Parkville Pharmaceuticals is an Egyptian pharmaceutical company established in 2006 with headquarters in Alexandria and Cairo. It has grown from a small local company to a multinational company with over 175 employees and a diverse product range including pharmaceuticals, cosmeceuticals, dietary supplements, and medical devices. Parkville's vision is to be a key player in healthcare in the Middle East and Africa by 2025 and expand globally thereafter. Its mission is to have a strong presence in the Egyptian market and gain momentum in other fast-growing markets through innovative, high-quality, affordable products. A PESTEL analysis identifies opportunities and threats in the company's external environment.

1. Presented by
1-Sara hisham abdelaziz youssef
2-Nouran Ramadan Mohamed abd el aziz kamar

2. 3-Engy Youssef fathi
4-Gehad amr ahmed hassan
5-Rehab adel Ibrahim galal
6-Ehab Mohamed abd kader el sharawy
Under supervision
Dr ashraf labib

3. Company Profile:
Parkville Pharmaceuticals is an Egyptian pharmaceutical company that was
established in 2006 with headquarters located in Alexandria and Cairo with the
objective to create and develop high quality, innovative and unique products to
the Egyptian market.
In 2020, after 14 years of operations, Parkville has grown from a small local
company to a multinational company with more than 175 employees working
on various products that are competing strongly with leaders in the market.
According to the IMS of 2018 year to date; Parkville is the fastest growing
company of 207% ppg among the top 100 pharmaceutical company in Egypt.
We are a company that offers a diversified product range focused on
pharmaceuticals, cosmeceuticals, dietary supplements and medical devices.
Vision:
We are one of the fast growing pharmaceutical and cosmeceutical companies in
Egypt and our vision is to be one of the key players in the healthcare field in
Middle Eastern and African markets by 2025, with a further outlook to the
future in expanding to larger markets worldwide.
Modified Vision:
Our vision is to become a leader in the Pharmaceutical and cosmetics field in
the MENA region.

4. Our Mission:
Our goal is to have one of the strongest presences in the Egyptian market in the
healthcare field. And most importantly to gain momentum in different fast-
growing markets in a variety of regions around the world. By introducing
innovative products, delivering quality and enhancing market with unsought
approaches that add value to the market practice and disease management.
• Identify Industry: Healthcare field
• Identify Segment: Egyptian market; other markets
• Technology: Innovative product
• Self-concept: Not defined; affordability, high quality, availability.
• Philosophy: Introducing innovative products, delivering quality and
enhancing market with unsought approaches
• Stakeholder satisfaction: Not defined satisfaction to patients,
healthcare providers and consumers.
• Impact on society: add value to the market practice and disease
management; make the world a healthier place.

5. • Sustainability and Profitability: to be one of the strongest presences in the
Egyptian market and to gain momentum in different fast growing markets
in a variety of regions around the world.
Modified Mission:
Our goal is to have one of the strongest presences in the Egyptian market in the
healthcare field as well as, gain momentum in different fast-growing markets in
a variety of regions around the world. Through R&D and unsought approaches,
we make innovative, high-quality, affordable products available to patients and
healthcare providers. Hence ensuring customer satisfaction and improving the
market practice and disease management.
Generic strategy
Differentiation strategy
-our company focuses its effort on providing a unique product through
positioning its offering a part from competitors ,it recognize that consumers
aren’t buying a homogenous product only but a value which include product at
given price.
We are able to achieve our customers loyality through delivering a unique
purchase value through providing unique features and quality.
This differentiation enables the organization to enhance its efficiency
effectiveness and competitive advantage over other in same environment.
-we differentiate our brand as high quality affordable price.
-we have good distribution channels that delivers our customer the ease of
purchasing.
-we give free sample to consumer to try our product
-we listen to our customer feedback
-we provide patient education programs for skin care product in clinic ,
pharmacies .and beauty centers.

