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STRATEGIC AUDIT:

National University of Modern Languages Department of Management Science Sector H-9 ISLAMABAD

SUBMITTED TO: SUBMITTED BY:

Madam Fauzia Mubarik Adeel Azher (10972-c)

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Introduction Britannia, one of the premier food product company in India. Britannia started as a small biscuit company in 1892 and has grown to a household name. Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295. From thereon, Britannia's business flourished acquiring a reputation for quality and value. Britannia Industries Ltd. has a number of awards and accolades in its name like :
Forbes Global rated Britannia 'One amongst the Top 200 Small Companies

of the World'.
The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Current Performance Britannia has registered a turnover of Rs 21,993 million for the year ended 31st March 2010-11. Britannia has posted Net Profit to the tune of Rs 1076 million for the year ended 31st March 2010-11.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Introduced in 1998 with favors such as mint, orange and chocolate. But it did not really succeed in capturing the consumers attention. So after a few years it was re launched with just one flavor i.e. chocolate flavor with new packaging. After the re-launch it has started gaining attention of its potential buyers and hence is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces competition from Britannias good-day choco nuts. Packaging and Labeling The time spent by a customer for picking up a product from a retail outlet is a few seconds; therefore a package should appeal to a customer within such a small interval of time. In this, both packaging & labeling play an important role in attracting customers both visually & psychologically Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the reason for its success has been its ability to resonate with the changes in consumer needs-needs that have varied significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health. People are increasingly becoming conscious of dietary care and its correlation to wellness and matching the new pace to their lives with improved nutritional and dietary habits. This new awareness has seen consumers seeking foods that complement their lifestyles while offering convenience, variety and economy, over and above health and nutrition.

Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was also delight ful andtasty. IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643

IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Thus, the new logo was born, encapsulating the core essence of Britannia healthy, nutritious, optimistic - and combining it with a delightful product range to offer variety and choice to consumers. COMPANYS BACKGROUND

Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in Calcutta. In 1924, Pea Frean UK acquired a controlling stake, which later passed on to the Associated Biscuits International (ABI) an UK based company. During the 50s and 60s, Britannia expanded operations to Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore based NRI businessman along with the Groupe Danone acquired Asian operations of Nabisco, thus acquiring controlling stake in Britannia. Later, Groupe Danone and Nusli Wadia took over Pillais holdings. PLANT LOCATION : Britannia's plants are located in the 4 major metro cities Kolkatta, Mumbai, Delhi, and Chennai. A large part of products are also outsourced from third party producers. Dairy products are out sourced from three producers Dynamic Dairy based in Baramati, Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah in West Bengal. Britannia had spent 0.1 million US$ to hire Paris based designer Shombit Sen Gupta to create a logo and packaging design. The logo had three objectives: Give consumer reassurance that it was a trusted and familiar brand. Britannia has the ability to change. It had to be appropriate to the business the company was in.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 The logo consists of the companys name and slogan, Eat Healthy Think Better. The Hindi rendition is Swastha Khao, Tan Man Jagao. The corporate statement Eat Healthy Think Better captures the Indian concept of the unity of mind and body. The logo has three colours red, white, and green each having its own significance. Colour Red denotes Energy and Vitality. White denotes purity. Green stands for Nutrition and Freshness. The strike communicates Innovation and Futuristic Power of Britannia. Today, Britannia is the largest biscuit and bakery company in the country with the daily sales turnover of over Rs. 8478 million. It is the market leader in the 1.3million tonne Indian biscuits industry with a 60% share. It has maintained market leadership with a 48% value market share in the organized sector. Britannia core businesses constitute of Bakery and Dairy products. Bakery products account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy products contribute to 10% of Britannias annual turnover of Rs13.38bn. Throughout its existence, Britannia has operated on the principles of providing products to the consumers that are healthy and tasty. This is brought about by the use of high quality ingredients with a strong focus on naturalness and modern manufacturing practices. The company today has a wide range of bakery products in the biscuit, bread and cake segment. It has trimmed down its wide product portfolio by reducing the products from 35 to around 25 and began to focus on value-added instead of low-margin products.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 BIL (Britannia Industries Ltd.) has decided to focus on seven core brands in the biscuits and bakery category. The brands included Good Day, Tiger, 50-50, Snax, and the Cream Treat brands, among others. . With the launch of Tiger brand, it has taken a plunge in the low-end category, taking competition head on with Parle, which is the leader in this segment. The company has also diversified within dairy and bakery products to enter the butter, cheese and ghee markets. The portfolio was expanded with the launch of butter, pure flavored milk in tetra packs and UHT milk. Britannia has built an enviable retail distribution network, which services 400,000 retail outlets in 2,200 towns with the help of 2,500 distributors. The company is aggressively expanding its network with a bias towards the rural markets Recently, in the ethnic food segment, the company introduced a new range of traditional namkeens in Mumbai called Britannia Snax. The new range includes seven varieties of traditional namkeens like 'Bikaner ki Bhujia' and 'Rajasthani Alu Bhujia' in a price range of between Rs 5 and Rs 20.The company is in the process of setting up a Greenfield Biscuit Project in Uttaranchal to augment its production capacity, entailing an investment of about Rs 55.2 crore. This plant will have capacity to produce over 45,000 tonnes of two or three varieties of biscuit per annum.So after over seven decades of being inseparable part of life in India, Britannia is now set to usher its customers into a healthier and tastier future

