Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2020 Vol: 19 Issue: 3

The Development of Islamic Higher Educational Institutions in Southeast Sulawesi of Indonesia: Increasing Competitiveness through SWOT Analysis

Agus Zaenul Fitri, The State Islamic Institute of Tulungagung

Sugeng Listyo Prabowo, The State Islamic University of Malang

Syamsuddin, The State Islamic Institute of Kendari


The development of higher education institutions is very crucial to be done to maintain its existence. That is because changes always continue to occur so that higher education institutions are required to make developments oriented to improving the quality of institutional governance. The main purpose of this article is to describe and analyze the external and internal environment as the basis for the direction or orientation of development by the leadership of the institution in maintaining the existence of the institution through increasing the competitiveness of the institution. The research data was obtained through data collection on various issues that were considered crucial (critical issues) related to the existence of the Kendari State Islamic Institute (IAIN Kendari) located in Kendari City, Southeast Sulawesi Province, Indonesia. The data obtained were then analyzed using the SWOT analysis technique using Evans theory through weighting the EFAS and IFAS analyzes. The results of this study indicate that the development of Islamic tertiary institutions through the use of SWOT analysis is very important to do to maintain their existence in the form of increasing the competitiveness of higher education institutions in Indonesia.


Islamic Higher Education, SWOT Analysis.


Business activity on a macro or micro scale requires strategic preparedness in setting a policy program so that the risks that arise can be anticipated as best as possible or at least negative impacts by certain factors that can be minimized, especially in the age of globalization and the environment turbulence like now (Drobyazko et al., 2019). Including educational institutions that have very complex elements and problems, each of which has significant implications for the existence and quality of learning so that steps are needed to maintain the continuity of educational institutions. For example, the development of the Higher Education Sustainable Development (HESD) model which provides guidelines and references for public higher education institutions in Malaysia (Salleh et al., 2019). This indicates the need for a comprehensive analysis to produce appropriate strategies. Meanwhile, strategy setting by the leadership of the institution is influenced by various things, including through analysis of internal and external factors.

Analysis of environmental conditions has an important role to do with the process of decision making in achieving the vision and mission of Islamic higher education institutions. Interaction between the environment, both internal and external also greatly affects the quality and strategy for decision-makers by the leadership of an institution. Therefore, it becomes important for the management of an institution to carry out environmental analysis both the external and internal environment. It should also be understood that to realize organizational goals more effectively and efficiently, various fields of management have placed environmental analysis as an important activity that must be carried out. This is commonplace since management experts introduce organizations as an open system that is highly influenced by environmental conditions (Von Bertalanffy, 1972). Growth and development and life and death of an organization will be influenced by various entities and conditions that exist in their environment, including educational institutions.

An analysis of the internal and external environment has been applied in various fields to maintain its existence. That is because, in essence, any organization is to survive, the balance must be one that is more in line with the new environment and the organization must develop through plans to strengthen the driving force to deal with changes to adapt to the environment and to weaken the threats it faces (Prasojo et al., 2017). For example, in the banking sector which carries out an environmental analysis which then influences the dimensions of its competitive advantage (Al-Rousan & Qawasmeh, 2009). The use of environmental analysis in the pharmaceutical industry in India which later found that the need to produce patented products and collaborate with multinational companies to improve production standards (Lalitha, 2002). In the hospitality business also uses SWOT analysis which then finds solutions to improve consumers in the form of the need for standardization of services (Yu & Huimin, 2005). Likewise in the world of education (including Islamic education) (Nasukah, 2017). Especially now education in Indonesia, in general, is facing serious challenges and issues regarding the quality of education, including the low input, the process to the quality of the output produced (Fitri, 2016). This makes an important environmental analysis carried out to maintain its existence during society as a form of an effort to ensure quality, especially in dealing with various complexities of the problems that are owned by each unit of higher education institutions.