6. PESTEL Analysis:
Political Factors:
• Current situation:
- Governmental stability: Egypt in politically stable since the 2013 revolution which
maintains import and opens new export channels.
- Government focus/initiatives in health care (100 million seha) increases awareness of
the importance of maintaining a healthy life and management of chronic diseases.
• 5-yrs ahead: expecting stability, improvement in external relations and expansion in the
international market
• Effect on organization: market expansion internationally and market growth nationally
Probability impact on
corporation
High medium Low
Governmental
stability
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
Probability impact on
corporation
High medium Low
Healthcare
Initiatives
High 1 2 5 probability of
occurrence
Medium 3 4 7

7. Low 6 8 9
Economic Factors:
Last Reference Previous Range Frequency
GDP Annual Growth Rate (%) 5.6 Dec/19 5.6 -3.8 : 7.7 Quarterly
Unemployment Rate (%) 7.7 Mar/20 8 7.5 : 13.4 Quarterly
Inflation Rate (%) 5.9 Apr/20 5.1 -4.2 : 35.1 Monthly
Interest Rate (%) 9.25 May/20 9.25 8.25 : 21.4 Daily
The increase in unemployment rate and increase in
Inflation rate:
Although the increase in inflation rate usually have a negative effect on market growth,
however, since pharmaceutical products are indispensable and our company provides
affordable substitutes for many drugs, our market is positively affected with the inflation rate
The stability of the economy allows for sustainability of external relations.
Probability impact on
corporation
High medium Low
Decrease in High 1 2 5 probability of

8. Unemployment rate Medium 3 4 7 occurrence
Low 6 8 9
Probability impact on
corporation
High medium Low
Increase in Inflation
Rate
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
Probability impact on
corporation
High medium Low
Economic Stability
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
Social Factors:
• Increased popularity to the use of natural products
Probability impact on
corporation
High medium Low
Increased popularity to
the use of natural xxxx
High 1 2 5 probability of
occurrence
Medium 3 4 7

9. products
Low 6 8 9
• Increased awareness towards importance of skincare
Probability impact on
corporation
High medium Low
Increased awareness
towards skincare
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
• Increased awareness towards healthy lifestyle and managing chronic diseases
Probability impact on
corporation
High medium Low
Increased awareness
towards healthy lifestyle
and managing chronic
diseases
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
Technological Factors:
• Social Media for healthcare
Probability impact on
corporation
high medium low
Social Media for
healthcare
High 1 2 5 probability of
occurrence
Medium 3 4 7

10. Low 6 8 9
• Internet penetration
Probability impact on
corporation
high medium low
Social Media for
healthcare
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
• Market Reach (direct to patient/consumer advertising)
Probability impact on
corporation
high medium low
Social Media for
healthcare
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
• Advancement in the production technologies
Probability impact on
corporation
high medium low
Social Media for
healthcare
High 1 2 5
probability of
occurrence
Medium 3 4 7
Low 6 8 9
Environmental Factors:
• Our company provides Eco-friendly packaging; the growing environmental awareness of
customers positively affects the sales.

11. Probability impact on
corporation
high Medium low
• Regulation on
pharmaceutical
drugs
High 1 2 5
probability of
occurrence
medium 3 4 7
Low 6 8 9
Legal factors:
• Regulation on pharmaceutical drugs pricing
Probability impact on
corporation
high Medium low
• Regulation on
pharmaceutical
drugs
High 1 2 5
probability of
occurrence
medium 3 4 7
Low 6 8 9
• Import-export custom duties on pharmaceutical drugs
Probability impact on
corporation
high Medium low
Import-export custom
duties on
pharmaceutical drugs
High 1 2 5
probability of
occurrence
medium 3 4 7
Low 6 8 9
• Consumer protection laws
Probability impact on
corporation

12. high Medium low
• Consumer
protection laws
High 1 2 5
probability of
occurrence
medium 3 4 7
Low 6 8 9
• Health insurance regulations
Probability impact on
corporation
high Medium low
• Health insurance
regulations
High 1 2 5
probability of
occurrence
medium 3 4 7
Low 6 8 9

