This document provides a strategic management analysis of Berger Paints Pakistan Limited. It discusses Berger's vision, mission, objectives, and strategies. It analyzes Berger's external environment through PEST analysis, examining political, economic, social, and technological factors. It also discusses Berger's internal strengths and weaknesses through analyzing its core competencies, value chain, research and development initiatives, and adherence to ethical standards and social responsibilities. The document provides a comprehensive overview of Berger Paints' strategic management approach.

1. A complete Strategic
Management
Assignment on Berger
paints along with
references
BY Usman Afridi

2.  Introduction
 Vision, Mission & and objective
 Berger a learner organization
 Strategic decision making
Planning mode
 Corporate governance
 Role of board of director
 Social responsibilities (Economic Legal , Ethical , Discretionary )
 Sustainability
 Ethical code of conduct
 Ethical approach
 Environment scanning
 Macro environment
 Task environment
 Prospector strategy
 External Factor Analysis Summary (EFAS)
 Core competency
 Distinctive competency
 Business model (Time Model)
 Value chain
 Financial leverage
 Research and development(R&D)
 Strategic operational
 Human resource

3.  STRATEGIC INFORMATION SYSTEMS
 internal Factor Analysis Summary (IFAS)
Introduction
Berger is one of the largest paint manufacturing company and one of the well growing paint company
in Pakistan since its inception from 1950.Despite many challenges, Berger Paints has succeeded in
staying at the forefront of Pakistan’s paint.
The strategic management of Berger paint is given below
Vision
We will become the leading paints and associated products manufacturing and marketing company
in Pakistan ensuring best returns to our investors & highest customer satisfaction.
Mission
A summarized mission of Berger paints is;
We will lead by innovation, commitment to achieve best quality products and services, safeguard the
interests all other stakeholders, act as a good corporate citizen ensuring service towards community
and shall focus on environment, health and safety.
Objective
The company utilizes all available resources to pursue its EHS (Health, Safety & Environment)
objectives by striving to attain economic prosperity and ecological balance.
Berger A Learning OrganizationOver the Time Period
With continues enhancement of capability building and skill development has helped Berger gaining
the excellence for developing a learning organization e.g. entering into a number of technical
collaboration with the largest paint company in Japan, UK etc.
Strategic DecisionMaking
Innovation &Collaboration with well reputed company to keep in pace with the technological
advancement in order to gain competitive advantage
Planning mode:

4. According to Henry Mintzberg in his modes of strategic decision-making states that planning decision-
making mode include equally the search for new opportunities and reactive solution to the existing
problems e.g. Japan chemical company for Bumper Paints &PCS Powders, UK for Powder Coatings etc.
Corporate Governance
BERGER PAINTS PAKISTAN became a public limited company in 1974.At present it has 7 board of
director in which Mr. Maqbool H.H. Rahimtoola is the chairman and Dr. Mahmood Ahmad is the chief
executive
Roles of board of director
Berger paints has nominal participation of the board of director with limited degree of involvement in
reviewing the performance or review of key decision and program of management. The role is widely
occupied by CEO and its management team. However the key decision is made by board of director.
Social responsibility
Berger Paints believes in growth and fostering of human assets which eventually contribute for the
wellness of respective families, their country and humanity at large which indicate that Berger paints
is following the carol view of social responsibility.
Economic responsibilities
Berger is a most trust worthy name in quality paints. This proud reputation has helped them very well
in performing the economic responsibility of providing value and then generating money to repay its
shareholder.
Legal responsibilities
Legal responsibility as per defined by governments of Pakistan is very well obeyed by Berger paint
such as employee discrimination laws, laws related to quality standard or to pay taxes and interest
etc.
Ethical responsibilities
Following the moral correct path as well as to follow generally held believe related to behavior is first
priority of Berger paints. HAJ draw, birthday celebrations celebrating Pakistan day etc. are the
activities that help Berger feel its employee like a family.

