SlideShare a Scribd company logo
1 of 25
1
 Tayyab Ismat
LAS15MBAM0020
2
Dedication
“ We dedicate our efforts to our parents, who pray for us every minute, our teacher, who guide us
at every step of our life and our classmates, who stand by us whenever we need them and to all
those who help and encourage us whenever we find hurdles in our life.”
3
Acknowledgement
It is one of the infinite blessings of almighty ALLAH that, He bestowed us with the potential and
ability to complete the present task and make a material contribution towards the deep oceans of
knowledge. We avail this opportunity to bow our head before ALLAH almighty in humility.
Who has given us the wisdom and perseverance for completing this report.
We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch for humanity. We
feel highly privilege for our course instructor Prof. Amjad Hussain. Who taught us Business
Policy & Strategy and further gave us a guideline to this report.
4
Original Vision and Mission Statement
VISION STATEMENT:
“To transform the company into modern and dynamic cement manufacturing company with
qualified professionals and fully equipped to play a meaningful role on sustainable basis in the
economy of Pakistan”.
MISSION STATEMENT:
“To provide quality products to customers and explore new markets to promote/expand sales of
the Company through good governance and foster a sound and dynamic team, so as to achieve
optimum prices of products of the Company for sustainable and equitable growth and prosperity
of the Company”.
5
Proposed Vision and Mission Statement
VISION STATEMENT:
Our vision is to be the rolling partner in nation’s development, by making standards that meet the
expectations
MISSION STATEMENT:
“DGKCC’s mission is to be the most successful cement manufacturing company in Pakistan, by
satisfying the customer with best experience & by doing so, we will meet customers highest expectations
of quality, we provide opportunities of growth & enrichment to our employees, latest technology , best
quality product, individually & company accountability & to be very known among the citizenship”
 Customer
Satisfying the customer with best experience.
 Product or service
DGKCC’s mission is to be the most succesful cement manufacturing company.
 Markets
In pakistan.
 Technologies
Latest Techonology.
 Concern for survival growth
We will meet customers highest expectations of quality.
 Philosophy
Individually & company accountabilty.
 Self-concept
Best qualitity producet.
 Concern public image
To be very known among the citizenship.
 Employees
We provide oppurtunities of growth & enrichment to our employees.
6
External Factors Evaluation (EFE) of DGKCC
Opportunities Weight Rating Weighted
Score
Demand of Cement increase 10% due to new developing projects in the
country
0.08 4 0.32
Increase in the demand of Cement Export increase by 5.72%. 0.08 3 0.24
The MOU b/w Pakistan & Iran on Eco. Corporation signed. 0.05 3 0.15
Due to the stable growth of economy it leads DGK towards stable growth. 0.04 4 0.16
Shutting down the one of the Lucky cement plant becomes the opportunity
for DGK to take his place.
0.05 3 0.15
Opening a new plant in Karachi is the opportunity for the DKG to increase in
the production and its sale.
0.06 4 0.24
Coal Prices and consumption is decreased in international market. 0.05 3 0.15
Increase in utilization of cement due to CPEC projects. 0.09 4 0.36
Establishing manufacturing facilities in attractive foreign markets, especially
in African continent.
0.06 3 0.18
Market in Southern Pakistan. 0.05 3 0.15
Threats
Cement industry adopt to adopt latest technology in Tiruchi 0.06 4 0.24
Due to US bomb attack in Afghanistan the DGK cement export effect 0.04 3 0.12
Taxes increased due to taken fresh loans of $25 billion in last three years 0.05 3 0.15
Inconsistent government policies. 0.06 3 0.18
Increased GST by Rs. 100 on 50kg cement bag. 0.03 2 0.06
Lucky cement as strong potentialcompetitors. 0.04 2 0.08
Unhealthy industry competition. 0.03 1 0.03
Chinese investment in Dewan group. 0.05 2 0.10
South Africa imposes duties on Cement. 0.03 2 0.06
TOTAL 1 3.12
7
Internal Factors Evaluation (IFE) of DGKCC
Strengths
Weight Rating Weighted
Score
Excellent credibility & creditworthiness. 0.06 3 0.18
Solid brand equity 0.8 4 0.32
Extensive dealer network. 0.06 3 0.18
Easy access to financial markets. 0.04 3 0.12
Product Quality 0.08 4 0.32
Enterprise resource planning 0.04 4 0.16
High production Capacity 0.08 3 0.24
Plant’s geostrategic importance 0.06 4 0.24
Parent company’s diversified business segments 0.4 3 0.12
Own Power Generation 0.06 4 0.24
Weakness
No physical presence near seaport & southern areas of Pakistan. 0.05 2 0.1
Limited skill set of human capital 0.06 1 0.06
Low promotion strategy 0.04 2 0.08
Reliability on weather 0.02 2 0.04
Transportation Cost 0.02 2 0.04
Health concern for employees 0.04 2 0.08
Autocratic Decision making 0.03 1 0.03
Job dissatisfaction 0.06 1 0.06
No performance appraisal 0.04 2 0.08
Fluctuating energy cost 0.04 2 0.08
Total 1 2.77
8
CPM (Competitors Profile Matrix)
Critical Success
Factors
DGK Cement
LUCKY
Cement
BESTWAY
Cement
Weight Rating W.Score Rating W.Score Rating W.Score
Excellent credibility &
creditworthiness.
0.06 3 0.18 4 0.24 2 0.12
Strong brand Image. 0.08 4 0.32 3 0.24 2 0.16
Extensive dealer network. 0.06 3 0.18 4 0.24 2 0.12
Earnings Per share 0.04 3 0.12 4 0.16 2 0.08
Product Quality. 0.08 4 0.32 3 0.24 3 0.24
Enterprise resource planning 0.04 4 0.16 3 0.12 2 0.08
High production Capacity 0.08 4 0.32 3 0.24 2 0.16
Plant’s geostrategic importance 0.06 4 0.24 3 0.18 2 0.12
Parent company’s diversified
business segments
0.04 4 0.16 3 0.12 2 0.08
Own Power Generation 0.06 4 0.24 3 0.18 2 0.12
Technology 0.05 3 0.15 4 0.2 1 0.05
Limited skill set of human capital 0.06 1 0.06 3 0.18 2 0.12
Low promotion strategy 0.04 2 0.08 1 0.04 3 0.12
Organization structure 0.02 3 0.06 4 0.08 1 0.02
Transportation Cost 0.02 2 0.04 3 0.06 1 0.02
Health concern for employees 0.04 2 0.08 4 0.16 3 0.12
Autocratic Decision making 0.03 1 0.03 2 0.06 3 0.09
Management experience 0.06 4 0.24 2 0.12 3 0.18
Inventory system 0.04 3 0.12 2 0.08 4 0.16
Advertising 0.04 2 0.08 1 0.04 4 0.16
TOTAL
1 3.18 2.98 2.32
9
Competitive Profile Matrix:
Competitive profile Matrix is an essential strategic management
tool to compare the firm with the major players of the industry.
Competitive profile matrix shows the clear picture to the firm about their
strong points and weak points relative to their competitors. The CPM
score is measured on basis of critical success factors, each factor is
measured in same scale mean the weight remain same for every firm
only rating varies. The best thing about CPM that it includes your firm
and also facilitates to add other competitors make easier the competitor
analysis.
In, IFE matrix only internal factors are evaluated and in EFE matrix only
external factors are evaluated but CPM include both internal and
external factors to evaluate overall position of the firm with respective to
their major competitors.
The competitive profit matrix consists of below mentioned attributes.
 Rating
 Weight
 Weighted Score
 Total Weighted Score
Rating:
10
Rating represents the response of the firm towards the critical success
factors. Highest the rating the better response of the firm towards the
critical success factors, rating range from 1 to 4.
 Rating is applied to each factor.
 Major strength = 4
 Minor strength = 3
 Minor weakness = 2
 Major weakness = 1
Weight:
Weight attribute in CPM indicates the relative importance of
factor to being successful in the firm’s industry. The weight range
from 0.0 means not important and 1.0 means important, sum of all
assigned weight to factors must be equal to 1.0, otherwise the
