of how firms can better evaluate and select a best strategy before implementation. A
framework is proposed to address the inner dependence relations of SWOT factors and sub-
factors with the aid of analytical network process (ANP). The results obtained through the
proposed approach are more objective and unbiased due to two reasons. Firstly, the results
are generated by decision makers in the presence of multiple criteria. Secondly, the fuzzy
linguistic approach employed has more advantage to reduce distortion and losing of
information. An empirical study is presented to illustrate the application of the proposed
approach. The ANP algorithm suggests to implement and optimize an innovative process
(Colour Fast FinishCFF) to reduce water, power, fuel and effluent load (ST1). Finally this
article concludes with the force field analysis which will provide the guidelines for the
implementation of selected strategy.
Key words: SWOT analysis, strategic planning, Fuzzy ANP, Force field analysis.
1.0 An Overview of Indian Textile Industry
The textile industry in India plays a pivotal role through its contribution to industrial output,
employment generation, and the export earnings of the country. It contributes about 14 per
cent to industrial production, 4 percent to the GDP, and 16.63 percent to the country's export
earnings. It would provide direct employment to over 35 million people by 2010 to 2011
(Texmin, 2005). Thus, the growth and all round development of this industry has a direct
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976 6367(Print)ISSN 0976 6375(Online)
Volume 3, Issue 2, May- August (2012), pp. 124-143
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IJM I A E M E
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bearing on the improvement of the economy of the nation. In Indias current scenario, textile
industry is facing more challenges (cotton and yarn price fluctuation, effluent treatment and
discharge, customer expectation on high quality and disposal of solid waste) from all the
areas of business. For facing these challenges, organization has to plan their effective long
and short range strategy. Before starting the strategic planning, the organization has to
identify their internal capabilities and their competitive environment. SWOT analysis is oneof the self evaluating tools to measure the company internal capabilities and external
competitive environment. This article concentrates the textile processing units business
strategy selection of a leading textile company in south India. This company is having its
entire value chain of textile process. Our research interest is the processing unit (dyeing and
finishing) of that company.
1.1 Introduction to SWOT Analysis
Many companies are conducting a SWOT analysis as part of the strategic planning process to
identify strengths, weaknesses, opportunities and threats before proceeding to the formulation
of a strategy (Houben et al., 1999). SWOT analysis, meaning the analysis of key or
critical success factors, belongs to the highest ranked set of techniques of strategic analysisused by firms in empirical surveys (Glaister and Falshaw, 1999). Most of literatures are
covering the strategic planning process; most approaches include a cyclic iteration of the
following five elements. (1) Strategic planning process begins with a statement of the
corporate mission and goals. (2) Analysis of the organizations external competitive
environment. (3) Analysis of the organizations internal operating environment. (4) Selection
of focused organization strategies. (5) Implementation of the selected strategies. The last step
also involves the design of the organizational structure and control systems necessary to
implement the chosen strategy (Hax and Majluf, 1991). The focus of this article lies upon
step 4, selection of the strategy which is best among the alternative strategies. (Weihrich,
1982, 1999) modified SWOT (or TOWS) into the format of a matrix, matching the internal
factors (i.e., the strengths and weaknesses) of an organization with its external factors (i.e.,
opportunities and threats) to systematically generate responses that ought to be undertaken bythe organization. In many cases there is dependencies found among the external and internal
factor effects. This dependency needs to be taken into account during the strategic planning
(Yuksel and Dagdeviren, 2007). If it used properly, SWOT can provide a good basis for
strategy formulation (Kajanus et al., 2004). However, SWOT analysis is having deficiencies
in the measurement and evaluation steps (Hill and Westbrook, 1994, Christianson, 2002). In
conventional SWOT analysis, the magnitude of the factors is not quantified to determine the
effect of each factor on the proposed plan or strategy. In other words, SWOT analysis does
not provide an analytical means to determine the relative importance of the factors, or the
ability to assess the appropriateness of decision alternatives based on these factors (Kajanus
et al., 2004). For this reason, SWOT analysis alone cannot comprehensively appraise the
strategic decision-making process (Hill and Westbrook, 1994).
1.2 Introduction to Analytical Network Process (ANP)
Structuring of a decision problem with functional dependencies that allows for feedback
among clusters is considered to be a network system. Saaty suggested the use of AHP to
solve the problem of independence among alternatives or criteria, and the use of ANP to
solve the problem of dependence among alternatives or criteria (Saaty, 1978). The ANP, also
introduced by Saaty, is a generalization of the AHP (Chang and Huang, 2006). While the
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AHP represents a framework with an un-directional hierarchical relationship, the ANP allows
for complex interrelationships among decision levels and attributes. The ANP feedback
approach replaces hierarchies with networks in which the relationships between levels are not
easily represented as higher or lower, dominant or subordinate, direct or indirect. ANP can be
described in the following steps (Chung et al., 2005): Step 1. Model construction and
problem structuring, Step 2. Pair-wise comparison matrices and priority vectors, Step 3.Supermatrix formation and Step 4. Selection of the best alternatives. A system with feedback
(inner or outer dependence) can be represented by a network.