5. Discretionary responsibilities
Berger paint has carried out activities such as helping schools and hospital in painting to support their
dignified cause of corporate social responsibility (CSR).
Berger paints Pakistan was given Corporate Social Responsibility awards 2015 for its recognized effort
on (CSR).
Berger is also a part of (NOP) national outreach program that act as a platform of knowledge sharing
among people as seminar are conducted on different topic. NOP under the name of rising star is
conducting a free training program that is also supported by Berger paints Pakistan.
Sustainability
Berger has very well satisfied the social responsibility i.e. economic, ethical, discretionary, and legal
responsibilities this has led to sustainable business corporation of Further our journey for excellence
is fully supported by continues learning along with capability and skill development.
Similarly sustainable growth is ambition of Berger paint with right kind of people that possess an
unmatched capability and skills along with commitment
Ethical code of conduct
Berger develops Ethical code of conduct for employees how to behave while on the job. It is a useful
way to promote ethical behavior.. This belief has led to a more organized and dedicated
approach in development of human resource as a competitive strength.
Every employee is required to understand the laws and government regulation and other company
policy as those Codes of ethics is a mean for achieving and implementing of company mission thus it
shows that they are consider in strategic decision making.
Ethical approach
Utilitarian approach to ethical behavior is followed by Berger as the utilitarian approach proposes that
actions and plans should be judged by their consequences. Thus People at Berger react in a way that
will give the greater benefit to the society and lowest harm or cost. Focus is specially placed at Berger
paints on protecting the environment as well the safety and health of customer, employee and
communities at large.
Environmental scanning
External Environmental Variables include

6. 1. Natural environment 2. Societal environment 3. Task environment
Natural environment
It is very important while making strategic decision firm must take into account the natural
environmental issue as they affect the performance of business organization e.g. global warming as
climate change, increasing sea level etc. are becoming unpredictable and uncertain that is why in
Berger paints a special focus is given on protecting the environment as well the safety and health of
customer, employee and communities at large. The company has done tremendous job to fulfill its
Environment, Health& Safety EHS objectives by attaining economic prosperity and environmental
balance.
Societal Environment
Health, Safety & Environment
Special focus is placed at Berger on protection of the environment as well as health and safety of
employees, customers and communities where it operates.
The company utilizes all available resources to pursue its EHS objectives by striving to attain economic
prosperity and ecological balance.
Berger manufacturing facility conforms to the international and national environmental
standards where company is manufacturing environmental friendly products to minimize the
potential effect on the people and the environment.
A clean and pollution-free environment is ensured at the company’s manufacturing facilities through
a Solvent Recovery Plant that recycles used solvent, a Dust/Vapor extraction systemand a Xylene
recovery system.
Safety training programs are organized on a regular basis for all personnel and factory workers
and vendors to ensure safety of the work environment. Strict safety regulations for PPE’s
(Personal Protection Equipments) and work procedures are enforced at every step .In addition,
safety officers conduct regular Safety Audits that identify and rectify any non-compliance and enforce
proper maintenance of safety procedures with active cooperation of all employees.

7. The external environment for Berger is identified under macro (pest)
MacroEnvironment:
PEST: PEST is an economic tool which is used in evaluating the environment so that we can
understand the suitability of the environment for making strategy for the Berger paints. PEST is
actually abbreviation for political, environment, social and technology.
Political factor
Political factor involve government regulation. Laws on business, pollution, employment and
taxation are the factor applies on the organization and they are bound to follow them.
Trends:
Interest rates
In a conversation on 11 December 2015 sales officer M. Meraaj confirmed that Last October increase
in tax from 16-17% and then again increases tax from 17-21 % so that increase in price had affect
Berger paints as some time there are deal with customer that for specific period they will supply
product on same rate, thus this increase in tax are going to bear by organization result in cutting
margin. Similarly imports policy as Berger imports its paints from Dubai. Pollution control law health
and safety law and environmental law are too followed by burger.
Cost of Energy and Its Availability
Energy crises in Pakistan as well as its increasing cost day by day is one of the factors that is of great
concern for Berger paints Pakistan limited while making strategic decision making.
Economic situation
Inflation: Generally increase in price in an economy that result fall in purchase value of money is
inflation. So if the inflation rate is increased purchase value will decrease. Thus a moderate inflation
rate is desirable for Berger paints. Trend of previous year average inflation was 2.54 which is
favorable and it expect moderate inflation in future as well
Cost of Energy and Its Availability

