Quality Control and TQM: SC Johnson & Sons Pakistan (PVT) LTD

2013
Quality Control and

TQM: SC Johnson &
Sons Pakistan
(PVT) Ltd.
SYED RAZA HASSAN
Quality Control and TQM at SC Johnson & Sons of Pakistan (pvt) Ltd.
Table of Contents
Page No.
SC Johnson & Sons Inc. --------------------------------------------------------------------
03
Quality Control and TQM at SC Johnson & Sons Inc. ---------------------------------
04
SWOT Analysis ------------------------------------------------------------------------------
14
External Factors Evaluation Matrix -------------------------------------------------------
15
TQM Basis of Competition for SCJ -----------------------------------------------------
20
Value Chain -----------------------------------------------------------------------------------
26
BCG Matrix -----------------------------------------------------------------------------------
27
Six Sigma --------------------------------------------------------------------------------------
29
Porters Five Forces --------------------------------------------------------------------------
29
Business Model -------------------------------------------------------------------------------
31
Business Level Strategy ---------------------------------------------------------------------
33
Way Forward ---------------------------------------------------------------------------------
35
SC Johnson & Sons Inc.

SC Johnson & Sons Inc. has had a very rich history of more than a century. The company was
founded in 1886 by Samuel Curtis Johnson in Racine, Wisconsin, US. Ever since its inception
the company has grown folds and established itself among its global competitors such as Reckitt
Benckiser and the likes. Not only has the diverse range of products made the company a popular
choice among consumers, the connection which the organization has made with its customers by
firmly following its mission of developing A Family Company has contributed significantly to
take the organization places. Today, SC Johnson & Sons Inc. is ranked 29 in the World
according to Forbes and operates in over 50 countries. It is an internationally acclaimed leader in
the insect control and homecare products markets.
After having prolific success in the West, SC Johnson & Sons Inc. decided to explore the ever
growing Asian markets and in the year 1999 the company started its operations in Pakistan in the
name of SC Johnson & Sons of Pakistan (pvt) Ltd. Having bagged various awards such as the
Brands of the Year Award in 2011 for Baygon which is the highest revenue generating
product that the company produces and has almost became a generic name in insecticides spray
category together with The International Award for Zero Incidents testifying the top notch
Health & Safety standards which the company complies by, SC Johnson & Sons of Pakistan
(pvt) Ltd has been a successful venture for the parent company.
Vision
Fundamentally, we believe this world should be a better place for our having been here.
Creating stakeholder and societal value while decreasing our footprint along the value chain
Mission
Guided by the principles of This We Believe, SC Johnson will supply high quality products
that meet the needs and expectations of our customers and consumers as we commit ourselves to
comply with the requirements of our quality system and to its continual improvement.
The goodwill of the people is the only enduring thing in any business. It is the sole
substance...the rest is shadow.
H.F. Johnson, Sr.
1927 Profit Sharing Speech
QUALITY CONTROL & TQM AT SC JOHNSON & SONS

INC
SC Johnson and Sons is one of the giants in Pakistan when we talk about a homecare family
company. However, after coming into Pakistan in 1999 was ready to establish a firm footing in
the market with its very popular insecticide product Baygon. With technological developments
taking place every second, the management of a company as big as SC Johnson & Sons faces
numerous challenges that it needs to deal with. In such a situation, Total Quality Management
(TQM) may prove to be something beneficial for the company and can contribute towards its
success. It must be kept in mind that TQM is a concept that is mostly adopted by companies that
have an organic structure. In order to enhance understanding, we would like to define what an
Organic Structure actually is.1
An organizational structure that is free flowing, has few rules and regulations, encourages
team work and decentralizes decision making to employees doing the job.
It is a structure that is typically considered to be a flexible one and perhaps has become the most
important one, keeping in mind the need of time. In organic structure, particular emphasis is
given to the horizontal structure that has the following characteristics:
Horizontal Teams, task forces, project management
Open information, horizontal communication
Decentralized decision making; participative strategy
Empowered Employees
Strong, adaptive culture
1
Management by Danny Samson & Richard L Daft
Such organizations have developed their culture on the basis of sharing their strong values and
their people who have played an active part in this picture. SC Johnson & Sons (SCJ) has leaders
who play their role in major and/or minor change processes and are the driving forces who lead
others by making themselves a part of that process (involvement of top layer), working in teams
(guiding coalition), sharing information (communication), and keeping an eye on the culture and
norms of organization.
If organizations find it harder to access and exchange information, chances are that they will not
be able to create value or knowledge out of the information. Organization learning has become a
necessity for the survival of businesses. A learning culture in organizations is important as it
opens up informal and formal channels for dialectical thinking, debates, and critiques. Because
knowledge is a changing reality; it therefore needs to be tested and evaluated based on its
potential and applicability in a particular context. However, if an organizational culture does not
promote experimental learning, informal peer reviews, and informal guidance, it is likely that it
will be stuck with the knowledge that it is no longer effective in a fast and continuously changing
environment.
The importance of an individuals learning capability, together with an organizations culture
that promotes learning is explained with the help
of a matrix;
There is a MIS department that makes sure that
all automation is running free of errors at all
times. Regularly modifying and updating the
companys accounting software is also the MIS
departments responsibility. For communication
purposes, they have wireless systems in every
plant. Video conferencing too is done at higher
levels of the management where discussions regarding future strategies of how to go about the
product are carried out. SCJ has a two way communication system in their organization.
As most of SCJ products deal with strong chemicals, as they produce insecticides, top cleaners,
Air Refreshers and other such home care goods. Therefore the production Department has to
play a pivotal role in ensuring that quality is delivered to their customers. Not only do the
production processes have to be monitored, procuring the most effecitive chemicals and other
raw materials are essential as well and hence proper testing needs to be done in order to ensure
efficiency. Moving on, in its overwhelming success, the Quality Assurance department also has
played its part. There are qualified chemical technologists that are responsible to ensure that the
end product reaches the customer with the quality that is promised and one that SCJ aims to
deliver, hence making customers their top priority.
EMPLOYEE INVOLVEMENT:
Having a decentralized structure and decision making authority, SCJ makes sure that every
employee of the company plays his/her role to their fullest potential. Jobs are assigned keeping in
mind the Human Resource Perspective which suggests that jobs should be assigned to meet
higher-level needs by allowing workers to use their full potential. In order to make better and
prompt decisions, managers need to have complete information so that no uncertainty or
ambiguity may exist. For this there has to be a complete flow of information within the
organization through both formal and internal communication which takes place within the
company. There are approximately 1,000 employees working at SCJ and opinions, suggestions
and ideas are encouraged from every single employee. SCJ is striving to become an employer of
choice by providing a workplace where people feel confident, valued and are provided with
training. Just as in a typical decentralized structure, several layers are seen (hierarchal levels) at
SCJ as well and the company makes sure that every layer is involved and moves with the
company.
Employee involvement is perhaps the most important part of TQM that contributes the maximum
to an organizations success. For an employee to be empowered he/she must have complete
information to draw future strategies and for decision making purposes. SCJs Mr.Muscle in this
regard is the best example when it projected about 2% of the market share at the time of its
launch back in 2010, but was able to capture 5% in the very first year of its operations. SCJ, with
its attractive salary packages, lucrative offers, incentives and bonuses has made sure to form
goodwill as major players in the market and has been successful in inculcating a sense of
ownership in its employees. It is rather obvious that managers at SCJ is fond of Theory Y and are
keen to take advantage of the imagination and intellect of all their employees, leading them to
innovation which forms the basis of their competitiveness. Following are the underlying
principles of Theory Y:
Work can be as natural as play and rest.
People will be self-directed to meet their work objectives if they are committed to them.
People will be committed to their objectives if rewards are in place that addresses higher
needs such as self-fulfillment.
Under these conditions, people will seek responsibility.
Most people can handle responsibility because creativity and ingenuity are common in
the population.
Furthermore, SCJ provides an opportunity to all employees to take initiative and ownership of
programs and also lead projects in their respective scope of work. In order to further encourage
the employees, certain rewards and recognitions are frequently announced by the management at
intervals while employees are also given provident funds, bonuses and medical facilities. Team
based strategy is particularly encouraged by the management and mostly they employ local
qualified, young professionals who are dedicated and show ownership towards the company.
We believe that high performing teams containing appropriate diversity can achieve what
individuals alone cannot. Consciously using the diversity of style, approach and skills afforded
by teams is strength we must continue building into our organization.
The overall aim of the development function is to provide that adequately trained personnel in a
company are capable of fulfilling their goals, as well as to contribute to better performance and
growth with their work. In order to develop their workforce to increase their productivity SCJ
has three main training policies
In house
External
Training need assessment
Most frequently SCJ uses External Training Policy in order to train its employees; where its
current employees are sent to seminars conducted internationally to train and develop their
expertise. SCJ Foods bears the costs for these seminars and workshops to which the employees
are sent. In addition to these policies there are two types of training programs that are conducted
at SCJ;
Technical Training:
It is given to those employees who are involved in the production process and other technical
work. This has become even more important because of rapid change in technology or any type
of machinery.
Soft Skill Training:

Soft skill training is particularly important for middle level managers in the organization. It is
given to those who are involved in office work and is also called development of personnel.
Following
Identifying training and
development needs
(Current and Future)
is
the
training
and
development cycle at SCJ:
360 FEEDBACKS:
Monitor performance
Identify training and

development methods to
meet needs
SCJ values its employees as equally

important as its customers and believes
that its employees have enabled the
organization to stand where it is today.
Evaluate success of
training and
development activities.
Motivation, work ownership and fair

evaluation are some of the defining
attributes of staff management practices at SCJ. Their commitment to continuous improvement

in the performance management systems for employees at all levels was reflected in the adoption
of the 360 Degree Feedback System. This system ensures better employee accountability, while
at the same time providing them with chances to make use of their competencies. The 360
Degree mechanism became fully operational for senior management in the year 2006. 2
FOCUS ON CUSTOMERS
After the role of its employees, any company is judged by the number of customers it has
because that forms the basis of an organizations success or failure. As SCJ pust it this way,
2
www.docstoc.com
Consumer is the reason for our existence as a business. SCJ lays great emphasis on customer
satisfaction and on delivering quality products in line with customer requirements, and considers
these as one of their top most priorities. SCJ has seen a rapid growth since its establishment in
1999 in sales and market share over the years. However, keeping track of its customer base
proved to be somewhat of a challenge. The company was relying on Microsoft Excel
spreadsheets to record customer information but this proved to be an inaccurate and inefficient
way to manage valuable records. There was also no easy way to use the data for analysis. To
address these issues, SCJ decided to implement Oracle CRM on Demand to serve as its new
Customer Relationship Management (CRM) system. With this CRM solution SCJ is now able to
keep track of 60,000 strong consumer bases on a daily routine. The importance of customer
feedback and CRM is further highlighted by this statement of one of the top officials at SCJ.
We are a commodity business, and it is vital for us to be on our toes. We run reports on the
Oracle CRM system to find out which customers are loyal to our brands and which ones are also
buying other brands. We can then look more closely at the reasons for the switch and work on
winning these customers back. This is something we simply cannot do using spreadsheets. The
ability to see and act on this type of information is a competitive advantage.
Key benefits of Oracle CRM are:
Increased productivity and freed staff to work on higher value work by eliminating the
use of spreadsheet-based systems
Enhanced data quality and currency by minimizing manual data entry
Gained the ability to generate in-depth reports based on customer feedback
Built stronger relationships by enabling staff to interact with customers on important

dates such as birthdays and anniversaries
Lessened the IT administration burden by opting for a hosted solution
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AT SCJ