Studies on the use of SWOT analysis have begun to be widely used by Islamic universities to analyze internal and external environmental conditions (Solihin, 2016). Other studies also use SWOT to look at opportunities and challenges conducted by the Azad Islamic University at the Faculty of cultural sciences to predict the future and strategic planning (Sharifi, 2012). So far, indeed using SWOT analysis has been widely used by companies, industries, and the business world (Helms & Nixon, 2010) which has proven helpful in the formulation of future strategic plans.

This study becomes very important to help leaders of educational institutions in Indonesia, especially Islamic tertiary institutions to maintain their existence through increasing competitiveness at regional, national, and international levels in the Industrial Revolution 4.0 era. Besides, the focus of this study is on the analysis of the external and internal environment through the weighting of EFAS (External Factor Analysis Summary) and IFAS (Internal Factor Analysis Summary analysis) which refers to Evans's theory on various critical issues owned by the Institute of Religion Islam Negeri Kendari, Indonesia. Therefore, this study could also be a reference for university leaders. In Indonesia is high related to how to perform strategic analysis through the analysis of the external and internal environment.

Literature Review

Environmental analysis is an effort to examine various opportunities and challenges in facing global competition so that it can control challenges and threats into opportunities for optimal profits. Internal environmental analysis is an activity of the institution in the form of an evaluation process of strengths and weaknesses owned so that they can manage weaknesses into strength by using strategies intent and mission. The environment of an organization is everything around it that influences and which can affect its success or failure (Prasojo et al., 2017). Karmarkar et al. (2014) stated that the internal environment consists of labor, machinery, and other sources within the organization that can be regulated and adjusted. This source revealed the strengths and weaknesses of the organization. External environmental factors include government, competition, consumers, and technological development. This cannot be regulated and controlled and is related to organizational opportunities and threats (Karmarkar et al., 2014).

The concept of the expert above emphasizes that environmental analysis is in the form of external and internal environment analysis. The external environment is in the form of government policies, competition, consumers, and technological development. It cannot be adjusted and controlled and is related to the opportunities and threats of the organization. The internal environment consists of labor, machinery, and other sources that are within the organization and are easily changed and adjusted. These sources reveal the strengths and weaknesses of the organization.

Alex Miller further revealed that environmental analysis is an activity in analyzing the environment including monitoring, evaluation, and dissemination of information based on observations of external and internal environments by important leaders in an institution (Hardy, 1994). The environmental analysis aims as a medium for managers in minimizing strategic threats and ensuring the quality of management in the long run (Murniati & Usman, 2009). Through environmental analysis, one can be able to know the conditions of various things and changes and community development as a basis as well as the main orientation in realizing the ability of institutions to meet the needs of the community (Murniati & Usman, 2009).

Meanwhile, according to Wright et al. (1998) revealed that the organization's internal environment is an organizational resource that determines its strengths and weaknesses. This internal environment needs to be analyzed to understand the strength and weaknesses of the organization. The organizational apparatus consists of personnel, organization, and physical (Wright et al., 1998). From the various descriptions of the opinions of the experts above, it can be seen that environmental analysis is an effort made by an organization or institution to all environmental conditions (external and internal) that surround it which aims to recognize and classify all things that can affect its existence. The external environment includes conditions of opportunities and threats that are outside the control of management and the internal environment consists of strengths and weaknesses which are the management control of an institution.

Solihin (2016) believes that the analysis of the external environment has the primary objective of identifying opportunities and threats in the institution's external environment. Opportunity is a positive thing that should be managed and utilized to produce implications positive for the institution on an ongoing basis. The threat is negative things that are outside the control of management that must be analyzed and anticipated to minimize the emergence of the impact of losses for the institution (Solihin, 2016).

Besides, the external environment is a description of circumstances outside the organizational environment in the form of conditions and forces that can have implications for the process and goals of the institution. The external environment is an environment that is outside the control of institutions that need to be comprehensively examined to identify opportunities and threats faced. Based on research conducted by Yurniawati, the external environment can be viewed based on two aspects, namely the first perspective that views the external environment as a medium that provides resources, which bases the premise that the external environment is a media and container that provides resources that significantly influence the survival of the institution. At the same time, it can threaten internal resources. Second, the view that assumes the external environment as a source that links information with environmental uncertainty (Hurriyati, 2005).

