Strategic Management - Strategic Audit of Pakola

Pakola (Mehran Bottlers Ltd.
) Business Policy
PAKOLA
[Mehran Bottlers Ltd.]
Section 1:
VISION AND MISSION
“A TASTE OF THINGS TO COME”
1
Pakola (Mehran Bottlers Ltd.) Business Policy
VISION AND MISSION STATEMENTS (ACTUAL)
Quality Policy
Vision
To be SECOND TO NONE in exceeding customer expectations for Taste and Flavor, Product
Safety, Quality and Price Competitiveness.
Mission
To develop, implement and continuously improve the Integrated Management Systems in a
culture of continuous improvement which:
Directs the continual up-gradation for efficient and environment friendly manufacturing
technology.
Monitor and improve the efficiency and effectiveness of all business processes.
Promotes professional and flexible work environment, teamwork and innovation through
employee participation and process ownership.
Drives customer orientation at all levels within the organization.
Monitor and economize the Cost of Quality.
Environmental Policy
Vision
To be SECOND TO NONE in protecting OUR SHARED environment, as EARTH MATTERS for our
future generation.
Mission
To support this vision, we will continually:
Comply with applicable local and other environmental regulations and strive to secure
fundamental reforms that will improve their environmental effectiveness and reduce the cost
of compliance.
Improve the environmental performance of our products and processes by minimizing the
negative impact on the environment and adopting where practical cleaner production and
recycling method.
Protect the health and safety of our employees and the surrounding human communities and
ecosystems.
Use natural resources, including raw materials, energy, and water, as efficiently as possible.
Take into account the principles of sustainable development in conducting its administrative,
manufacturing, marketing and social activities.
Participate in initiatives to improve the Quality of the environment.
Food Safety & Hygiene Policy

Vision
No comprise on consumer health by maintenance and improvement of Soft Drink and Drinking
Water safety and workplace hygiene conditions.
Mission
To develop, implement and improve the Integrated Food Safety and Quality Management
Systems in a culture of continual improvement which:
Provides framework based on HACCP, CODEX Alimentarius and CGMP for safeguarding the
consumer health.
Supports the use of scientific knowledge, risk analysis and controls in the enhancement of
hygiene conditions and practices.
Educates people on Good Manufacturing and sanitization practices.
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VISION STATEMENT (PROPOSED)
It is our vision to be the best and leading provider of food and beverage products in Pakistan,
and among the top ten food and beverage companies in the world, by continually challenging present
conventions and always staying a step ahead of the competition.
MISSION STATEMENT (PROPOSED)
It is Mehran Bottlers’1 mission to be the number one food and beverage company in Pakistan by
providing our customers with the highest product quality in terms of taste, experience, and
satisfaction. We will ensure this through an unwavering dedication to the continuous development of
our products and processes ensuring that we remain best in class. We will strive to hire the most
competent and dedicated employees whose work ethic will set the standard in the industry. We will
be paymasters, as we strongly believe that human resource is the only asset that truly appreciates over
time. We will also be a responsible social corporate citizen, and strive to enhance the quality of life in
the markets we serve.
1
Throughout the duration of this report, unless otherwise specified, we will be using the name Pakola to signify the
company Mehran Bottlers Limited, and not the specific brand.
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PAKOLA
Section 2:
EXTERNAL AUDIT
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EXTERNAL ENVIRONMENT
Porter’s Five Forces
Applying Porter’s five forces to the Pakistani beverage industry allows us to garner a
retrospective view of the potential attractiveness in terms of profitability of the industry. We first
must analyze the industry through the five-force template, which will allow us to more accurately
gauge the industry in terms of its potential. When discussing the beverage industry, we are referring
to not only the concentrate manufacturing concern, but because Pakola is a wholly owned subsidiary of
Mehran Bottlers, Ltd. we are also including the bottling industry. Therefore, all our analytical studies
will follow that both the concentrate and bottling industries, from the perspective of Pakola, are in
fact just one industry: the beverage industry.
YES NO
A THREAT OF NEW ENTRANTS ~
(+) (–)
Do large firms have a cost or performance advantage in your
1.
segment of the industry?
2. Are there any proprietary product differences in your industry
3. Are there any established brand identities in your industry?
4. Do your customers incur any significant costs in switching suppliers?
5. Is a lot of capital needed to enter your industry?
6. Is serviceable used equipment expensive?
Does the newcomer to your industry face difficulty in accessing

7.
distribution channels?
8. Does experience help your to continuously lower costs?
Does the newcomer have any problems in obtaining the necessary

9.
skilled people, materials or supplies?
Does your product or service have any proprietary features that
10.
give you lower costs?
Are there any licenses, insurance or qualifications that are difficult
11.
to obtain?
12. Can the newcomer expect strong retaliation on entering the market?
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YES NO
B BARGAINING POWER OF BUYERS ~
(+) (–)
Are there a large number of buyers relative to the number of firms
1.
in the business?
Do you have a large number of customers, each with relatively small
2.
purchases?
3. Does the customer face any significant costs in switching suppliers?
4. Does the buyer need a lot of important information?
5. Is the buyer aware of the need for additional information?
Is there anything that prevents your customer from taking your

6.
function in-house?
7. Your customers are not highly sensitive to price.
8. Your product is unique to some degree or has accepted branding.
9. Your customers’ businesses are profitable.
10. You provide incentives to the decision makers.
YES NO
C THREAT OF SUBSTITUTES ~
(+) (–)
Substitutes have performance limitations that do not completely
1. offset their lowest price. Or, their performance is not justified by
their higher price.
2. The customer will incur costs in switching to a substitute.
3. Your customer has no real substitute.
4. Your customer is not likely to substitute.
6
YES NO
D BARGAINING POWER OF SUPPLIERS ~
(+) (–)
My inputs (materials, labor, supplies, services, etc.) are standard
1.
rather than unique or differentiated
2. I can switch between suppliers quickly and cheaply.
My suppliers would find it difficult to enter my business or my

3.
customers would find it difficult to perform my function in-house.
4. I can substitute inputs readily.
5. I have many potential suppliers.
6. My business is important to my suppliers.
My cost of purchases has no significant influence on my overall

7.
costs.
YES NO
E DETERMINANTS OF RIVALRY AMONG EXISTING COMPETITION ~
(+) (–)
1. The industry is growing rapidly.
2. The industry is not cyclical with intermittent overcapacity.
The fixed costs of the business are a relatively low portion of total
3.
costs.
There are significant product differences and brand identities
4.
between the competitors.
5. The competitors are diversified rather than specialized.
It would not be hard to get out of this business because there are no
6. specialized skills and facilities or long-term contract commitments,
etc.
My customers would incur significant costs in switching to a
7.
competitor.
My product is complex and requires a detailed understanding on the
8.
part of my customer.
9. My competitors are all of approximately the same size as I am.
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Un-
F OVERALL INDUSTRY RATING Favorable Moderate
favorable
Implications
Threat of new entrants is