13. 5 Forces Analysis
1. Threats of New Entrants (LOW)
• The threat of new entrants is low due to government regulations and high cost of developing new drugs
and research
2. Rivalry (HIGH)
• High rivalry is present among existing companies.
3. Bargaining power of buyers (MEDIUM)
• Buyers range from individual patients to healthcare organizations; patient have no bargaining power;
whilst hospitals pose pressure as they buy in bulk.
Factor Probability impact on corporation
High Medium Low
Threats of Entry
for new potential
competitors
High 1 2 5 Probability of
occurrence
Medium 3 4 7
Low 6 8 9
Factor Probability impact on corporation
High Medium Low
Rivalry among
existing firms
High 1 2 5 Probability of
occurrence
Medium 3 4 7
Low 6 8 9
Factor Probability impact on corporation
High Medium Low
Bargaining power High 1 2 5 Probability of

14. 4. Bargaining power of suppliers (LOW)
• The power of suppliers is low as most of the materials can be supplied from different suppliers with
equal quality.
5.
Subs
titute products (Medium-High)
• Substitute products exist however our company provides a unique set of products within each range of
its cosmetics products.
• For medications, close substitute products exist posing a high competitive force
• Strategic group Map:
As all the following company are our competitor; so our strategic map will show the following
:
of buyers Medium 3 4 7 occurrence
Low 6 8 9
Factor Probability impact on corporation
High Medium Low
Bargaining power of
suppliers
High 1 2 5 Probability of
occurrence
Medium 3 4 7
Low 6 8 9
Factor Probability impact on corporation
High Medium Low
Closeness of
substitute products
High 1
(Medications)
2 5 Probability
of occurrence
Medium 3 (Cosmetics) 4 7
Low 6 8 9

15. 1- bioderma: they have the biggest market size with the highest price between the other
competitors.As well all its product are imported
2- parkvile: in ranking 2 in the market size with average price. High quality
3- infinity : with average quality and small market share,
infinity
Danone
bioderma
parkvile
Price
Quality

16. • Strategic type :
- bioderma strategic type is Prospectors; as they are well oriented with developing
new products and they have a large team with high capabilities for research and
clinical trials.
- Parkvile strategic type is Analyzers as have the best balance between the
opportunities usage as well they have high efficiency at the stable arease while
they are very innovative at the variable areas.
- Infinity strategic type is defenders protection oriented ,seeking stability by
maintaining current market positions focus on improving the efficiency
Value discipline triad
- Best product
- Product innovation
- R & D dominant
- Reliable product.
- Lowest cost price
- Ease of use
- Logistics are dominant
- Loyal customer
- Best customer solution
- CRM is dominant
bioderma
infinity
bioderma
Product leadership
Customer intimacy
Operational
excellence
infinity
parkvile
infenity
infinity
bioderma
parkvile

17. • Operational excellence
Focus on cost, efficient and volume
Moderate change in technology
Broad product line
• Customer intimacy
Focus on consumer needs
Customer relation oriented
Focus on competitive requirements
• Product leadership
Searching new products, new market, new techniques
Study the market and competitors
Initiate change and focus on market trends
Probability impact on
corporation
Actions High medium low
focus on cost, efficient and volume
Operational
Excellence
high 1 2 5
probability of
occurrence
moderate change of technology medium 3 4 7
narrow product line Low 6 8 9
Probability impact on
corporation
Actions High medium low
Focus on consumer
customer
intimacy
high 1 2 5
probability of
occurrence
customer relation driven strategy medium 3 4 7
study competitive requirements Low 6 8 9

18. Probability impact on
corporation
Actions High medium low
searching new production techniques
product
leadership
high 1 2 5
probability of
occurrence
focus on market trends medium 3 4 7
Low 6 8 9

19. BCG Matrix
Product
Revenues
(EGP)
% of
Corporate
Revenues
Largest
Competitors
Market Share (%)
Company Market
Share (%)
Relative Market
Share
Market Growth Rate
(%)
Seropipe Range 700 K 16.58 50 40 0.8 12
Starville Range 1 M 23.69 35 55 1.57 15
Bobai Range (New) 650 K 15.4 55 30 0.54 10
Strongville Range 500 K 11.84 40 48 1.2 2
Starville Range

