Professional Documents
Culture Documents
TODAY
December 2004
Engro Foods
Introduction
Engro Foods
Vision
Mission
Stage 1
Strategy
formulation
Engro Foods
EXTERNAL FACTOR ANALYSIS
Key Strategic Factors
Weight
Rating
Weighted Score
0.9
0.4
0.05
3
4
3
0.22
0.32
0.3
2
3
3
2
2
0.16
0.21
0.15
0.1
0.1
2.91
OPPORTUNITIES
Trend of cattle farming increase by 20%
0.3
Competitor across town slow down their
0.1
operations
Diversification opportunities increased by
0.05
5%
Reduction in Exports Restrictions
0.07
Demand for UHT milk Growing by 9%
0.08
Milk Consumptions Increased
0.1
THREATS
New Entrants
0.08
Increment of Sales Tax
0.07
Economic & Energy Conditions
0.05
Fresh Milk market
0.05
Small Target Market
0.05
Total
1
4= Superior
1=poor response
Engro Foods
INTERNAL FACTOR ANALYSIS
Key Strategic Factors
Weight
Rating
Weighted Score
4
2
3
2
3
3
3
0.32
0.06
0.15
0.16
0.21
0.12
0.18
0.03
2
2
2
1
0.34
0.42
0.14
0.12
2.25
STRENGTHS
Brand Image
0.08
Growing Trend of Sales
0.03
Market Share
0.05
Distribution Channel
0.08
Product Quality
0.07
Innovation
0.04
Customer Oriented
0.06
Qualified Work force / Excellent Employee
0.02
Moral
WEAKNESSES
Centralized Decisions
0.17
No Sales on Credit
0.21
High Price
0.07
Related Diversification
0.12
Total
1
4= Major Strength
3= Minor Strength
2= Minor Weakness
Weakness
1=Major
Research& Development
Financial Position
Market Share
Product Quality
Price Competitiveness
Management
Customer service
Sales And Distribution
Network
8
9
10
Production Capacity
Customer Loyalty
Total
NESTLE
HALEEB
Weight
Rating
Score
Rating
Score
Rating
Score
0.12
0.36
0.48
0.24
0.13
0.39
0.52
0.26
0.09
0.36
0.27
0.09
0.08
0.24
0.24
0.16
0.11
0.33
0.22
0.33
0.12
0.36
0.48
0.20
0.06
0.18
0.18
0.12
0.09
0.18
0.36
0.18
0.07
0.14
0.21
0.28
0.13
0.39
0.32
0.13
1.0
2.93
3.28
1.99
Aggressive
+4
+3
+2
Competitiv
e Position
+1
-6
-5
-4
-3
-2
-1
+1
+2
+3
+4
-1
-2
Defensive
-3
-4
-5
Competitive
+5
+6
Industr
y
Position
Competitive Position(CP)
Industry Position(IP)
(Worst +1,Best 7)
+5
+4
+4
+6
Barriers to entry
Growth Potential
Access to Financing
Consolidation
+5 ROA
+5 Leverage
+4 Leverage
+6 Cash Flow
Average Score = 5
Stability Position(SP)
(Worst -6,Best -1)
-2 Inflation
-1 Technology
-2 Demand Elasticity
-4 Taxation
Average Score =-2.5
X-Axis
Financi
al
Positio
n
X- Axis
1.75 + 4.75 = 6.5
Y- Axis
-2.5 + 5
= 2.5
2.
5
-2
+
7
+
6
+
5
+
4
+
3
+
2
+
1
-1
Aggressive
Industr
y
Positio
2- Star
3- Cash Cows
4- Dogs
High
High
33to
to44
EE
FF
EE
Mediu
Mediu
m
m
22to
to
2.99
2.99
Low
Low
11to
to
1.99
1.99
Strong
Strong
33to
to44
Average
Average
22to
to2.99
2.99
Weak
Weak
11to
to1.99
1.99
II
III
IV
Grow and Build
V
Grow and Build
ENGRO
VI
Harvest
VII
VIII
XI
Harvest
Harvest
Stage 2
Strategy Selection
QSPM of Tarang
Internal External Factor
Strengths
AS
MARKET PENETRATION
TAS
AS
TAS
Brand Image
0.08
3.00
0.24
2.00
0.16
0.03
1.00
0.03
1.00
0.03
Market Share
0.05
3.00
0.15
1.00
0.05
Distribution Channel
0.08
4.00
0.32
4.00
0.32
Product Quality
0.07
Innovation
0.04
Customer Oriented
0.06
0.02
1.00
0.24
1.00
0.24
2.00
Weaknesses
DIVERSIFICATION (TARANG
POWDER)
Weight
0.04
3.00
0.06
Centralized Decisions
0.17
No Sales on Credit
0.21
3.00
0.63
2.00
0.42
High Price
0.07
4.00
0.28
4.00
0.28
Related Diversification
0.12
1.00
DIVERSIFICATION (TARANG
POWDER)
Weight
Opportunities
Trend of cattle farming increase by 20%
AS
MARKET
PENETRATION
TAS
AS
TAS
0.3
1.00
0.30 3.00
0.90
operations
Diversification opportunities increased
0.10
3.00
0.30
3.00
0.30
by 5%
0.05
4.00
0.20
1.00
0.05
0.07
0.08
1.00
0.08
4.00
0.32
0.10
4.00
0.40
4.00
0.40
Threats
New Entrants
0.08
4.00
0.32 4.00
0.32
0.07
2.00
0.14 3.00
0.21
0.05
4.00
0.2 3.00
0.15
0.05
2.00
0.1 2.00
0.1
0.05
Total
1.00
3.97
4.31
QSPM of Olpers
Internal External Factor
Strength
Brand Image
Weight
0.08
2.00
PRODUCT
DEVELOPMENT
AS
TAS
0.16
1.00
0.08
0.03
Market Share
0.05
2.00
0.10
1.00
0.05
Distribution Channel
0.08
4.00
0.32
2.00
0.16
Product Quality
0.07
Innovation
0.04
2.00
0.08
4.00
0.16
Customer Oriented
Qualified Work force / Excellent
0.06
1.00
0.06
3.00
0.18
Weakness
0.17
No Sales on Credit
0.21
High Price
0.07
Related Diversification
0.12
Centralized Decisions
0.02
Employee Moral
MARKET
DEVELOPMENT
AS
TAS
1.00
2.00
0.42
1.00
0.21
1.00
0.12
1.00
0.12
QSPM of Olpers
Internal External Factor
MARKET
DEVELOPMENT
Weight
Opportunities
AS
0.30
PRODUCT
DEVELOPMENT
TAS
AS
TAS
3.00
0.90
1.00
0.30
4.00
0.40
1.00
0.10
0.10
operations
Diversification opportunities increased by 5%
0.05
0.07
4.00
0.28
2.00
0.24
0.08
3.00
0.24
2.00
0.16
0.1
2.00
0.20
2.00
0.20
New Entrants
0.08
1.00
0.08
2.00
0.16
0.05
3.00
0.15
2.00
0.1
0.07
0.05
0.05
Total
1.00
3.00
0.15
2.00
0.1
3.66
2.32
Stage 3
Strategy
Implementation
SBUs Structure
CEO
Chief
Finance
officer
Chief
operating
officer
VP of HR
Brand head of
olpers
Subordnate
Brand head
tarang
VP of HR
Brand head of
omang
VP of HR
Brand head of
omore
VP of HR
VP of
Marketing
Chief
management
officer
Conclusion