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Key Steps towards strategic planning

Vision Mission

Objectives
Goals Programmes Strategies Values
VISION Think Of A Purpose That Spirals Forth To Create Innovations From Within This Visionary Zeal; Built On Trust And Knowledge, Has Empowered The Wadia Group In Various Business Enterprises For more Than A Century. It now promises much more in the New Economy ... To dominate the food and beverage market in India with a distinctive range of Tasty Yet Healthy Britannia brands. Every third person, in India, should be a Britannia consumer.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Mission To dominate the food and beverage market in India through a profitable range of Tasty Yet Healthy products by making every Indian a Britannia consumer. To be one of the best biscuit company. Development of production in partenership with our customers to their specification. Flexibility & capability tomeet small & large production runs Objectives Short-term Objective : To improve image to shareholders. To improve internal processes and controls. To increase NSV and ROI.

Long-term Objective : To be the lowest-cost producer in the market. To become largest volume player in the bakery industry.

Quality Objectives : Reduction in customer complaints To start documentation of market returns dealer wise To empower the workmen on individual work area to ensure that only quality product are passed on the next page of production. Continuous training for the development of human resources. To minimize the accident level. IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643

IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 As part of the growth strategy, the company always try to build on the values of brand "Britannia" by aggressively pursuing tasty yet healthy offerings of mass appeal and also launching a host of affordable products, which would help rejuvenate the mother brand and drive category consumption. Goals Once the company developed their vision, mission and core values, they can then develop the goals and objectives needed to achieve your vision. Goals are general statements of what Britannia wants to achieve. So they need to be integrated with their vision. They also need to be integrated with their mission of how they are going to achieve their vision.

To improve profitability To increase efficiency To capture a bigger market share To provide better customer service To improve employee training To reduce carbon emissions

Stategies Britannia spends a great amount on promotional strategies like advertisements for the various products it offers. It uses a mix of all the media forms to reach the maximum consumers. They advertise through television, print, radio and reach out to their target audiences.

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Values values define the business in terms of the principles and values that the business leaders will follow. They provide the bounds or limits of how the business leaders will conduct their activities while carrying out the vision and mission. Britannias Core Values:

Provide economically sound business opportunities for our members. Practice high ethical business standards. Respect and protect the environment. Produce high quality products that are safe for consumers. Meet the changing needs and desires of consumers.