calculation won’t be considered correct.
Weighted Score:
Weighted score value is the result achieved after multiplying each
factor rating with the weight.
Total Weighted Score:
The sum of all weighted score is equal to the total weighted score,
final value of total weighted score should be between range 1.0 (low)
and 4.0 (high). The average weighted score for CPM matrix is 2.5,
any company total weighted score fall below 2.5 is considered as
weak. The company total weighted score if higher than 2.5 is
considered strong in position.
11
Boston Consulting Group (BCG) Matrix
Sales of Cement company in 2015 & 2016
Products Ordinary Portland Sulphate Resistant Clinker
2016(MT) 2015(MT) 2016(MT) 2015(MT) 2016(MT) 2015(MT)
DG Khan
Cement
3,111,346 2,639,935 2,851,345 2,278,135 3,507,230 3,964,998
Lucky
Cement
3,466,747 3,502,454 3,627,253 3,191,546 5,608,000 5,395,000
Best way
Cement
2,865,271 2,264,894 2,267,132 2,203,131 4,306,488 4,043,634
Fuji
Cement
1,711,324 1,382,772 1,110,906 1,182,775 2,580,732 2,344,715
Total Sale 11,154,688 9,790,055 9,856,636 8,855,587 16,002,450 15,748,347
Relative Market Share
Ordinary Portland RMS=
Own market share
Leader market share
RMS = 3111346/3466747 = 0.89
Sulphate Resistant RMS=
Own market share
Leader market share
RMS = 2851345/3267253 = 0.78
Clinker RMS=
Own market share
Leader market share
RMS = 3507230/5608000 = 0.62
Industrial Growth
Ordinary Portland I.G=
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
× 100 𝐼. 𝐺 =
11154688−9790055
9790055
× 100 = 13.93%
Sulphate Resistant I.G=
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
× 100 𝐼. 𝐺 =
9856636−8855587
8855587
× 100 = 11.30%
Clinker I.G=
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒
× 100 𝐼. 𝐺 =
16002450−15748347
15748347
× 100 = 1.61%
Division Sales 2016 Profit & loss (PKR. Thousand) Profit & loss %
Ordinary Portland 3,111,346 11,762,688.17 11,762,688.17*100/29703758 = 39.6%
Sulphate Resistant 2,851,345 10,158,685.24 10,158,685.24*100/29703758 = 34.2%
Clinker 3,507,230 7,782,384.60 7,782,384.60*100/29703758 = 26.2%
Total 29703758 100%
12
RELATIVE MARKET SHARE POSITION
INDUSTRYSALESGROWTHRATE
High Medium Low
Medium
Low
High
DogsCash Cow
Stars QuestionMark
0.001.0 0.05
+20
-20
BostonConsulting Group (BCG) Matrix
13.93%
0.89 0.78 0.62
1.61%
OP 39.6%
5
%
Clinker 26.2%
SR 34.2%
5
%
11.30%
13
BCG MATRIX
The BCG model is based on the product life cycle theory that can be
used to determine what priorities should be given in the product
portfolio of a business unit. To ensure long term value creation, a
company should have a portfolio of products that contains both high-
growth products in need of cash inputs and low-growth products that
generate a lot of cash.
Placing products in the BCG matrix result in 4 categories in a
portfolio of a company:
1. Stars: (High growth, High market share)
 Use large amount of cash and are leaders in the business, so
they should also generate large amounts of cash.
 Roughly in balance on net cash flow. However if needed any
attempt should be made to hold share, because the reward will
be a cash cow if market share is kept.
2. Cash Cows: (Low growth, high market share)
 Profits and cash generation should be high because of the low
growth, investments needed should be low.
3. Dogs: (Low growth, low market share)
 Avoid and minimize the number of dogs in a company.
 Beware of expensive, turn around plans.
 Deliver cash, otherwise liquidate.
4. Question Mark: (High Growth, Low market share)
 High demands and low returns due to low market share.
 Great amount of cash is invested in question mark
 If change is not implemented, then the growth stops a dog.
 Invest heavily or sell off or invest nothing and generate
cash
The Strategic Position and Action Evaluation (SPACE) Matrix
14
SPACE Matrix for a DGKCC
Financial Position (FP) Rating
Net profit 5
Earnings per share 3
Debt Equity Ratio 4
Stock Turnover Ratio 4
Inventory turnover 5
Average 21/5= 4.2
Competitive Position (CP) Ratings
Brand Image -1
Distribution Network -1
Technology -2
Customer Loyalty -1
Market share -2
Average -7/5= -1.4
Stability Position (SP) Ratings
GDP -2
Rate of Inflation -3
Tax -1
Barriers to entry in market (Govt. Policies) -2
Peace & Security -3
Average -11/5= -2.2
Industrial Position (IP) Ratings
Resource Utilization 5
Financial Stability 6
Resource Utilization 4
Growth Rate 5
Competitors 4
Average 24/5= 4.8
15
Y axis X axis
FP +4.2 +4.8 IP
SP -2.2 -1.4 CP
Total +2 +3.4
16
Space Matrix:
It is used to determine what type of a strategy a company should
undertake. Space matrix is a strategic management tool, which focuses
on strategy formulation especially related to the competitive position of
an organization. There are two internal and two external strategic
dimensions. FP & CP compare your company with other companies.
Therefore, EP & IP compare your industry with other industries.
In a space matrix, there are four quadrants & each quadrant represents a
different type of nature;
 Aggressive
 Conservative
 Defensive
 Competitive
In space matrix, CP and IP values are plotted on x-axis
 CA value range from -1 to -6.
 IP value range from +1 to +6.
Whereas, FP and SP/EP are plotted on Y-axis
 SP/EP value range from -1 to -6
 FP value range from +1 to +
-1 -2 -3 -4 -5 -6
+6+5 +4+3 +2+1
Strong Average Week
17
The above scale shows that, EP/SP and CP rating scale from -6 (worst)
to -1(Best). IP & FP rating scale is from +1 (worst) to +6 (Best). After
rating each factor of EP, CP, IP and FP average is taken of the rating and
then total of all average is taken. By taking total of Y-axis and x-axis the
net result will be marked on the space matrix and it will show the
competitive position of an organization.
The above space matrix show the firm position as an Aggressive.
Financially strong firm that has achieved major competitive advantages
in a growing and stable industry. An organization is in an excellent
position to use its internal strength to take advantage of external
opportunities, overcome internal weakness and avoid external threats.
Therefore, Market deviation, Market penetration, product development
and integration can be feasible depending on the specific circumstances
that the firm faces.
AGGRESSIVE:
 Market Deviation
 Market Penetration
 Product Development
 Integration
18
SWOT Matrix
SWOT Matrix:
Strengths :
1. Solid brand equity
2. Extensive dealer network.
3. Easy access to financial markets.
4. Product Quality
5. High production Capacity
6. Own Power Generation
7. Plant’s geostrategic importance
8. Parent company’s diversified
business segments
9. Excellent credibility &
creditworthiness.
Weakness:
1. No physical presence near
seaport & southern areas.
2. Limited skill set of human
capital
3. Low promotion strategy
4. Reliability on weather
5. Transportation Cost
6. Health concern for employees
7. Autocratic Decision making
8. Job dissatisfaction
9. No performance appraisal
10. Fluctuating energy cost
Opportunity:
1. Demand of Cement increase
10% due to new developing
projects in the country
2. Increase in the demand of
Cement Export increase by
5.72%.
3. Establishing manufacturing
facilities in attractive foreign
markets, especially in African
continent.
4. Market in Southern Pakistan.
5. Due to the stable growth of
economy it leads DGK towards
stable growth.
6. Literacy rate in Pakistan rise to
59.9 percent.
SO
 Increase nationally sale 7%
(s2,s5,o1)
 New plant in African
continent
(s1,,s3,03)
 Market penetration
(s2,o4)
 Increase foreign sales 6%
(s4,s5,o2)
WO
 Market
Development(w5,o4)
 Training of
employee(w8,o5)
 Hiring new blood
(W8,O6)
Threats:
1. Cement industry adopt to adopt
latest technology in Tiruchi
2. Lucky cement as strong
potential competitors.
3. Unhealthy industry competition.