1. Threat of new entrants. 8 2 2
very low
Bargaining power of Bargaining power of buyers
2. 5 3 2
buyers. is considerably low
Threat of substitutes is
3. Threat of substitutes. 1 2 1
mediocre
Bargaining power of Bargaining power of
4. 5 1 1
suppliers. suppliers is considerably low
Intensity of rivalry among Intensity or rivalry is
5. 0 4 5
competitors. extremely high
A thorough investigation of the five-force template shows us that the industry is highly
favorable when it comes to threat of new entrants. Yet because of a cutthroat rivalry between
existing players, it gets an unfavorable rating when it comes to this regard. In the remaining three
forces, the beverage industry has scored favorably.
Therefore when aggregating these results, we can see that this industry is reasonably
attractive. The following analysis of each external force will allow us to further corroborate our
findings.
Threat of new entrants

In this industry, it is considerably difficult and costly to set up the factories and bottling plants
required. Also, for a new entrant, it would be extremely difficult if not impractical to infiltrate the
established distribution network of the current players like Pepsi and Coke. Furthermore, it would be
quite a daunting task to change the hard and fast perception of millions of consumers, making it a
favorable point for this industry.
Bargaining power of buyers

There are an extremely large number of buyers as compared to companies in the industry, and
these buyers often purchase this industry’s relatively low priced products on a habitual, impulse, or
convenience basis, thus making it favorable for the industry.
Threat of substitutes
The threat of substitutes, although mediocre, still poses a considerable threat to the overall
profitability of the industry, and that is because in recent times a health craze has taken over all
respects of life, worldwide. Therefore, it would signify a heavy reduction in the consumption of sugary
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and carbonated cola based beverages, and instead prompt consumers to opt for healthier drinks such as
fruit juices, and energy drinks.
Bargaining power of suppliers

Most of the raw materials required in the beverage industry are non-specialized commodity
products, such as sugar, high-fructose corn syrup, carbonated water, glass bottles, plastic bottles and
cans. This indicates that suppliers are non-specialized, allowing companies in the industry to switch
between suppliers without losing any strategic alliance or significant cost advantage. Furthermore, it
is also considerably difficult for any one supplier of the beverage industry to integrate forward into the
concentrate manufacturing and bottling businesses.
Rivalry among existing players

The players in the beverage industry have one of the most competitive rivalries in any industry.
In Pakistan the market is dominated by the two international giants, Pepsi and Coke, with market
shares respectively of 77%, and 16%, leaving little room for others to grow. Yet even with
approximately 5% of the total market share, Pakola can still manage to be profitable in a cutthroat
industry, and we plan to position it strategically in order to do so.
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The beverage industry is a reasonably attractive industry to be in, and with its 55 years of
established presence, Pakola is well positioned to leverage that history so as to attain a competitive
edge.
Mehran Bottlers’ current focus is one of a lackluster “if it ain’t broke, then don’t fix it”
attitude, that stems from its history of centralized power base and tall and unprofessional
organizational structure.
Potential Entrants
+++
Threat of
New Entrants
The Industry
Bargaining Bargaining
Power of
Suppliers –– Power of
Customers
Suppliers Buyers
++ +
Rivalry among
Existing Firms
Threat of
Substitute Products
or Services
Substitutes
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PEST Analysis
Political
There is significant political pressure on the beverage industry in Pakistan. This pressure
mostly arises from a high levy of taxes, 15% central excise duty, as well as 18% sales tax, which totals
up to about 36% of retail prices. This extremely high double taxation rate greatly deters the players in
the industry from charging premium prices for perceived value addition.
Another political factor that impacts the beverage industry, however this time positively, is the
government’s policy of banning the serving of food at wedding receptions. This has prompted an
increase in the consumption rates of soft drinks and carbonated beverages.
Economic
There are several implications of the economic situation of Pakistan upon the beverage
industry. For one, there have been complaints from several quarters regarding the excess wastage of
water in the production of aerated beverages, which for a population compounded with astounding
poverty levels raises points for concern.
Recently, there has been a crisis in the production of sugar in Pakistan, with prices
skyrocketing. Such economic factors have a resounding impact on related industries, and although
most companies in this industry have switched from sugar to high-fructose corn syrup, some were
affected by the agri-based crisis.
Social
A major social trend in the rural areas of Pakistan has been a shift from presenting guests with
drinks such as lassi, red sherbet, and fruit juices, towards cold drinks. This trend has spurned more
from impressive distribution networks and less from increased advertising, yet the result is positively in
favor of beverage companies.
Technological
Technology plays a secondary role in this industry, as it is not heavily dependant on
technological advancements like the consumer electronics industry, or the software industry. Because
beverage products are non-tech based in nature, technology in this industry is therefore limited to
function as a catalyst to improve production capacities, speed of product manufacturing cycles,
inventory management, and ecommerce applications.
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PAKOLA
Section 3:
INTERNAL AUDIT
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Internal Resources
Value chain
Suppliers Mehran Bottlers Distribution Retail End Customer

