A Hybrid Method (ANP-SWOT) to Formulate and Choose Strategic Alternatives for Development of Rural Cooperatives in Iran

Rural cooperatives, as a small member-owned organizations, are the potential to facilitate socio-economic development in rural areas. Despite this fact, in Iran and many other developing countries, they have not had remarkable successes in this regard. Because strategy formulation and management is a plan to obtain far-reaching development effects of any organization. This study aimed to present a hybrid method to formulate and choose strategies for rural cooperatives development. It combined SWOT analysis, TOWS matrix, and the Analytic Network Process (ANP). We applied brainstorming technique to analyze the external and internal environment of rural cooperatives using the contributions of an experts’ team comprising 10 individual CEOs of rural cooperatives and senior employees of the Central Organization of Rural Cooperatives. When this team identified key SWOT factors, TOWS matrix was constructed to create good strategic alternatives. Finally, ANP was applied to prioritize the strategies. According to results, 19 key strategic factors such as lack of management knowledge (W4), and ability to improve value and supply chains (S4) were identified. In addition, this team identified 11 strategic alternatives which among them Implement public policy and provide technical and financial services (SO2), Facilitate procurement of inputs and develop supply and value chains (SO1) and Involve rural cooperatives in policy planning (ST1), had greater priority in Iran. The experts’ team believed that the presented combined approach helps decision makers and managers to make and choose the best alternative strategies and factors that affect rural cooperatives development.