CRM has played an important role in the success story of Baygon and SCJ. Its broad highlights
are:
It helped marketing departments to identify and gather best customers, manage marketing
campaigns and generate quality leads for the sales team.
Allowed the formation of individualized relationships with customers, with the aim of
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.
Provided employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build relationships
between the company, its customer base, and distribution partners.
However, to SCJ customer feedback was particularly of great importance and hence after
Baygons launch in the market, they conducted market research to obtain customer feedback.
Customer feedback came as a positive sign after which SCJ decided to increase marketing efforts
and create better awareness along with increasing distribution channels. Not only was it helpful
for the company to determine its own standing in the market but at the same time it proved to be
beneficial so as to keep a check and measure of its competitors. The customer survey was
particularly important to estimate the number of loyal customers of competing brands and also in
making decisions and drawing strategies for times to come.
Baygon has laid great emphasis on customer defection rate and has been successful to some
extent in delivering their products the way their customers want. For this they positioned their
brand so as to encourage customers to buy only Baygon and not competing products like
Mortien. For positioning they kept in consideration a product design and image that would
occupy the minds of the customers while having a lasting effect at the same time.
SC Johnson & Sons in Pakistan do not have a formal Marketing department and it is the sales
department that looks after the marketing functions of the company. Until this year, the company
did not advertise in any form, however with tough competition from Reckitt and emergence of
other brands such as Aladin, there is an inherent need to advertise and make the presence felt at
all levels. When SC Johnson & Sons introduced Mr. Muscle, it had dubbed a foreign
advertisement, due to which the people in Pakistan were unable to build that linkage, thus the
sales figures did not meet the expectations. When analyzed, it was found out that the company
majorly depends on its distributors and retailers to increase the sales volume rather than
marketing the product itself. As previously discussed, Sales and Marketing department are
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merged together; therefore the Head of Sales is responsible to look after both the areas. Under
Head of Sales there are 4 Zonal Sales Managers. Under each Zonal Sales Manager there are 4
Field Managers and under each of them there is a Territory Sales Office.
There are certain products where the company has to import raw materials (chemicals) from
other countries due to which it has to maintain good relationships with the customs department.
For this purpose, the company has designated two individuals who are responsible for the
clearance of these raw materials from the Karachi port, in order to ensure that the production
process does not halt and the organization is able to serve its target market. As a general rule of
business, a customer lost is same as two gained by your competitors, SC Johnson & Sons of
Pakistan pays great attention towards ensuring that its products are available at all times,
particularly in areas that are low on brand loyalty. To further strengthen its market presence, SC
Johnson & Sons regularly seeks feedback from the retailers and customer complaint regarding
the cap or spray is immediately taken care of by the inspection team.
CONTINUOUS IMPROVEMENT
Regarding innovation the company says, Success requires us to continually strive to produce
break through ideas that result in improved solutions and services to customers. We encourage
challenges to the status quo and seek organizational environments in which ideas are generated,
nurtured and developed. Innovation in terms of product diversification is usually what makes a
company competitive against others in the same industry. True competitiveness may only be
achieved through higher productivity, higher productivity may only be achieved through
innovation and that innovation can be achieved through Research & Development (R & D).
Innovation is very important in any business. The analysis suggests that SCJ has not been able to
extend its product line the way it could have, or the way RB has done it. Broadly speaking, SCJ
is competing within the industry based on four of its products;
o Baygon
o Finis
o Mr. Muscle
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o Glade
New products that SCJ introduced in the market like Mr. Muslce did not do so well due to a
weak marketing strategy and intense competition. Firstly, the product portfolio is not too strong
and does not have much differentiation to offer. Secondly, when compared with competitors due
to their large product portfolio and stronger presence in the market than SCJs, it is imperative
that SCJ brings certain innovation to its products. Soap category is one which the company could
exploit and with so many brands operating within the market, slight innovation could help the
company go places. This could be linked with Reckitts introduction of repellant spray that was
smell-free. Even though SCJ tried to introduce a similar formula, results showed that the
company could not match RBs success. However, in spite of being a strong brand, RB is
continuously looking to innovate and with a strong value chain network, it is critical that SCJ
brings something different to its strategy and product offerings.
Building on strong brand name
Being an international brand, SCJ has not been able to capitalize fully on its brand name. Even
today, most of the people do not know SCJ by its name rather by Baygon. As discussed in the
previous point, if the company looks to innovate and differentiate with new product offerings,
chances are that there would a better brand equity for the company and a strong brand name is
itself an asset.
Talking from sales perspective, the retail market in Pakistan has a lot of growth potential and
with the middle income group expanding; there are high degree of chances that the sales
numbers would face an upward trend in coming years. This could pose great growth
opportunities for the company; however building good relationships with the retailers in this
regard would be important. However, one of the major weaknesses that SC Johnson & Sons
marketing campaign suggests that there is no formal advertising which the company follows. On
the other hand, Reckitt both with Mortein and Dettol has done tremendously well, as it has
ensured a constant presence in the media; therefore people can connect better to their products.
The success has been so much that Mortein has almost become a generic name in mosquito
repellant and aerosol industry. Other than that, in our market analysis we also found out that SC
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Johnson & Sons has its presence in big retail stores and premium stores together with MT
channels, but the lower tier retail stores are not served well.
To address both these issues, it is very important to build stronger retail ties and zonal sales
manager must continuously strive for better shelf space and encouraging retailers to stock the
products. Moreover, the company should introduce certain product offerings such as discount
offers to encourage customer response. Moreover, the company must look to advertise its
products effectively so that their customers reach increases.
BENCHMARKING
Benchmarking is a technique that most learning organizations employ in order to determine their
success in comparison to its competitors. With so much competition (Reckit and Benckiser)
coming from different sides it is rather imperative that an organization needs to keep a close look
on its competitors performance, ensuring that it does not lag behind in any sense. In this regard
it might be useful to mention one of Porters five forces; Bargaining power of buyers.
By bargaining power of buyers, Porter emphasized on the power that the buyers get when new
companies enter the same industry or there are existing companies, thus giving buyers an option
to switch to some other brand. Moreover, these days buyers have complete information about
the product and its substitutes thus the companies need to realize that they need to be on their
toes to make sure that their sales do not decline. Similarly, SCJ certainly believes in
benchmarking in order to achieve a better standard of performance. When the organization was
being established back in 1999, the company and in particular its dynamic supply chain
researched and discovered that they should benchmark their performance with the market leaders
in the homecare market in Pakistan which is Reckit & Benckiser.
With growing opportunities in the sector, tough competition is what SCJ has to face. In terms of
competition, RB Pakistan is the biggest competitor for SCJ. Reckitt Benckiser Pakistan
(previously known as Reckitt & Colman Pakistan Pvt Ltd.) started operations in the late 50s.
Today, Reckitt Benckiser runs one manufacturing unit in the country, providing quality
household and pharmaceutical products to a varying consumer base. RBs head office is located
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in Karachi and their sales operations are spread country wide with four regional offices and 16
area offices
As a result of this benchmarking SCJ was able to quickly capture a large market share making its
way ahead of others, a well established brand when SCJ was launched in 1999, through its
product Baygon.
SWOT ANALYSIS
Strengths
Weaknesses
A strong brand name
Well
qualified
and
products that are offered.
enthusiastic
management.
Lack of differentiation in terms of
Only one production facility that caters to
Strong value chain network and good
the nationwide demand, thus increasing
relationships with suppliers, distributors
transportation costs significantly.
and retailers.
Opportunities
Threats
Growing middle income group.
Inflation
Below the poverty line areas are often
Competition
struck with diseases such as malaria,
Weak Law and order situation across the
dengue; therefore an increase in sales
country.
from these areas are expected.
Growing retail markets.
External environment tends to play a major role in determining the future of the organization and
there are a wide range of factors that can impact the overall outlook of the company in the long
run. These external factors might change with time and with changing market dynamics, the
impact of each factor changes. In case of SC Johnson and Sons of Pakistan, there are a variety of
external factors that can significantly impact the consumer sector of Pakistan. One of the major
reasons behind this is that the middle income group is increasing and with greater health
awareness that is coming up, households have become a lot more concerned with their health and
cleanliness. Therefore, companies like SC Johnson & Sons can have significant growth
opportunities to exploit and strengthen its presence in the market.
We have prepared an EFE matrix to incorporate the potential external factors that can have an
impact on how the company performs.
External Factor Evaluation Matrix (EFE)