8. Energy crises in Pakistan as well as its increasing cost day by day is one of the factors that is of great
concern for Berger paints Pakistan limited while making strategic decision making.
GDP:The growth in GDP 4.24 % in 2014-15 with respect to 4.03 percent recorded in the previous
year which is a good sign for Berger paints.
SOCIAL
These factor may include demographic factor in which variable i.e. Population , ,norm and culture etc.
are some of social factor that have to some extent an impact on the ongoing operation of business
and in future as well. Trend toward using tiles instead of paints is a threat as tiles has greater life time.
TECHNOLOGICAL
Trends in technology such as new equipment related to paints, using robotic technology , using
computing power i.e. is developing customer database ,e commerce , understanding energy crises in
Pakistan thus developing alternative energy sources etc. are some of the issues that paint industry
faces. That is why Berger paints has entered into a number of technical alliance arrangements with
leading international manufacturers in paints industry. These include the well-known paint company
in Japan which enables them to develop Automobile paints, UK for Powder Coatings, Malaysia for
markings of Road & Runway etc. The Berger paints is also committed to continuous process of
investment in new equipment e.g. computerized matching color technology. Collaboration is also
going on with Dura Cromix for car paint and Nippon for latest technology i.e. environmental friendly
how because scientifically it is proved that led emit fumes i.e. is injurious to health.
Task environment-
While scanning the task environment, Supplier Public, Intermediaries and Customer Market (SPICC)
help in better understanding of task environment.
Supplier
Raw material is supplied from UAE and reaches Lahore from where it is supplied to other city main
warehouses; however every city has it on distributor chain. In supplying to market the intermediary
channel is used while in case of Business to Business (B2B) selling the paint is directly supplied to the
B2B customer.
Public

9. Across all layers in the Berger paints, it is encouraging an environment of recognizing talent, fostering
potential and encourages initiatives. Berger paint is maintaining an environment enabling freedom,
fairness and equal opportunity to perform and excel with in situations.
NFEH (National Forum for Environment & Health) recognized Berger for its activities done in respect
of corporate social responsibility (CSR) and beautiful conference was held in Islamabad where Berger
was awarded Corporate Social Responsibility (CSR) Award 2015
Intermediaries
Shah distributer act as an intermediary to supply product to the market in Islamabad however
every city has its own intermediary channel. But in Business to Business (B2B)Berger paints supply
itself to the customer because buying it from market it will be more expensive for them as compare to
dealing directly, similarly the commission given to intermediary is also saved for Berger paint in selling
Business to Business (B2B)
Customer
A large number of sales teampersonnel and a wide network of distributors and dealers serve
customers in all large cities across the country. Berger Paint offers a wide range of solution through
different paint categories in order to meet the demands of its customers.
Berger have highly qualified and experienced personal that offers professional services to its industrial
customers through Technical Services team.
Competitor
List of competitor is long including local company but because its brand image is high thus competitor
who compete include AkzoNobel Pakistan, ICI, deluxe bright etc
However In a conversation on 11 December 2015 sales officer M. Meraaj confirmed that AkzoNobel is
leader in market while Berger is second to it. The reason behind it is that fire evoked in Karachi head
quarter that burn billion of stuff.
Prospectors
Berger paint follow prospector type strategy i.e. fairly comprehensive product lines that focus on
market opportunities and product innovation. They tend to emphasize efficiency along with creativity
.E.g. as an innovative and progressive paint company, Berger Paints Pakistan offers a wide range of