Channels Channels
According to our analysis, we have found that the major flaw in Mehran Bottlers’ value chain is
its distribution network. The product’s quality, advertising and marketing efforts all become
insignificant when the product is not available in a wide number of retail outlets. Therefore this is a
major point of concern for the company because it will dictate its success in the short run. Pakola’s
stagnant market share figures are in part a result of its poor distribution setup. From a logistics
standpoint, the company has at its disposal 56 vans from where it serves both the rural and urban
markets in Karachi and its surrounding feeder markets. Yet although a major focus is placed on serving
the rural markets, the company has foregone on the huge urban markets.
Another pothole in Pakola’s distribution is that they have not been able to infiltrate the
restaurant industry with their beverages like Pepsi and Coke have done. This ‘fountain’ business
segment makes up a large and highly profitable part of cola companies businesses. By failing to act on
serving this potential goldmine, Pakola is forced to suffer with a low market share. It has missed such
big markets like Pizza Hut, Mc Donalds, KFC and other fast food restaurants.
One saving grace is that even with such poor distribution, their product’s quality is
commendable in that it has maintained a steady base of loyal customers.
Pakola should concentrate on driving its core competencies to create differentiation in product
research and development, distribution, and marketing. For companies opting for a low cost strategy
it is necessary to focus instead on purchasing, production R&D, and manufacturing activities. Thus
because Pakola is a differentiator, it should communicate this differentiation. One of the main
drawbacks of Pakola’s current strategy is that it hardly conveys its message to its consumers. This will
be further discussed in later sections.
Distinctive Competence
The distinctive competence of Pakola is its ability to create unique tasting flavors which none
of its competitors are able to do. This core competence leads to its competitive advantage of being a
beverage manufacturer of unique flavored drinks. Presently Pakola has three unique tastes which is
currently absent in the other beverage companies. Such unique flavored soft drinks such as Ice-cream
Soda, Apple Sidra, Lychee, and Raspberry are all examples of Pakola’s internal ability to create
different and previously unheard-of drinks successfully. It is through this that they have managed to
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build brand loyalty with consumers, because it is a unique taste that consumers demand for when they
choose a drink, and oftentimes when Pakola’s ice-cream soda is not available, brand loyal consumers
will settle for anything.
In the beverage industry, distribution is of vital importance. Pepsi has managed to create such
an impressive and unmatchable distribution network setup that it has become their distinctive
competence and competitive advantage.
Strategic Cost Management
As per our analysis Pakola, being a Seth-owned company, is not effectively managing its costs.
As stated in their current mission statements, one of their focus is to reduce costs so as to be a low
cost operator. This is a misinterpretation of what is required for a differentiator. Rather than
reducing costs seeking to be a loss leader, a company following a differentiation strategy should
instead aim to manage cost strategically in order to optimize resources and internal efficiencies.
As discussed earlier, Mehran Bottlers has 56 vans with which it supplies its products, whereas
FMCG companies like Unilever have a significantly lesser number of vans even though they have much
better market reach. Pakola needs to reduce this unnecessary expense, along with costs that arise in a
bureaucratic organization with little formal structure.
Financial Trends
Pakola is privately owned concern with a highly centralized authority base that results in a tall
organization structure. They do not publish any kind of financial information and instead guard as a
closely held secret. This mindset is highly limiting in its nature, and will only serve to lessen the
competitiveness of the company itself.
Yet according to our own estimates, Pakola has 4% market share of the cola-market, where
Pepsi and Coke combined have nearly 95% market share. From the gross revenue of Rs.58 billion per
annum of the cola Industry, with an estimated 4% share, we deduce that Pakola makes about Rs.2.3
billion per annum in revenues, selling 8 million cases of cola per year. In an increasingly growing
industry, this figure is not impressive in the least bit. Considering that another Pakistani company, PSO
makes 4.2Bn in after-tax profits, Pakola’s revenues seem lackluster at best.
This trend can be immensely improved by focusing on weak areas like distribution and
marketing.
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PAKOLA
Section 4:
COMPANY AND COMPETITOR ANALYSIS
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Competitive Profile Matrix
Pakola Pepsi Coke

Critical Success Weighted Weighted Weighted
Weight Rating Rating Rating
Factors Score Score Score
Market Share 0.30 1 0.30 4 1.20 3 0.90
Distribution 0.25 1 0.25 4 1.00 2 0.50
Customer Loyalty 0.20 4 0.80 2 0.40 2 0.40
Financial Position 0.15 2 0.30 4 0.60 3 0.45
Product Quality 0.10 3 0.30 3 0.30 4 0.40
Total 1.00 1.95 3.50 2.65
Pakola received a score of 1.95 in the competitive profile matrix. This low figure is
representative of Pakola’s inability to leverage its competitive advantage of unique tasting flavors
successfully. This inability stems from the company’s lack of effective communication of their offering
and its uniqueness. This is one of the major mistakes companies make when following a differentiation
strategy, they assume that consumers will recognize the difference that they offer. This is exactly the
mistake that Pakola has made.
The areas where Pakola has taken a beating are in market share and distribution. From a
strategic viewpoint however, distribution is the area which Pakola should target in the short run if they
hope to achieve any type of success. Advertising programs that are basically demand-building
exercises are useless if the product has little market reach and is not meeting the created demand.
Therefore, before concentrating on marketing activities in the hopes of increasing market share,
Pakola needs to strategically outsource their distribution setup to a distribution company such as Muller
and Phipps, with the expertise in how to effectively increase a company’s reach into the market. In
due time the company should build up its own sales teams so as to make distribution a core
competency of theirs. Yet they should trust an established distribution company in the short-run to
improve its product availability.
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SWOT Analysis
Strengths
1. 55 years established presence
2. Extremely brand loyal customers
3. Automated bottling plant
4. Online order booking system
5. Public perception of being an innovator
Weaknesses
1. Weak distribution setup
2. Ineffective marketing
3. No formal organization structure
4. Centralized decision making process
5. Lack of professional employees
Opportunities
1. Health conscious trend in lifestyles
2. High growth rate of food industry
3. Increased demand in rural markets
Threats
1. Engro’s entry into the food and beverage (milk) industry
2. Increase in foreign imports of beverages
3. Rising prices of sugar and sugar substitutes
4. Main competitors are international giants of the industry
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Internal Factor Evaluation
Weighted
Key Internal Factors Weight Rating
Score
Strengths
55 years established presence 0.12 1 0.12
Extremely brand loyal customers 0.14 4 0.56
Automated bottling plant 0.10 2 0.20
Online order booking system 0.04 1 0.04
Public perception of being an innovator 0.08 3 0.24
Weaknesses
Weak distribution setup 0.14 1 0.14
Ineffective marketing 0.10 2 0.20
No formal organization structure 0.12 1 0.12
Centralized decision making process 0.08 2 0.16
Lack of professional employees 0.08 1 0.08
TOTAL 1.00 1.86
Pakola received a total score of 1.86 in the internal evaluation. This signifies that the company
has a weak internal system and is not able to effectively manage any of their strengths in a meaningful
manner. Also of their weaknesses, it is worthy to note that their weak distribution setup had the most
weightage.
Therefore, from our internal factor analysis we can form two possible strategies. One is the
formation of a structured and competent distribution network through the enabling of sales force
teams. An alternate path would be to outsource the function to an existing distribution company like
Muller and Phipps in the short-run, and over time develop the organization required for an internal
distribution setup.
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External Factor Evaluation
Key External Factors Weighted