Identification of internal conditions that can describe the state of an institution, namely factors of strength and weakness. Institutions overcome threats originating from factors outside institutions through efforts to optimize strength derived from internal factors
of the institution, while weaknesses from internal factors can be minimized through the utilization of opportunities and external factors (Kotler & Armstrong, 2008). Classification of internal environmental analysis is generally oriented to some of the following aspects:

1. Marketing, which is a social process of individuals and groups to obtaining the desired (Kotler & Armstrong, 2008)

2. Finance, namely the financial condition of the institution which is a measure of power competitiveness and attractiveness (David, 2006).

3. Productions, i.e. all activities that manage inputs become a product. This activity is in the form of a commitment to the principles of efficiency, effectiveness, and productivity (Umar, 2008).

4. Human resources, these resources are the most important component of the institution. Therefore, institutional leaders need to make extra efforts to create positive employee behavior (Umar, 2008).

5. Location, the accuracy of choosing a strategic location is a decision about the location and facilities available optimally (Kotler & Armstrong, 2008).

From the various things above, it can be seen that the environmental analysis carried out is an analysis of opportunities and challenges as well as strengths and weaknesses carried out so that an institution can obtain a real description of various things that can be done to maximize its potential to achieve goals through a strategic program. The description of the environmental analysis can be done through a SWOT analysis so that the information or condition data obtained is more structured and systematic.

SWOT analysis is a strategic planning technique for evaluating Strengths, Weakness, Opportunities, and Threats. This is an activity that identifies all positive internal (SW) and external (OT) aspects to achieve the goal. This technique was designed by Albert Humphrey in the 1960s and 1970s using data from Fortune 500 companies (Grewal et al., 2004). This SWOT is generally used to analyze a condition to establish a work program as a planning step (Alma, 2007). The organizational conditions in the SWOT theory are described in a matrix called the SWOT matrix. The SWOT matrix is the media used to compile the strategic factors of an organization. This matrix can describe comprehensively related to external opportunities and threats faced by an institution that is adjusted to the strengths and weaknesses that they have (Rangkuti, 1998), SWOT in strategic management is to explain the advantages-disadvantages both in the organization, project planning, and business (Gürel & Tat, 2017).

Furthermore, Rangkuti (1998) explained that SWOT is a variety of things that are systematically used in setting strategies. Optimizing the ability to optimize opportunities and at the same time minimize the deficiencies and threats that constitute obstacles is the basis of this analysis. So, this technique compares external and internal factors. For more details, the following SWOT diagram is presented in Figure 1:

Figure 1 SWOT Quadrant


1. Quadrant 1 (positive-positive) is a condition where the institution has opportunities and strengths. The strategy that must be carried out is optimal support for aggressive policies.

2. Quadrant 2 (positive-negative) is a condition where the institution faces a threat but still has power. The strategy that must be implemented is the optimization of strength in the face of threats.

3. Quadrant 3 (negative-positive) is a condition where the institution is faced with opportunities but also faces some internal weaknesses so it must focus on fixing internal problems.

4. Quadrant 4 (negatives), is where the institution faces various threats external as well as internal weaknesses.

The steps in the SWOT analysis are (1) Identifying all strengths, weaknesses, opportunities, and threats; (2) Determination of all elements of strengths, weaknesses, opportunities, and threats faced; (3) The assignment of weighting values to each aspect based on the level of importance of 1.0 (very important) to 0.0 (not important). (4) Summing the value of each aspect starting from a scale of 4 (outstanding) to 1 (poor) according to the level of implication for the institution. Giving a weighting score for aspects of strength and opportunity is positive (the greater given a score of 4, but the smaller is given a score of 1). The scoring of weaknesses or threats is the opposite; (5) Summing the total score through the multiplication of weight with the score of each factor strengths, weaknesses, opportunities, and threats.