20. Sulfax 500 K 11.84 40 45 1.12 3
Minoxilook 420 K 9.95 47 42 0.89 1.5
Nolver Cream 150 K 3.55 60 10 0.16 4
Milo Baby Cream 140 K 3.31 35 5 0.14 15
Ginipen Sachets 160 K 3.79 80 10 0.12 10
Industry Matrix
Industry
Success Factor
Weight Parkville Infinity Bioderma
Rate Weighed
Score
Rate Weighed
Score
Rate Weighed
Score
Economics of
scale
0.14 5
0.7
4
0.56
2
0.28
Access to
distribution
channels
0.1 4
0.4
4
0.4
3
0.3
Differentiation
in input
0.19 3
0.57
2
0.38
5
0.95
Product
differentiation
0.27 3
0.81
2
0.54
5
1.35
Brand Loyalty 0.3 3 0.9 2 0.6 5 1.5
Sum Weight 1 3.38 2.48 4.38
External Factors Analysis (EFAs)
Opportunities Weight Rating Weighed
Awareness to the use of skincare products 0.3 4 1.2
Decrease in interest rate increase
opportunity in expansion strategy
0.2 5 1
Economics of scale 0.15 4 0.6
Global market 0.15 2 0.3
Stable financial position 0.2 4 0.8

21. Sum 1 3.9
Threats
New entrants 0.15 2 0.3
Growing competitors 0.3 3 0.9
Brand loyalty 0.35 4 1.4
Regulatory affairs for registering products 0.2 2 0.4
Sum 1 3
Value Chain Analysis
Primary activities
The primary value chain activities of parkville company are directly
involved in producing and selling product to target customers and
improve performance of total company.
1-Inbound logistics
It is important to develop strong relationships with suppliers as their
support is necessary to receive store and distribute the product
2-opertation

22. It includes both manufacturing and service operation.it start when raw
material arrive then parkville ready to process the raw material into
the end product and launch it in the market.
3-outbound logistics
Include the activity that deliver the product to the customer by passing
through different intermediaries .some outbound logistics activities
are material handling warehousing scheduling order processing
transporting and delivering to the destination.
Parkville can analyse and optimize the outbound logistics to explore
competitive advantage source and achieve its business growth
objectives.
4-Marketing and sales
At this point parkville will highlight the benefits and differentiation
points of offered products to persuade the customers that is offering is
better than competitors .only producing a high quality product at
affordable costs and distinctive features cannot create value until
parkville invests on the marketing and sales .the sales agent and
marketers play an important role here.
Some example of marketing and sales activities are sales force
,advertising. promotional activities, pricing. channel selection.
Effective marketing activities can develop the brand equity and help it
stand out from competition.
5-service
The pre –sale and post-sale services by parkville play an important
role in developing customer loyalty .
The modern customer consider post-sale services as important as
marketing and promotional activities.

23. Secondary activity
The support activity play an important role in coordinating and
facilitating the primary value chain activities.
1-Firm infrastructure
The firm infrastructure denotes a range of activities such as quality
management legal matters handling accounting financing planning
and strategic management. effective infrastructure management can
allow parkville to optimize the value of hole value chain.
2-Human resource management
Parkville can analyse human resource management by evaluating
different HR aspects including recruiting selecting training rewarding
performance management and other personal management activities
.The effective HR management can allow Parkville to reduce
competitive pressure based on motivation commitment and skills of
workforce.
3-Technology development
In a modern technological advanced era , almost all value chain
activities depend on technological support .the technological
integration in production distribution marketing and human resource
activities require Parkville to realize the importance of technology
development.it can be divided on product and process technological
development activities.
4-procurement
The procurement in value chain denotes the process involved in
purchasing the inputs that may range from equipment machinery raw
material supplies and other items necessary for producing the finished
product