Weight Rating
Score
Opportunities
Health conscious trend in lifestyles .22 2 .44
High growth rate of food industry .12 1 .12
Increased demand in rural markets .14 3 .42
Threats
Engro’s entry into the food and beverage (milk) industry .18 1 .18
Increase in foreign imports of beverages .12 2 .24
Rising prices of sugar and sugar substitutes .12 2 .24
Main competitors are international giants of the industry .10 3 .30
Total 1.00 1.94
Pakola received a score of 1.94 in the external factor evaluation. This means that they are not
currently well equipped to take advantage of opportunities in the external environment, nor defend
against potential threats.
Of the key external factors, the opportunity of health conscious trend in lifestyles got the
highest rating because this has become a huge market which most major players in the industry are
already tapping into with their diet products. Apart from Diet Bubble-up, Pakola is not catering to this
potential gold mine of a market.
Engro’s entry into the food and beverage market with Olper’s milk has presented Pakola with a
competitive challenge. Launched a little after Pakola launched its line of milk products, Olper’s had
the backing of a massive marketing and advertising campaign that clearly communicated their position
and proposition to consumers. Pakola’s weak branding choices regarding its milk products reflect this
ineffectiveness in communicating to end-users. The company stretched its Pakola brand name to its
UHT milk as well as to its flavored milks2, when the name stood mainly for their ice-cream soda cola
drink in the minds of consumers. Therefore, by stretching the brand name to milk, they create a
mental conflict in users, between fizzy carbonated colas, and pure clean milk. This mistake coupled
with ineffective marketing has put Pakola in this situation.
2
For Mehran Bottlers’ complete Brand Portfolio please see the appendix.
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TOWS Matrix
Strengths Weaknesses
1. 55 years established 1. Weak distribution setup
presence 2. Ineffective marketing
2. Extremely brand loyal 3. No formal organization
customers structure
3. Automated bottling plant 4. Centralized decision making
4. Online order booking system process
5. Public perception of being 5. Lack of professional
an innovator employees
Opportunities S-O Strategies W-O Strategies

1. Health conscious trend in 1. Introduce diet versions of 1. Hire Muller and Phipps to
lifestyles current products handle distribution
2. High growth rate of food 2. Diversify into food (candy) concerns in the short-run
industry manufacturing
3. Increased demand in rural 3. Line extend into fruit juices
markets
Threats S-T Strategies W-T Strategies
1. Engro’s entry into the food 1. Introduce line of 1. Conduct an aggressive
and beverage (milk) customizable drinks and marketing and advertising
industry orders campaign targeting youth
2. Increase in foreign imports 2. Initiate push-cart program 2. Instate a proper human
of beverages to take advantage of direct resource division
3. Rising prices of sugar and marketing opportunities
sugar substitutes
4. Main competitors are
international giants of the
industry
Of the several strategies detailed above, we will now focus our discussions towards two of the
main strategies that should be undertaken in the near future;
1. Hire Muller and Phipps to handle distribution concerns
2. Introduce diet versions of current products
By allowing an experienced distribution expert like Muller and Phipps to handle its distribution,
Pakola can instead focus its short-term resources towards the structuring of its organizational setup.
The issues with Pakola’s management setup are the root cause of its lackluster strategic business
performance, and must be addressed before the company can expect extended success and profits.
The second strategy that they can enforce is the introduction of diet versions of their current
product portfolio. By tapping into this market they would be able to hit two birds with one stone.
They would be targeting those consumers whose lifestyles revolve around healthiness, and also they
would be targeting adults who wish not to drink extremely sweet sugary drinks.
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Space Matrix
y-axis
Financial strength +2.2 +1 worst to + 6 best Y axis: 2.2 + (-2.4) = -0.2
Environmental stability -1.8 -6 worst to –1 best
x-axis
Competitive advantage -1.6 -6 worst to –1 best X axis: 5.0 + (-1.6) = 3.4
Industry strength +5.0 +1 worst to +6 best
FS
Conservative Aggressive
CA IS
Defensive ES Competitive
Pakola is positioned towards a competitive approach due to its unique competitive advantage
and the strength of the industry it is operating in.
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Grand Strategy Matrix

Rapid Market
Growth
Quadrant II Quadrant I
PAKOLA
Weak Strong
Competitive Competitive
Position Position
Quadrant III Quadrant IV
Slow Market
Growth
I-E Matrix
The IFE Total Weighted Score
Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to 3.99
Medium IV V VI
The EFE 2.0 to 2.99
Total
Weighted
Score
Low VII VIII IX
1.0 to 1.99 PAKOLA
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QSPM
Strategic Alternatives
Key Internal Factors Weight Introduce Outsource
Diet Line Distribution
Strengths AS TAS AS TAS
55 years established presence 0.12 2 0.24 3 0.36
Extremely brand loyal customers 0.14
Automated bottling plant 0.10 3 0.30 1 0.10
Online order booking system 0.04
Public perception of being an innovator 0.08 4 0.32 2 0.16
Weaknesses
Weak distribution setup 0.14 1 0.14 3 0.42
Ineffective marketing 0.10 1 0.10 3 0.30
No formal organization structure 0.12
Centralized decision making process 0.08
Lack of professional employees 0.08 1 0.08 4 0.32
SUBTOTAL 1.00 1.18 1.66
Opportunities
Health conscious trend in lifestyles .22 4 0.88 1 0.22
High growth rate of food industry .12
Increased demand in rural markets .14 1 0.14 3 0.42
Threats
Engro’s entry into the milk industry with Olper’s .18
Increase in foreign imports of beverages .12
Rising prices of sugar and sugar substitutes .12
Main competitors are international giants .10
SUBTOTAL 1.00 1.02 0.64
SUM TOTAL ATTRACTIVENESS SCORE 2.20 2.30
From our Strategic Alternatives evaluation, we see that it is more attractive to outsource our
distribution networks rather than launch a diet line of products. This is in line with their current
strategic direction, and will allow Pakola to fortify their market reach before introducing new products
that will be harder to push through the distribution channels.
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PAKOLA
Section 5:
GENERIC STRATEGY
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Generic Strategy
Type of Advantage Sought
Broad Low Cost Broad Differentiation