10. paints for diverse applications and uses .Berger has eleven product line Decorative Business,
Automotive Business, General Industrial Finisher, Powder Coating, Protective Coatings etc.
External Factor Analysis Summary (EFAS) Of Berger
Internal factor weight rating weighted score comment
Opportunity
Global markets 0.45 4 1.8 market expansion
Income constant increase 0.25 2.5 0.625
help future forecast about
income
Growing economy 0.2 3 0.6 better demand and supply
Business diversification 0.1 1.5 0.15 demand existence
1 3.175
Threat
Increasing costs 0.4 4 1.6 energy crises and R&D
fire accident 0.1 3.5 0.35
occur two time in Lahore,
huge loss
Tax changes 0.3 3 0.9
changes unpredictably in
short time
Stiff competition 0.2 2.5 0.5 decrease in revenue
1 3.35
Core Competencies
Consistent quality has always been Berger’s trait .This has been the driving force in making it the
leading brand name backed by premium quality across Pakistan. Berger has the most comprehensive
product for numerous paint market divisions. Berger has gained through its superior technology,
product quality and better customized services.
Distinctivecompetencies
Quality is the main focus and to make its distinctive competency Berger established a state of the art
manufacturing facility in Lahore. This plant has provided Berger an edge over its competition through
enhanced production. It has enabled Berger to meet the growing demands of its valued customers
across Pakistan
Business model
Time model

11. Berger paints R&D and speed is the keys to success in the time model. Being the first to market with a
new innovation allows a Berger to earn high margins. Market Company continues on innovation with
process R&D and lower margins, its help keep them in market as pioneer.
Value chain
Although in Berger paint every activity is creating value but focus on supporting activity such as
technological and HRMand primary activity such as marketing and sales has bring great value to
product e.g. Berger keep on upgrading and expand its range by bringing together innovative products
in order to meet consumer needs. Personal visits by the technical sales teamto address problems
that the customers may have.
Financial leverage
The table below shows the ratio percentage of how much capital comes in the form of debt as well as
determines the capability of a company to encounter its financial obligations.
Debt to
equity = long term debt = 54,670 0.087254 8.73%
share holder
equity 626,565
Debt to asset = long term debt = 54,670 0.015411 1.54%
total asset 3,547,483
R&Ds
Berger keeps on upgrading and expands its range by bringing together innovative products in order to
meet consumer needs. To ensure high standard of paint by using resin is produced at own plant of
Berger.
By virtue of Research and developments (R&Ds), its better technology, quality and services has
earned Berger the admiration and trust of customer.
Strategic operational
Berger has continuous systems of operational action those laid out as lines on which products can be
unceasingly assembled and processed. Consistent quality has been the driving force in making it
leading brand across Pakistan.
Human resource

12. At Berger people are considered as most precious. This belief has led to a more focused approach in
developing the Human Resource as our competitive strength. Corporate Activities such as GREEN DAY
(Pakistan day), LONG SERVICE AWARDS, and HAJJ DRAW etc. are there to bring motivation among
employee.
STRATEGIC INFORMATIONSYSTEMS
Strategic information system Berger have develop their information system by developing a database
of not only customer but also its employee this result in keeping good track record of its employee as
well as help in reducing cost. Enterprise resource planning (ERP) software is used by Berger to keep
work environment simple for its employee. Thus it can help in controlling activities and can be used as
strategic tool for gaining advantage over its competitor
Internal Factor Analysis Summary (IFAS)
Internal factor weight Rating weighted score comment
strength
distribution and sales network 0.4 4 1.6 help increase market share
Monetary assistance provided 0.1 2.5 0.25
use it for investment
purpose
Skilled workforce 0.3 3 0.9 increase efficiency
Reduced labor costs 0.2 1.5 0.3 save revenue
1 3.05
Weakness
Investments in R&D 0.45 4 1.8 slow in new product
High levels of lead 0.25 3.5 0.875 injurious for health
Weak online presence 0.2 3 0.6
result in loss of
Opportunity
large inventory a problem 0.1 2.5 0.25 lose control
1 3.525

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