1.2.1 Fuzzy Set theory for ANP
Fuzzy set theory can express and handle vague or imprecise judgments mathematically. In
fuzzy logic, each number between 0 and 1 indicates a partial truth, whereas crisp sets
correspond to binary logic [ ]10, . Hence, fuzzy logic can express and handle vague orimprecise judgments mathematically (Al-Najjar and Alsyouf, 2003). In particular, to tackle
the ambiguities involved in the process of linguistic estimation, it is a beneficial way to
convert these linguistic terms into fuzzy numbers. This study builds on some important
definitions and notations of fuzzy set theory and this has been given in Appendix 1. In orderto perform a pair wise comparison among the parameters, a linguistic scale has been
developed. The scale is depicted in Figure 1 and the corresponding explanations are provided
in Table 1.
Figure 1. Triangular fuzzy membership function and fuzzy number N~
Table 1. Linguistic variables and fuzzy numbers for the importance weight
Linguistic
scaleExplanation
Fuzzy
numbers
The inverse of
fuzzy numbers
Equal
Importance
Two activities contribute equally to the
objective(1,1,1) (1,1,1)
ModerateImportance Experience and judgment slightly favor oneactivity over another (1,3,5) (1/5,1/3,1)
Strong
Importance
Experience and judgment strongly favor one
activity over another(3,5,7) (1/7,1/5,1/3)
Very strong
Importance
An activity is favored very strongly over
another; its dominance demonstrated in practice(5,7,9) (1/9,1/7,1/9)
Demonstrated
ImportanceThe evidence favoring one activity over another
is highest possible order of affirmation(7,9,11) (1/11,1/9,1/7)
1 2 3 4 5 6 7 8 9 11 l m u X
(x)~N
0
1
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The main objectives of this paper are to:
Form the SWOT matrix of a textile company. Build the hierarchy and network model of the SWOT matrix. Create complete inner dependence relationship of network model. Incorporate fuzziness in pairwise comparison matrix to eliminate the datavagueness and Create super matrix. Find the best strategy for the textile company. Force field analysis of the selected strategy.
This paper is organized as follows: The literature review is presented followed by the
methodology used for the study with a case of a textile company is given. A step by step
approach to select the best strategy is given based on fuzzy ANP. Finally this article
concludes with the force field analysis which will provide the guideline to the
implementation of selected strategy.
2.0 Literature reviewThe following are the review of literatures on SWOT analysis in the area of textile sector. Sandeep
and Goswami, (2007), have applied SWOT analysis in Indian handmade carpets industry and made aSWOT matrix. The SWOT analysis confirmed that engaging handmade carpet work produces gainfulemployment resulting socio-economic growth. Ramesh (2006) applied SWOT analysis of garment
industry and analyzed the barriers in the garment exporters in district Salem, India. In his article,SWOT analysis is used to determine the textile companys long and short range strategic planning.Dadashian et al., (2007) have applied AHP for developing the balanced scorecard on an alliance-making of eight textile companies. The work has been conducted as a qualitative case study at thetextile firms in Isfahan. But the selected factors for study are assumed to have no inner dependence
between them. Hussain et al., (2009) have made a study to identify internal and external factors
relevant to textile and clothing supply chain in Pakistan using SWOT-AHP / ANP analysis. The
identified factors played an important role in the development of strategies which are useful for
improving the competitiveness of the chain. AHP and ANP were used to find the potential strategy.But in their paper the authors dealt only the 1
stlevel of inner dependence of the SWOT main factors.
The sub factors inner dependence is not accounted. Hussain et al., (2010) have focused to examine the
potential of different strategies formulated by experts on Pakistans textile and clothing supply chaincase. The intension was to formulate a decision structure based on external view of the chain and with
more generalized criteria based on SWOT AHP / ANP. The inner dependence between the sub-factors is not considered even in their study. Hussain et al., (2011) have made a future opportunity
based planning analysis for Pakistans textile and clothing supply chain case. They have formed amethodology for developing a planninglink between chain entities and opportunities based on
SWOT ANP, assuming sub-factors as independent. Rezaie et al., (2010) have made a novel
systematic method to obtain the most proper organizational safety strategies in a textile company in
Iran by utilizing SWOT concepts. Yuksel and Dagdeviren, (2007) have applied the strategic decision
making SWOT ANP analysis for a textile company. Their paper demonstrated the process for
quantitative SWOT analysis when there is dependence among strategic factors. In this study a
complete inner dependency analysis with ANP is suggested with a textile company case. SWOT mainfactor and SWOT sub factors inner dependence is measured and incorporated for strategy selection. Anew approach of network interdependence and super matrix is constructed. More over, the literatures
show that researchers have not considered the vagueness in the decision makers impreciseness inSWOT AHP / ANP pair wise comparison matrix. To eliminate the data vagueness in this study,
fuzzy set theory is used as an improvement process from the existing study.
3.0 MethodologyThe proposed methodology is given as a flow chat (Figure 2), which starts from SWOT matrix. For
selection of the best strategy from the SWOT matrix, the proposed Fuzzy ANP algorithm is as
follows:
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Step 1: Identify SWOT sub-factors, determine the alternative strategies according to SWOT sub-
factors and form the SWOT matrix. Table 2 shows the textile companys key internal and external
strategy for business improvement. Internal strength and weakness variables, external opportunity and
threat variables are also given in Table 2 to plan the strategies. This matrix is developed based on thequantitative analysis of each SWOT factors and sub-factors. The thirty three SWOT sub-factors are
identified based on the prior experience of the researcher, from literature and also with the help of
brainstorming method. The same is made as rating type questionnaire. All the thirty threequestionnaires are evaluated in qualitative nature. The questionnaires are surveyed by interview(Edward, 2002 and Gorsuch, 1983) through all the (125 no) staff members in top management,
managerial level and supervisory level of the company (Jeyaraj et al., 2011). The results of the
matching are listed in the four separate quadrants (i.e. MaxiMaxi SO; MiniMaxi WO; MaxiMini
ST and MiniMini WT strategies).
