Strategies for Facing the Invisible Hand Culture of Local Wisdom in the Mangaraja Purehet Traditional Territory ′′Sutan Humula Sontang Monument′′ with the SWOT Analysis Method

Dodi Irwan Siregar^*
*Correspondence: Dodi Irwan Siregar, STIE, College in Pekanbaru, Kota Pekanbaru, Indonesia, Email:

Keywords

SWOT analysis method • Invisible hand culture • Mangaraja purehet traditional territory • The leadership of the king • UU no. 5 of 1960 concerning basic agrarian regulations (UUPA)

Introduction

According to Muhammad B [1], Ulayat rights apply outward and inward. Applicable out, because they are not citizens of the legal community in principle, they are not allowed to participate in/cultivate land which is the territory of the alliance concerned. Only with the King's permission. As well as paying compensation, outsiders can get the opportunity to participate in using Ulayat rights. Applicable inward, because only the fellowship in the sense that all its citizens can reap the results of the land and all plants and animals that live in the territory of the community. The right of the partnership essentially limits the freedom of business of the citizens as individuals, in the interests of the partnership.

Along with the development of life, the use of customary land is not only used to meet individual needs. This individual control process continues from generation to generation and is recognized by customary law communities. In addition to using the land in accordance with applicable regulations, other community members must respect it and must not disturb it. If it is neglected for a certain period of time, or if it is needed for a wider interest, then the customary authority can determine its further designation and use. According to Rustandi A [2], Business is a human activity to improve the standard of living in which there is a calculation of profit and loss, that the birth of land ownership for individuals generally begins with land clearing which is notified to the head of the legal alliance and given a sign that the sign will be worked on. The sign is a sign of prohibition so that the results of trees, land or ponds are only for those with an interest, other people may not use and take the results. This form of business is temporary, it is the right to collect the results (genotsrecht), after the harvest is abandoned and work on the land in another place that has never been opened. Even though the right to collect produce is only for one to two seasons, this does not eliminate the relationship between the cultivators and each field that has been cultivated, usually after three years the cultivators return to the abandoned fields so that this relationship can be passed on to their offspring. Lodging fields are owned fields. Thus, ownership rights are obtained by clearing the land, after first marking the boundaries. In the concession of joint rights, community members are filled with a magical religious atmosphere as a belief that land is a gift from God Almighty, therefore they are aware of their obligation to protect, use, and maintain properly in accordance with norms as a crystallization of the noble values of life that have been created.

The invisible hand is an economic concept that describes the unintended greater social benefits and public good brought about by individuals acting in their own self-interests. The concept was first introduced by Adam Smith in The Theory of Moral Sentiments, written in 1759. According to Smith, it is literally divine providence, that is the hand of god, that works to make this happen [3]. With the Law no. 5 of 1960 concerning Basic Agrarian Regulations (UUPA). In the UUPA, there is no longer a dualism in land law, where the applicable law is based on each group, but it is important to remember that customary law and includes customary rights are the legal basis of the National Land. Formed and respected. Ulayat rights are the rights of customary law communities to land and waters and their contents in their territory in the form of the authority to use and regulate everything related to land, forests, natural resources and waters and the environment of their territory under the leadership of the King. Communalistic nature refers to the joint rights of members of the customary law community to land, which in the legal literature is called Hak Ulayat [4].

Strategic management can be defined as a set of decisions and actions taken by management, in collaboration with all levels within the organization in order to establish long-term activities of the organization [5]. Literature review shows that many approaches and techniques can be used to analyze the strategic cases in the strategic management process. One of them is the SWOT analysis.

This article explains the SWOT analysis, provides the theoretical background and an overview of the application of the SWOT analysis. As some authors, have identified weaknesses of the SWOT, analysis is combined with a method for multicriteria decision analytic hierarchy process, in order to avoid these disadvantages. Therefore, in the second part of the paper analytic hierarchy process, method and SWOT analytic hierarchy process, hybrid method is described. Following the basic steps method, SWOT analytic hierarchy process, is applied to the example of the land of the traditional land of Mangaraja Purehet “Monument sutan humula sontang” Trajectory strategic Income plan definition.