4. Chinese investment in Dewan
group.
5. South Africa imposes duties on
Cement.
ST
 Market development (t5,s7)
 Increase Dividend for
shareholders (T5,S9)
 Invest in
Maintenance. (T1,s9)
WT
 High Promotion Campaign
(T4,W3)
 Hire new HR manager
(w9,t3,t8)
 Training of
employee(w8,t2,t3)
19
The Strength-Weakness-Opportunities-Threats (SWOT) is an
important matching tool that helps the manager to develop four types of
strategies: SO (Strength - Opportunity), WO (Weakness –
Opportunities), ST (Strength - Threats), and WT (Weakness – Threats).
Matching key Internal and external factors.
SO strategies use a firm’s internal strength to take advantage of external
opportunities. Managers would like their organization to be in a position
in which internal strength can be used to take advantage of external
trends and events.
WO strategies aim at improving internal weakness by taking advantage
of external opportunities. Sometimes key external opportunities exist,
but a firm has internal weaknesses that prevent it from exploiting those
opportunities.
ST strategies use a firm’s strength to avoid or reduce the impact of
external threats. This does not mean that a strong organization should
always meet threats in the external environment.
WT strategies are defensive tactics directed at reducing internal
weakness and avoiding external threats. An organization is faced with
numerous external threats and internal weaknesses may indeed be in a
precarious position.
20
The Internal–External (IE) Matrix
IFE Of OPC
Weight Rate Weighted Score
Strengths
Product Quality 0.10 4 0.40
High Production Capacity 0.09 3 0.27
Own Power Generation 0.06 4 0.24
Easy access to Financial Market 0.08 3 0.24
Solid Brand Equity 0.12 2 0.24
Weakness
Not Near Seaport 0.09 4 0.36
Low promotion Strategy 0.18 4 0.72
Transportation Cost 0.09 4 0.36
Limited Human Capital 0.10 3 0.30
No Performance Appraisal 0.09 4 0.36
1 3.49
EFE Of OPC
Weight Rate Weighted
Score
Opportunity
A growing market 0.09 2 0.18
Increased consumer spending 0.1 3 0.3
Legal changes which make selling abroad easier 0.09 2 0.18
Change in society 0.18 1 0.18
Income level is at constant increase 0.09 4 0.36
Threats
Government policy ban on some activities 0.12 4 0.48
Taxation rules which reduce the firm's income 0.08 2 0.16
Change in consumer habit 0.06 4 0.24
Increasing costs might be possible 0.09 3 0.27
New product change demand 0.1 4 0.4
1 2.75
21
IFE Of SRC
Weight Rate Weighted Score
Strengths
Product Quality 0.10 4 0.40
High Production Capacity 0.09 3 0.27
Own Power Generation 0.06 4 0.24
Easy access to Financial Market 0.08 3 0.24
Solid Brand Equity 0.12 2 0.24
Weakness
Not Near Seaport 0.09 2 0.18
Low promotion Strategy 0.18 3 0.54
Transportation Cost 0.09 3 0.27
Limited Human Capital 0.10 4 0.40
No Performance Appraisal 0.09 3 0.27
1 3.05
EFE Of SRC
Weight Rate Weighted
Score
Opportunity
Govt. infrastructure spending 0.09 3 0.27
investmentinindustrialprojects 0.1 4 0.4
commercial constructionactivity 0.09 2 0.18
newtechnologiesare available atreasonable costs 0.18 4 0.72
emergingexportsmarkets 0.09 3 0.27
Threats
importsfromPakistanaffectingmarketsinnorth India 0.12 4 0.48
excessovercapacitycanhurtmarginsas well asprices 0.08 3 0.24
consolidationthroughmergersandacquisition 0.06 2 0.12
variedratesof royalty 0.09 4 0.36
risingoil prices 0.1 4 0.4
1 3.44
22
IFE Of Clinker
Weight Rate Weighted Score
Strengths
Product Quality 0.10 4 0.40
High Production Capacity 0.09 2 0.18
Own Power Generation 0.06 4 0.24
Easy access to Financial Market 0.08 2 0.16
Solid Brand Equity 0.12 2 0.24
Weakness
Not Near Seaport 0.09 2 0.18
Low promotion Strategy 0.18 1 0.18
Transportation Cost 0.09 3 0.27
Limited Human Capital 0.10 4 0.40
No Performance Appraisal 0.09 3 0.27
1 2.52
EFE Of Clinker
Weight Rate Weighted Score
Opportunity
future growth potential 0.10 4 0.40
rising local demand 0.09 4 0.36
construction boom in Pakistan 0.06 2 0.12
focus on cost optimization 0.08 4 0.32
availability of finance 0.12 3 0.36
Threats
low per capita consumption 0.09 2 0.18
high incidence of taxes 0.18 4 0.72
decline in profitability 0.09 4 0.36
high input cost 0.10 3 0.30
inadequate bulk loading facility at ports 0.09 1 0.09
1 3.21
23
The Internal–External (IE) Matrix
Division IFE EFE Sales 2016 Profit & loss
(PKR. Thousand)
Profit & loss %
Ordinary
Portland
3.49 2.75 3,111,346 11,762,688.17 11,762,688.17*100/29703758 = 39.6%
Sulphate
Resistant
3.05 3.44 2,851,345 10,158,685.24 10,158,685.24*100/29703758 = 34.2%
Clinker 2.52 3.21 3,507,230 7,782,384.60 7,782,384.60*100/29703758 = 26.2%
Total 29703758 100%
Strong
3.0 to 4.0
4.0
3.0
Average
2.0 to 2.99
Weak
1.0 to 1.99
2.0
1.0
1.
0
to
1.
99
3.0 2.0 1.0
High
3.0 to 4.0
Medium
2.0 to 2.99
Low
1.0 to 1.99
THE IFE TOTAL WEIGHTED SCORES
EFETOTALW.SCORES
POR 39.6%
3.49
2.75
3.05
3.44
SR 34.2%
Clinker 26.2%
2.52
3.21
24
The Quantitative Strategic Planning
Matrix (QSPM)
New plant in
African continent
High Promotion
Campaign
Outsourcing
Opportunities Weight AS TAS AS TAS AS TAS
Demand of Cement increase 10% due to new developing projects in the
country
0.08 1 0.08 4 0.32 3 0.24
Increase in the demand of Cement due to Export increase by 5.72%. 0.08 4 0.32 2 0.16 3 0.24
The MOU b/w Pakistan & Iran on Eco. Corporation signed. 0.05 - - - - - -
Due to the stable growth of economy it leads DGK towards stable growth. 0.04 - - - - - -
Shutting down the one of the Lucky cement plant becomes the opportunity
for DGK to take his place.
0.05 1 0.05 4 0.20 2 0.10
Opening a new plant in Karachi is the opportunity for the DKG to increase in
the production and its sale.
0.06 1 0.06 4 0.24 2 0.12
Coal Prices and consumption is decreased in international market. 0.05 - - - - - -
Increase in utilization of cement due to CPEC projects. 0.09 1 0.09 3 0.27 2 0.18
Establishing manufacturing facilities in attractive foreign markets, especially
in African continent.
0.06 4 0.24 3 0.18 2 0.12
Market in Southern Pakistan. 0.05 - - - - - -
Threats
Cement industry adopt to adopt latest technology in Tiruchi 0.06 - - - - - -
Due to US bomb attackin Afghanistan the DGK cement export effect 0.04 3 0.12 1 0.04 2 0.08
Taxes increased due to taken fresh loans of $25 billion in last three years 0.05 - - - - - -
Inconsistent government policies. 0.06 - - - - - -
Increased GST by Rs. 100 on 50kg cement bag. 0.03 - - - - - -
Lucky cement as strong potential competitors. 0.04 1 0.04 4 0.16 2 0.08
Unhealthy industry competition. 0.03 3 0.09 2 0.06 1 0.03
Chinese investment in Dewan group (cement). 0.05 2 0.10 4 0.20 1 0.05
South Africa imposes duties on Cement. 0.03 - - - - - -
Total 1
25
New plant in
African continent
High Promotion
Campaign
Outsourcing
Strengths Weight AS TAS AS TAS AS TAS
Excellent credibility & creditworthiness. 0.06 4 0.24 3 0.18 1 0.06
Solid brand equity 0.08 - - - - - -
Extensive dealer network. 0.06 - - - - - -
Easy access to financial markets. 0.04 4 0.16 2 0.08 1 0.04
Product Quality 0.08 3 0.24 2 0.16 1 0.08
Enterprise resource planning 0.04 - - - - - -
High production Capacity 0.08 - - - - - -
Plant’s geostrategic importance 0.06 1 0.06 3 0.18 2 0.12
Parent company’s diversified business segments 0.04 4 0.16 3 0.12 1 0.04
Own Power Generation 0.06 - - - - - -
Weakness
No physical presence near seaport & southern areas of Pakistan. 0.05 1 0.05 2 0.10 4 0.20
Limited skill set of human capital 0.06 1 0.06 2 0.12 3 0.18
Low promotion strategy 0.04 1 0.04 4 0.16 2 0.08
Reliability on weather 0.02 - - - - -
Transportation Cost 0.02 3 0.06 1 0.02 2 0.04
Health concern for employees 0.04 - - - - - -
Autocratic Decision making 0.03 - - - - - -
Job dissatisfaction 0.06 - - - - - -
No performance appraisal 0.04 - - - - - -
Fluctuating energy cost 0.04 2 0.08 1 0.04 3 0.12
Total 1 2.34 2.99 2.2