Range of Buyers
Focused Low Cost Focused Differentiation
The generic strategy that Pakola needs to pursue is that of differentiation. In their current
vision and mission statements, the company says it aims to be a low cost leader, yet through our
thorough analysis of the strategic direction the company needs to adopt a generic strategy of
differentiation. This will allow Pakola to do three things;
1. Charge a premium
2. Increase unit sales
3. Gain buyer loyalty
However, at the expense of sounding simplistic, it is necessary that the company communicate
its differentiation to its customers, otherwise these three advantages will not avail themselves.
Initially Pakola will need to adopt a focused differentiation approach, which means that they
should selectively choose which markets will profit them the most and then target only those markets
until such provisions are in place from where the company is able to expand its target base. After
which they should opt for a broad differentiation generic strategy.
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Current Generic Strategy Vs. Proposed Generic Strategy
The current generic strategy being deployed (involuntarily so) by Mehran Bottlers Pakola is a
distorted version of what our textbooks would define as a ‘focused differentiation’ with their unique
selling preposition of sporting the truly unique taste being targeted at a market that is ciphered on the
basis of ‘convenience’.
Pakola caters to whichever markets it finds ‘convenient’ to cater to. Operating without a
Marketing Department since its very inception, this business has ‘no eyes’ no ears’. It continues to
trudge blind. No marketing intelligence, no market researches and virtually zero market feedback and
almost absolute consumer ignorance are at the very core of this business which has amazingly
continued to survive for such a surprising span of time, most likely because of the intense brand loyalty
that it’s consumers have even without any strategic marketing efforts being executed by the company
itself, is poof of the potential that this brand has and the magnitude of success it is capable of.
With the market just turning the bend to ‘saturation’, it is entering a phase of intense
competition with all major players diversifying their product lines, ranges and even businesses into a
versatile range of products to put in place more infantry on the battle ground to use to their advantage
in this war of brands.
Therefore, we believe that the current strategic objective of Pakola should be to consolidate
its existing brand, Pakola through extensive strategic market research and consumer insights to be able
to home in on the correct target market like a precision targeting missile rather than as an Anti-
aircraft gun.
For this task, the entire business, which at present has a typical ‘Seth’ mentality, where the 28
year old C.E.O has a very disorganized business with no strategically developed formal hierarchy in
place, instead Pakola has an organizational structure which has ‘evolved’ as a result of a ‘need to be
and do’ basis. If the business were to be described in one word, that word would be ‘chaos’.
Therefore, to achieve our strategic objectives it is essential that the business will need to be
completely overhauled, it will need to be revamped to it’s very core. A turn-around is required here,
or a ‘revolution’ if you may.
This will require a very circumspectly devised implementation plan, taking into consideration
all Functional and Administrative Fits, which must be engineered so as to enable a complete
turnaround of the organization in order for it to facilitate the consolidation of it’s unique brand Pakola,
which would then lead to a shift in strategy directing the business to align itself for ‘Broad
Differentiation’, to become more able to face the diverse range of rival products that are entrenched
in the market.
26
PAKOLA
Section 6:
STRATEGIC IMPLEMENTATION
27
The Implementation Phase
Contrary to what we, students of business administration generally think, that the answer to
any business problem is the development of ‘strategic alternatives’ and then the discernment of one
‘best’ strategy, in reality, we see that the ‘development’ of strategy is only just one half of the story.
The other half is the ‘enactment’ of this strategy. The translation of the proposed strategy into solid
tangible actions is essential.
It stands to reason that the actual enactment of the devised strategies or strategy is one of the
most pivotal tasks and challenge faced by a general manager, or in this case the C.E.O, who must not
only just be able to conceive bold strategies, but in fact be able to carry out these proposed courses of
actions and it is in this execution lies the discernment of whether or not the strategy will be a success.
History has borne witness to the fact that defective enactments have made sound strategies
ineffective and skilled implementation can make a debatable choice successful, therefore, the business
concern at hand, requires a diligently planned and vigilantly execution of it’s implantation plan.
The implementation plan focuses on ‘creating fits’. There are two specific kinds of fits;
1. Fits between the proposed strategy and the functional operations of the business.
- Functional Fits
2. Fits between the proposed strategy and the organizational structure, processes and systems.
- Administrative Fits
28
The Functional Fits
These fits have their roots rooted in ‘common sense’. Such logical fits require the adoption of
functional operational level strategies which are ‘complimentary to’ and ‘geared towards creating
synergistic effects’ by working in harmony with the business’s strategic level objectives.
All basic functions of the business, namely the marketing, production, Human Resources, R&D,
Finance, Engineering must adopt and enact operational modes that reinforce the ultimate goal; of the
organization and reinforce the corporate level strategy.
More oft than not, this is easier said than done. Creating such functional fits are not always a
simple task and require a ‘guiding light’, a ‘router’, a ‘director’ in the literal sense of the words and
for this it is required that a higher level individual, one that has ‘developed’ or ‘shared’ or at least
understood the ultimate goal must descend to the tactical and operational levels to himself guide and
supervise the entire revamping process. He must, under any circumstance, bring the functional policies
in line with the strategy being pursued.
Pakola, however, is in a more drastic than your average revamping situation. One reason for
this is that it must first, ‘create’ some of it’s more essential functions like for instance a Marketing
Department and a Human Resource Function.
However, there’s a silver lining here, because when it comes to revamping, it is much easier
and much swifter to ‘create a function from scratch’ than ‘re-structure’ an already existing, confused
function, with all their myopia and hard-set ways of operation.
Therefore, we believe that since the Marketing function, Human Resource Function and the
Distribution Function stand to be of primary significance in the over-hauling process of Pakola,
considering that the business needs a radical restructuring of it’s organizational structure (involving
major lay-offs and inducements of competent personnel) especially, the inducement of the entire
‘Marketing Department’, hired by the Human Resource Function (which would also devise an
appropriate compensation plan for these new additions to the force).
This hiring of capable personnel for the ranks on a massive level, if done right may result in the
much needed newer perceptive of things by the newly induced fresh blood in the organization,
assisting the overall-redo of the organization and it’s outlook.
29
STRATEGIC BRIEF OF EXECUTION OF THE FUNCTINAL FIT
Maintain strategic focus on The Human Resource, Marketing and Distribution.
1. Induct a creditable and capable Human Resource Function, capable of

