Qarshi Industries (Pvt.) Ltd.

Current Vision & Mission Statments

Vision:
Distinctive leadership in Quality, Human Resource, Research & Development, Corporate Social Responsibility

Mission:
To be premier source of Knowledge and leadership for the Achievement of Economically, Environmentally and Socially sustainable Development

Mission Statement Components:

1. Customers 2. Products & Services 3. Markets 4. Technology 5. Concern for Survival, Growth, and Profitability 6. Philosophy 7. Self-Concept 8. Concern for Public Image 9. Concern for Employees

Qarshi Industries (Pvt.) Ltd.

Revised Vision & Mission Statements

Vision:
Creating a substantial prominence in the lives of people across the world by providing Premium Quality Products and to achieve Distinctive Leadership in Quality, Human Resource, and Corporate Social Responsibility.

Mission:
To manufacture High Quality Products (7) for our Global Customers (1,3), through Hygienic, Environment-Friendly Processes & Practices maintained under International Standards (4), while achieving sustainable worldwide Leadership (5) in Natural Health Care, Red Syrups & Farm products category (2).

In addition, we have strong commitment to community (8) with responsibility of maintaining a culture, where Employees are nurtured in Highly Motivated and Conducive work environment (6,9)

Applied Marketing Strategy

Assignment #1
Vision & Mission Statement

Qarshi Industries (Pvt.) Ltd.

Submitted to: Mr. Shumail Sarwar

Date: 27th September, 2011

Submitted by: Tauqeer Hassan

(Group Leader)

Umair Wasim M. Hamad Munawar Adeel Nabi

Ashraf Khan
PEST ANALYSIS Political Factors Monopoly Legislation
According to the Competition Commission of Pakistan, Competition Ordinance, 2007 (CO 07) objective is to enhance economic efficiency and to protect consumers from anti-competitive behavior1. Briefly, the law prohibits situations which tend to lessen competition such as actions constituting an abuse of market dominance, competition restricting agreements and deceptive market practices. So, as Qarshi Industries having monopoly in the Johar Joshanda and Herbal Medicine industry, it has to abide by all the laws of the Competition Ordinance 2007.

Environmental Protection Laws

Following the environmental protection laws of Environmental Protection Act 1997, Qarshi gives a lot of importance to the proper waste management from all of its processing units and operations. Qarshi Industries also acquires all necessary National/International certifications required to operate in the industry and to ensure best quality products, Qarshi Industries also has a state-of-the-art Quality Assurance Lab which monitors the entire integration process. The certificates are as follows2. *HACCP (Hazard Analysis & Critical Control Points) pronounced hassap Is an international food-safety system for preventing microbiological, chemical and physical contamination along the food supply chain.

http://www.mca.gov.pk/ http://www.Qarshi.com

*ISO 9001 *ISO 14001 *ISO 17025 (Norway & PNAC) *Organic Certification

Taxation Policy

Taxation in Pakistan Corporate Tax Rates Public Companies Private Ltd. Companies Banking Companies (Assessment Year 2011) 35% 35% 35%

Foreign Trade Regulations:

In accordance to the Trade Policy 2009-12 of Government of Pakistan, the export of the Food & Beverages and Pharmaceutical products is allowed with a lot many benefits and support being provided by Government of Pakistan on export of this category of products. At present Qarshi Industries is mainly focusing on exporting its products to Middle East.

Employment Laws:
The Employment laws of the Labor Policy 2010, of Government of Pakistan, aims on the creation of relationship of trust and cooperation between employer and employee under the least intervention of the state. And it also focuses a lot on dignity of labor, fair balance of bargaining power, work environment etc. Qarshi Industries follow all the laws relating to the welfare of its labor and also focuses on laws relating wages, human resource development, occupational health and safety etc.
3

www.deloitte.com/.../2011/dtt_tax_highlight_2011_Pakistan.pdf

 Govt. Stability
Pakistan has withstood series of endogenous events, including political uncertainty as being the most important factor, and other factors are of unprecedented exogenous shocks that have ranged from financial markets turmoil to climbing global commodity prices. In one way or another these factors had affected negatively the food & beverages industry in Pakistan, which has also affected the overall profits of Qarshi Industries.