More Related Content

What's hot

National foods final report
National foods final reportNational foods final report
National foods final report
Aziza Faryal
 
Shezan Marketing Report - Final Project - 2017 - UCP
Shezan Marketing Report - Final Project - 2017 - UCPShezan Marketing Report - Final Project - 2017 - UCP
Shezan Marketing Report - Final Project - 2017 - UCP
FaHaD .H. NooR
 
Overview of Pak Suzuki Motors
Overview of Pak Suzuki MotorsOverview of Pak Suzuki Motors
Overview of Pak Suzuki Motors
MohammedEmad1987
 

What's hot (20)

Cement Industry Pakistan
Cement Industry PakistanCement Industry Pakistan
Cement Industry Pakistan
 
Ogdcl strategy planning
Ogdcl strategy planningOgdcl strategy planning
Ogdcl strategy planning
 
Cement industry Pakistan
Cement industry PakistanCement industry Pakistan
Cement industry Pakistan
 
Analysis of pakistan industries
Analysis of pakistan industriesAnalysis of pakistan industries
Analysis of pakistan industries
 
National foods final report
National foods final reportNational foods final report
National foods final report
 
Ultratech Cement - Marketing
Ultratech Cement - MarketingUltratech Cement - Marketing
Ultratech Cement - Marketing
 
Competitive analysis-PSO
Competitive analysis-PSOCompetitive analysis-PSO
Competitive analysis-PSO
 
Engro foods
Engro foodsEngro foods
Engro foods
 
Gul ahmed As Ethical company
Gul ahmed As Ethical companyGul ahmed As Ethical company
Gul ahmed As Ethical company
 
Engro
EngroEngro
Engro
 
Shezan Marketing Report - Final Project - 2017 - UCP
Shezan Marketing Report - Final Project - 2017 - UCPShezan Marketing Report - Final Project - 2017 - UCP
Shezan Marketing Report - Final Project - 2017 - UCP
 
Lucky cement Annual Report 2010
Lucky cement   Annual Report 2010Lucky cement   Annual Report 2010
Lucky cement Annual Report 2010
 
Value chain of tata motors
Value chain of tata motorsValue chain of tata motors
Value chain of tata motors
 
Cement Industry of Pakistan
Cement Industry of PakistanCement Industry of Pakistan
Cement Industry of Pakistan
 
Atlas Honda
Atlas HondaAtlas Honda
Atlas Honda
 
Overview of Pak Suzuki Motors
Overview of Pak Suzuki MotorsOverview of Pak Suzuki Motors
Overview of Pak Suzuki Motors
 
Analysis of Pakistan cement industry 2019
Analysis of Pakistan cement industry 2019Analysis of Pakistan cement industry 2019
Analysis of Pakistan cement industry 2019
 
Candyland
CandylandCandyland
Candyland
 
Honda atlas
Honda atlasHonda atlas
Honda atlas
 
Jk final report
Jk final reportJk final report
Jk final report
 

Similar to Business policy and strategy ( dg khan cement company

PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
Rehan Tasaddaq
 
Final Project - Strategic Managements.pptx
Final Project - Strategic Managements.pptxFinal Project - Strategic Managements.pptx
Final Project - Strategic Managements.pptx
Hira Naz
 
Strategic management 2010 prashant
Strategic management 2010 prashantStrategic management 2010 prashant
Strategic management 2010 prashant
dinesh salame
 
Ghandara industries
Ghandara industriesGhandara industries
Ghandara industries
umam jamal
 
IMC ppt toyota ffff.pptx
IMC ppt toyota ffff.pptxIMC ppt toyota ffff.pptx
IMC ppt toyota ffff.pptx
Hira Naz
 
Case Selection and Process Identification Objectives T.docx
Case Selection and Process Identification Objectives T.docxCase Selection and Process Identification Objectives T.docx
Case Selection and Process Identification Objectives T.docx
cowinhelen
 
Strategy Formulation 29th March 2024.pptx
Strategy Formulation 29th March 2024.pptxStrategy Formulation 29th March 2024.pptx
Strategy Formulation 29th March 2024.pptx
Madan Karki
 
Back Ground Information Brief History Kuwait Ce.docx
Back Ground Information  Brief History   Kuwait Ce.docxBack Ground Information  Brief History   Kuwait Ce.docx
Back Ground Information Brief History Kuwait Ce.docx
jasoninnes20
 