Figure 2. Flow chart for the methodology used
Formation of SWOT matrix
Problem structure and construction of
hierarchy model
Construction of network model and
inner dependence model
Pair wise comparison matrices
Formation of supermatrix
Selection of best strategy
Force filed analysis
For matching external and
internal SWOT factors for
strategy building
To classify SWOT
factors, sub factors and
alternate strategies with
a linka e
To study the inner
dependence between the
SWOT factors and sub
factors
To find the importanceweight of factors, sub
factors and alternatives.
Also to find the inner
dependence weight
A matrix format to
incorporate inner
dependence to the
factor wei hts
Selection of best
strategy based on ANP
weight-age
To analyze the positive
negative environment to
implementation of the
selected strate
Entire ANP
activity
Fuzzy ANP
activity
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Table 2. SWOT matrix of the textile company
SWOT
Internal Strength Internal weakness
1. (C6S) Raw material supply 1. (C12W) Operatives fatigue
2. (C4S) Low labour cost 2. (C15 W) Fragmented company3. (C1S) Mass production setup 3. (C11W) Textile engineering Skills
4. (C2S) Cost conscious business 4. (C13 W) Effluent treatment capacities
5. (C5S) Capital investment
availability5. (C14W) Availability of water
6. (C3S) Strong R & D for dyeing and
finishing6. (C10W) Work environment
External Opportunity Maxi - Maxi (SO strategy) Mini - Maxi (WO strategy)
1. (C18O)Market orders Exports / Locals
(SO1) Production and ETP line
balancing, can be achieved by
changing product mix and production
plan
(WO1) Implementation of OHASAS
and EMS
2. (C19O) Marine discharge facility (SO2) Development of own retail
market across the south India
3. (C20O) Technical textile(SO3) Production and ETP line
balancing
4. (C21O) New developments in dyes,
pigments and chemicals
External Threat Maxi - Mini (ST strategy) Mini - Mini (WT strategy)
1. (C30T) High water consumption /
effluent generation
(ST1) Implement and optimize an
innovative process (Colour Fast Finish
- CFF) to reduce water, power, fuel
and effluent load
(WT1) Time and motion study and
implementation
2. (C26T) Product lead time
(ST2) Capacity improvement of power
generation by own generation or from
3rd party or from wind mills
(WT2) Ergonomics study and
implementation
3. (C31T) Disposal of solid waste
generated from effluent
(ST3) Capacity improvement of steam
generation by install new boiler units
(WT3) Training and skill development
campaign in production and services
for production
4. (C29T) Availability of electrical
power
(ST4) Production, lead time and
quality improvement through TPM
and TQM
(WT4) Re locate and integration of the
value chain of the company by
considering the cost benefit
5. (C25T) Availability fuel for steam
generation(ST5) Implementation of SA 8000
6. (C24T) Ecological product requirement
7. (C28T) Social awareness
8. (C27T) Market competition
Step 2: Specify the problem structure of the SWOT matrix and the hierarchical representation of the
SWOT matrix. The problem is transformed into a hierarchical structure, as suggested by Saaty and
Mariya, (2008), for decision making. The proposed hierarchical model structure is constructed using
the Web-HIPRE1
software and it is presented here in Figure 3. The overall problem consists of the
goal, Determining Best Strategy which is based on four factors: strengths, weaknesses,opportunities and threats (Yuksel and Dagdeviren, 2007). These factors are further added with sub
factors of relevant importance to the chain and included six strengths, six weaknesses, four
opportunities and eight threats. Linking the goal with the factors and sub-factors, thirteen strategies
are suggested which may have potential contributions in a textile company strategic planning.
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Step 3: Construct the network of the SWOT model and inner dependence among the SWOT factorsand SWOT sub-factors. The hierarchy and network model proposed in this study for SWOT analysis
is composed of four levels, as shown in Figure 4.
Figure 3. Hierarchical model for determining the best strategy of a textile company
Figure 4. Hierarchy and network representation of SWOT model
Alternative
(b) The network of SWOT model
S W O T
factors
Goal
Criteria
Sub
Criteria
BestStrategy
S W O T
sub-factors
Alternate
Strategy
Alternative
S W O T
factors
Goal
Criteria
Sub
Criteria
BestStrategy
S W O T
sub-factors
Alternate
Strategy
Inner
dependence
Inner
dependence(w21)
(w32)
(W43)
(w1)
(W2)
(w3)(W4)
(W5)
(a) The hierarchy of SWOT model
Cluster
Element
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The goal (best strategy) is indicated in the first level, the criteria (SWOT factors) and sub-
criteria (SWOT sub-factors) are found in the second and third levels respectively, and the last
level is composed of the alternatives (alternative strategies). The supermatrix of a SWOT
hierarchy with four levels is as follows:
=
IW
w
w
esAlternativ
factorsSWOT sub rsSWOT facto
Goal
W
43
32
21
00
000
000
0000
(12)
Where w21 is a vector which represents the impact of the goal on the criteria, w32 is a matrix
that represents the impact of the criteria on each of the sub-criteria, W43 is a matrix that
represents the impact of the sub-criteria on each of the alternatives, and I is an identity
matrix. A hierarchical representation of the SWOT model is given in Figure 4a and its
general network representation is presented in Figure 4b. The network model (Figure 4b)
illustrates the case of a hierarchy with inner dependence within clusters but without feedback.