The various steps above can be developed quantitatively through the calculation of the EFAS and IFAS SWOT analyzes to ascertain the institution's position. The matrix is based on 2 (two) dimensions, namely the total EFAS (External Factor Analysis Summary) weight score is placed on the X-axis and the total IFAS (weight score Internal Factor Analysis Summary) is on the Y-axis. Through this matrix, we can find out the strategic position of an institution is in the quadrant to how many smooth can also be known strategic follow-up steps that must be addressed because each quadrant has a different strategy and evaluation. A careful adjustment to the interaction of opportunities and threats with their strengths and weaknesses is the essence of an appropriate strategy formulation. The stages for filling weights using a scale of 1 to 3 are as follows:

1. Scale 1 if the vertical indicator is more important than the horizontal indicator.

2. Scale 2 if the vertical and horizontal indicators are equally important;

3. Scale 3 if the horizontal indicator is more important than the vertical indicator;

The technique for calculating scores on each factor is done through granting a scale of 4 (outstanding) to 1 (poor) by the implications of these factors for the condition of the institution. The opportunity aspect is given a positive value, which is a +4 rating for the biggest opportunity and +1 rating for smaller opportunities. Meanwhile, the rating for threats is the opposite. To determine the weighting factor, multiply the weight by the rating column, the result is a weighting score for each factor whose value varies, ranging from 4.0 (outstanding) to 1.0 (poor). This weight calculation is by pairwise comparison between two factors based on their impact on the institution.


This study used quantitative methods that aim to describe a fact-based on data in the field. The type of this research is field research that seeks to explore the facts found. This research was conducted from October 2019 to February 2020. The sampling technique chosen was purposive sampling consisting of the leaders, lecturers, employees, and students. The initial stage of the researcher traces and identifies various crucial aspects related to the environmental conditions of IAIN Kendari through document documentation of the institutional strategic plan and then interviews several related parties to ensure the credibility of the crucial aspect level concerned, specifically Rector and Vice-Rectors, Head of Quality Assurance Agency, and lecturers of management field of IAIN Kendari. In the next step, the identification results are processed or given a total EFAS (External Factor Analysis Summary) weight score and an IFAS (Internal Factor Analysis Summary) weight score. Next, the results of the calculations are analyzed using the opinions of experts and relevant research results. This study was conducted through the search and identification of various critical issues related to environmental conditions both externally and internally in the State Islamic Institute of Kendari, located in Southeast Sulawesi Province, Indonesia. These crucial issues were given a total EFAS (External Factor Analysis Summary) weight score and an IFAS (weight score Internal Factor Analysis Summary). Data analysis is performed to arrange data in a meaningful way so that it can be understood. Patton (1990) argues that there is no correct way to organize, analyze, and interpret qualitative data. Therefore, the data analysis procedure in this study is based on several theories (Creswell, 1994; Patton, 1990; Taylor & Bogdan, 1984) and adjusted to the research objectives.

Findings and Discussion

Through this research, we identify various crucial issues as follows:

1. Internal Conditions:

a. Quality human resources (graduates of well-known domestic and foreign universities);

b. Affordable tuition fees;

c. Very adequate lecture facilities;

d. Quality Image of good students;

e. Study program accreditation (there are not yet A and some are still C, especially exact study programs);

f. Quality management is not optimal and directed;

g. There is no lecturer training program through the lecturer development scheme towards Professors;

h. Location on the city border.

2. External Conditions:

a. The only state Islamic institute in the province of Southeast Sulawesi;

b. The economy of the middle and lower classes;

c. Community culture;

d. Job demands are wide open;

e. There is a larger public university)/ second class image;

f. Follow-up cooperation is not optimal;

g. Graduates involvement is not optimal;

h. Education Staff Recruitment Policy.