24. 2019 2018 2017 2016 Average Last Year
Variance
%

25. Short-term solvency, or
liquidity, ratios
Current ratio 1.11 0.92 1.16 1.30 1.12 21%
Quick ratio 0.69 0.47 0.69 1.03 0.72 48%
Cash ratio 0.09 0.05 0.13 0.61 0.22 70%
Net working capital to
total assets
0.03 -0.02 0.04 0.07 0.03 230%
Interval measure -
Long-term solvency, or financial
leverage, ratios
Total debt ratio 0.49 0.54 0.54 0.45 0.51 -11%
Debt–equity ratio 0.94 1.19 1.19 0.82 1.04 -20%
Equity multiplier 1.94 2.19 2.19 1.82 2.04 -11%
Long-term debt ratio 0.25 0.34 0.32 0.23 0.29 -26%
Times interest earned
ratio
6.29 5.17 1.93 179.
84
48.31 22%
Cash coverage ratio 6.78 5.70 2.09 179.
84
48.60 19%
Asset management, or turnover,
ratios
Inventory turnover 8.84 7.05 5.01 9.62 7.63 25%
Days’ sales in inventory 41.28 51.79 72.90 37.9
5
50.98 -20%
Receivables turnover 83.14 192.19 81.37 347.
17
175.97 -57%

26. Days’ sales in
receivables
4.39 1.90 4.49 1.05 2.96 131%
NWC turnover 48.92 -53.83 23.34 14.2
1
8.16 -191%
Fixed asset turnover 1.83 1.45 1.53 1.52 1.58 26%
Total asset turnover 1.33 1.12 1.03 1.04 1.13 19%
Profitability ratios
Profit margin 0.09 0.08 0.07 0.17 0.10 14%
Return on assets (ROA) 0.12 0.09 0.07 0.17 0.11 35%
Return on equity (ROE) 0.23 0.19 0.15 0.31 0.22 20%
Market value ratios
Price–earnings ratio 60 55 65 - 60 8%
Diveden Yield 0.02 0.02 0.02 - 0.02 -7%
Market-to-book-ratio 70.00 84.00 72.55 71.8
0
74.59 -17%
PEG ratio -5010 -4642 -5458 - -5036 8%
* par value LE 0.2 per
share Page 72
####### 0.2
* No of shares ####### 4E+08
* Earnings growth rate -0.007 -0.017 - - -0.012

27. Financial Ratios:
Profitability ratio
Current ratio
= Current assets
Current liabilities
Acid-test
ratio
= Cash + Short-term investments +
Current receivables
Current liabilities
Turnover ratio
Accounts
receivables
turnover
= Net credit sales
accounts receivable
Days sales in
= Account receivable * 365
(%)

28. receivables Net sales
Inventory
Turnover
= sales/Av inventory
COGS/Av inventory
Days sales in
inventory
= Ending inventory * 365
Cost of goods sales
Total assets
turnover
= Net sales
Average total assets
Long term solvency ratio
Debt ratio
= Total liabilities
Total assets
Equity ratio
= Total equity
Total assets
Debt to
equity ratio
= Total liabilities
Total equity
Times
interest
earned
= Income before interest expense and
income taxes
Interest expense
Profitability ratio

29. Profit
margin ratio
= Net income
Net sales
Return on
total assets
= Net income
Average total assets
Return on
common stock
holder equity
= Net income – preferred dividends
average common stock holder equity
Market value ratio
Book value
per common
share
= Shareholder's equity applicable to common
share
Number of common share outstanding
Dividend per
share
= Dividend per share
Share price
Ratio / Year 2016 2017 2018 2019 Trend
Current ratio 1.30 1.16 0.92 1.11 increasing
Our ability to pay short-term obligations or those due within one year is
increasing from 2018 to 2019 which refer for good liquidity situation.
Acid test ratio 1.03 .0.69 0.47 0.69 increasing
Our ability to meet its short-term obligations with its most liquid assets,
within one year is increasing from 2018 to 2019 increasing trend which refer
for good liquidity situation for the assets that can be easily converted into cash.
Account receivable 347.17 81.37 192.19 83.14 decreasing

