NATIONAL FOODS LIMITED

Minahil Dahri (6858) Aysha Mahmood (7087) Sara Saleem (7086) Amyna Nasruddin(6281) Hiba Hussain (6806) Falak Naz Saya (6392) Sadiq Rajani (6609)

RATING
FAVOURABL E THREAT OF NEW ENTRANTS BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES BARGAINING POWER OF SUPPLIERS INTENSITY OF RIVALRY AMONG COMPETITORS TOTAL 3 MODERATE 2 UNFAVOURA BLE 7 REMARKS UNFAVOURABLE

FAVOURABLE

UNFAVOURABLE

FAVOURABLE

MODERATE

16

18

EFFECT OF PEST ON PORTERS FIVE FORCES

P
THREAT OF NEW ENTRANTS

S
-

BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES

BARGAINING POWER OF SUPPLIERS
-

INTENSITY OF RIVALRY AMONG COMPETITORS

External Factor Evaluation

Critical Success Factors Opportunities Growth in food sector Untapped markets both domestically and internationally Pakistan's population is increasing at a rate of 2.2% Growing demand of ready to cook research centers low industry concentration being a staple food, demand for spices remains throughout the year demand for more spicy food especially in Karachi Threats Decreasing per capita Increasing interest rates political instability Increase competition from the formal sector Raw material calamities No significant brand differences TOTAL Weight 0.1 0.15 0.08 0.04 0.02 0.08 0.07 0.05 0.08 0.05 0.025 0.15 0.025 0.08 1.00 Rating 4 3 3 2 4 4 3 2 3 3 2 3 3 2 Weighted Score 0.40 0.45 0.24 0.08 0.08 0.32 0.21 0.10 0.24 0.15 0.05 0.45 0.08 0.16 3.01

Competitor Profile Matrix

Internal Factor Evaluation

Generic Strategies

IE Matrix

Space, Grand & IE Matrix

Space Matrix

Grand Matrix

Strategies
Concentrated Diversification Market Development Product Development Backward integration Market penetration Horizontal integration Can introduce low priced good quality precuts to the people ho prefer low priced spices Explore different untapped foreign markets and export NFL spices. Differentiate your product from the competitors and develop new products according to the regional tastes Achieve self sufficiency in raw materials production Penetrate existing market by increasing promotional efforts and by introducing new SKUs Can acquire small businesses that are more close to current product category

Strategic Alternatives expand exports in introduce Africa low price and spices Europe TA S AS TAS AS 3 ---2 4 3 1 4 4 4 4 0.36 ---0.16 0.2 0.15 0.02 0.2 0.28 0.28 0.16 4 ---3 4 3 3 4 4 2 4 0.48 ---0.24 0.2 0.15 0.06 0.2 0.28 0.14 0.16 Expand exports in Africa and Europe AS 4 TAS 0.4

Critical Success Factors Opportunities Growth in food sector Untapped markets both domestically and internationally Pakistan's population is increasing at a rate of 2.2% Growing demand of ready to cook research centers low industry concentration being a staple food, demand for spices remains through out the year demand for more spicer food especially in Karachi Threats Decreasing per capita

Weight

introduce low price spices AS TAS 0.4

Critical Success Factors

Strengths strict quality control measures versatile food company innovative products customer value competent human resource strong BTL activities excess capacity for expansion they have their own fields as a source of raw material strong distribution channel high PE and ROI Weaknesses

Weight

0.1

0.12 0.1 0.08 0.05 0.05 0.02 0.05 0.07 0.07 0.04

0.15

0.6

0.6

0.08 0.04 0.02 0.08

---1 3 3

---0.04 0.06 0.24

---3 4 4

---0.12 0.08 0.32

QSPM

0.07 0.05 0.08

4 ---4

0.28 ---0.32

4 ---2

0.28 ---0.16

low share in export market conservative management technology not updated

negative cash flows under capacity less spicy masalas a great number of processes are done manually

0.15 0.01 0.03

0.05 0.05 0.04 0.02

---2 2
2 4 ---2

---0.02 0.06
0.1 0.2 ---0.04

---2 4
4 4 ---4

---0.02 0.12
0.2 0.2 ---0.08

Increasing interest rates

political instability Increase competition from the formal sector Raw mterial calamities No significant brand differences SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE

0.05
0.03 0.15 0.03 0.08 1

3
2 ---2 ----

0.15
0.05 ---0.05 ---2.19

3
3 ---3 ----

0.15
0.08 ---0.08 ---2.27

SUBTOTAL

2.23

2.53

4.42

4.8

Strategic Theme: Operations Excellence Financial

Objectives

Measures

Targets

Initiatives

To increase profitability

By keeping expenses low and by increasing sales in the selected international markets

At least 20% increase in Investing in international liquidity ratio by next distribution network financial year. Increase in ROI by 15% in the same period Capture at least 20% of the unbranded spice market by the year end Customer Loyalty Programs Participating in awareness campaigns to educate customers about contaminated loose spices.

Customer
- Attract and retain more customers - awareness about unhygienic loose spices -Number of Sales

Business Scorecard

Internal

Provide high quality products Improve efficiency of outbound logistics

Feedback from customers regarding product quality Track number of returned orders/purchases Time taken between order placement and order delivery

Zero Defect Policy Reduce time between order placement and delivery by 20% in one year

Follow six sigma quality control Use computerized software that simplifies order handling

Learning

Continuous training and development,,R&D ,encourage innovation and promotion of new ideas, increase friendly and strategy supportive culture.

Employees participation in the management decisions, Team work spirit, Employees level of knowledge

Increase employee involvement, collective decision making

Management training programs