2. Inducting a highly innovative and talented Marketing Department (which currently does not
exist in the organization)
This Marketing Department will:
• Carry out extensive, accurate and decisive market research laying strategic importance to market
intelligence, consumer insight and modern techniques of marketing based on scientific research,
and putting these to strategic use through effective communication of these decisive elements
with the strategic level management.
• Exert itself to marketing the product to the already brand loyal consumers in order to consolidate
(and in the process also reacquire any of it’s lost market share) them while also targeting newer
potentially loyal markets in it’s attempt to gain market share, but this targeting of the newer
markets will only happen once the ‘Critical Distribution Issue has been resolved’ (which is one of
the key reasons why Pakola continues to remain stagnant or reclining when it comes to market
share)
• Outsource its Distribution function to Muller and Phipps, the best in distribution in Pakistan,
temporarily, to make it’s over-hauling easier to bring about and at the same time, removing its
very Achilles heel.
The Company will hire Muller and Phipps temporarily, for two reasons;
1. To enable itself to overcome it’s most critical issue of distribution in a relatively effort-less
and quick fashion to get back in the game and,
2. To observe and learn from Muller and Phipps, the mode of distribution with the ultimate
goal, of learning and setting up it’s own distribution department which will be much more
flexible and loyal to it’s own product (enabling Pakola to become a highly flexible and
responsive organization capable of instant change to cater to changing market trends), rather
than M&P, which distributes thousands of different products and requires time and effort to
readjust it’s mode of distribution for our product.
30
To assist the Over-all objective of the organization, first, a creditable and capable Human
Resource Department will be induced, which will then assist in the inducement of the Marketing
department, which will align itself to carry out extensive, accurate market research and identify the
appropriate target markets and will then exert itself to marketing the product to these already brand
loyal consumers in order to consolidate (and in the process also reacquire any of it’s lost market share)
them while also targeting newer potentially loyal markets in it’s attempt to gain market share, but this
targeting of the newer markets will only happen once the ‘Critical Distribution Issue has been
resolved’.
31
The Administrative Fits
Besides the implementation of effective and synergistic Functional Fits, there is also a very
essential need for enacting Administrative Fits involving management systems and processes which are
complimentary, consistent with and reinforce the strategic objective(s) of the organization. These
stand to be of primary significance as the ‘sources of influence’ available to C.E.O.s and/or General
Managers in directing their organizations towards the desired achievements.
These include;
1. Organizational Structure
2. Information Systems
3. Incentive Systems
4. Control Systems
5. Strategic Planning Systems
6. Organizational Processes
7. Management Selection and Development
8. Corporate Culture and
9. Leadership Style.
All these essential to implementation elements require the top level management to be
involved in the process at the most basic levels, in this case the C.E.O himself and his hired board of
directors must be an intrinsic part of the supervision and the guidance in the implementation of all the
above mentioned essentials.
The C.E.O., being a young 28 year old Pakistani, having earned his MBA from abroad is infact in
a very likely position to realize the err of the company’s ways and is in the phase of his life where he
possesses the vigor to be able to bring out a radical change in vision and actually be able to
revolutionize the way this Seth owned myopic organization has been working since it’s inception for
over 2 decades, because at the very heart of any organization’s myopia are the negative ramifications
of culture, in the organization.
In a Seth owned organization like Mehran Bottlers, strategy is very much a thing of fiction.
These are organizations that do not believe in Vision or Mission. They believe only in the present. The
future is not their concern. Concepts such as Vision and Mission Statements are only ‘fancy image’
elements to Mehran Bottler’s top management. Belief in a vision and a way of operation focused at
converting this belief into a reality is not what these people believe in, yet, it is our belief that this is
what the organization, above all, needs at the moment. A strategic re-visioning and revamping of their
myopic and shortsighted mode of operations, is the most dire need at this point in time.
32
This phenomenon will only materialize, should the C.E.O himself realizes the lack of strategy in
the visioning of the firm, and then be able to develop and nurture a way of life in the organization that
is geared towards a harmonic blend of long-term-short-term thinking, with just the right balance of
long-term strategic thinking and operational level thinking, and cascading this culture down the entire
organizational hierarchy, enabling the organization to not only conceive bold strategic directions but
actually make these a reality, to become one of the most flexible, synergistically successful Pakistani
firms.
Organizational Structure
The firm needs to tear-down and restructure an organizational hierarchy which has not
‘evolved’ on a ‘need to’ basis, but instead, erect one that is ‘strategically structured to enable the
organization to best carry out it’s Tactical and Operational Level operations in accordance with the
Strategic objectives of the firm.
To be able to succeed, the firm needs to realize that the core of all activities lies with the
consumer, in the market, and therefore, the entire organizational must strategically have a market-
oriented structure, with all functions, operations, management systems and processes geared towards
enabling the firm to very effectively, decisively and swiftly cater to any and all changing or otherwise
trends in the market, better and faster than the competition.
Therefore, to allow such flexibility, Pakola must restructure it’s inflexible and highly
disorganized organizational structure, into a meticulously planned, well coordinated, supportive more
flatter hierarchy with lesser hierarchical levels and comparatively greater span of control, encouraging
more delegation of authority, leading to greater job satisfaction, enrichment and career development,
paving the way to a Learning Organization.
Information, Incentive, Control & Strategic Planning Systems
The firm must mobilize it’s operations through the use of Information Systems, for instance, all
operations be connected through a Computer Network, facilitating a ‘real-time’ check on all levels of
operations, making it possible to gauge any and all information at any point in time, gearing the firm to
measure and anticipate changes in the environment instantly and being able to adjust operations
according to these real-time changes in the environment, leading to a more pro-active, responsive way
of operation. These information systems must be deployed from top-to-bottom, so that an overall
picture can be had when needed.
The Human Resource Team, as mentioned earlier will be responsible for using the most modern
techniques to devise the most appropriate Incentive plan, to mobilize motivation throughout the ranks
33
of the Manpower force because incentive and management systems are among the most important
sources of influence available to the management to mobilize motivation and push the force towards
the achievement of strategy. No less important is the very selection of managers who share and possess
skills that are needed to achieve the intended strategy, yet, this process of selection seems
deceptively easy in theory when in practical it is equally difficult because there are nearly always
pressures not to fire or demote people and to promote those that are ‘next-in-line’ rather than those
that are more capable of carrying out the needed task at hand. Similarly, incentive compensation
typically focuses on the short-run rather than strategic performance. For these reasons, we believe
that the firm at this point in time requires an Entrepreneurial Manager.
Equally essential is putting in place, ‘checks’ throughout the hierarchal levels, which are
capable of quickly identifying any and all compromised operations and pin-pointing the exact location
in the hierarchy responsible for the compromise, so as to rectify the problem while also laying
responsibility for the compromise where it belongs, holding responsible that are rightly responsible.
This must cascade through each and every hierarchical level with no exceptions, making any negative
elements like blame shifting very difficult to do.
The system must not believe in ‘forgiveness, it must believe in Justice.”
Corporate Culture & Leadership Style
The elements of Culture and Leadership Style stand to be of prime importance in the success of
any organizations intended Strategy and consequently is one of the primary deciding factors in whether
or not the actual implementation of the Intended Strategy is a success or failure. For these are the
Direction Givers, the Guiding lights that escort an organization to its ultimate intended goal.
Any organization, whether it wishes or not, develops a culture and this culture in actuality
shapes the future of the firm. Since this culture constitutes of people’s beliefs, behaviors and
attitudes, like isolated individuals these too may be conflicting and destructive setting in motion a
culture that pulls the organizations distinct functions in opposite directions. A destructive culture will,
in simple words, put the organizations own forces at war with each other. Such cultures are rampant in
Pakistani organizations where the Human Resource is naively not viewed as an asset or a ‘deciding
factor’ in any strategy development and/or implementation, and for this reason among others, local
businesses and brands like Pakola, that have so much potential have failed to become successful on a
global level.
Therefore, we are of the belief that a cultural revolution is a ‘must’ for Mehran Bottler’s
Pakola to revamp itself in the slightest of ways. All restructuring fits, whether involving Functional or
Administrative elements are dependent upon the ‘people’ that will carry them out and if these people
are not geared towards a fair, constructive, healthy, motivating and enriching culture, the best of
developed strategies will fail in the worst of ways.
34
Also, one of the most crucial deciding factors when it comes to shaping culture is the aspect of
‘leadership’, because it is this Leadership that is responsible for setting in motion the aspirations, the
benchmarks of excellence. It is this Leadership that is responsible for igniting emotions and creating
the drive in the People Force of an organization. It is this elemental phenomenon that fires up an
organization’s engine and sets it on the path to constructive competitiveness, synergistic activities and
ultimately gives it a competitive advantage like no other. It’s very own core being. It’s people.
Implementation Situation & Mode
As any organization progresses through it’s circle of life, it develops through a number of
distinct stages, namely, Single product, Single business, and multi-businesses, each of which require a
unique mode of operation, sporting distinct organizational structures, incentives and controls. And
since the way of operation for these models differs, the transitions from either of the stages are
particularity difficult to manage. However, these transitions are faced with recurring implementation
problems.
Pakola, however, is faced with a different situation here. It is in a ‘strategic situation’
requiring a turnaround and consolidation. The Top level management, for this purpose will need to be
heedful of the dynamics of this turnaround and will need to pay meticulous attention to all situations
and transitions and develop fits between the strategy being pursued and the firm’s functional policies,
management systems and processes.
To become a more highly flexible, responsive and strategic 3rd Generation Organization,
Pakola, must have flatter hierarchies for all it’s departments, which must be synergistically
coordinated to make it’s functional structure flexible and responsive to any market changes and thus
become a market-oriented organization.
It must put in place management systems and processes that assist it’s functions to operate
with the least possible friction encouraging effective and conflict-free exchange of communication
through the use of Modern Information Systems, also leading to efficient and effective information
exchange facilitating timely adjustments in strategies and operations and consequently decisive action.
This however, shall be no easy task for the young C.E.O and his appointed board of directors.
Mr. Zeeshan, will have to decide between:
(1) The Degree of involvement in the implementation process
(2) The attention that must be given to the administrative constraints
The degree of involvement in the implementation process implies how deeply is he involved in
implementation of the strategy and whether he will personally direct and oversee the implementation
whilst, (2) implies the strength of existing norms and patterns of behavior and the willingness of key
managers to support strategies.
35
Implementation Mode Of Top Level Management
Pakola’s current need in the attempt to turnaround, is a Director who will be deeply involved
in the implementation of strategy and will pay little attention to administrative constraints to the
extent that the trade-offs need to be made between achieving strategic objectives and deal with any
administrative fallout on a ‘need-to’ basis.
Under the given circumstances, when a major turnaround must be attempted, a political
manager would take too much time to mitigate the negative consequences of any action, rather than
proceeding with rapid action, thereby ‘preserving’ the very conflict-ridden negative culture and
processes that are needed to be revamped in the first place. Whereas, An Administrative manager has
limited involvement in the processes, systems and people who must achieve strategy, which would be a
very naïve course of action under the circumstances given the need for total revamping of the current
defective, disorganized and excessively myopic systems, processes and procedures.
Similarly, an Organization Shaker, is geared at assigning the ‘right people for the right task’
and are required when the basic structure in place is sound and effectively operating, which is far from
being the case when we talk about Mehran Bottler’s Pakola.
Therefore, given the current circumstances Pakola requires a manager who is ready to
compromise the short-run over the long-run and will take any necessary (and seemingly radical) steps
to replace the existing malpractices and strategies and replace them with a completely revamped
mode of thinking and operations geared to achieving strategically devised alternatives and goals and in
the process create a highly strategic organization, which is strategically aligned to carry out effective
and efficient operations in the most profitable manner while continuing to keep itself open to
innovation and improvement so that it becomes an ever ‘Learning’ Organization.
36
THE BALANCED BUSINESS SCORE CARD
FINANCIAL PERSPECTIVE
GOALS MEASURES
Survive Generate sufficient cash flow
Restructure Increase sales volume
Grow
CUSTOMER PERSPECTIVE INTERNAL BUSINESS PERSPECTIVE
GOALS MEASURES GOALS MEASURES
New Product ranges