Weight
Rate
Score
Opportunities
Growth Opportunities
0.2
0.60
Product Line extended
0.2
0.60
0.05
0.10
Threats
Competition
0.3
1.20
Inflationary Pressure and Rising Costs
0.1
0.20
Law and Order resulting in Logistics Issues
0.1
0.10
Quality of raw materials
0.05
0.05
Total
1.00
2.85
The above analysis in the EFE Matrix suggests that SC Johnson still has a lot of growth potential
and opportunities to capitalize on. A score of 2.85 can be seen as a mid to high performing
company. In order to better understand these factors and to provide a holistic view of the
industry as a whole and the impact of certain external factors, we shall discuss the following in
detail;
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Opportunities
Growth Opportunities
The consumer sector is highly dependent on the purchasing power of the society. Currently,
Pakistans middle income group is expanding and is likely to follow the same pattern in days to
come. This would mean that they are considerable growth opportunities and with greater
urbanization that is taking place, the company can expand its customers reach. By being
available in all parts of the country, revenues can be increased and with retail sector still
expanding, it can be said that the growth opportunity in the consumer goods industry would be
high.
Product Line Extended
Innovation is very important in any business. The analysis suggests that SCJ has not been able to
extend its product line the way it could have, or the way RB has done it. Broadly speaking, SCJ
is competing within the industry based on four of its products;
o Baygon
o Finis
o Mr. Muscle
o Glade
Being an international brand, SCJ has not been able to capitalize fully on its brand name. Even
today, most of the people do not know SCJ by its name rather by Baygon. As discussed in the
previous point, if the company looks to innovate and differentiate with new product offerings,
chances are that there would a better brand equity for the company and a strong brand name is
itself an asset.
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Threats
Competition
There is tough competition in the market, more specifically RB, which has more experience in
the market as it is now celebrating 60 years in Pakistan.
Salvatore Caizzone, executive vice president of the RB group commented, We have a very
positive outlook for the country and Pakistan remains a very important market for RB. Pakistan
is the worlds sixth-largest nation, has a growing population that is very young, and a middle
class that is visibly emerging and has more spending power today than it did five years ago.
3
RB plans to set up the manufacturing facility despite the persistent energy crisis in the country.
The worsening law and order situation is the most significant issue that the fast-moving
consumer goods giant faces in Pakistan. The company expects the factory will create
employment and will further cement RB Pakistans standing as a manufacturing and exporting
hub within the RB world.
Emerging markets contribute 42% to RBs net revenue globally; their share is expected to
increase up to 50% by 2016. According to Caizzone Pakistan for RB is one of the top 10
emerging economies.
RB Products
RB Pakistan is a consumer goods company involved in the manufacturing and marketing of
leading brands like Dettol, Mortien, Veet, Harpic, Strepsils, Gaviscon, Cherry Blossom, Dispirin
and Durex. It is basically a Subsidiary of the Reckitt Benckiser Group Plc, a global consumer
goods leader in health, hygiene and home products, with operation in over 60 countries and
headquarters in the UK. RB has introduced 12 brands in Pakistan within the categories of health
care, hygiene and homecare.
According to RBs vice president Caizzone brands falling in the healthcare category is of highest
priority for RB, followed by hygiene and homecare brands. The greatest growth in Pakistan
http://tribune.com.pk/story/498222/reckitt-benckiser-celebrates-60-years-in-pakistan/
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comes from the hygiene segment; this is mainly driven by Dettol, Harpic and Mortien. They
have very few brands in the homecare segment.
RBs Growth
Every year RB generates over Rs. 1.7 Billion to the exchequer in the form of custom duties,
federal excise duties, sales taxes and other such taxes. RB has a factory in Karachi and regional
offices across the country and provides employment to around 5000 families through its
widespread sales and distribution network.
The combined annual growth rate of RB Pakistan for the last three years has been 16.8%. Its
total revenues have increased from Rs 4.5 Billion in 2009 to Rs. 7.2 Billion in 2012. With such
high double digit growth they have beaten many competitors in the region.
Although RB has existed in Pakistan since 1951, the company is still in the investment phase.
According to Vice President Caizzone the company does not manage brands to be cash cows.
Instead the company manages brands for one purpose growth. A cash cows main role is to
meet the bottom line, but RBs financial strategy is growth focused. Volumetric growth and
consumer penetration are more important for RB Pakistan than profit margins at the moment.4
Inflationary Pressure
Inflation is considered to be one of the significant factors in terms of a companys performance.

The inflationary pressure in Pakistan has been on the higher side which essentially makes it
difficult for companies to sustain with low price margins. Although the reported number for
inflation in Pakistan ranges from 6-7%, with other expenses that are incurred, it becomes a
difficult task for companies like SC Johnson to sustain keeping in mind the high sales and
administrative expenses that they have. In context of SC Johnson, an important point to note is
that the production facility is in Karachi and the entire northern market operates only for sales
and distribution. This means a major chunk of sales and administrative cost would be coupled
with high transportation costs that the company needs to bear. With rising inflationary pressure,
this would become increasingly difficult for the company.
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In addition to this, major cost of raw materials includes chemicals which are manufactured either
in house or are procured from local markets. It has been estimated that the price of raw materials
being procured has increased significantly and with retailers demanding more margin, there is
considerable pressure on the company in terms of pricing of the product.
Law & Order and Logistics
The law and order situation all across the country is worrisome sign and consumer industry is no
exception in this regard. Due to regular strikes in Karachi, on several instances the production
team is not able to report to the factory; hence the production levels could well suffer a major hit.
Moreover, due to lack of infrastructure there are certain issues that the company faces in context
of its logistics. First and foremost, there have been instances where entire trucks were looted in
interior Sindh and adjoining areas, therefore resulting in inventory losses for the company. Other
than that, the transportation costs and time that it takes often adds to the logistics issues that the
company has to come to terms with.
Quality of Raw Materials being used
Ensuring top quality raw material is one of the major tasks that the production department looks
after and at every stage of production there are certain inspections that the products go through.
With rising inflationary pressure and unstable economic conditions that the country has gone
through lately, quality of raw material has dropped, particularly the ones being manufactured
within Karachi. Chemical companies are not able to meet the increasing costs effectively and in
an attempt to maximize their revenues, they have resorted to lower quality.
Quality of raw materials going down could pose serious threats to SC Johnson & Sons. The
company is already facing stiff competition from RB Pakistan and any drop in quality would
result in customers switching to other brands. It is important to remember here that the cost of
raw materials is the major cost component for SCJ and the consumer industry works on the
principle of higher volumes rather than higher margins. Therefore, a drop in quality of raw
materials being used by SCJ could have an adverse impact on the sales number.
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TQM BASIS OF COMPETITION FOR SCJ