Economic Factors

Business Cycle

The unprecedented exogenous shocks that have ranged from financial markets turmoil to climbing global commodity prices. In one way or other these factors had affected negatively the food industry in Pakistan, which has also affected the overall profits of Qarshi Industries.

Inflation
Actually money supply, interest rates and inflation are closely related. As money supply increases it results in higher inflation and central bank use interest rates to control the supply of money in the market. Now a days inflation in Pakistan is at a very higher side and that has resulted in decreased purchasing power of the consumers, which is affecting the Qarshi Industries overall sales and profits. And the current inflation rate in Pakistan is around 14%.

Unemployment

Present economic, political, & energy crises in Pakistan has forced many multinationals and national firms in Pakistan to reduce their workforce considerably resulting in higher unemployment and thus the ending result is of decreased purchasing power of consumers would affect the sales and profits of Qarshi Industries. Current unemployment rate in Pakistan is 6 %.

Socio Cultural Factors

Socio cultural factors are important for the progress of any business organization. These include population demographics, income distribution, social mobility and lifestyle changes. Qarshi Industries target market is Pakistans both urban & rural population, which includes households who consume Qarshi products. Qarshi products are popular in households due as there is large Quality, Taste, brand name, availability and extensive product line. The income distribution factor affects Qarshis business as its products are targeted to people of middle to upper class where the buying power of consumers is high. Income distribution factor is important as if there is if there is high income distribution in the country, Qarshi has higher opportunity to progress its business. The population size is growing and this would have a positive impact on Qarshis market share. Qarshi Industries can make use of their marketing strategies to grab the market share with high quality products..

Technological Factors
Technology has made a lot of contribution in the development of the businesses in the today world. Technological factors which can influence overall development of the business includes Govt. spending on research in the particular industry, Govt. and industry focus of technological effort, new discoveries and innovations and speed of technological advancement. Qarshi Industries has adopted the latest technological measures for the continuous

improvement of the products and to deliver the quality products to the consumers. For this purpose Qarshi Industries has its own laboratory for quality assurance purpose and uses latest equipments for this purpose.

Porters five forces model

Competitive rivals for Qarshi Industries are the companies which are providing the similar products that includes Mashrobat, Herbal Medicines & Farm Products aimed at the same customer group. Hamdard, Shezan, Marhaba, Lifestyle and Lasani are major competitors of the Qarshi Industries as they are offering more of the same kind products which Qarshi is offering. Qarshi Industries is market leader in both Mashrobat & Herbal Medicines category, but as there is more demand for these products, the competitors also have a considerable market share in this industry There is a threat of new entrants in this business as there are no strict policies which restrict the entry of new firms. If a company fulfills the basic hygiene and quality standards that can enter this business and this can be a threat to the Qarshi Industries business Substitution reduces demand for a product as customers switch to the alternative. Products of all the above mentioned competitors are substitutes of Qarshi Industries product line as those products are also easily available in the market. The bargaining power of buyers depends on whether there is

concentration of suppliers, the cost of switching a supplier is low or involves

little risk. In case of Qarshi Industries there are a number of suppliers available in the market leading to high bargaining power of buyers. Supplier bargaining power is low in case of food & beverage, & Herbal Medicine industry, as there are number suppliers in this industry, including different brands and some private label products. Therefore Qarshi Industries bargaining power is low.

Opportunities
*Rising Popularity of Herbal Medicine *Product Line Extension *Changing Social Trends *Improving the Distribution Network nationwide

Threats:
*High Competition *Increasing Inflation directly affects Demand *Government Regulations *Sugar Crises *Economical & Political Uncertainty *Energy Crises

EFE Matrix for Qarshi Industries (Pvt.) Ltd. Key External Factors Weigh t Rating Weighted Score

Opportunities
1 Rising Popularity of Herbal Medicine 2 Product Line Extension 3 Changing Social trends 4 Improving Distribution Network Nationwide 0.09 0.10 0.09 0.12 4 2 3 3 0.36 0.20 0.27 0.36

Threats
1 High Competition 2 Increasing Inflation 3 Government Regulations 4 Sugar Crises 5 Economical & Political Uncertainty 6 Energy Crises 0.11 0.10 0.09 0.12 0.09 0.09 4 3 3 4 2 2 0.44 0.30 0.27 0.48 0.18 0.18

Total

1.00

3.04