Exceptional HR mangnt
Responsive Supply
Distribution excellence
Strategic Marketing
INNOVATION & LEARNING PERSPECTIVE
GOALS MEASURES
Technological know-
how
Production Excellence
Market Orientation
37
This exceptional measurement tool enables the business managers to view any business from four
critical perspectives and hence provides answers to four critical questions by forcing business managers
to focus only on a handful of key measures, thereby keeping the managers from losing themselves in
numerous and complicated measures.
The questions answered are;

1. How do customers see us? (Customer perspective)
2. What must we excel at? (Internal Perspective)
3. Can we continue to improve & create value? (Innovation & Learning perspective)
4. How do we look at shareholders? (Financial Perspective)
These serve to firstly, bring together, in a single report, many of the seemingly disparate
elements of a company’s competitive agenda: becoming customer oriented, shortening response time,
improving quality, emphasizing teamwork, reducing new product, launch times and managing for the
long-term.
Secondly, the scorecard guards against sub-optimization. By forcing senior managers to
consider all the essential operational measures together as a gestalt, the balances business scorecard
lets them see whether improvement in one area may have been achieved at the expense of another.
Even the best objective can be achieved badly by making the wrong trade-off.
Customer’s concerns tend to fall into 4 categories, Time, quality, performance and service. To
put the scorecard to work, the company must articulate goals for time, quality, performance and
service and then translate these goals into specific measures.
Customer based measure are critical, yet they must be translated into measures of what the
company must do internally to meet customers’ expectations. After all, excellent customer
performance derives from processes, decisions, and actions occurring throughout the organization.
When it comes to the Internal perspective, managers are required to focus on those critical internal
operations that enable them to satisfy customer needs.
The customer-based and internal business process measures on the balanced score card identify
the parameters that the company considers most important for competitive success. But the targets
keep changing. A company’s ability to innovate, improve and learn ties directly to the company’s
value. That is, only through the ability to launch new products, create more value for customers, and
improve operating efficiencies continually, can a company penetrate new markets and increase
revenues and margins and grow and thereby increase shareholder value – the last portion of the BBSC.
While the Financial perspective, measures whether the company’s strategy, implementation,
and execution, are contributing to bottom-line improvement. Typical financial goals have to do with
profitability, growth, and shareholder value.
38
PAKOLA
APPENDIX
39
Industry Brand Map

Competitive Products Portfolio
Product Category
Flavored Milk
Carbonated Soft Fruit Flavored Mineral Energy Drink
Based
Drink Juice Water (Caffeinated)
Beverage
Pakola Ice Cream-
Soda
Mehran Bottlers
Pakola Orange
Pakola Milk
Pakola Lychee
Ice-Cream-Soda
Pakola Raspberry
Pakola Guava*
– Vital – Pina Colada
Mango
Apple Sidra
Rose
Bubble Up
Double Cola
Diet Bubble Up
Pepsi
7-Up
Tropicana Juices*
Mountain Dew
PepsiCo.
Orange
Code Red* Gatorade
Apple Aquafina –
Mirinda SoBe*
Grapefruit
Diet Pepsi
Cranberry
Diet 7-Up
Brand Owner (Company)
Mug Root Beer*