Methods

SWOT analysis method

SWOT is an acronym of strength, weakness, opportunities and threats. The first two factors (strengths and weaknesses) are related to internal organizational factors, while opportunities and threats cover a wider context or environment in which the entity operates [6]. The first are likely to be under control of the organization but the latter one, although they are no less important when looking at the impact on the enterprise, are not.

SWOT is one of the most widespread methods of management and is an instrument used by managers in creating strategies [7]. Commonly used as a tool for the analysis of internal and external factors in order to achieve a systematic approach and support to address the situation. Internal and external factors are the most important for the future of businesses. They are called strategic factors and are presented in the SWOT matrix. The ultimate goal of the strategic planning process, of which the SWOT is one of the initial phases, is development and adoption of strategy resulting in a good relationship between the internal and external factors. SWOT can also be used when the alternative appears suddenly and need to analyze the context of decisions with respect to that. SWOT analysis is actually a method to help with strategy formulation. The analysis aims to identify the strengths and weaknesses of the organization and the opportunities and threats in the environment of the organization. SWOT analysis is an important tool that serves as a support for decision-making and is often used as a tool for the systematic analysis of the organization, both internal and external influences on the organization [5]. Identifying their strengths, Weak nesses, opportunities and threats, organizations can build a strategy on their strengths, eliminate weaknesses and exploiting its capabilities, or to use an option in the fight against threats. SWOT analysis summarizes the most important internal and external factors (strategic factors) that may affect the future of the organization.

Analytic hierarchy process method

This chapter describes the analytic hierarchy process, method which is used in conjunction with a SWOT analysis in order to avoid the disadvantages of SWOT analysis. Previous studies have recognized the shortcomings of SWOT analysis and point out SWOT analytic hierarchy process, as hybrid that deal with the priorities of SWOT factors Jeon Y and Kim J [8]. Osuna EE and Aranda A [9], thus the idea behind using analytic hierarchy process, is to systematically evaluate the SWOT factors. This chapter provides a theoretical background of analytic hierarchy process, method, and the next chapter describes SWOT analytic hierarchy process, and emphasizes reasons for integration of two methods.

Analytical Hierarchy Process is one of the most popular methods of multiple criteria decision making. It is used to rank the alternatives by taking into account the importance of the different criteria. Analytic hierarchy process, allows structuring the problem, followed by comparing pairs of elements in the hierarchy. At the end of the process, mathematical model is determined by weighting factors of all elements of the hierarchy. Analytic hierarchy process, structures the problem of decision-making and monitors the process of decision making by defining objectives, criteria and alternatives, by comparing criteria and alternatives in pairs and defining priorities of alternatives. Results of the analytic hierarchy process, method is ranked alternatives and the weight coefficients of criteria in relation to the goal. Analytic hierarchy process, successfully identifies and indicates the inconsistency of decision making by tracking inconsistencies for the whole process. Results are quantitative indicators that can argue the decision. Analytic hierarchy process, method is now one of the most popular and commonly used methods for multi-criteria decision making in solving real problems. It was developed.

Application of analytic hierarchy process

Vaidya OS and Kumar S [10] the literature review of 150 publications published in the prestigious international scientific journals in the period since 1983. - 2003, in which the analytic hierarchy process, method has been applied to solve certain types of problems. Analytic Hierarchy Process, method is most often used for the selection, evaluation and decision-making (more than 50% of the application is one of the three areas). Furthermore, the analytic hierarchy process, has been applied in the planning, development, and in cost – benefit analysis, and less in medicine and for the purposes of prediction. The same article noted that the analytic hierarchy process, method in that period occurred in the five studies combined with SWOT analysis. SWOT analytic hierarchy process, method. This chapter describes a hybrid method of SWOT analytic hierarchy process, first, the reasons why combination of these two methods is necessary, followed by a review of SWOT analytic hierarchy process method.