SWOT factors, sub-factors and strategies are used in place of criteria, sub-criteria and
alternatives respectively in Figure 4b. The SWOT factors and sub-factors have inner
dependencies with in their clusters. A network can be organized to include source clusters,
intermediate clusters and sink clusters. Relationships in a network are represented by arcs,where the directions of arcs signify directional dependence (Chung et al., 2005).
Interdependency between two clusters, termed outer dependence, is represented by a two-way
arrow. Inner dependencies among the elements of a cluster are represented by looped arcs
(Chung et al., 2005). The letters in brackets in Figure 4b represents the relationship that will
be signified by sub-matrices for supermatrix evaluation. Based on the schematic
representation of Figure 4b, the general sub-matrix notation for the SWOT model used in this
study is as follows:
=
IW
Ww
Ww
esAlternativ
factorsSWOT sub
rsSWOT facto
Goal
W
5
43
21
00
00
00
0000
(13)
Where, w1 is a vector that represents the impact of the goal, namely, selecting the best
strategy according to SWOT factors. The W2 is a matrix that represents the inner dependence
of the SWOT factors. The w3 is a vector that denotes the impact of the SWOT factor on each
of the SWOT sub-factors. The W4 is a matrix that represents the inner dependence of the
SWOT sub-factors and W5 is a matrix that denotes the impact of the SWOT sub-factors on
each of the alternative strategies. Using matrix operations is preferred in order to show the
details of the calculations in this algorithm.
Step 4: Assume that there is no dependence among the SWOT factors; determine the
importance degrees of the SWOT factors with a 5 point linguistic scale (i.e. calculate w1).
Expert team of six key staff members of the company (with author) constructed the inner
dependence models for factors and sub-factors. The expert team has selected the pairwise
importance, inner dependence through fuzzy linguistic scale. Saaty and Mariya (2008) haveemphasized maintaining the consistency ratio below 0.1 when constructing the comparison
matrices of orders larger than 55. In this study for all comparison matrices, the consistency
ratio is calculated based on fuzzy preference ratio method (Modarres et al., 2010).The
pairwise comparison matrix for the SWOT factors with respect to the best strategy (goal) is
constructed first (Table 3).
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Table 3. Pairwise comparison of SWOT factors for the selection of best strategy
Best Strategy Strength Weakness Opportunity ThreatImportance weight of
SWOT factors
Strength (1,1,1) (3,5,7) (1,3,5) (1,1,1) 0.343
Weakness (1/7,1/5,1/3) (1,1,1) (1,1,1) (1/9,1/7,1/5) 0.082
Opportunity (1/5,1/3,1) (1,1,1) (1,1,1) (1/7,1/5,1/3) 0.094
Threat (1,1,1) (5,7,9) (3,5,7) (1,1,1) 0.480(CR 0.07)The importance weight of SWOT factors is calculated by the equation 5 to 10 (Appendix 1).
The matrix w1 is the importance weight of the SWOT factors from Table 3.
Step 5: Determine with a 5 point linguistic scale, the inner dependence matrix of each SWOT
factor with respect to the other factors by using the schematic representation (Figure 5a) of
inner dependence among the SWOT factors (i.e. calculate W2). To calculate the inner
dependence in SWOT factors, the inner dependence model presented in Figure 5a is
followed. The inner dependence comparison matrices of SWOT factors are presented in
Tables 4 through Table 6. The relative importance weight of SWOT factors inner
dependence matrix is calculated by the equation 5 to 10 (Appendix 1). As SWOT factor
opportunity is affected only by the strength, so no pairwise comparison matrix is formed with
respect to opportunity. The comparison matrix (W2) of inner dependences of SWOT factors isconstructed as follows. Initially 4 4 identity matrix is made. The four rows and columns are
strength, weakness, opportunity and threat. The first column (strength) is filled with relative
importance weight from Table 4. The second column (weakness) is filled with the relative
importance weight from Table 5. The third column (opportunity) is filled with zero except
strength row, since it is dependent only with strength which is filled by value one (Figure 5a).
The fourth column is filled with relative importance weight from Table 6.
Table 4. Inner dependence of SWOT factors with respect to strength
Strength Weakness Opportunity ThreatRelative importance weight
of SWOT factors
Weakness (1,1,1) (1,1,1) (1/9,1/7,1/5) 0.124
Opportunity (1,1,1) (1,1,1) (1/7,1/5,1/3) 0.129Threat (5,7,9) (3,5,7) (1,1,1) 0.748
(CR 0.051)
Table 5. Inner dependence of SWOT factors with respect to weakness
Weakness Strength ThreatRelative importance weight of
SWOT factors
Strength (1,1,1) (1/5,1/3,1) 0.274
Threat (1,3,5) (1,1,1) 0.726
(CR Not applicable)
Table 6. Inner dependence of SWOT factors with respect to threat
Threat Strength ThreatRelative importance weight of
SWOT factors
Strength (1,1,1) (1/5,1/3,1) 0.171
Threat (1,3,5) (1,1,1) 0.829
(CR Not applicable)
The remaining unfilled references of W2 matrix are filled with zero. The matrix W2 is
presented as follows:
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=
0001000072607480
0000000100001290
8290000000011240
1710000127400001
2
....
....
....
....