30. turnover
it measure how we are going to convert the account receivable into cash
and it's getting bad through our decreasing trend
Inventory turnover 9.62 5.01 7.05 8.84 increasing
the number of times we sell and replace our stock of goods during a
period. Inventory turnover provides insight as to how we are managing
costs and how effective their sales efforts have been as it's increasing from
2016 to 2019
Days sales in receivables 1,05 4.49 1.90 4.39 increasing
how many days before we will collect our accounts receivable and it's
better to going down as it's mean that we are getting it fast
Total assets turnover 1.04 1.03 1.12 1.33 increasing
the efficiency of a company's assets to generate revenue or sales and it's
increasing
Debt to equity ratio 0.82 1.19 1.19 0,94 decreasing
It is a measure of the degree to which a company is financing its
operations through debt versus wholly-owned funds. And it's decreasing
through the last years
Profit margin ratio 0,17 0.07 0.08 0.09 increasing
represents what percentage of sales has turned into profits and this is
increasing last year give a good impact as profitability
Return on total assets 0.17 .07 .09 0.12 increasing
Is an indicator of how effectively we are using our assets to generate
earnings and this is increasing through the 3 years
Return on common
stockholders' equity
0.31 0.15 0.19 0.23 increasing
the management has been successful in increasing the profits for
shareholders

31. Book value per common
share
4.29 4.45 5.2 6.12 increasing
the per-share value of a company based on common shareholders' equity
in the company is increasing last 4 years

32. Value Rareness Imitability Organization (VRIO)
Activity Value Rareness Imitability Organization
Inbound logistics (Purchasing Department)
Cost associated with
input
√ X X √
Quality of input √ X X √
Time √ X X √
Operation (Production Department)
Specification X X X √
Transferability √ X X √
Disposability √ X X √
Serviceability √ X X √
Safety X X X √
Weight √ X X √
Product size √ X X √
Storage-ability √ X X √
Defects products X X X X
Wasting time X X X X
Outbound Logistics (Distribution Department)

33. Geographical coverage √ √ √ √
Distribution time √ √ X √
Sales Rep. productivity √ X X √
Distribution cost X X X √
Distribution Channels √ √ √ √
Relation with
distributors
√ X X √
Marketing and Sales Department
Marketing mix √ √ √ √
Branding √ X X √
Building customer and
partner relationship
√ √ X X
Corporate brand √ X X √
Corporate reputation √ √ X √
After Sales Services
Quality √ X X √
Price √ √ √ √
Time √ √ X √
Quantity √ √ √ √
Management Activity
Current Ratio √ X √ X
Quick Ratio X X √ X
Gross Profit Margin X √ X X

34. Operating Income √ X √ X
Margin X √ X √
Net Profit Margin X √ X X
Return on Assets √ X X X
Debt to Asset Ratio √ X X √
IS Department
Operational Excellence √ √ X √
Continuous
Improvement
√ √ X √
Customer & Supplier
Intimacy
√ √ X √
Decision Making √ √ X √
Response time √ √ X √
Human Resources Management
Organization Structure √ √ X √
Job description √ √ X √
Selection criteria √ √ X √
Evaluation √ √ X √
Training √ √ X √
Incentives √ √ X √
Continuous
improvement teams
√ √ X √
Research & Development

35. Improve existing
products
X X X X
Develop new products √ √ X √
Improve/Develop
Existing/New
technology
X X X √
Procurement Purchasing Department
Reduce inventory cost √ X X √
Strategic relation with
suppliers
√ X X √
Agility √ √ X √
Reliability √ √ X √
Internal factor analysis (Ifas)
Strength Weight Rating Weighed
Market Mix 0,2 4 ,8
Price 0,3 5 1,5
Good distribution channels 0,2 5 1
Geographical coverage 0,1 3 0,3
Quantity of product 0,2 3 0,6
Sum 1 4,2
Weakness
Minimum diversified product compared
with competitor
0,3 3 0,9
Advertising budgets celebrity supports
compared with competitors
0,6 4 2.4
Technology Improvement 0,1 2 0.2
Sum 1 3,5