Prices have never been the basis of competition for Baygon because the price of Baygon is more
or less same as the price of its competitors. SCJ tries to distinguish itself from its competitors
through employing Total Quality Management and ensuring milk quality and purity.
SC Johnson & Sons has its production facilities in Karachi and from this end goods are
transported to other parts of the country. In order to ensure top quality products, the quality
control department at SC Johnson & Sons keeps a close check on the quality of the products
being offered to the consumers, and the Junior Manager is responsible to ensure that all quality
standards are being met completely. Broadly speaking there are 3 inspection categories for the
company;
Inspection of Batch & Finished Goods This is done where the entire product is being
imported such as in case of Glade. The company does not manufacture Glade in Pakistan;
rather it is imported and directly offered for sale. The inspection is done to ensure that all
the product components are working effectively.
Inspection of Packaging Materials It is important to maintain a close check on the

packaging of products for which the use of caps, plastic bottles, and other packaging
material is procured from other vendors. The way product is packaged and offered for
sale tends to impact the purchase pattern of customers therefore SC Johnson & Sons pays
great attention to ensure that goods are packaged as per the quality standards.
Inspection of Chemical Raw Materials Raw materials used by SC Johnson is both

prepared by themselves, procured locally and incases they could be imported as well.
This is the central point of the companys operations and therefore top notch quality is
ensured at all times. Regular sampling is done and the samples are tested to evaluate the
quality standards and the report is put before the Quality Control Manager and the Head
of Productions to be certain of the quality of raw materials that are being used in the
manufacturing process.
In case where any goods are returned, the sales department communicates with the warehouse
department and the productions department regarding the feedback that they got from the
retailers or the concerned personnel for the basis of the goods being returned. There is about 5-
20
10% tolerance standard which has been set by the productions department, which suggests that
quality is highly valued at SC Johnson & Sons.
Finance
SC Johnson & Sons of Pakistan (pvt) Ltd has small scale operations in Pakistan; therefore the
finance department is primarily entrusted with the jobs of Financial Reporting, Auditing and
Budgeting. The finance department is solely based in Karachi and the Lahore division only
maintains a sales and distribution department. The financial analysis showed us that the company
invests about 25% in its business cycle, which suggests that it is a reasonably stable brand. It
should be kept in mind that SC Johnson & Sons of Pakistan (pvt) Ltd faces stiff competition
from Reckitt which predominantly speaking is a lot better positioned in the market as compared
to SC Johnson & Sons. The relationship with the retailers and its distributors has played a major
part in SC Johnson & Sons success lately whereby the company has been able to expand and
grow its market share. This has led to an increase in the profit margins for the company, and has
resulted in the transformation from a loss making organization in 2008 to a reasonably stable one
in 2012 in terms of profit margins.
It is recommended that with the growth opportunities that exist, SC Johnson & Sons should look
to invest in fixed assets, thereby expanding. In order to do this, the company can borrow, keeping
in mind that the finance costs as of today is lower than what it has been in the last few years.
Thus, the combination of growth opportunities together with relatively low finance costs should
be one of the major focus for the company.
Furthermore, when we delved into the numbers, we found out that the sales figures had not
increased as much as it was expected during 2010 and 2011, primarily because of back to back
flood years that Pakistan had. The nature of the industry is such that companies believe in large
volumes rather than charging higher prices for their products and with other industry players
entering the market and the presence of counterfeit makes it difficult for MNCs to compete with
them in terms of low prices and yet maintain high quality products.
In 2011, financial restructuring took place at SC Johnson & Sons whereby Pakistan was placed
in the MENA region with Egypt as its head. The basic objective of this restructuring was to draw
21
consistent financial policies across the entire region so that there was ease of reporting and
decision making from its headquarters in Racine.
Marketing, Sales and Distribution