The values tell a lot about the the leaders of AgVA and how they will conduct their business activities and relationships. Programmes programmes are statements of specific actions or activities used to achieve an objective.Iis a final touch. You need to identify specific individuals who have the responsibility for implementing the action plans. Creating the statements described above may seem like a lot of busy work. But, if done properly, they can save money and time and increase the odds that companys venture will succeed. Creating these statements will help you focus on the important aspect of your business

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ORGANIZATIONAL STRUCTURE

Mr.Nasali wadia (chairman)

Vinita Bali (managing Director

Mr. Keki Dadiseth (Director)

Mr. Avijit Deb (Director)

Mr. A.K.Hirjee (Director)

Mr. A.K.Hirjee (Director)

Nimesh N Kampani

The company have a centralized or simple structure which show the top to bottom and bottom to top communication with in the organization. As the value chain is the combination of primary functions and secondary functions (supportive). Where primary functions starts with suppliers or any inbound activities, production of goods and reach to the customer through its supportive functions to turn potential customer into consumer

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 IMPORTANT PERSONS IN THE COMPANY BOARD OF DIRECTORS

Chairman Mr.Nusli Neville Wadia

Managing Director

Ms. Vinita Bali Mr. Keki Dadiseth Mr. Avijit Deb Mr. A.K.Hirjee Mr. Nimesh N Kampani Mr. S.S.Kelkar Mr. Pratap Khanna Mr. Jeh N Wadia Director Director Director Director Director Director Director

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I. External Environment

Opportunities and Threads (SWOT) Opportunities Expansion of circle offices in outer stations, where circle office not exists. After the implementation of car financing scheme transport matters will be solve. In these days there is no situation of drought and recovery of per acre of cane will be increase Outreach to growers especially far flung areas. The land of the vicinity is very fruitful for the sugar Mills. The area at COMPANY is shining area of the Punjab for production of sugarcane. Threats Changes in policies suffer the growers as well as employees. May be competition will increase They can shift from maturity stage to decline stage The advertising campaign may be need in future It is possible that in future we will face switching cost Most of the staff is illiterate but is experienced. Lack of non-technical knowledge. No electronically connection with circle offices except mobile phone. Non provision of proper transport to the field staff.

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EXTERNAL STRATEGIC FACTOR

Weight

Rating

Weighted Score

Comments

1 Opportunities O1. Expansion of circle offices O2. Quality Product

.15 .05

4.9 2.5

0.735 0.125

Easy Supply Satisfaction of customer More production More production

O3. drought and recovery O4. attracting growers

.10 .05

3 5

0.3 0.25

O5. fruitful Land

.20

4.5

0.9

More production

Threads T1. competition T2. advertising campaign T3. technical knowledge T4. Changes in policies T5. switching cost .20 .05 .10 .05 .05 4.5 1.5 3 2 1 0.9 0.075 0.3 0.1 0.05 Cost and quality INCREASE IN COST JOB PERFORMANCE Disatisfaction Changing cost

Total Score

1.00

3.75

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II. Internal Environment

Strength and Weaknesses (SWOT) Strengths: COMPANY is a market leader. COMPANY are in secure areas that is the state of COMPANY owners. There is no labor union in this organization. Have a wide setup farms and the land of linked areas is fruitful for cane production. Have a wide set up of farms Using manpower on large scale. Is in maturity stage in organization life cycle. COMPANY has much experienced, qualified and competent employees in each department. Weaknesses: COMPANY is using manpower on large scale so expenses are high. Lack of departmental coordination Hiring of employee is not on the basis of hrm just on the basis of Reference Due to price war in , the benefits goes to the grower and the s

management had to pay extra money to the grower. Salary package of lower staff is low as compared to others. colony yet not been constructed and employees forcefully residing in city away from s about 40-50 KM and travel on daily basis who residing in city area. No school for employees children is present there. IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643

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INTERNAL STRATEGIC FACTOR Weight Rating Weighted Score 1 Strength S1. market leader S2. labor union .20 .05 4 2 0.8 0.1 High Market share Direct communication with mgmt. Own raw material Efficient and effectively perform Better performance 2 3 4 5 Comments