Although SWOT is often used as a planning tool, this analysis also has weaknesses. Some of these weaknesses can be avoided and then the SWOT can be used more efficiently. In previous studies, this is done by connecting a SWOT analysis with analytic hierarchy process, method. As a result, a hybrid method is obtained that produces quantitative values for the SWOT factors. As advantages of derived hybrid method, literature most often states its simply land, efficiency and the ability to combine qualitative and quantitative criteria. One problem of SWOT analysis lies in the uncertainty related to the future development and the outcome of various factors. This can complicate the comparison. However, the analytic hierarchy process, method is able to manage the decision-making in situations of uncertainty. It is recommended that a number of factors (strengths, weaknesses, opportunities and threats) will be limited to 10, but it certainly allows the user to avoid overlap and negligence during construction of SWOT. On the other hand, the limitation is not so strict and the problem of the large number of comparisons it can be avoided by using at least two different techniques. First, grouping variables and second, by adding a new level in the hierarchy. If, for example, there is a large number of opportunities, they can be grouped into two or three subgroups. Analytic hierarchy process enables quantization of priorities to support decision making. However, analytic hierarchy process does not include the statistical uncertainty of the results. Consistency measure of comparison and consistency ratio, resulting from analytic hierarchy process, calculation, does not give direct information about the uncertainty derived priorities.

Numerical results, prioritized SWOT factors are useful in formulating or selecting the strategy. It is good to compare the external features compared to the internal potential, because all the factors are, at the same, a numerical scale. For example, if it turns out that one weakness is greater than all the benefits, then the chosen strategy may have to be focused on eliminating these weaknesses. Similarly, the selection of the new strategy probably should not be based only on the deletion of the existing opportunities and threats, if they are of equal size. In every situation of strategic planning can be used SWOT analysis and analytic hierarchy process, method. SWOT analysis provides the basic framework which conducts analysis of the situation in which the decision was made, while the analytic hierarchy process helps to conduct the SWOT in analytic way. Potential advantages of using analytic hierarchy process, in SWOT analysis lie in the possibilities of quantitative testing of SWOT factors and involvement of decision maker’s preferences in the planning.

This hybrid method is suitable for many situations of strategic planning. After defining the priorities of SWOT factors, new strategies can be constructed partly on the basis of information derived from the comparison. Furthermore, it is possible to compare two or more strategic options, so find out which is the best match to the SWOT factors. This can be done by adding an alternative strategy to the lowest level of the hierarchy and comparing them with respect to each factor in SWOT list. The result is a quantitative value that indicates the priority or preference of each option.

Combined use of analytic hierarchy process, and SWOT proved promising. Making comparisons in pairs forces decision-makers to think about the weights of factors and more accurately analyze the situation. Hybrid method of analytic hierarchy process and SWOT increases and improves the information base for the strategic planning process. It also provides an effective framework for learning in support of strategic decision making in many situations and can be used as a tool for communication and education in the processes of decisionmaking where multiple decision makers involved.

Steps of SWOT-analytic hierarchy process method

According to Yeon and Kim, SWOT Analytic hierarchy process, steps are following: (1) conducting a SWOT analysis, (2) comparisons in pairs between SWOT factors within each SWOT group, (3) comparisons in pairs between the four SWOT groups, and (4) formulating strategies based on the results.

Step 1

SWOT analysis: Relevant external and internal factors are identified and included in the SWOT analysis. When applied to a standard method of Analytic Hierarchy Process, it is recommended that a number of factors within the SWOT group does not exceed 10 because the number of comparisons in pairs that are needed in the analysis is rapidly increasing.

Step 2

Comparisons in pairs between SWOT factors were conducted within each SWOT group: When comparisons are made, the question to be answered is: which of the two factors being compared is has higher impact: is it strength, opportunity, weakness or threat. With these comparisons as input, the relative priorities of the local factors are calculated using the eigenvalues. These priorities reflect the perception of the decision maker on the relative importance of factors.

Step 3

Comparisons in pairs between four SWOT groups: Factor with the highest local priority was chosen from each group to represent the group. These four factors are then compared and their relative priorities are calculated as in step 2. These are the scaling factors of four SWOT groups and they are used to calculate the total global priorities of independent factors within them. This is done by multiplying the local priorities defined in the second step corresponding to the value of the scaling factor in SWOT groups. The sum of all factors of global priorities is one.