SC Johnson & Sons in Pakistan do not have a formal Marketing department and it is the sales
department that looks after the marketing functions of the company. Until this year, the company
did not advertise in any form, however with tough competition from Reckitt and emergence of
other brands such as Aladin, there is an inherent need to advertise and make the presence felt at
all levels. When SC Johnson & Sons introduced Mr. Muscle, it had dubbed a foreign
advertisement, due to which the people in Pakistan were unable to build that linkage, thus the
sales figures did not meet the expectations. When analyzed, it was found out that the company
majorly depends on its distributors and retailers to increase the sales volume rather than
marketing the product itself. As previously discussed, Sales and Marketing department are
merged together; therefore the Head of Sales is responsible to look after both the areas. Under
Head of Sales there are 4 Zonal Sales Managers. Under each Zonal Sales Manager there are 4
Field Managers and under each of them there is a Territory Sales Office.
It is evident that SC Johnson & Sons is a sales driven company and meeting the targets is critical
to the companys success. For this, the sales team has been divided into segments such as
Retailers, Premium stores such as Aghas and EBCO, Wholesale market and the Modern Trade
Channels such as Hyperstar, Metro and Makro. The company has carried out a detailed analysis
of the demographics within the city and the country at large to be able to better place their
products. For instance, Baygon spray 400 ml would not be available in areas such as Orangi
where there is less demand for the product; rather that market is served with coils. Similarly, in
the air freshener category, Glade is a well known brand all around the world, and in the Pakistani
market it is likely to be available in the top notch stores such as Aghas or EBCO. This shows that
the company has a thorough study of its market and serves the customer needs with market
segmentation.
There are certain products where the company has to import raw materials (chemicals) from
other countries due to which it has to maintain good relationships with the customs department.
For this purpose, the company has designated two individuals who are responsible for the
22
clearance of these raw materials from the Karachi port, in order to ensure that the production
process does not halt and the organization is able to serve its target market. As a general rule of
business, a customer lost is same as two gained by your competitors, SC Johnson & Sons of
Pakistan pays great attention towards ensuring that its products are available at all times,
particularly in areas that are low on brand loyalty. To further strengthen its market presence, SC
Johnson & Sons regularly seeks feedback from the retailers and customer complaint regarding
the cap or spray is immediately taken care of by the inspection team.
Talking from sales perspective, the retail market in Pakistan has a lot of growth potential and
with the middle income group expanding; there are high degree of chances that the sales
numbers would face an upward trend in coming years. This could pose great growth
opportunities for the company; however building good relationships with the retailers in this
regard would be important. However, one of the major weaknesses that SC Johnson & Sons
marketing campaign suggests that there is no formal advertising which the company follows. On
the other hand, Reckitt both with Mortein and Dettol has done tremendously well, as it has
ensured a constant presence in the media; therefore people can connect better to their products.
The success has been so much that Mortein has almost become a generic name in mosquito
repellant and aerosol industry. Other than that, in our market analysis we also found out that SC
Johnson & Sons has its presence in big retail stores and premium stores together with MT
channels, but the lower tier retail stores are not served well.
To address both these issues, it is very important to build stronger retail ties and zonal sales
manager must continuously strive for better shelf space and encouraging retailers to stock the
products. Moreover, the company should introduce certain product offerings such as discount
offers to encourage customer response. Moreover, the company must look to advertise its
products effectively so that their customers reach increases.
Human Resource
Due to its small scale operations, SC Johnson & Sons lacked a proper HR department for years.
Initially, this did not affect the companys operations and the top management believed that the
workers are best motivated with financial incentives, however with time the perception changed.
Department heads regularly saw their subordinates walking up to them with their grievances with
23
regards to their personal growth and hence it was high time that some action had to be taken in
this context.
After the troubles that the management at SC Johnson & Sons of Pakistan (pvt) Ltd had
experienced such as employee turnover, lower levels of productivity and uncertainty among
workers with regards to their future with the company, it was established that a series of radical
changes had become a necessity in the greater interest of the organization. Fortunately, the top
management at the company was convinced that there was an immediate need to set up an HR
department and steps had begun already. The company sought services from JLI (Johnson
Learning Institute) to set up an HR department locally which laid foundations for an efficiently
working HR team.
To begin with, a formal code of conduct, policies and procedures was drawn up together with the
ethical standards and moral values that every employees is expected to abide by. Ms. Alice
Francais has been given the responsibility of institutionalizing the HR policies at all levels of the
management and new hirings have taken place to set up a formal HR department.
The top management has started laying great stress upon training and development of the
employees. Training and Development programs for employees are planned as per their needs
which are identified during the PMP (Performance Management Process) 5. Once the needs are
identified, they will be followed by an action plan. With the prolific penetration of Information
Technology in businesses, nowadays focus has moved towards trainings through e-learning or
WebEx. There is an exclusive SC Johnson website on which the employees can log on and
identify training courses for them from a list of trainings available. In addition to this, greater
emphasis is placed on Moral Values and Business Ethics. For this purpose, it has been devised
that every employee shall do an online training course every two years on Standards of Business
Ethics, Conflict of Interest, and Fraud Awareness.
Similarly, initiatives have been taken to better address the Performance Appraisal System in the
company. Employees will be given yearly MBOs (Management by Objectives) by their
5
Performance management can be regarded as a systematic process by which the overall performance of an
organization can be improved by improving the performance of individuals within a team framework. It is a means
for promoting superior performance by communicating expectations, defining roles within a required competence
framework and establishing achievable benchmarks.
24
department heads which shall base on the companys Five Year Strategic Plan6. The performance
appraisal system will work through PMP process for each employee followed by a MS&D
(Management Succession and Development Plan). This will help the company align the goals of
individuals with the long term strategic objectives of the organization. One of the primary
reasons behind the shift from peoples management to Human Resource Management was to
align individuals goals with the Businesss strategic objectives which shall be better achieved
with initiatives such as MBOs, PMP and MS&D.
The road has been laid for the management at SC Johnson & Sons of Pakistan (pvt) Ltd to follow
and address the issues which had long been ignored since its inception in the country. However,
it is vital that the company not only lays a firm foundation of an HR department locally but is
able to strike the right fit of international policies that have been drawn up at the headquarters.
Furthermore, following recommendations shall escalate the performance and efficient working
of the HR;
1. Recruitment and Selection should be divided into various stages. HR screening is
imperative to ensure that employees are selected on merit and possess the correct set of
skills for the job.
2. On the job training and practical learning should be encouraged. While online training
programs would definitely add value to the employees, employees will be able to better
relate themselves with on the job training. Also, with on the job training programs and
policies which shall ensure that each employee attends a foreign course would motivate
the workers and shall be perceived as an investment that the organization makes.
3. The modern day organizational context is such where 360 degree feedback is encouraged.
This should be put into effect at SC Johnson & Sons of Pakistan (pvt) Ltd which will not
only be effective as an appraising mechanism but shall also help in improving the
leadership within the company.
4. The company still has not devised Reward policies which should be done and ensured
that it is implemented consistently across the various divisions of the organization. For
instance, the Finance department may be rewarded based on their forecasting of prices as
The process of setting objectives in the organization to give a sense of direction to the employees is called as
Management by Objectives.
25
a major chunk of the raw materials used in the products that the company manufactures is
imported. Therefore, cost savings are critical to maintain high profit margins, particularly
in times when the market is on the slower side.
Value Chain at SCJ

In any business setting, value chain network tends to play a critical role in ensuring a businesss
success. The purpose of a strong value chain network is to divide the different business activities
into a number of linked activities, each of which shall produce value for customers. It is a
combination of primary and secondary activities, and SC Johnson & Sons of Pakistan (pvt) Ltd,
pay great emphasis on having a strong value chain network. This is extremely important in
contemporary business environment where the level of competition is intense, therefore to be
able to respond quickly to the changing market dynamics and demands from customers,
companies must ensure that all its activities are well aligned and are working towards the
strategic objective of the organization at large.
Primary Activities
o Inbound Logistics SCJs procurement department has been very efficient in its
collaboration with the sales department to ensure that optimum inventory levels are kept
at all times, therefore streamlining the production process as a whole. This has led to
lower inventory levels (quick stock turnover) and less variance in terms of operational
efficiency.
o Operations A team of well qualified personnel manages the operational aspect of SCJ.
The objective is to add maximum value to the raw materials that are procured and to
justify the extra price that the brand charges. Regular quality inspection of packaging
material, finished goods and most importantly the raw materials that are procured
together with high productivity levels has contributed towards the organizations success.
o Outbound Logistics Although the company has done fairly well to manage its
outbound logistics considering the fact that it is production is only in Karachi and from
here the nationwide demand is met, it would be in the best interest of the organization
that another production facility is set up in the Central or Northern part of the country.
26
o Marketing and Sales Largely, SCJ depends on its distributors and retailers for
marketing of the product. However, being a sales driven company, great emphasis is laid
upon the efficient working of the zonal and territory sales managers. They are instructed
to be in regular communication with the National Head of Sales in Karachi. Moreover,
with more and more retail chains coming to Pakistan, SCJ must look to capitalize on this
opportunity and strengthen its value chain network.
o Customer Service Any complaint that is received, sales department instructs the
warehouse and productions department and depending upon the nature of the complaint,
it is ensured that the complaint is addressed at the earliest.
Support Activities
In order to achieve the strategic objectives as laid down by the management, it is imperative that
support activities must work in great collaboration with the primary activities. Firm
infrastructure, HRM, Technology and Procurement; all these departments have been pivotal in
extending their complete support to the primary activities, which in essence have led SC Johnson
to establish its presence in the consumers industry. With several radical measures that have been
taken in the HR department, it is expected that the organizational efficiency is likely to improve
in times to come together with the ongoing improvements in the technological and production
facilities at SCJ.
BCG MATRIX
The BCG Matrix is a well known portfolio management tool used in product life cycle theory
and is considered to be the best corporate level strategy. It is a concept that evaluates Small
Business Units (SBUs) with respect to the dimension of business growth rate and market share.
BCG Matrix is often used to prioritize which products within company product mix get more
funding and attention.
The consumers industry is considered to be one of the fastest growing sectors and as income
levels go up, undoubtedly the sector would see a positive trend as well. Having said that, there is
intense competition within the sector as well and in order to ensure your presence, successful
marketing campaign and differentiation in terms of products is often required. As of now, SC
27
Johnson & Sons of Pakistan (Pvt) Ltd lacks the right kind of marketing campaign, which would
adversely impact the companys presence in the market as the level of competition goes up.
With the amount of TV viewership going up, it is imperative that certain budget allocations are
done towards marketing of products.
Star
Question
Mark
This would help create brand awareness

