Ranking the Obstacles of Strategic Planning in the Artificial Leather Industry: A Case Study of Sadaf Leather Company

Abstract

Small and medium-sized businesses have a significant importance in the economic growth and development of all countries. Also, the importance of strategic planning for the success of these businesses is undeniable. However, many businesses have not taken any actions regarding the codification and execution of strategic planning. The current research aimed to identify and rank the obstacles for implementing strategic planning in Sadaf Leather Production Company which is a medium-sized industrial production company. A questionnaire was designed based on library studies regarding the advantages of strategic planning, the disadvantages of not codifying and implementing strategic planning in small and medium-sized industries, and the situation of Sadaf Leather Company. After confirming the validity and reliability of the questionnaire, it was distributed among the employees of this company. This study was factual and aimed to investigate a practical problem in an industrial company. Quantitative data collection was used in this study and hence, it fall under the category of field studies. Due to the description of the characteristics of variables, this research was descriptive-survey and the results had a high generalizability. The results indicated that the problems and obstacles for the non-implementation of strategic planning in Sadaf Leather Company are categorized into five main factors: personal obstacles, environmental limitations, administrative restrictions, organizational and planning restrictions. It can be concluded that environmental factors such as uncertainty about the future and the existence of sanctions have had a negative effect on the performance and long-term decisions of the company's owner and this has resulted in the demotivation and resistance of employees against any changes in the company.