Similar to Business policy and strategy ( dg khan cement company (20)

Attack cement Marketing strategy management project
Attack cement Marketing strategy management projectAttack cement Marketing strategy management project
Attack cement Marketing strategy management project
 
FAUJI CEMENT (BUSINESS POLICY & STRATEGY).pptx
FAUJI CEMENT (BUSINESS POLICY & STRATEGY).pptxFAUJI CEMENT (BUSINESS POLICY & STRATEGY).pptx
FAUJI CEMENT (BUSINESS POLICY & STRATEGY).pptx
 
PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
PESTAL, SWOT, BCG matrix, Portel five forces analysis of automobile industry ...
 
comprehensive report
comprehensive report comprehensive report
comprehensive report
 
Final Project - Strategic Managements.pptx
Final Project - Strategic Managements.pptxFinal Project - Strategic Managements.pptx
Final Project - Strategic Managements.pptx
 
Strategic management 2010 prashant
Strategic management 2010 prashantStrategic management 2010 prashant
Strategic management 2010 prashant
 
Ghandara industries
Ghandara industriesGhandara industries
Ghandara industries
 
united motorcycle project report
united motorcycle project reportunited motorcycle project report
united motorcycle project report
 
Project report on central excise duty
Project report on central excise dutyProject report on central excise duty
Project report on central excise duty
 
presentation internship
 presentation internship presentation internship
presentation internship
 
IMC ppt toyota ffff.pptx
IMC ppt toyota ffff.pptxIMC ppt toyota ffff.pptx
IMC ppt toyota ffff.pptx
 
Total Quality Management for Improved Project Success - Construction Claims M...
Total Quality Management for Improved Project Success - Construction Claims M...Total Quality Management for Improved Project Success - Construction Claims M...
Total Quality Management for Improved Project Success - Construction Claims M...
 
Case Selection and Process Identification Objectives T.docx
Case Selection and Process Identification Objectives T.docxCase Selection and Process Identification Objectives T.docx
Case Selection and Process Identification Objectives T.docx
 
Presentation1
Presentation1Presentation1
Presentation1
 
Mitchell's competitive analysis
Mitchell's competitive analysisMitchell's competitive analysis
Mitchell's competitive analysis
 
Toyota Pakistan Project Report
Toyota Pakistan Project ReportToyota Pakistan Project Report
Toyota Pakistan Project Report
 
Strategy Formulation 29th March 2024.pptx
Strategy Formulation 29th March 2024.pptxStrategy Formulation 29th March 2024.pptx
Strategy Formulation 29th March 2024.pptx
 
Strategic Hero Honda
Strategic Hero Honda   Strategic Hero Honda
Strategic Hero Honda
 
Summer training report on JBM
Summer training report on JBMSummer training report on JBM
Summer training report on JBM
 
Back Ground Information Brief History Kuwait Ce.docx
Back Ground Information  Brief History   Kuwait Ce.docxBack Ground Information  Brief History   Kuwait Ce.docx
Back Ground Information Brief History Kuwait Ce.docx
 

More from Muhammad Tayyab Ismat-u-llah

More from Muhammad Tayyab Ismat-u-llah (14)

Forecasting Attendance at SWU Football Games
Forecasting Attendance at SWU Football GamesForecasting Attendance at SWU Football Games
Forecasting Attendance at SWU Football Games
 
AIDA analyses
AIDA analysesAIDA analyses
AIDA analyses
 
HRM presentation on small business
HRM presentation on small businessHRM presentation on small business
HRM presentation on small business
 
Family own business with case study
Family own business with case study Family own business with case study
Family own business with case study
 
Micro-Soft Office
Micro-Soft OfficeMicro-Soft Office
Micro-Soft Office
 
Koala bear
Koala bearKoala bear
Koala bear
 
Short business plan
Short business planShort business plan
Short business plan
 
Agriculture of pakistan
Agriculture of pakistanAgriculture of pakistan
Agriculture of pakistan
 
Inflation
Inflation Inflation
Inflation
 
Paragraph writting
Paragraph writtingParagraph writting
Paragraph writting
 
Local television
Local televisionLocal television
Local television
 
Monoplistic competetion
Monoplistic competetionMonoplistic competetion
Monoplistic competetion
 
Monoply
Monoply Monoply
Monoply
 
Habit 6 Synergize
Habit 6 Synergize Habit 6 Synergize
Habit 6 Synergize
 

Recently uploaded

Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
bleessingsbender
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 

Recently uploaded (20)

Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
Abortion pills in Jeddah ! +27737758557, cytotec pill riyadh. Saudi Arabia" A...
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
10 Influential Leaders Defining the Future of Digital Banking in 2024.pdf
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTSPALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
PALWAL CALL GIRL ❤ 82729*64427❤ CALL GIRLS IN PALWAL ESCORTS
 
WheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond InsightsWheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond Insights
 
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdfThe Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
The Vietnam Believer Newsletter_May 13th, 2024_ENVol. 007.pdf
 
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
 
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptxQSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
 
A DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptxA DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptx
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDEJIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
JIND CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JIND ESCORTS SERVICE PROVIDE
 
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 MonthsSEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
 
Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024Progress Report - Oracle's OCI Analyst Summit 2024
Progress Report - Oracle's OCI Analyst Summit 2024
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 