and attract new customers. When this is
done, naturally there is a positive impact
on the companys brand equity which is
extremely important for consumers
Cash Cow
Dog
industry. When we look at the business

models of Unilever, Nestle or Reckitt
Benckiser, it is evident that their strong
brand name contributes significantly towards a strong business model. Brand equity impacts two
factors directly;
Cost of Raw Materials and value addition towards Sales.
Business Cycle whereby a stronger brand name is able to finance most/or entire business
cycle from the market.
Another factor that SCJ should look to account for is the amount of product differentiation or
extension of product lines. Customers today look for products that cater to their specific needs
and wants, for which strong brands look to differentiate and provide variants across their product
portfolio. Moreover, a major problem that SCJ faces is the high transportation costs due to its
production facility being only in Karachi. This has not only impacted the transportation costs, but
at the same time lead time and weak law and order situation would make things further difficult
for the company. It is important to note that in the last 2 years most of dengue cases were
reported in Punjab, therefore a plant location in Central Pakistan would better cater to the needs
of the people.
28
SIX SIGMA AT SCJ:

Apart from the three inspection stages to ensure TQM, the company has also introduced Six
Sigma to meet the quality standards that have been set out. Six sigma is a management system to
execute strategic objectives. Among the focus areas, employee development is the most
important one and it helps to bring out the best out of the employees. Employees will drive
improvements in other areas: speed, innovation, perfection and becoming world class. Six
sigmas robust problem-solving methodology and statistical toolkit allows the company to
benchmark processes against global standards in a language that is comparable across any
industry or function. It helps ensure that the organization sustains its promise of delivering high
quality products and services to the customers - on time, every time.
With the introduction of six sigma at SC Johnson; the quality standards have gone up by more
than 80% and with a well founded data driven approach that typically accompanies six sigma,
the maximum that a product may differ in terms of quality is six standard deviations from the
mean and the nearest perfection limit. The quality control department believes that the
continuous strive that they have made towards six sigma has allowed them to offer top quality
products to their customers and has positively impacted the sales. The results have been so
encouraging that the companys sales return ratio has almost come down to less than 2%.
Porters Five Forces

Any external analysis is considered to be an incomplete one without conducting a Porters
analysis. Typically speaking, this analysis is done across 5 segments;
Bargaining power of Buyers
Bargaining power of Suppliers
Threat of Substitute Products
Rivalry
Threat of new entrants
29
Conducting an analysis of Porters five forces in case of SC Johnson & Sons showed that the
bargaining power of
buyers is on the higher
side. First and foremost,
Reckitt
enjoys
economies of scale and

strong brand equity with
Mortein
almost
becoming
generic
name in the mosquito

repellant industry. Other
than that, there have
been
many
new
competitors on small
scale which are posing stiff competition for the company. Therefore, buyers are offered with
several brands and depending upon their priority to the purchase of products falling in this
category, they may switch brands. A general trend in Pakistani market suggest that consumers
are price sensitive, therefore price reductions from any competitor may severely dent the
customer base for SCJ.
Moving on, due to the presence of several industry players, the bargaining power of suppliers
in terms of chemical raw materials could be high. Suppliers know that organizations operating
in this industry would try to build strong relationships with one another and thus they may dictate
their terms depending upon the size and market strength of the company. Therefore, it is vital for
SC Johnson to ensure that the value chain network that largely depends on the relationships with
suppliers is well managed. In addition to this, when organizations have strong ties with suppliers,
their business cycle gets financed by the market a lot easier, hence excess funds may be utilized
for some other strategic objectives.
There is little threat of substitute products in this industry. Most of these products have an
established demand and chances of a substitute product being introduced remains low. Most of
the products that are offered within the industry are in the product portfolio of every industry
30
player and there is differentiation within the same product line rather introducing a different
substitute altogether.
Threat of new entrants has been high and with increasing awareness among the masses and
the need for products that are offered by SCJ and its competitors, other new entrants may follow
them and look to explore the untapped segments of the market. There are low barriers to entry
within this industry and with raw materials being procured from local suppliers, the cost of
manufacturing is not too exorbitant. For instance, SCJ has its production facilities in Karachi
only, a new entrant may set up its plant in Lahore or the upper region and with lower
transportation and logistics cost, the price at which it offers the product could be significantly
lower than what SCJ or RB has to offer. Consequently, this could raise serious concerns for the
organizations sales and profit margins.
Currently there are two major industry players; Reckitt Benckiser and SC Johnson & Sons of
Pakistan (pvt) Ltd operating. However, lately a new brand Aladin has emerged, however it is too
early to comment on how successful the new introduction would be. Having said that, RB and
SCJ are considered to be direct competitors to one another, further coupled with counterfeit
products and Abbots Mospel. As of today, it can be said that there is medium to high rivalry
within the industry.
Business Model
Rs. Millions
Sales
630
100
Cost of Raw Materials
390
61.9
Value Addition
240
60.9
Less: Net Profit
110
17.50
Conversion Cost
130
20.60
Above Restated As
31
Sales
630
100
Cost of Raw Materials
390
61.9
Conversion Cost
130
20.60
Net Profit
110
17.50
Add: Depreciation
18
Cash from Operations
128
20.3
Business Cycle
Invested
Stocks
61
Trade Debts
41
102
Financed by Suppliers
Trade Payables
77
Net Investment in Business Cycle
25
PKR 25 million invested for Sale of 630 million

Plant, Property and Equipment
168
PPE Turnover to Sales
3.8 times
Payback time for PPE (approx)
1.5 years
First of all, the conversion costs percentage suggests that the company is able to add great value
to the raw materials that are acquired by SC Johnson & Sons. The value addition of 60.9%
indicates that the company is able to sell their products in the market at a price which is 1.61
times that of the cost incurred in procuring the raw materials. The value addition percentage is
likely to increase in times to come for the company is looking to prepare chemicals within their
own factory rather than procuring them.
32
Looking at the business cycle for the company, SC Johnson & Sons invests about 25% (25
Million) to generate sales worth Rs. 630 million. This means that the market is financing the
remaining 75% of the companys business cycle, thus indicating that the brand is a strong one
and is well respected within the suppliers. Procuring raw materials is one of the major factors for
SC Johnson which requires building good relationships in order to get the maximum out of the
value chain network. Looking at its competitors, Reckitt Benckiser has been present in the
market for a longer time; hence it has established firm linkages with suppliers and retailers in the
market.
The PPE turnover to Sales ratio of 3.8 times needs to increase if the company wants to extract
the maximum out of the market. Currently, with 3.8 times, this would mean that the payback
period for investments made in PPE would be about 1.5years. In addition to this, the company
needs to set up a small scale plant in Lahore or adjoining areas to be able to cater well to the
upper market. Transporting products from Karachi to other parts of the country increases its
distribution expenses greatly, hence in order to keep them within sustainable limits, it would be
better if the company sets up its plant in Lahore as well.
Business Level Strategy