36. Strategic factor analysis (sfas)
Strength Weight Rating Weighed score
Market mix 0,1 5 0.5
Price 0,2 5 1
Good distribution channels 0,16 4 0,64
Weakness
Minimum diversified product compared
with competitor
0,01 3 0.03
Advertising budget celebrity supports
compared with competitors
0,2 3 0,6
opportunities
Awareness to use skin care product 0,1 5 0.5
Economic of scale 0,14 4 0.56
Decrease in interest rate increase
opportunity in expansion strategy
0,04 4 0.16
threats
Brand loyalty 0,02 3 0,06
Growing competitors 0.03 3 0.09
1 4.14
TWOS Analysis
internal
external
strength weakness

37. Opportunity Parkville has a
good distribution
channel by
increasing
awareness of
using skin
product increase
its sales and
market share
Minimum diversified
product compared with
competitors can be
overcome by economy
of scale
Threats Parkville have
good market mix
so it can make
good brand
image and good
company
repution so
overcome brand
loyalty
Advertising budget
growing competitors
can be overcome in
future by increasing
budget of advertising
and diversify more
product
Strategic objective
Our strategic objective from Twos analysis market penetration
by increasing market share through increasing awareness of skin
care product and product development through producing new
product according to customer need
Strategic Planning Matrix):
QSPM ( Quantitative

38. key factors weight
Market Penetration Product development
rate total attractiveness rate total attractiveness
Strengths
Market mix 0.1 5 0.5 3 0.3
Price 0.2 3 0.6 4 0.8
Good distribution channel 0.16 4 0.64 4 0.64
Weakness
Minimum diversified product 0.01 3 0.03 3 0.03
Advertising budget celebrity support
compared with competitor
0,2
3 0.6 3 0,6
opportunity
Awareness to use skin care product 0.1 4 0.4 4 0.4
Economic of scale 0.14 3
0.42 3 0.42
Decrease in interest rate increase
opportunity in expansion strategy
0,04 4
.0,16 2 0,08
Threats
Brand loyalty 0,02 3
0,06 3 0,06
Growing competitors 0,03 3
0,09 2 0,06
1
3.5 3.39

39. Space matrix
Rate Competitive advantage Rate Industry strength
-4 Market mix 5 Market growth rate
-3 price 3 Substitute product
-3 Good distribution channel 4 Market share
-3.3 4
Total X score = 0,7
Rate Environmental stability Rate Financial strength
-5 Awareness of skin care product 5 Inventory turnover
-4 Interest Rate 4 Current ratio
-3 Economic of scale 4 Acid test ratio
-4 4.3
Total X score = 0,3

40. We will follow aggressive strategy
Strategic map
1-Increase market penetration
Financial Increase
profit by
30%
Increase
market
share by
15%
Customer Increase customer
satisfaction , increasing
loyality
Process Increase marketing
activity four p,
L&G -Good training for
employee
-Increase number of
dermatology conference

41. -more workshop on skin
care product &seminar
2-product development
financial Increase
profit by
40%
Increase
market
share by
30%
customer Increase awareness toward
new routine for skin care
product
process Invest more for R&d
New production line for
new product
L&G -good training for
employee
-more seminars
balanced score card (implementation plan)
Strategic
objective
KPI Target Time frame objective KPI target Time
frame
202 202 202 2 2 2

42. 0 1 2 0
2
0
0
2
1
0
2
2
Market
penetrati
on
profi
t
30% 10% 15% 15
%
customer ↑aw
arne
ss
skin
prod
uct
10% 3 3 4
Mar
ket
shar
e
15% 2% 5% 8% process Inve
st
R&
D
8% 2 2 2
process
New
prod
ucti
on
line
7% 2 3 2
L&G Trai
nig
for
emp
loye
e
6% 2 2 2

43. Strategic
objective
KPI Target Time frame objective KPI target Time
frame
202
0
202
1
202
2
2
0
2
0
2
0
2
1
2
0
2
2
Product
develop
ment
profi
t
40% 10% 15% 15
%
customer ↑loy
ality
10% 3 3 4
Mar
ket
shar
e
30% 10% 15% 5% customer ↑sati
sfact
ion
8% 2 2 2
process ↑
mar
ket
activ
ity
7% 2 3 2
L&G Trai
nig
for
6% 2 2 2

44. emp
loye
e