Step 4

Using results in the formulation of strategies and the evaluation process: Contribution to the strategic planning process comes in the form of numerical values for the factors. New targets can be set, the strategies defined and the implementation plan taking into consideration based on the most important factors.

Application of SWOT-analytic hierarchy process method

In several previous studies the combined model SWOT and analytic hierarchy process, method was used, stated this hybrid method is often used to improve the usability of a SWOT analysis as analytic hierarchy process, quantitatively determines the importance of the factors in SWOT groups. In the above studies, among other things, research subjects are exploring the opportunities and challenges of agroforestry by applying SWOT analysis in combination with analytic hierarchy process, assessing perceptions of stakeholders regarding the suitability of the access control based on the community. Have recently used the SWOT and analytic hierarchy process, model to, firstly, prioritize strengths, weaknesses, threats and weaknesses of the group, and secondly, to decide and evaluate alternative strategies of e-government. In each of these studies case study approach has been used to examine specific situations.

SWOT-analytic hierarchy process, method was applied in even more domains such as environmental protection, project management, agriculture, manufacturing, energy, agriculture, industry, machine tools, etc.

Strategic planning of the traditional land of mangaraja purehet “monument sutan humula sontang” trajectory in a small town

In this chapter the use of SWOT Analytic hierarchy process, is demonstrated in the field of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory. Development of a strategic plan for a small town in the northwest of the Croatian, The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory is presented. The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory is a land with less than 50 000 inhabitants, the capital land of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory Country and the economic center of the World.

Systematic approach to strategic planning of the traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory development is implemented by using SWOT analysis integrated with analytic hierarchy process, method. Hybrid method follows the steps of development of described earlier in the paper. The first step is the SWOT analysis. SWOT matrix was developed by consulting an expert in the field of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory: a person who graduated from the Faculty of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory Management. Identified strengths, weaknesses, opportunities and threats in the appendix of this paper. The following strengths were identified: characteristics of destination, geographical position and historical value, standard of living, cultural land events. Elements of each of these strengths are fully explained.

Expert has recognized the weaknesses of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory relating to the following characteristics: limited availability, underdeveloped The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory, inadequate Income promotion, poor coordination between The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory authorities and unstructured The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory management.

As the greatest strength expert identified the characteristics of the destination. It is interesting to be noted that characteristics of the destination has priority higher than following two strengths together. Expert recognized underdeveloped and inadequate Income of the traditional land of mangaraja purehet “Monument sutan humula sontang” trajectory promotion as the main weaknesses of the traditional land of mangaraja purehet “monument sutan humula sontang” trajectory as a track destination.

The next step of the development SWOT Analytic hierarchy process, method involves defining strategies using tows matrix. The main objective of the strategy formulation is a change of current conditions or re- establish the image that is currently broken in the region. Tows matrix provides four different combinations: SO, WO, ST and WT. Below are shown strategies identified in this research. For each strategy are listed SWOT combinations that are used in defining strategies (e.g., S1/O4 means consideration of strength No.1 and opportunity No. 4).

SO, strategies (Maxi-Maxi)

Strategy of differentiated approach: Provides Income mix in a different way than competitive destinations (including S1/S2/S4/O3/O2).

WO strategies (Mini-Maxi)

Strategy of shareholder involvement in the traditional land of mangaraja purehet “monument sutan humula sontang” trajectory development: involvement of shareholders in decision-making, improve product quality and concern for consumers (including: w2/w3/w4/w5/w1/o3/o2).

The strategy of diversification of distribution channels: distribution channels have the power to influence it, "when", "where" and "how" people are traveling, and so to some extent, control how many people come to a destination (includes W3/W2/W5/W1 / O3/O2/O1/O3).

ST strategies (Maxi-Mini)

Segmented Income strategy with product modification: Segmentation identifies specific categories of homogeneous preferences among tracks (includes S1/S2/S4/S3/T2/T1).