W
Step 6: Determine the inner dependence priorities of the SWOT factors (i.e. calculate wfactors
= W2 w1). The (1st
level) SWOT wfactors are local priority weights. These are the results of
the normalized eigenvectors with considering the inner dependence. It can be explained as arelative grade of the SWOT factor group. If it is high for a factor, that will be high priority
factor at local level. The matrix (Wfactors) of inner dependence priority of SWOT factors is
calculated by multiplying w1 with W2 and normalized values of these weights are presented
as follows:
=
=
==
3980
0690
2610
2710
;
7990
1390
5220
5420
4800
0940
0820
3430
0001000072607480
0000000100001290
8290000000011240
1710000127400001
12
.
.
.
.
W
.
.
.
.
.
.
.
.
....
....
....
....
wWWd)(Normalize
factorfactors
Step 7: Assume that there is no inner dependence among the SWOT sub-factors; determine
the importance degrees of the SWOT sub-factors with a 5 point linguistic scale given in
Table 1 (i.e. calculate w3). The pairwise comparison matrices of SWOT sub-factors for local
priority are constructed. SWOT strength category sub-factors pairwise comparison matrix is
given in Table 7.
Table 7. Pairwise comparison of strength - SWOT sub-factors for the local priority (CR 0.087)
Strength C1S C2S C3S C4S C5S C6S Local weight
C1S (1,1,1) (1,1,1) (3,5,7) (1,1,1) (1,3,5) (1/5,1/3,1) 0.166
C2S (1,1,1) (1,1,1) (1,3,5) (1/5,1/3,1) (1,1,1) (1/7,1/5,1/3) 0.098
C3S (1/7,1/5,1/3) (1/5,1/3,1) (1,1,1) (1/9,1/7,1/5) (1,1,1) (1/11,1/9,1/7) 0.044
C4S (1,1,1) (1,3,5) (5,7,9) (1,1,1) (3,5,7) (1,1,1) 0.260
C5S (1/5,1/3,1) (1,1,1) (1,1,1) (1/7,1/5,1/3) (1,1,1) (1/9,1/7,1/5) 0.056
C6S (1,3,5) (3,5,7) (7,9,11) (1,1,1) (5,7,9) (1,1,1) 0.376
The local weight of the SWOT sub-factors is calculated by the equations 5 to 10 (Appendix
1). Similar to the Table 7, other three sub-factors category (weakness, opportunity and
threat) pairwise comparison matrices for local priority are constructed and local weights have
been calculated. The matrix w3 is the local weight of pairwise comparison of strength
category SWOT sub-factors from Table 7.
Step 8: Determine with a 5 point linguistic scale, the inner dependence matrix of each SWOT
sub-factor with respect to the other sub-factors by using the schematic representation (Figure
5b, 5c, 5d and 5e) of inner dependence among the SWOT sub-factors (i.e. calculate W 4).
Similar to the SWOT factors inner dependence matrices (Table 5 to Table 7), SWOT sub-
factors (strength, weakness, opportunity and threat) inner dependence matrices are formed
and weights have been calculated. The comparison matrix (W4) of inner dependences of
strength category SWOT sub-factors is constructed as follows. Initially 6 6 identity matrixis made. The six rows and columns are C1S to C6S. Each column of the matrix (W4) is filled
with the relative importance of SWOT sub-factors local weight similar to matrix W2. The
matrix W4 is presented as follows:
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=
000100000000775025007480
000000010000000017800000
000000000001000024900000
059000000000000117801290
423000010001116000011230
517000000000109014400001
W 4
......
......
......
......
......
......
Similar to the strength category inner dependence comparison matrix, other categories
(weakness, opportunity and threat) inner dependence comparison matrices are formed.
Step 9: Determine the inner dependence priorities of the SWOT sub-factors (i.e. calculate
wsub-factors (Local) = W4 w3). The (2nd
level) SWOT wsub-factors (Local) are also local priority
weights. These are the results of the normalized eigenvectors with considering the inner
dependence. It can be explained as a relative grade of the SWOT sub-factor group (Example
strength category).
Figure 5. Inner dependence representation of SWOT model
If it is high for a sub-factor, that will be high priority sub-factor at the local level. Inner
dependence priority of strength category sub-factors (Wsub-factors) are calculated by
multiplying w3 with W4 and normalized values of these weights are presented as follows:
O
S
W
T
(a) Inner dependence
among SWOT factors
C1S
C3S
C6S
C2S
C4S
C5S
(b) Inner dependence among
SWOT sub-factors (strength)
C11W
C13W
C14W
C15W
C12W
C10W
(c) Inner dependence among
SWOT sub-factors (weakness)
C21O
C19O
C20O
C18O
(d) Inner dependence among
SWOT sub-factors (opportunity)
C29T
C13W
C14W
C26T
C28T
C27T
C25T
C24TC30T
C31T
(e) Inner dependence among SWOT sub-factors (threat)
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=
==
5580
0740
2850
1050
5990
3800
3760
0560
2600
0440
0980
1660
000100000000775025007480
000000010000000017800000
000000000001000024900000
059000000000000117801290
423000010001116000011230
517000000000109014400001
34)(
.
.
.
.
.
.
.
.
.
.
.
.
......
......
......
......
......
......
wWWStrength
Localssub-factor
Similar to inner dependence priority of strength category sub-factors, other categories(weakness, opportunity and threat) inner dependence priority sub-factors are calculated. The
normalized weight of those sub-factors inner dependence priority is given as follows:
=
=
=
=
105.0
180.0
072.0
088.0
0940
2490
0520
1600
;
2850
1060
2720
33690
;
322.0
042.0
0610
2120
2390
1210
;
279.0
037.0
1420
0520
2990
1900
(Local)(Local)(Local)(Local)
.