Coca-Cola
Fanta
Coca-Cola
Sprite Capri-Sun
Dasani
Diet Coke Minute Maid- Powerade* –
Kinley*
Sprite Zero Orange Juice
A&W Root Beer
Dr Pepper
Nestlé Juices
Pure Life
Milkpak
Apple
Nestlé
Ava Milo
– Orange –
Fontalia Nesquik
Grape
Others
Yazoo
Campina
Vanilla
– – – – Chocolate
Strawberry
Banana
Red Bull
Red Bull
– – – Red Bull- –
Sugarfree
40
Rani
Shani
Shezan All-Pure
Maza
Polly
Fruto
Tropico
Good day
Kwikool
Al-Habib
Sip-N-Sip Apple-
Milkpak
Chaska
Olpers’ Milk
Sip-N-Sip Limo-
Sun-Sip Shaker
Chaska
Sparkletts Nescafé
IC-Oranjo
Royal Crown Cola Vey Lipton-
Limetime
(RC Cola) Oslo Flavored Tea
Apila
Mecca Cola Culligan Zain Flavored-
Jaam-e-Afza
Zam Zam Cola Aqua Safe Enorm Milks
Tops
Others
Amrit Cola Mineral Plus Bison Al-Marai-

Zain Premium
Canada Dry Tonic Perrier Blue Ox Flavored Milks
Cortina
Canada Dry- Evian Energile Hershey’s-
TOTO Real juice
Cream Soda Gulfa Chocolate
Tang
Everesse Ginger- Masafi Syrup
Sun-Sip Limopani
Ale Volvic Ovaltine
Sun-Sip Thanda
Jeema Horlicks
Orange
IC Sath Sath
Roohafza
Chocolate
Murree-Lemonade
Strawberry
Lipton Iced Tea
Mango
Snapple
Vimto
Diet Vimto
Malee
Mitchell’s Squash
Ribena
Quice
Jam-e-Shireen
Bomba
Chamdor
KEY
Bold Italics = Brand Name
Normal Font = Flavor Variants
* = Product not yet available in Pakistan
41
FLAVOR VARIANT MAP

Current Brand Portfolio &
Possible New Ventures
Base Type
Carbonated Cola Water Caffeine Food
Flavor Type Milk Base
Base Base Base Base
Normal Diet (Juice) Normal Diet (Energy) (Candy)
Ice-Cream Soda
Cola
Orange
Lemon/Lime
Apple
Lychee
Raspberry
Guava
Pina Colada
Mango
Rose
Grape
Cookies & Cream
Vanilla
Chocolate
Strawberry
Cherry
Blueberry
Blackberry
Blackcurrant
Cranberry
Pineapple
Banana
Coconut
42
Peach
Kiwi
Pomegranate
Grapefruit
Watermelon
Melon
Pear
Sugarcane
Spices (Dr Pepper)
Date
Aloo Bukhaira
Honey
Mint
Bubble Gum
Caramel
Tomato
Chikoo
Kulfi
Pistachio
Tutti Frutti (Mixed
Fruit)
Coffee
Tea
Nuts (Peanuts,
Cashews, Almonds)
KEY
Product Currently Served
Product Not Feasible
Possible New Venture
Certain Future Prospects
43
Possible Extension Strategies
Brand Portfolio
Existing New
1. Diet Cola Line 3. Diversify into the candy category

with Pakola Ice-Cream Soda Flavoring
4. Acquire a snack food manufacturer
Existing
Line Extension Brand Extension

Brand Name
5. Fill gaps in currently served 2. Introduce a new caffeine based

categories like fruit juices under a energy drink under a new brand name
new brand name
New
Multi-Brands New Brand
44
Works Cited
1. www.pakola.com.pk
2. Bashar, Amanullah. “Beverage Industry: High Taxation.” 16th December, 2001; Online Source.
3. Porter, Michael. “Note on the Structural Analysis of Industries.” Competitive Strategy. New
York, The Free Press. 1980.
45

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Pakola (Mehran Bottlers Ltd.

VISION AND MISSION STATEMENTS (ACTUAL)

Food Safety & Hygiene Policy

VISION STATEMENT (PROPOSED)

MISSION STATEMENT (PROPOSED)

Porter’s Five Forces

2. Are there any proprietary product differences in your industry

3. Are there any established brand identities in your industry?

4. Do your customers incur any significant costs in switching suppliers?

5. Is a lot of capital needed to enter your industry?

6. Is serviceable used equipment expensive?

Does the newcomer to your industry face difficulty in accessing

8. Does experience help your to continuously lower costs?

Does the newcomer have any problems in obtaining the necessary

3. Does the customer face any significant costs in switching suppliers?

4. Does the buyer need a lot of important information?

5. Is the buyer aware of the need for additional information?

Is there anything that prevents your customer from taking your

7. Your customers are not highly sensitive to price.

8. Your product is unique to some degree or has accepted branding.

9. Your customers’ businesses are profitable.

10. You provide incentives to the decision makers.

2. The customer will incur costs in switching to a substitute.

3. Your customer has no real substitute.

4. Your customer is not likely to substitute.

2. I can switch between suppliers quickly and cheaply.

My suppliers would find it difficult to enter my business or my

4. I can substitute inputs readily.

5. I have many potential suppliers.

6. My business is important to my suppliers.

My cost of purchases has no significant influence on my overall

2. The industry is not cyclical with intermittent overcapacity.

5. The competitors are diversified rather than specialized.

9. My competitors are all of approximately the same size as I am.

Threat of new entrants is

Threat of new entrants

Bargaining power of buyers

Bargaining power of suppliers

Rivalry among existing players

Suppliers Mehran Bottlers Distribution Retail End Customer

Strategic Cost Management

Competitive Profile Matrix

Pakola Pepsi Coke

Internal Factor Evaluation

External Factor Evaluation

Key External Factors Weighted

Opportunities S-O Strategies W-O Strategies

Grand Strategy Matrix

Quadrant III Quadrant IV

Strong Average Weak

Type of Advantage Sought

Broad Low Cost Broad Differentiation

Focused Low Cost Focused Differentiation

Current Generic Strategy Vs. Proposed Generic Strategy

The Implementation Phase

The Functional Fits

STRATEGIC BRIEF OF EXECUTION OF THE FUNCTINAL FIT

Maintain strategic focus on The Human Resource, Marketing and Distribution.

1. Induct a creditable and capable Human Resource Function, capable of

This Marketing Department will:

The Administrative Fits

Information, Incentive, Control & Strategic Planning Systems

Corporate Culture & Leadership Style

Implementation Situation & Mode