Proactive communication strategy: prevent potential negative image in the minds of visitors, must be centralized, honest, transparent and informative (S1/ S2/T2).

WT strategies: Mini-Mini

Launch efficient / flexible Income promotional strategies: creating confidence in the target market: special events, billboards, trade shows, TV programs, public relations, advertising ... are the best tactics for promotion (W3/T2/T1).

Organizational interrelationships and team work: The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory is a set of variety services which include many parties; therefore, it is necessary to develop a network among them (W2/W1/W3/T2/T1).

Explained strategies are defined with the help of expert, following the theory of The traditional land of Mangaraja Purehet “Monument Sutan Humula Sontang” Trajectory. The main advantage of this approach is that it takes into account the internal and external factors that are built into alternative strategies. The disadvantage is that certain combinations are not taken into account.

Conclusion

Strategies for Facing the Invisible Hand Culture of in the Mangaraja Purehet Traditional Territory “Sutan Humula Sontang Monument" to land and waters and their contents in the territory in the form of the authority to use and regulate everything related to land, forests, resources natural, waters and environmental, in Local Wisdom in the Mangaraja Purehet Traditional Territory “Sutan Humula Sontang Monument” under the leadership of the King. Business is a human activity to improve the standard of living in which there is a calculation of profit and loss, The invisible hand is an economic concept that describes the unintended greater social benefits and public good brought about by individuals acting in their own self-interests Must with the King's permission because only the fellowship in the sense that all its citizens can reap the results of the land all plants and animals that live in the territory the distribution of the results that has been determined by the king is seventy-five percent for the king and his descendants and twenty-five percent for workers. SWOT analysis identifies internal and external factors that are prioritized by experts. In the domain UU no. 5 of 1960 concerning Basic Agrarian Regulations (UUPA) through an Analytical hierarchy process. The prioritized SWOT factors are used in the formulation of strategies using the TOWS matrix. The results of the study indicate those who do not fulfill the obligation will receive the death penalty or leave the customary land sincerely all kinds of situations and circumstances without any a coercion that has been ordered by the King is the best strategy.

References

1. Muhammad, Bushar. "Pokok-pokok hukum adat." (2004).

Google Scholar, Crossref

2. Rustandi Ardiwilaga, ‘’Hukum Agraria Indonesia’', Masa Baru, Jakarta (1962).
3. Bonar, James. "“The theory of moral sentiments,” By Adam Smith, 1759." Philos 1 (1926): 333-353.

Google Scholar, Crossref

4. Harsono, Budi. "Hukum agraria Indonesia: Sejarah pembentukan undang-undang pokok agraria, isi dan pelaksanaannya." (No Title) (2007).

Google Scholar, Crossref

5. Yüksel, İhsan and Metin Dagdeviren. "Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm." Inf Sci 177 (2007): 3364-3382.

Google Scholar, Crossref, Indexed at

6. Collins-Kreiner, Noga and Geoffrey Wall. "Evaluating tourism potential: A SWOT analysis of the Western Negev, Israel." Int J Tour 55 (2007): 51-63.

Google Scholar, Crossref

7. Kurttila, Mikko, Mauno Pesonen, Jyrki Kangas and Miika Kajanus. "Utilizing the analytic hierarchy process (AHP) in SWOT analysis—a hybrid method and its application to a forest-certification case." For Policy Econ 1 (2000): 41-52.

Google Scholar, Crossref, Indexed at

8. Jeon, Yeong and Jungsun Kim. "An application of SWOT-AHP to develop a strategic planning for a tourist destination." (2011).

Google Scholar, Crossref

9. Osuna, Edgar Elias and Alvaro Aranda. "Combining SWOT and AHP techniques for strategic planning." ISAHP 2007 (2007): 1-8.

Google Scholar, Crossref

10. Vaidya, Omkarprasad S. and Sushil Kumar. "Analytic hierarchy process: An overview of applications." Eur J Oper Res 169 (2006): 1-29.

Google Scholar, Crossref, Indexed at