.
.
.
W
.
.
.
.
W.
.
.
.
W.
.
.
.
W
d)(NormalizeThreat
factorsub
d)(Normalize
yOpportunit
factorsub
d)(NormalizeWeakness
factorsub
d)(Normalize
Strength
factorsub
Step 10: Determine the global priority of the SWOT sub-factors (i.e. calculate wsub-factors (Global)
= wfactors wsub-factors (Local)). The (1st
level and 2nd
level) SWOT wsub-factors (Global) are combinedlocal priority (the combination of two local priority is called global priority of entire criteria).
The eigenvectors are then normalized with considering the inner dependence. It can be
expressed as a relative grade of the complete SWOT criteria (factor and sub-factor). If it is
high, it will have high priority factor in the global level. Local priorities of sub-factors are
converted into global priorities by multiplying these Wfactors with wsub-factors (Local). Global
priorities of sub-factors (wsub-factor (Global)) are presented in Table 8.
Table 8. Conversion of local priority of sub-factors into global priority
SWOT factorsInner dependencepriority of factors
Wfactor
SWOT
sub-factors
Inner dependencelocal priority of sub-factors
Wsub-factor (Local)
Global priority of sub-factors
Wsub-factor (Global)
Strength 0.271
C1S 0.190 0.051
C2S 0.299 0.081C3S 0.052 0.014
C4S 0.142 0.039
C5S 0.037 0.010
C6S 0.279 0.076
Weakness 0.261
C10W 0.121 0.032
C11W 0.240 0.063
C12W 0.212 0.056
C13W 0.061 0.016
C14W 0.042 0.011
C15W 0.323 0.084
Opportunity 0.069
C18O 0.337 0.023
C19O 0.272 0.019
C20O 0.106 0.007
C21O 0.285 0.020
Threat 0.398
C24T 0.161 0.064
C25T 0.052 0.021
C26T 0.249 0.099
C27T 0.094 0.037
C28T 0.088 0.035
C29T 0.072 0.029
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C30T 0.180 0.072
C31T 0.105 0.042
Step 11: Determine the priority of the alternative strategies with respect to each SWOT sub-
factor with a 5 point linguistic scale (i.e. calculate W5). The comparison matrix for the
alternative strategies with respect to SWOT sub-factor (mass production setup C1S) is
constructed (Table 9).
Table 9. Pairwise comparison matrix of alternatives priority with respect to sub-factor (C1S)
C1S SO1 SO2 SO3 WO1 ST1 ST2 ST3 ST4 ST5 WT1 WT2 WT3 WT4Local
Weight
SO1 (1,1,1) (1,1,1) (1,3,5) (1,3,5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,3,5) (1,3,5) (3,5,7) (3,5,7) (1,3,5) 0.114
SO2 (1,1,1) (1,1,1) (1,3,5) (1,3,5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,3,5) (1,3,5) (3,5,7) (3,5,7) (1,3,5) 0.114
SO3 (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1/9,1/7,1/5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.040
WO1 (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1/9,1/7,1/5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.040
ST1 (1,3,5) (1,3,5) (5,7,9) (5,7,9) (1,1,1) (1,3,5) (3,5,7) (3,5,7) (5,7,9) (5,7,9) (7,9,11) (7,9,11) (5,7,9) 0.272
ST2 (1,1,1) (1,1,1) (1,3,5) (1,3,5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,3,5) (1,3,5) (3,5,7) (3,5,7) (1,3,5) 0.114
ST3 (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1/7,1/5,1/3) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,3,5) (1,3,5) (1,1,1) 0.061
ST4 (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1/7,1/5,1/3) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,3,5) (1,3,5) (1,1,1) 0.061
ST5 (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1/9,1/7,1/5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.040
WT1 (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1/9,1/7,1/5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.040
WT2 (1/7,1/5,1/3) (1/7,1/5,1/3) (1,1,1) (1,1,1) (1/11,1/9,1/7) (1/7,1/5,1/3) (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.033
WT3 (1/7,1/5,1/3) (1/7,1/5,1/3) (1,1,1) (1,1,1) (1/11,1/9,1/7) (1/7,1/5,1/3) (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.033
WT4 (1/5,1/3,1) (1/5,1/3,1) (1,1,1) (1,1,1) (1/9,1/7,1/5) (1/5,1/3,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) (1,1,1) 0.040
(CR 0.065)
The local weight of the alternative strategy with respect to C1S is calculated by equation 5 to
10 (Appendix 1). Similar to the Table 9, other twenty three SWOT sub-factors alternative
strategy matrices are constructed and local weights have been obtained. The local weights of
twenty four alternative strategies with respect to each sub-factor are included in matrix W 5(matrix size 24 x 13). The local weights transferred into the each column of the W5 matrix as
follows:
=
00100020001000100010003000100020004000000020001000400020
00300040002000200020008000100040004000000020001000400020
00300040001000300020008000100040004000000020001000400020
00300040002000300030008000100040004000000020001000400020
00300060002000300010006000100050004000100030001000400020
00300030001000100030008000100030004000100020001000400030
00300040003000100030006000200040004000100020001000400030
00200030003000200030006000200030004000100020001000400060
00600110005000500050015000400100024000300110004002400140
00300060002000300010006000100050004000000020001000400020
00300060001000200020004000100050004000000020001000400020
00300040002000100030006000100040008000100030001000900060
00300060002000200020004000100040004000000020001000900060
5
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
W
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
KKKKK
Step 12: Determine the global priority of the alternative strategies, reflecting the
interrelationships within the SWOT factors (i.e. calculate walternatives = W5 wsub-factors (Global)).