Business policy and strategy ( dg khan cement company

  • 2. 2 Dedication “ We dedicate our efforts to our parents, who pray for us every minute, our teacher, who guide us at every step of our life and our classmates, who stand by us whenever we need them and to all those who help and encourage us whenever we find hurdles in our life.”
  • 3. 3 Acknowledgement It is one of the infinite blessings of almighty ALLAH that, He bestowed us with the potential and ability to complete the present task and make a material contribution towards the deep oceans of knowledge. We avail this opportunity to bow our head before ALLAH almighty in humility. Who has given us the wisdom and perseverance for completing this report. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch for humanity. We feel highly privilege for our course instructor Prof. Amjad Hussain. Who taught us Business Policy & Strategy and further gave us a guideline to this report.
  • 4. 4 Original Vision and Mission Statement VISION STATEMENT: “To transform the company into modern and dynamic cement manufacturing company with qualified professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan”. MISSION STATEMENT: “To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable growth and prosperity of the Company”.
  • 5. 5 Proposed Vision and Mission Statement VISION STATEMENT: Our vision is to be the rolling partner in nation’s development, by making standards that meet the expectations MISSION STATEMENT: “DGKCC’s mission is to be the most successful cement manufacturing company in Pakistan, by satisfying the customer with best experience & by doing so, we will meet customers highest expectations of quality, we provide opportunities of growth & enrichment to our employees, latest technology , best quality product, individually & company accountability & to be very known among the citizenship”  Customer Satisfying the customer with best experience.  Product or service DGKCC’s mission is to be the most succesful cement manufacturing company.  Markets In pakistan.  Technologies Latest Techonology.  Concern for survival growth We will meet customers highest expectations of quality.  Philosophy Individually & company accountabilty.  Self-concept Best qualitity producet.  Concern public image To be very known among the citizenship.  Employees We provide oppurtunities of growth & enrichment to our employees.
  • 6. 6 External Factors Evaluation (EFE) of DGKCC Opportunities Weight Rating Weighted Score Demand of Cement increase 10% due to new developing projects in the country 0.08 4 0.32 Increase in the demand of Cement Export increase by 5.72%. 0.08 3 0.24 The MOU b/w Pakistan & Iran on Eco. Corporation signed. 0.05 3 0.15 Due to the stable growth of economy it leads DGK towards stable growth. 0.04 4 0.16 Shutting down the one of the Lucky cement plant becomes the opportunity for DGK to take his place. 0.05 3 0.15 Opening a new plant in Karachi is the opportunity for the DKG to increase in the production and its sale. 0.06 4 0.24 Coal Prices and consumption is decreased in international market. 0.05 3 0.15 Increase in utilization of cement due to CPEC projects. 0.09 4 0.36 Establishing manufacturing facilities in attractive foreign markets, especially in African continent. 0.06 3 0.18 Market in Southern Pakistan. 0.05 3 0.15 Threats Cement industry adopt to adopt latest technology in Tiruchi 0.06 4 0.24 Due to US bomb attack in Afghanistan the DGK cement export effect 0.04 3 0.12 Taxes increased due to taken fresh loans of $25 billion in last three years 0.05 3 0.15 Inconsistent government policies. 0.06 3 0.18 Increased GST by Rs. 100 on 50kg cement bag. 0.03 2 0.06 Lucky cement as strong potentialcompetitors. 0.04 2 0.08 Unhealthy industry competition. 0.03 1 0.03 Chinese investment in Dewan group. 0.05 2 0.10 South Africa imposes duties on Cement. 0.03 2 0.06 TOTAL 1 3.12
  • 7. 7 Internal Factors Evaluation (IFE) of DGKCC Strengths Weight Rating Weighted Score Excellent credibility & creditworthiness. 0.06 3 0.18 Solid brand equity 0.8 4 0.32 Extensive dealer network. 0.06 3 0.18 Easy access to financial markets. 0.04 3 0.12 Product Quality 0.08 4 0.32 Enterprise resource planning 0.04 4 0.16 High production Capacity 0.08 3 0.24 Plant’s geostrategic importance 0.06 4 0.24 Parent company’s diversified business segments 0.4 3 0.12 Own Power Generation 0.06 4 0.24 Weakness No physical presence near seaport & southern areas of Pakistan. 0.05 2 0.1 Limited skill set of human capital 0.06 1 0.06 Low promotion strategy 0.04 2 0.08 Reliability on weather 0.02 2 0.04 Transportation Cost 0.02 2 0.04 Health concern for employees 0.04 2 0.08 Autocratic Decision making 0.03 1 0.03 Job dissatisfaction 0.06 1 0.06 No performance appraisal 0.04 2 0.08 Fluctuating energy cost 0.04 2 0.08 Total 1 2.77
  • 8. 8 CPM (Competitors Profile Matrix) Critical Success Factors DGK Cement LUCKY Cement BESTWAY Cement Weight Rating W.Score Rating W.Score Rating W.Score Excellent credibility & creditworthiness. 0.06 3 0.18 4 0.24 2 0.12 Strong brand Image. 0.08 4 0.32 3 0.24 2 0.16 Extensive dealer network. 0.06 3 0.18 4 0.24 2 0.12 Earnings Per share 0.04 3 0.12 4 0.16 2 0.08 Product Quality. 0.08 4 0.32 3 0.24 3 0.24 Enterprise resource planning 0.04 4 0.16 3 0.12 2 0.08 High production Capacity 0.08 4 0.32 3 0.24 2 0.16 Plant’s geostrategic importance 0.06 4 0.24 3 0.18 2 0.12 Parent company’s diversified business segments 0.04 4 0.16 3 0.12 2 0.08 Own Power Generation 0.06 4 0.24 3 0.18 2 0.12 Technology 0.05 3 0.15 4 0.2 1 0.05 Limited skill set of human capital 0.06 1 0.06 3 0.18 2 0.12 Low promotion strategy 0.04 2 0.08 1 0.04 3 0.12 Organization structure 0.02 3 0.06 4 0.08 1 0.02 Transportation Cost 0.02 2 0.04 3 0.06 1 0.02 Health concern for employees 0.04 2 0.08 4 0.16 3 0.12 Autocratic Decision making 0.03 1 0.03 2 0.06 3 0.09 Management experience 0.06 4 0.24 2 0.12 3 0.18 Inventory system 0.04 3 0.12 2 0.08 4 0.16 Advertising 0.04 2 0.08 1 0.04 4 0.16 TOTAL 1 3.18 2.98 2.32
  • 9. 9 Competitive Profile Matrix: Competitive profile Matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix shows the clear picture to the firm about their strong points and weak points relative to their competitors. The CPM score is measured on basis of critical success factors, each factor is measured in same scale mean the weight remain same for every firm only rating varies. The best thing about CPM that it includes your firm and also facilitates to add other competitors make easier the competitor analysis. In, IFE matrix only internal factors are evaluated and in EFE matrix only external factors are evaluated but CPM include both internal and external factors to evaluate overall position of the firm with respective to their major competitors. The competitive profit matrix consists of below mentioned attributes.  Rating  Weight  Weighted Score  Total Weighted Score Rating:
  • 10. 10 Rating represents the response of the firm towards the critical success factors. Highest the rating the better response of the firm towards the critical success factors, rating range from 1 to 4.  Rating is applied to each factor.  Major strength = 4  Minor strength = 3  Minor weakness = 2  Major weakness = 1 Weight: Weight attribute in CPM indicates the relative importance of factor to being successful in the firm’s industry. The weight range from 0.0 means not important and 1.0 means important, sum of all assigned weight to factors must be equal to 1.0, otherwise the calculation won’t be considered correct. Weighted Score: Weighted score value is the result achieved after multiplying each factor rating with the weight. Total Weighted Score: The sum of all weighted score is equal to the total weighted score, final value of total weighted score should be between range 1.0 (low) and 4.0 (high). The average weighted score for CPM matrix is 2.5, any company total weighted score fall below 2.5 is considered as weak. The company total weighted score if higher than 2.5 is considered strong in position.