Differentiation
Associating a certain degree of uniqueness can become a major source of competitive advantage
for businesses. As implied by its name, differentiation strategy is used in cases where the firm
looks to offer a unique product to its customer base. This may be done by offering high quality
products, superior customer service, product innovations through continuous developments in
R&D, and by building a strong brand image which would differentiate your brand against your
competitors so that the customers are easily able to recognize the differentiating factor between
your premium brand and other market players. All in all, businesses need to create a value for
their products which would attract customers.
Cost Leadership
33
A prominent business strategy where businesses look to compete for a wider customer base on
cost basis. By this it is meant that the business offers cheap products to the consumers by cutting
out on other expenditures such as maintaining a close control on production and overhead costs
that are being incurred, minimizing the cost of sales, gaining competitive advantage via instilling
state of the art technology which is difficult for the competitors to imitate. Mostly, cost
leadership strategy is adopted by businesses that experience economies of scale and are therefore
in a better position to maintain quality of their products and at the same time driving their
competitors out of the market. Also, such a business level strategy is highly effective where
consumers are price sensitive, therefore by adopting cost leadership, not only would the business
be able to retain its existing customer base but might as well attract potential customers who are
not likely to spend a lot. Lastly, such a business level strategy shall yield the best results when
there is mass production of standardized product or services. Firms playing on cost leadership
need to continuously strive for reducing their production costs so that they may sustain at lower
selling prices.
Quick Response
A business level strategy which is largely time driven and measures how capable a business is to
respond to the changing customer needs and market demands. In this strategy the business
focuses on providing a highly diverse range of products and services to its consumers where
quality and quantity is driven by consumer demand. Adding to this, in quick response businesses
must be able to provide the consumers with what they want at the last possible moment within
time and must ensure that diversity of offering is maximized and lead-times, expenditure, cost
and inventory minimized. To best address quick response strategy, a business must look to
incorporate the following in its practices;
Align the organizational activity to the market demand
Develop strong linkages between demand and supply
Build Partnerships and Alliances
Strategic Time Management
Efficient Resource Allocation
34
In case of SCJ, the business level strategy that the company has followed has been of cost
leadership and quick response. When SCJs Baygon is put against RBs Mortein, the price of
Baygon is lower as compared to its competitor. Furthermore, other products that SCJ
manufactures is available at cheaper prices than other industry players, hence the basic business
level strategy that SC Johnson has employed is of cost leadership. Since, the company
differentiates a little in terms of its product offerings; cost is something which the Pakistani
market is sensitive to. This is particularly true for bottom of the pyramid group where most of the
sales are influenced by the price of the product rather than the brand itself. RB has been able to
charge a premium price for its repellants and aerosols due to strong brand equity, SCJ has been
more cost focused in its approach.
Other than that, the company has focused a great deal on building strong supply chain networks
whereby they could cater to the changing customer demands a lot quicker, thus making the best
use of quick response strategy at the business level. The companys sales force is entrusted with
the task to obtain maximum insights from retailers about products and their feedback is used in
forecasting future demands. On the other hand, the suppliers ensure that top quality raw material
is made available to SCJ all year round so that there is no shortage of stock from the markets.
The management at SCJ has played an important role in fully implementing the quick response
business strategy. It has developed vital supply chain relationships which have allowed the
company to rise alongside RB together with efficient resource allocation. The companys top
management meets up on a weekly basis and a complete evaluation into numbers is carried out.
This allows the company to be able to quickly respond to any market changes that might occur,
hence providing them with a source of competitive advantage.
Way Forward
All in all, with the growth potential that exists and a strong management, it is very much likely
that SCJ could go places in times to come. Lately, the management has invested in marketing
campaign and is continuously striving for strengthening of its value chain network. Therefore, it
can be said that with the correct set of corporate and business level strategy in place, SC Johnson
& Sons could increase its customer base and become a dominant industry player.
35

Quality Control and TQM: SC Johnson & Sons Pakistan (PVT) LTD

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2013

Quality Control and

Quality Control and TQM at SC Johnson & Sons Inc. ---------------------------------

SWOT Analysis ------------------------------------------------------------------------------

External Factors Evaluation Matrix -------------------------------------------------------

TQM Basis of Competition for SCJ -----------------------------------------------------

Value Chain -----------------------------------------------------------------------------------

BCG Matrix -----------------------------------------------------------------------------------

Six Sigma --------------------------------------------------------------------------------------

Porters Five Forces --------------------------------------------------------------------------

Business Model -------------------------------------------------------------------------------

Business Level Strategy ---------------------------------------------------------------------

Way Forward ---------------------------------------------------------------------------------

SC Johnson & Sons Inc.

QUALITY CONTROL & TQM AT SC JOHNSON & SONS

Management by Danny Samson & Richard L Daft

Work can be as natural as play and rest.

Under these conditions, people will seek responsibility.

Training need assessment

Soft Skill Training:

development cycle at SCJ:

Identify training and

SCJ values its employees as equally

Motivation, work ownership and fair

attributes of staff management practices at SCJ. Their commitment to continuous improvement

Enhanced data quality and currency by minimizing manual data entry

Gained the ability to generate in-depth reports based on customer feedback

Built stronger relationships by enabling staff to interact with customers on important

Lessened the IT administration burden by opting for a hosted solution

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AT SCJ

Building on strong brand name

A strong brand name

products that are offered.

Lack of differentiation in terms of

Only one production facility that caters to

Strong value chain network and good

the nationwide demand, thus increasing

relationships with suppliers, distributors

transportation costs significantly.

Growing middle income group.

Below the poverty line areas are often

struck with diseases such as malaria,

Weak Law and order situation across the

dengue; therefore an increase in sales

from these areas are expected.

Growing retail markets.

External Factor Evaluation Matrix (EFE)

Product Line extended

Building on strong brand name

Inflationary Pressure and Rising Costs

Law and Order resulting in Logistics Issues

Quality of raw materials

Product Line Extended

Building on strong brand name

Inflation is considered to be one of the significant factors in terms of a companys performance.

Law & Order and Logistics

Quality of Raw Materials being used

TQM BASIS OF COMPETITION FOR SCJ

Inspection of Packaging Materials It is important to maintain a close check on the

Inspection of Chemical Raw Materials Raw materials used by SC Johnson is both

Marketing, Sales and Distribution

Value Chain at SCJ

This would help create brand awareness