Finally the global priorities of alternative strategies are established by multiplying the
priorities of alternative strategies calculated with respect to sub-factors (W5) and global
priorities of sub-factors (wsub-factors (Global)). walternatives is the relational grade of strategies based
on the proposed ANP algorithm. It includes the priorities of the alternatives and also the
global priority of complete criteria set. This aids the selection of best strategy. This has been
presented in Table 10.
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Table 10. Global priority of strategies and ranking of the strategies
Strategy SO1 SO2 SO3 WO1 ST1 ST2 ST3 ST4 ST5 WT1 WT2 WT3 WT4
P
riorities Strength 0.022 0.028 0.013 0.013 0.080 0.018 0.015 0.015 0.014 0.014 0.013 0.013 0.013
Weakness 0.027 0.026 0.029 0.032 0.069 0.026 0.029 0.026 0.031 0.032 0.030 0.029 0.012
Opportunity 0.006 0.006 0.005 0.003 0.015 0.005 0.006 0.004 0.003 0.003 0.003 0.007 0.003
Threat 0.030 0.022 0.032 0.049 0.129 0.045 0.037 0.037 0.025 0.040 0.038 0.038 0.054Global priority of
alternative strategies0.085 0.082 0.079 0.097 0.292* 0.095 0.087 0.082 0.073 0.089 0.084 0.088 0.081
Ranking 7 9 12 2 1* 3 6 10 13 4 8 5 11
(* Best strategy)
Step 13: Selection of best strategy based on the global priority of the alternative strategies
(i.e. calculate rank of walternatives). The ANP algorithm indicates that implement and optimize
an innovative process (Colour Fast FinishCFF) to reduce water, power, fuel and effluent
load (ST1) is the best strategy with a global priority of alternative strategies value of 0.292
(Table 10). Further the ranking which are achieved with inner dependencies in SWOT model
(both SWOT factors and sub-factors) is presented in Table 10. This Table 10 also shows the
contributions of SWOT main factors for the global priorities of alternative strategies. Theglobal priority of the strategies confirms that ST1 strategy is un-doubted best strategy. The 1st
ranked strategy ST1s relative global priority 0.292 but the 2nd
ranked WO1s relative global
priority is 0.097. This huge difference proves that ST1 is to be studied and implemented
without any ambiguity by the top management of the company. The other strategies expect
ST1 are having the less relative global priority variance. The contribution of SWOT factors to
the ST1 strategy is very high relative values compare to the other strategies. The threat and
strength category factors and its sub-factors are the main contributing factors for the relative
global priority of strategy ST1 and others. The threat category sub-factors mainly deals with
the environment impact. Strength category sub-factors mainly focus companys facilities. At
the moment the perennial issue for the society is to provide safe environment to the people
and living hoods. The selected strategy is directly related to the goodness of environmental
impacts. First and foremost work for the textile company is to implement the ST1 strategy;the other strategies can be given least importance.
Step 14: Analyze the selected strategy using Force field analysis. The first step is to agree the
area of change needs to be discussed. This might be written as a desired policy goal or
objective. All the forces in support of the change are then listed in a column to the left
(driving the change forward), whereas all forces working against the change are listed in a
column to the right (restraining the change holding it back). Driving forces are those forces
affecting a situation and which are attempting to push it in particular direction. These forces
tend to initiate change or keep it going. Restraining forces are forces acting to restrain or
decrease the driving forces. The forces working against the change needs to be minimized
and the forces support of the change needs to be maximized. A state of equilibrium is reached
when the sum of the driving forces equals the sum of the restraining forces. The net resulted
(equilibrium forces or positive forces) forces will create the climate to implement the goal orobjective. Holmes, T.A., (2011) formulated three fundamental assertions about force fields
and change as follows:
1. Increasing the driving forces results in an increase in the resisting forces; the current
equilibrium does not change but is maintained under increased tension.
2. Reducing resisting forces is preferable because it allows movement towards the desired
state, without increasing tension.
3. Group norms are an important force in resisting and shaping organizational change.
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In this paper, the selected best strategy from the Fuzzy ANP methodology is under gone force
filed analysis to find the driving and restraining forces for its implementation. Figure 6,
shows the force filed analysis of ST1 strategy. In this analysis, the restraining forces are
scoring high value (-15, sum of restraining forces score) comparing to the driving force (+6,
sum of driving forces score). The driving force consists of the following force components;
management commitment, technical support from supplier and machinery and facility
availability. The restraining force consists of parameter study, un-optimized of parameters,process variability, multiple quality requirement and process understanding. The restraining
forces score needs to be minimized so as to remove the barriers to implement the strategy
effectively.
Figure 6. Force filed analysis of ST1 strategy
The team of the textile company has to work on the restraining forces so as to covert the
restraining forces to driving forces or reduce the restraining forces total score. 1st
force, theparameter study needs to be concentrated, which will identify the process parameter involves
in the Colour Fast Finish (CFF) process both controlled and uncontrolled parameters. 2nd
force, optimization of the parameters is identified from the 1st
force. 3rd
force, variability
reduction of the Colour Fast Finish (CFF) process by which the process can be controlled and
can be improved. Further it will lead to the process capability studies. 4th
force, multiple
quality requirements which are needs to be optimized with respect to 1st
and 2nd
force. 5th
force, process learning and expertise (through training) will be the base for successful
implementation of the strategy.