The EFAS (External Factor Analysis Summary) total weighting results and IFAS (weighting score Internal Factor Analysis Summary) above are as follows in Tables 1 & 2:

Table 1 Calculation Weight IFAS
No Internal Conditions   A B C D E F G H Total Weight
1 Qualified HR (graduates from reputable domestic and foreign universities) A   2 3 3 2 2 3 3 18 0.16
2 Tuition fee affordable B 2   2 2 1 2 1 3 13 0.12
3 Lecture Facilities C 1 2   2 1 1 2 3 12 0.11
4 Image Quality Students D 1 2 2   1 2 2 3 13 0.11
5 Study program accreditation (there are not yet A and some are still C, especially exact study programs) E 2 3 3 3   2 3 3 19 0.17
6 Management of quality isn’t optimal and directed F 2 2 3 2 2   3 3 17 0.15
7 Don’t have a lecturer coaching program through the Lecturer Development scheme towards
G 1 3 2 2 1 1   2 12 0.11
8 Location on the city boundary H 1 1 1 1 1 1 2   8 0.07
Total 10 15 16 15 9 11 16 20 112 1
Table 2 Calculation Weight EFAS
No External Conditions   A B C D E F G H Total Weight
1 The only Islamic institute in North Sulawesi A   2 2 2 2 2 2 2 14 0.13
2 The Economy of Society middle to lower class B 2   2 2 2 2 3 2 15 0.13
3 Community culture C 2 2   2 2 3 2 2 15 0.13
4 Employment demands widespread open D 2 2 2   2 2 2 1 13 0.12
5 There is a larger university/ second-class image E 2 2 2 2   3 3 2 16 0.14
6 Follow-up cooperation is not optimal F 2 2 1 2 1   1 2 11 0.10
7 Graduates involvement is not optimal G 1 3 2 2 1 1   1 12 0.11
8 Education staff recruitment policy H 2 2 2 3 2 2 3   16 0.14
Total 14 13 13 15 12 17 16 12 112 1

After the weight calculation data is obtained then the rating of each indicator is determined. Determination of the rating is based on the strength factor 4 = very good, 3 = good, 2 = not good and 1 = not good, while for the weakness factor value 4 = not good, 3 = not good, 2 = good and 1= very good. From the results of determining weights and ratings then entered into the IFAS table and performed a final score calculation and the final IFAS score (strengths and weaknesses) can be seen in the Table 3.

Table 3 IFAS Analysis Result
No. Internal Factor Weight Rating Weight X Rating
1 Qualified HR (graduates from reputable domestic and foreign universities) 0.16 3 0.48
2 Tuition fee affordable 0.12 2 0.24
3 Lecture facilities 0.11 3 0.33
4 Image quality students 0.11 2 0.22
Score 1.27
1 Study program accreditation (there are not yet A and some are still C, especially exact study programs) 0.17 3 0.51
2 Management of quality isn’t optimal and directed 0.15 3 0.45
3 There is no lecturer coaching program through the Lecturer Development scheme towards
0.11 3 0.33
4 Location on the city boundary 0.07 2 0.14
Total Score 1   1.43

From the results in the IFAS matrix table above, the total strength score is 1.27 and the total weakness score is 1.43. The EFAS matrix table obtained a total score of 1.41 odds and a threat of 1.47. The results are then entered into the Internal and external matrix tables as presented in the Table 4 below:

Table 4 EFAS Analysis Result
No Internal Factor Weight Rating Weight X Rating
1 The Only Islamic Institute in North Sulawesi 0.13 3 0.39
2 The Economy of Society middle to lower class 0.13 3 0.39
3 Community Culture 0.13 3 0.36
4 Employment demands widespread open 0.12 2 0.22
1 There is a larger universities/ second-class image 0.14 3 0.42
2 Follow-up cooperation is not optimal 0.10 3 0.42
3 Graduates involvement is not optimal 0.11 3 0.33
4 Education Staff Recruitment Policy 0.14 3 0.30
Total Score 1   1.47

Furthermore, the results of this analysis will indicate the position of institutional conditions, whether the SO quadrant (Strength Opportunity), ST quadrant (Strength Threat), quadrant WO (Weakness Opportunity), or WT (quadrant Weakness Threat). The IFAS and EFAS results are then presented in a SWOT quadrant chart or Cartesian diagram. The point on the X-axis shows the internal factor (IFAS) while the point on the Y-axis shows the value of the external factor. Then drawn the meeting line between the two.