  • 11. 11 Boston Consulting Group (BCG) Matrix Sales of Cement company in 2015 & 2016 Products Ordinary Portland Sulphate Resistant Clinker 2016(MT) 2015(MT) 2016(MT) 2015(MT) 2016(MT) 2015(MT) DG Khan Cement 3,111,346 2,639,935 2,851,345 2,278,135 3,507,230 3,964,998 Lucky Cement 3,466,747 3,502,454 3,627,253 3,191,546 5,608,000 5,395,000 Best way Cement 2,865,271 2,264,894 2,267,132 2,203,131 4,306,488 4,043,634 Fuji Cement 1,711,324 1,382,772 1,110,906 1,182,775 2,580,732 2,344,715 Total Sale 11,154,688 9,790,055 9,856,636 8,855,587 16,002,450 15,748,347 Relative Market Share Ordinary Portland RMS= Own market share Leader market share RMS = 3111346/3466747 = 0.89 Sulphate Resistant RMS= Own market share Leader market share RMS = 2851345/3267253 = 0.78 Clinker RMS= Own market share Leader market share RMS = 3507230/5608000 = 0.62 Industrial Growth Ordinary Portland I.G= 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 × 100 𝐼. 𝐺 = 11154688−9790055 9790055 × 100 = 13.93% Sulphate Resistant I.G= 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 × 100 𝐼. 𝐺 = 9856636−8855587 8855587 × 100 = 11.30% Clinker I.G= 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒−𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑦𝑒𝑎𝑟 𝑠𝑎𝑙𝑒 × 100 𝐼. 𝐺 = 16002450−15748347 15748347 × 100 = 1.61% Division Sales 2016 Profit & loss (PKR. Thousand) Profit & loss % Ordinary Portland 3,111,346 11,762,688.17 11,762,688.17*100/29703758 = 39.6% Sulphate Resistant 2,851,345 10,158,685.24 10,158,685.24*100/29703758 = 34.2% Clinker 3,507,230 7,782,384.60 7,782,384.60*100/29703758 = 26.2% Total 29703758 100%
  • 12. 12 RELATIVE MARKET SHARE POSITION INDUSTRYSALESGROWTHRATE High Medium Low Medium Low High DogsCash Cow Stars QuestionMark 0.001.0 0.05 +20 -20 BostonConsulting Group (BCG) Matrix 13.93% 0.89 0.78 0.62 1.61% OP 39.6% 5 % Clinker 26.2% SR 34.2% 5 % 11.30%
  • 13. 13 BCG MATRIX The BCG model is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long term value creation, a company should have a portfolio of products that contains both high- growth products in need of cash inputs and low-growth products that generate a lot of cash. Placing products in the BCG matrix result in 4 categories in a portfolio of a company: 1. Stars: (High growth, High market share)  Use large amount of cash and are leaders in the business, so they should also generate large amounts of cash.  Roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the reward will be a cash cow if market share is kept. 2. Cash Cows: (Low growth, high market share)  Profits and cash generation should be high because of the low growth, investments needed should be low. 3. Dogs: (Low growth, low market share)  Avoid and minimize the number of dogs in a company.  Beware of expensive, turn around plans.  Deliver cash, otherwise liquidate. 4. Question Mark: (High Growth, Low market share)  High demands and low returns due to low market share.  Great amount of cash is invested in question mark  If change is not implemented, then the growth stops a dog.  Invest heavily or sell off or invest nothing and generate cash The Strategic Position and Action Evaluation (SPACE) Matrix
  • 14. 14 SPACE Matrix for a DGKCC Financial Position (FP) Rating Net profit 5 Earnings per share 3 Debt Equity Ratio 4 Stock Turnover Ratio 4 Inventory turnover 5 Average 21/5= 4.2 Competitive Position (CP) Ratings Brand Image -1 Distribution Network -1 Technology -2 Customer Loyalty -1 Market share -2 Average -7/5= -1.4 Stability Position (SP) Ratings GDP -2 Rate of Inflation -3 Tax -1 Barriers to entry in market (Govt. Policies) -2 Peace & Security -3 Average -11/5= -2.2 Industrial Position (IP) Ratings Resource Utilization 5 Financial Stability 6 Resource Utilization 4 Growth Rate 5 Competitors 4 Average 24/5= 4.8
  • 15. 15 Y axis X axis FP +4.2 +4.8 IP SP -2.2 -1.4 CP Total +2 +3.4
  • 16. 16 Space Matrix: It is used to determine what type of a strategy a company should undertake. Space matrix is a strategic management tool, which focuses on strategy formulation especially related to the competitive position of an organization. There are two internal and two external strategic dimensions. FP & CP compare your company with other companies. Therefore, EP & IP compare your industry with other industries. In a space matrix, there are four quadrants & each quadrant represents a different type of nature;  Aggressive  Conservative  Defensive  Competitive In space matrix, CP and IP values are plotted on x-axis  CA value range from -1 to -6.  IP value range from +1 to +6. Whereas, FP and SP/EP are plotted on Y-axis  SP/EP value range from -1 to -6  FP value range from +1 to + -1 -2 -3 -4 -5 -6 +6+5 +4+3 +2+1 Strong Average Week
  • 17. 17 The above scale shows that, EP/SP and CP rating scale from -6 (worst) to -1(Best). IP & FP rating scale is from +1 (worst) to +6 (Best). After rating each factor of EP, CP, IP and FP average is taken of the rating and then total of all average is taken. By taking total of Y-axis and x-axis the net result will be marked on the space matrix and it will show the competitive position of an organization. The above space matrix show the firm position as an Aggressive. Financially strong firm that has achieved major competitive advantages in a growing and stable industry. An organization is in an excellent position to use its internal strength to take advantage of external opportunities, overcome internal weakness and avoid external threats. Therefore, Market deviation, Market penetration, product development and integration can be feasible depending on the specific circumstances that the firm faces. AGGRESSIVE:  Market Deviation  Market Penetration  Product Development  Integration
  • 18. 18 SWOT Matrix SWOT Matrix: Strengths : 1. Solid brand equity 2. Extensive dealer network. 3. Easy access to financial markets. 4. Product Quality 5. High production Capacity 6. Own Power Generation 7. Plant’s geostrategic importance 8. Parent company’s diversified business segments 9. Excellent credibility & creditworthiness. Weakness: 1. No physical presence near seaport & southern areas. 2. Limited skill set of human capital 3. Low promotion strategy 4. Reliability on weather 5. Transportation Cost 6. Health concern for employees 7. Autocratic Decision making 8. Job dissatisfaction 9. No performance appraisal 10. Fluctuating energy cost Opportunity: 1. Demand of Cement increase 10% due to new developing projects in the country 2. Increase in the demand of Cement Export increase by 5.72%. 3. Establishing manufacturing facilities in attractive foreign markets, especially in African continent. 4. Market in Southern Pakistan. 5. Due to the stable growth of economy it leads DGK towards stable growth. 6. Literacy rate in Pakistan rise to 59.9 percent. SO  Increase nationally sale 7% (s2,s5,o1)  New plant in African continent (s1,,s3,03)  Market penetration (s2,o4)  Increase foreign sales 6% (s4,s5,o2) WO  Market Development(w5,o4)  Training of employee(w8,o5)  Hiring new blood (W8,O6) Threats: 1. Cement industry adopt to adopt latest technology in Tiruchi 2. Lucky cement as strong potential competitors. 3. Unhealthy industry competition. 4. Chinese investment in Dewan group. 5. South Africa imposes duties on Cement. ST  Market development (t5,s7)  Increase Dividend for shareholders (T5,S9)  Invest in Maintenance. (T1,s9) WT  High Promotion Campaign (T4,W3)  Hire new HR manager (w9,t3,t8)  Training of employee(w8,t2,t3)