6.0 Conclusion
Fuzzy ANP method used in this study, offers a complete analysis by additionally consideringinner dependence relationships. In this study inner dependence considered for both SWOT
factors and sub-factors. In sub-factors all the four categories are considered the inner
dependences. This kind of completed consideration of inner dependences will provide the
more actual results compare the AHP or 1st
level inner dependence ANP methods. So the
selection of best strategy will resemble its trueness of selection. But considering more inner
dependence requires more time and effort (additional interdependency relationships increase
geometrically the number of pairwise comparison matrices). For this reason, an application of
the fuzzy ANP approach, as proposed in this study targeted at more strategic decisions in a
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human oriented thinking and reasoning approach. Triangular number over comes the
vagueness in the ordinary Likert scale data when it is compare to classical ANP. Fuzzy
triangular number also increases the resolution (difference between the two values) of the
global priority of the alternative strategies. The inner dependencies make the decision makers
work easy. If all the inner dependences considered in the selection stage itself, then the
decision maker wont have any question of negative probability in his mind. The results of
this empirical study show that the most desired strategy is to implement and optimize aninnovative process (Colour Fast FinishCFF) to reduce water, power, fuel and effluent load
(ST1). This strategy had a global priority of alternative strategies value of 0.292.
Considering other strategies ST1 is having very high potential for especially long-term
environment safety, profit, and competitiveness considerations. Additionally, the
implementation of this strategy is planned through force filed analysis. High scoring
restraining forces are provided a way to implement the strategy (ST1). The restraining forces
emphasis the study related to process parameters and multiple quality characteristics will
minimize the distance between the restraining and driving forces. Strategy ST1 can be
implemented in an effective manner by force filed analysis. The effectiveness of the study on
process parameters and multiple quality characteristics will make a climate to measure the
success of the strategy ST1. This paper addresses the need for a strategic analysis model to
assist management in evaluating and selecting the strategies for business growth. Through
this line, an evaluation model is developed based on a literature survey and refined with
industrial experts. The proposed evaluation framework is generic. However, the model is
implemented in a famous textile company, South India. The results, based on the synthesized
judgments, indicate that textile processing industry should focus on innovative process to
reduce energy for effective strategic planning. This research aims to help practitioners to
understand the relative importance of the factors and set then effective improvement plans as
they may not have sufficient resources to deal with all the factors at the same time. The
evaluation sub-factors are comprehensive but they may change rapidly; thus, the checklist of
SWOT sub-factors must be updated in the future (frequency, every 3 years).
Acknowledgement The authors would like to thank the Managing Director (Mr. Prithiv), Gee Kay PrintingMills, Tirupur and his subordinates for their support and committed co-operation to this study.
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Appendix 1. (Fuzzy Set theory concepts for ANP)
To measure the pair-wise comparison between criteria { }niCC i ,,2,1 K== , a decision group of p expertsare asked to make sets of pair-wise comparisons in terms of linguistic terms. Hence, p fuzzy matrices
)()2()1( ~,,
~,
~ pZZZ K , each corresponding to an expert and with triangular fuzzy numbers as its elements, are
obtained (Ming-Lang et al., 2011). Denote)(~ kZ as:
=
0~~
~0
~
~~0
~
21
2
112
ZZ
ZZ
ZZ
Z
(k)
n
(k)
n
(k)
n
(k)
(k)
n
(k)
(k)
K
MOMM
K
K
(1)
A triangular fuzzy number N~
can be defined as a triplet (l, m, u) , and the membership function (x)~N
is
defined as (Figure 1):
=
ux,
ux), m(u-x)/(u-m
mx), l(x-l)/(m-l
lx,
(x)~N
f
p
0
0
(2)
Where ml , , and u are real numbers and uml .
Let ( )(k)ij
(k)
ij
(k)
ij
(k)
ij ,u,mlZ =~
.Without loss of generality, elements ( ),n,,iZ(k)ii K21~
== will be regarded as a
triangular fuzzy number whenever it is necessary. Fuzzy matrix(k)Z
~is called the initial pair-wise comparison
fuzzy matrix of expert k. Acquire the normalized pair-wise comparison fuzzy matrix, Let)(~ k
ia be the triangular
fuzzy number:
==
====
n
j
(k)
ij
n
j
(k)
ij
n
j
(k)
ij
n
j
(k)
ij
(k)
i u,m,lZa1111
~~ and
=
=
n
j
k
ijni
(k)ur
1
)(
1max (3)
The linear scale transformation is then used as a normalization formula to transform the criteria scales into
comparable scales. The normalized pair-wise comparison fuzzy matrix of expert k, denoted as (k)X~
, is givenby:
=
(k)
nm
(k)
n
(k)
n
(k)
n
(k)(k)
(k)
n
(k)(k)
(k)
XXX
XXX
XXX
X
K
MOMM
K
K
21
22221
11211
~ ; pk ,,2,1 K= (4)
Where,
==
(k)
(k)
ij
(k)
(k)
ij
(k)
(k)
ij
(k)
(k)
ij(k)
ijr
u,
r
m,
r
i
r
zX~
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7/30/2019 A HYBRID BUSINESS STRATEGY SELECTION PROCESS FOR A TEXTILE COMPANY USING SWOT AND FUZZY ANPA CA
19/20
International Journal of Management (IJM), ISSN 0976 6502(Print), ISSN 0976
6510(Online), Volume 3, Issue 2, May-August (2012)
As that in crisp value assumes at least one, such that=