S3. wide setup farm S4. maturity stage

.10 .15

4.5 5

0.45 0.75

S5. qualified and competent employees Weaknesses W1. using manpower means more expense W2. Lack of departmental coordination W3. price war in s W4. Salary package of lower staff W5. Away from main cities Total

.10

4.6

0.46

.05

4.5

0.225

High Expense of Salary

.10

0.4

Communication gap

.05 .10 .10

3.5 4 4.5

0.175 0.4 0.45 4.20

High Competetion Low Performance High Transport Expense

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III. Analysis Of Strategic Factor (SWOT)

Strength and Weaknesses (SWOT) Strengths: COMPANY is a market leader. Have a wide setup farms and the land of linked areas is fruitful for cane production. Is in maturity stage in organization life cycle. COMPANY has much experienced, qualified and competent employees in each department. Weaknesses: Lack of departmental coordination Due to price war in sugar mills, the benefits goes toe the grower and the sugar mills management had to pay extra money to the grower. Mills colony yet not been constructed and employees forcefully residing in city away from mills about 40-50 KM and travel on daily basis who residing in city area. Opportunities They can attract growers from district Ghotiki as well as Rajan pur The land of the vicinity is very fruitful for the company. Threats May be competition will increase Changes in policies suffer the employees.

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Situational analysis Weight Rating Weighted Score 1 Strength S1. market leader S3. wide setup farm S4. maturity stage .20 .05 .05 4.5 3.5 4.5 0.9 0.175 0.225 High Market share Own raw material Efficient and effectively perform Better performance 2 3 4 5 Comments

S5. qualified and competent employees Weaknesses W2. Lack of departmental coordination W3. price war in sugar company W5. Away from main cities Opportunities O4. Attracting growers O5. fruitful Land Threads T1. competition T4. Changes in policies Total Score

.05

0.2

.05

2.5

0.125

Communication gap

.10 .05

4 3.5

0.4 0.175

High Competetion High Transport Expense

.10 .10

3 2

0.3 0.2

More production More production

.15 .10

4.5 2.5

0.675 0.25 3.625

Cost and quality Dissatisfaction

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Leves of Strategic management

Characteristics Scope Corporate level Entire Org. Business level SBU or single business co. Source & Motivation/Direction Responsibility Board of directors/ CEO Top level corporate managers Top level SBU managers or Top level single business co. managers Time Horizon Long term Medium to long term Specificity General statements of overall direction & intent Type Flexibility Cooperation Required Cost Conceptual High Considerable Major Concrete & Operationally oriented Mixed Medium Moderate Medium Action & implementation oriented Operational Low Little Modest Short to long term Functional level managers Corporate strategy SBU strategy Functional level Functional Area

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Strategy Implementation

Formulation of Plans: - The strategy planned by top level management. But the implementation part has done by Business level and function level. The plan that how can they achieved the target. For this they divided the big work into small work. After that they implement small work. Programs and projects:- After acquiring the biffest share in the market they are preparing their company for the next step to achieve its goal.Their management is trained by the training program to make them familiar with the Britannia family. Resource Allocation:- To develop Britannia Biscuits market Britannia company is using various resources such as physical resources, financial resources and human resources. Structural Implementation:There is need for organizational structure to

implement strategies.britannia companys structure is the framework through which an organization operates. Functional Implementation:- A manager can also change activity of the sales person. The manager that is head of the department of the Britannia company take all roles and responsibilities to get the work done from others.the decisions taken by them are implemented by all the workers or employees.