  • 19. 19 The Strength-Weakness-Opportunities-Threats (SWOT) is an important matching tool that helps the manager to develop four types of strategies: SO (Strength - Opportunity), WO (Weakness – Opportunities), ST (Strength - Threats), and WT (Weakness – Threats). Matching key Internal and external factors. SO strategies use a firm’s internal strength to take advantage of external opportunities. Managers would like their organization to be in a position in which internal strength can be used to take advantage of external trends and events. WO strategies aim at improving internal weakness by taking advantage of external opportunities. Sometimes key external opportunities exist, but a firm has internal weaknesses that prevent it from exploiting those opportunities. ST strategies use a firm’s strength to avoid or reduce the impact of external threats. This does not mean that a strong organization should always meet threats in the external environment. WT strategies are defensive tactics directed at reducing internal weakness and avoiding external threats. An organization is faced with numerous external threats and internal weaknesses may indeed be in a precarious position.
  • 20. 20 The Internal–External (IE) Matrix IFE Of OPC Weight Rate Weighted Score Strengths Product Quality 0.10 4 0.40 High Production Capacity 0.09 3 0.27 Own Power Generation 0.06 4 0.24 Easy access to Financial Market 0.08 3 0.24 Solid Brand Equity 0.12 2 0.24 Weakness Not Near Seaport 0.09 4 0.36 Low promotion Strategy 0.18 4 0.72 Transportation Cost 0.09 4 0.36 Limited Human Capital 0.10 3 0.30 No Performance Appraisal 0.09 4 0.36 1 3.49 EFE Of OPC Weight Rate Weighted Score Opportunity A growing market 0.09 2 0.18 Increased consumer spending 0.1 3 0.3 Legal changes which make selling abroad easier 0.09 2 0.18 Change in society 0.18 1 0.18 Income level is at constant increase 0.09 4 0.36 Threats Government policy ban on some activities 0.12 4 0.48 Taxation rules which reduce the firm's income 0.08 2 0.16 Change in consumer habit 0.06 4 0.24 Increasing costs might be possible 0.09 3 0.27 New product change demand 0.1 4 0.4 1 2.75
  • 21. 21 IFE Of SRC Weight Rate Weighted Score Strengths Product Quality 0.10 4 0.40 High Production Capacity 0.09 3 0.27 Own Power Generation 0.06 4 0.24 Easy access to Financial Market 0.08 3 0.24 Solid Brand Equity 0.12 2 0.24 Weakness Not Near Seaport 0.09 2 0.18 Low promotion Strategy 0.18 3 0.54 Transportation Cost 0.09 3 0.27 Limited Human Capital 0.10 4 0.40 No Performance Appraisal 0.09 3 0.27 1 3.05 EFE Of SRC Weight Rate Weighted Score Opportunity Govt. infrastructure spending 0.09 3 0.27 investmentinindustrialprojects 0.1 4 0.4 commercial constructionactivity 0.09 2 0.18 newtechnologiesare available atreasonable costs 0.18 4 0.72 emergingexportsmarkets 0.09 3 0.27 Threats importsfromPakistanaffectingmarketsinnorth India 0.12 4 0.48 excessovercapacitycanhurtmarginsas well asprices 0.08 3 0.24 consolidationthroughmergersandacquisition 0.06 2 0.12 variedratesof royalty 0.09 4 0.36 risingoil prices 0.1 4 0.4 1 3.44
  • 22. 22 IFE Of Clinker Weight Rate Weighted Score Strengths Product Quality 0.10 4 0.40 High Production Capacity 0.09 2 0.18 Own Power Generation 0.06 4 0.24 Easy access to Financial Market 0.08 2 0.16 Solid Brand Equity 0.12 2 0.24 Weakness Not Near Seaport 0.09 2 0.18 Low promotion Strategy 0.18 1 0.18 Transportation Cost 0.09 3 0.27 Limited Human Capital 0.10 4 0.40 No Performance Appraisal 0.09 3 0.27 1 2.52 EFE Of Clinker Weight Rate Weighted Score Opportunity future growth potential 0.10 4 0.40 rising local demand 0.09 4 0.36 construction boom in Pakistan 0.06 2 0.12 focus on cost optimization 0.08 4 0.32 availability of finance 0.12 3 0.36 Threats low per capita consumption 0.09 2 0.18 high incidence of taxes 0.18 4 0.72 decline in profitability 0.09 4 0.36 high input cost 0.10 3 0.30 inadequate bulk loading facility at ports 0.09 1 0.09 1 3.21
  • 23. 23 The Internal–External (IE) Matrix Division IFE EFE Sales 2016 Profit & loss (PKR. Thousand) Profit & loss % Ordinary Portland 3.49 2.75 3,111,346 11,762,688.17 11,762,688.17*100/29703758 = 39.6% Sulphate Resistant 3.05 3.44 2,851,345 10,158,685.24 10,158,685.24*100/29703758 = 34.2% Clinker 2.52 3.21 3,507,230 7,782,384.60 7,782,384.60*100/29703758 = 26.2% Total 29703758 100% Strong 3.0 to 4.0 4.0 3.0 Average 2.0 to 2.99 Weak 1.0 to 1.99 2.0 1.0 1. 0 to 1. 99 3.0 2.0 1.0 High 3.0 to 4.0 Medium 2.0 to 2.99 Low 1.0 to 1.99 THE IFE TOTAL WEIGHTED SCORES EFETOTALW.SCORES POR 39.6% 3.49 2.75 3.05 3.44 SR 34.2% Clinker 26.2% 2.52 3.21
  • 24. 24 The Quantitative Strategic Planning Matrix (QSPM) New plant in African continent High Promotion Campaign Outsourcing Opportunities Weight AS TAS AS TAS AS TAS Demand of Cement increase 10% due to new developing projects in the country 0.08 1 0.08 4 0.32 3 0.24 Increase in the demand of Cement due to Export increase by 5.72%. 0.08 4 0.32 2 0.16 3 0.24 The MOU b/w Pakistan & Iran on Eco. Corporation signed. 0.05 - - - - - - Due to the stable growth of economy it leads DGK towards stable growth. 0.04 - - - - - - Shutting down the one of the Lucky cement plant becomes the opportunity for DGK to take his place. 0.05 1 0.05 4 0.20 2 0.10 Opening a new plant in Karachi is the opportunity for the DKG to increase in the production and its sale. 0.06 1 0.06 4 0.24 2 0.12 Coal Prices and consumption is decreased in international market. 0.05 - - - - - - Increase in utilization of cement due to CPEC projects. 0.09 1 0.09 3 0.27 2 0.18 Establishing manufacturing facilities in attractive foreign markets, especially in African continent. 0.06 4 0.24 3 0.18 2 0.12 Market in Southern Pakistan. 0.05 - - - - - - Threats Cement industry adopt to adopt latest technology in Tiruchi 0.06 - - - - - - Due to US bomb attackin Afghanistan the DGK cement export effect 0.04 3 0.12 1 0.04 2 0.08 Taxes increased due to taken fresh loans of $25 billion in last three years 0.05 - - - - - - Inconsistent government policies. 0.06 - - - - - - Increased GST by Rs. 100 on 50kg cement bag. 0.03 - - - - - - Lucky cement as strong potential competitors. 0.04 1 0.04 4 0.16 2 0.08 Unhealthy industry competition. 0.03 3 0.09 2 0.06 1 0.03 Chinese investment in Dewan group (cement). 0.05 2 0.10 4 0.20 1 0.05 South Africa imposes duties on Cement. 0.03 - - - - - - Total 1
  • 25. 25 New plant in African continent High Promotion Campaign Outsourcing Strengths Weight AS TAS AS TAS AS TAS Excellent credibility & creditworthiness. 0.06 4 0.24 3 0.18 1 0.06 Solid brand equity 0.08 - - - - - - Extensive dealer network. 0.06 - - - - - - Easy access to financial markets. 0.04 4 0.16 2 0.08 1 0.04 Product Quality 0.08 3 0.24 2 0.16 1 0.08 Enterprise resource planning 0.04 - - - - - - High production Capacity 0.08 - - - - - - Plant’s geostrategic importance 0.06 1 0.06 3 0.18 2 0.12 Parent company’s diversified business segments 0.04 4 0.16 3 0.12 1 0.04 Own Power Generation 0.06 - - - - - - Weakness No physical presence near seaport & southern areas of Pakistan. 0.05 1 0.05 2 0.10 4 0.20 Limited skill set of human capital 0.06 1 0.06 2 0.12 3 0.18 Low promotion strategy 0.04 1 0.04 4 0.16 2 0.08 Reliability on weather 0.02 - - - - - Transportation Cost 0.02 3 0.06 1 0.02 2 0.04 Health concern for employees 0.04 - - - - - - Autocratic Decision making 0.03 - - - - - - Job dissatisfaction 0.06 - - - - - - No performance appraisal 0.04 - - - - - - Fluctuating energy cost 0.04 2 0.08 1 0.04 3 0.12 Total 1 2.34 2.99 2.2