Table 5 shows that the quadrants of the EFAS and EFAS calculations are WT (Weakness and Threat) quadrants. The value obtained from IFAS is (-0.16) which is located on the SWOT quadrant axis. The value of EFAS is (-0.6) located on the ordinate axis of the SWOT quadrant. The position of institutional competitiveness is located in quadrant IV with coordinates (- 0.16; -0.6) which indicates the position of the institution must avoid threats to reduce weaknesses As the most strategic step, this strategy must be carried out to improve competitiveness with its competitors, the geographical location of the main competitors is the University of Muhammadiyah Kendari (UMK) as a Private Islamic Higher Education (PTAIS) and Haluoelo University as a Public State University. When the strategic steps have been implemented well, IAIN Kendari will have a competitive advantage with its competitors, especially in the aspect of increasing the interest of prospective new students and the absorption of alumni in the workforce. That is because IAIN Kendari was supported by the main advantages of being the only State Islamic Religious University (PTKIN) in Southeast Sulawesi Province.

Table 5 Total Score of IFAS and EFAS
No. Internal Category Sub Total External Category Weight X Rating
1 Strength (S) 1.27 Opportunity (O) 1.41
2 Weakness (W) 1.43 Threat (T) 0.47
Total (S-W) -0.16 Total (O-T) -0.06

Based on the various findings above, it is known that like a business company, an Islamic tertiary institution also has an internal and external environment. This is by the concept offered by Evans regarding the environment of an educational institution having two environments: internal and external environment. The internal environment is formed by all internal groups of educational institutions. The external environment consists of the micro-environment and macro-environment. The micro-environment will consist of individuals or organizations that have a direct potential impact on educational institutions. While the macro-environment consists of several forces that have an impact not only on educational institutions but also on all the factors that are in the microenvironment. This macro-environment includes various forces such as, demographic, economic, political, legal, socio-cultural, ecological, and technological (Evans, 1995).

Finally, this study confirms that it is very important or crucial for an institution of higher education, including Islamic tertiary education to conduct an environmental analysis (external and internal) to be the basis of the policy orientation of higher education leaders in increasing competitiveness. This is because, through environmental analysis, we can find out the real location or condition of the institution so that aspects can be made as to the main orientation in formulating strategic policies in increasing the competitiveness of institutions at the regional, national and international levels from the results of strategic analysis. The results of this study confirm that to improve the competitiveness of institutions, the SWOT analysis can be used as a reference before conducting a gap analysis to measure the targets and real conditions faced by higher education institutions, while also being used to formulate the institution's long-term strategic planning.


This study had found that the development of the higher education sector through the implementation of external and internal environmental analysis is a very crucial thing to do to help leaders of higher education institutions in Indonesia, especially Islamic tertiary institutions to maintain their existence at the regional, national, and internationally in the Industrial Revolution 4.0 era through the remembrance of competitiveness. The various strategic programs recommended by researchers to improve competitiveness through focusing on activities based on increasing accreditation through adequate funding supply, optimizing the role of the Quality Assurance Agency as a center for quality development, implementing special programs to accelerate professors and increasing academic positions of lecturers, optimizing development quality of study programs that have become a "brand image" in the eyes of the community, for example, Islamic Religious Education and Islamic Banking study programs, increasing the role and contribution of alumni in the form of more real activities, as well as selecting educators (lecturers) and strictly based education staff competence, especially for non-civil servant workers, and involving third parties in the procurement of security personnel and cleaning services. Besides, this study can also be used as a reference for leaders of higher education in Indonesia related to how to conduct strategic analysis through external and internal environmental analysis through the weighting of EFAS (External Factor Analysis Summary) and IFAS (Internal Factor Analysis Summary) referring to Evans theory if organization want to increase competitiveness with its competitors. The link between SWOT and the success of higher education institutions will be discussed in future research.


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