Behavioral Implementation:-

Britannia is very much employee oriented

organization the marketing departments have given the performance bonus & they have been send to the fatory to demonstrate biscuits. Strategy Evaluation

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Setting of Standards:- In this level manager set target to his sales person, generally every departments work on target basis. Measurement of Performance:- Now in this case manager analyze that whatever the target had given to the sales peoples has done or not. Comparison of Actual Performance with standards:- Now they check the actual performance of the sales people and analyze the performance. Finding out deviations:- In this case they check why the sales people not able to achieve the target, whatever the target had given to the sales people where was the deviation. Analyzing Deviations: - After that the manager and top level management check that deviation. Taking Corrective measures:- After that manger tries to solve those deviation. Basically the sales people will again send to the training field review and on job training, this is the method Britannia adopts quite oftenely. Marketing Strategies. BRITANNIA company has won many awards , because of their high quality products and customer satisfaction and became 1st biscuit company in world. Since they are also worth for their marketing strategies lets gaze across. The main marketing strategies followed by the firm are Product strategy. Reduced losses by way of elimination of losses. Target customers to capture growth in each category by segmenting the market both along conventional lines and through segmentation.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Look beyond the product, at the customer. And use knowledge to reposition the brand. High class R&D, and recently enhanced testing and evaluation facilities A corporate image of quality. Eat Healthy. Think Better. Buy Britannia. The 80-year-old biscuit king is reinventing itself. Britannia now wants to become a foods giant, with the newly-added tag of health and nutrition. What's more, with a clever formula of prices and products, it is targeting every segment of the Indian market. After all, the Rs 1,030-crore Britannia had spent a whopping Rs 10 crore on the bkwcj contest-the single biggest promotion ever in the Indian marketing history. Instead of concentrating on a few of its biscuit brands, Britannia included all 16 of them in the 7-level contest it ran, which blocked the air-waves for 13 weeks. The result: 1.60 crore customers actually exchanged 4 empty packs each for the booklet on cricket that came as the first reward

Pricing strategy. Cost based pricing. Demand based pricing. Competition oriented pricing. Product oriented pricing. Affordability based pricing. o Promotional strategy. IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643

IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 "Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the biscuit packs and searched for the lucky scratch for flying to England to see world Cup Cricket match.The sales bounced 37% high on account of this strategy.The scheme came alive again during the world Cup Match in 2002-2003 in South Africa. " Lagan - the super hit movie " brought fame to Britannia Biscuits also as 40000 buyers of Britannia Biscuit packs were invited to see and a small lucky group to play the game with the movie Stars of Lagan. What a novel way to promote a product - a perception in correct proportion indeed. Strategy evaluation and control. A) FINANCIAL EVALUATION: 1) RETURN ON INVESTMENT: This ratio measures the firms ability to perform as a rate of return on the total assets employed. It is stated as: EBIT (Earning Before Interest and Tax) Total assets As there is lack of data to calculation, its difficult to calculate this ratio. (2) EARNINGS PER SHARE (EPS): This is nothing but the earning available to the shareholders of the company. It indicates the profitability of the company which is available to the shareholders. We can find the earned profits per share also called earnings per share as follows:

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 Profits After Tax (PAT) Total number of Outstanding Shares As there is lack of data to calculation, its difficult to calculate this ratio. (3) PRICE EARNINGS MULTIPLE: This is one of the most authentic measures of financial performance as it measures the market price of the companys share which is a reflection of sentiments and demand of the general public for companys share. It is not a ratio but a multiple and is calculated as: Market price per share (Quotes on NSE/BSE) Earnings per share B) BUDGETS: There are different types of budgets: a. Capital expenditure budget. b. Cash budget. c. Sales budget. d. Marketing budget. e. Advertising budget.

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IF U WANT TO DOWNLOAD THIS PROJECT CONTACT @ +923458014643 CONCLUSION After going thick on the thing, now time is to make a complete picture. While making a product a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin Return On Investment) and they promote the brand which provide them highest. They expect return in the form of profit margin, company schemes, window display and references of the shop. Among these, company schemes make the differences and are the highest source of motivation after profit margin. Retailing demands a constant push from the company. Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of biscuit. There is a greater need to understand the retailer behavior considering them as a team working for the company may help them to be attached to the company. There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.

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