This document discusses the strategic plan of Faruki Pulp Mills. It analyzes the company's strengths, weaknesses, opportunities, and threats through a SWOT analysis. It also evaluates the political, economic, social, and technological factors in the industry through a PEST analysis. The document outlines Faruki's mission, objectives, marketing strategies, and sales growth strategies. It proposes evaluating strategies based on greatest yield and developing contingency plans with alternative businesses to mitigate risks.
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StrengthStrength
Strategic Alliances
Resource Owner ( Eucalyptus, Power Plant )
Product Differentiation
Suitable / Viable Import Substitute
Professional Culture & Approach
Ethical Practices
Motivated & Dedicated Team
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WeaknessWeakness
Loan from Banks
No bargaining power in some raw materials
Higher Price compared with other competitors
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OpportunityOpportunity
High growth rates in expanding education and
publication industries
Advantage of cash flow
Lack of quality focused competition
Industries dependent upon imports for quality
both in finished product form as well as in raw
material form
Big Domestic & Huge Export Markets
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ThreatThreat
Imports – Competition from abroad
International Pulp & Paper Prices
Exchange Rate Fluctuation
High Turnover of People
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Political FactorsPolitical Factors
Prevailing Law & Order condition
Taxation Policies
Monetary Policies
Legislations
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Economic FactorsEconomic Factors
High Inflation
International Recession
Unemployment
Energy Crisis
Deficit Financing
Circular Debts
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Socio Cultural FactorsSocio Cultural Factors
Income Distribution
Literacy Rate
Consumerism
Demographics
Ethnic Factors
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Technological FactorsTechnological Factors
Internet
Speed of Technology Transfer
Rate of Obsolescence
Information Technology
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Five Forces AnalysisFive Forces Analysis
Suppliers Power
Eucalyptus Plantation on a Commercial Scale
Contract Farming
Buyers Power
B2B
B2C
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Five Forces AnalysisFive Forces Analysis
Threat from New Entrants
Capital Intensive Industry
High Technological Costs
Threat from Substitutes
Synthetic Pulp
Other Pulps like wheat Straw, cotton, sugar
cane etc
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Five Forces AnalysisFive Forces Analysis
Threat from Competition
Price Competitiveness in domestic market
International Pulp Prices
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DomesticDomestic
An aware updated Customer / Consumer
Reduced Buying Power of Consumer
Intensive & Extensive Competition
Idle Capacities
Continuous Pressure on Margins
Escalating Raw Material Prices
Liquidity Crunch Prevailing in the Market
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InternationalInternational
International Paper Pulp Prices
Volatile Oil Prices
Competitive Pricing
Shorter Lead Times
Reduction in Inventory Levels
Focusing on JIT & VMI Concepts
20. Mission StatementMission Statement
“ To Provide our Customers with Product
and Services that continually fulfill their
expectations. This is achieved by all
employees optimizing the quality of each
action that takes place in the business of
buying, producing, selling and servicing
our products – all within a safe work
environment that encourages personal
development and satisfaction”
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21. Company ObjectivesCompany Objectives
To be the leading Player in domestic and
international market of Pulp Suppliers
To be the Preferred Choice of Customers
To serve Customers with the latest, modern
and Updated Technology
To recruit, train and groom Team of
Professionally Dedicated People
To have strong and long standing
relationship with Customers and Suppliers
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22. Strategic ObjectivesStrategic Objectives
To guarantee eucalyptus supply to ensure
long term growth
Development of Planted Eucalyptus areas
Logistics of Eucalyptus Transportation
Skilled, Technically Proficient Labor
Force
Politically, Socially, Environmentally
clean work atmosphere
Full compliance with Government Laws
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24. Marketing ObjectivesMarketing Objectives
To be the leading Player in the domestic
market of Pulp Suppliers
To supply to Selected Internationally
renowned and reputed Companies
To be recognized as a Quality Supplier
To grow faster than the Market and the
existing base of Customers
To have strong and long standing
relationship with Customer
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25. Marketing FunctionsMarketing Functions
Achieve Sales Targets
Timely Recovery of Payments
Maximizing Return on Stakeholders
Investment
Optimum Utilization of Capacities
Providing Top Class Service to Customers
through Customer Relations Management
and Key Account Management
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26. Marketing FunctionsMarketing Functions (cont.)(cont.)
Gathering / Updating Market and
Competition Data
Business Development and identification
of new Markets and Opportunities
Preparing feasibilities for Expansion
Sales Forecasting & Budgeting
Gathering and Communicating Customer
Feedbacks for future improvement and
direction
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27. Marketing StrategiesMarketing Strategies
Diversification of Customer Base both
Nationally and Internationally
Selection of Customers on long term
Business and Relationship Basis
Targeting High End Market and Products
for attaining Higher Profitability
Prioritizing Customers giving Maximum
Returns and Margins and appreciating
Quality and Services
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28. Marketing StrategiesMarketing Strategies (cont.)(cont.)
Targeting Growth Oriented Companies and
Customers
MENA(Middle East North Africa) Region
Customers to be Targeted for Export
Business
Avoiding doing 100% business with any
party so as to maintain control over
business both in terms of Customers
insolvency and indifferent attitude on
account of business share and control
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29. Marketing StrategiesMarketing Strategies (cont.)(cont.)
The most fruitful business opportunity area
would be to increase product usage within
the existing product market, where assets
and competencies are in place and only
need to be leveraged. However in today’s
business scenario, wisdom would be to
focus on international market to avoid
recession and liquidity crunch.
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30. Marketing StrategiesMarketing Strategies (cont.)(cont.)
A second opportunity route, market
development would involve expanding the
market either geographically or by
targeting new market segments
A key consideration of a market strategy is
to achieve synergy by leveraging current
assets and competencies
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31. Marketing StrategiesMarketing Strategies (cont.)(cont.)
Export marketing would be another
opportunity expanding with existing
products to new markets outside country.
Export marketing can help to escape a
growth deadlock in existing local markets
and unlock new customer segments in less
price-sensitive markets
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32. Sales Growth StrategiesSales Growth Strategies
Market Penetration: selling more of the
same products in existing markets, either
by way of increasing market share or
product usage.
Market Development: selling more of the
same products to markets locally or
abroad. When aiming for new markets,
focus is on untapped segments in existing
markets, or on new markets.
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33. Sales Growth StrategiesSales Growth Strategies (cont.)(cont.)
Product Development: selling new
products to existing markets. This entails
developing new products or refining /
upgrading existing products.
Product Diversification – selling new
products to new markets, by setting up a
new business or taking stake in an existing
business
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34. Sales Growth StratagiesSales Growth Stratagies (cont.)(cont.)
Differentiation: Expanding sales by
distinguishing one’s offer clearly from
competing substitutes, e.g., branding
product to give it some special features
that make it unique in the eyes of the
customers.
Focus: Expanding sales by (re)
positioning one’s offer in a particular
market segment thought of as highly
attractive, e.g., entering a high potential
export market with existing product.
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35. Sales Growth StrategiesSales Growth Strategies (cont.)(cont.)
Cost Advantage: Expanding sales by
undercutting prices of competitors. The
option requires to have a cost advantage.
Competitive Advantage – Expanding
Sales through efforts and products which
gives the organisation advantage over its
rivals similar to product diversification
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37. STRATEGY EVALUATIONSTRATEGY EVALUATION
After SPOTTING TRENDS externally,
REVIEW the organization internally (the
policy , the tactics, the action plan) then
APPLY TACTICS. EVALUATE which
things, which strategies or which tactics
give the GREATEST YIELD and discard
wasteful tactics that are not giving the
greatest yield.
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39. CONTINGENCY PLANCONTINGENCY PLAN
Presence / Availability/ Development of
Businesses (Alternate Businesses) in case
first choice businesses fail to materialize or
do not provide desired results
Excellent Relationship to be maintained
with Alternate Businesses
Alternate Businesses should exist in both
Local and International Markets
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40. CONTINGENCY PLANCONTINGENCY PLAN
Quality and Specifications of Pulp to be
mutually pre agreed with the Alternate
Businesses
Small Quantities of Pulp to be supplied on
regular quarterly basis to Alternate
Businesses to keep abreast with
happenings and staying in close contact
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