Literature Search Strategy “Strategic Management can be defined as the Art and Science of formulating, implementing and evaluation cross-functional decisions that enable an organization to achieve its objectives”  “Strategy is the direction and scope of an organization over the long-term which achieves advantage for the organization t Through its configuration of resources within a challenging environment to meet the needs of markets and to fulfill stakeholder expectations”.  Stages of Strategic Management The strategic-management process consists of 3 stages that are; pic] Strategic Analysis This is all about the analyzing the strength of businesses’ position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including: • PEST ANALYSIS – a technique for understanding the “environment” in which a business operates • SCENARIO PLANNING – a technique that builds various plausible views of possible futures for a business • FIVE FORCES ANALYSIS – a technique for identifying the forces which affect the level of competition in an industry MARKET SEGMENTATION – a technique which seeks to identify similarities and differences between groups of customers or users • DIRECTIONAL POLICY MATRIX – a technique which summarizes the competitive strength of a business’s operations in specific markets • COMPETITOR ANALYSIS – a wide range of techniques and analysis that seeks to summaries a businesses’ overall competitive position • CRITICAL SUCCESS FACTOR ANALYSIS – a technique to identify those areas in which a business must outperform the competition in order to succeed SWOT ANALYSIS – a useful summary technique for summarizing the key issues arising from an assessment of a business’s “internal” position and “external” environmental influences. STRATEGIC CHOICE This process involves understanding the nature of stakeholder expectations (the “ground rules”), identifying strategic options, and then evaluating and selecting strategic options. STRATEGIC IMPLEMENTATION It is the trickiest part… When a strategy has been analyzed and selected, the task is then to translate it into organizational action. VISION STATEMENTS
Vision statements are defined by organizations as “What do we want to become? ”  “Strategic visions ought to convey a larger sense of purpose- so that employees see themselves as “building cathedral” rather than “laying stones”.  MISSION STATEMENTS “Mission Statements are enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of the firm’s operations in product and market terms. ”  “A mission describes the organization’s basic function in society in terms of the products and services it produces for its customers”. 
A clear Mission statement should have each of the following elements: [pic] External Assessment: Porter 5 Forces Model That Shapes Industry The process of performing an external audit must involve as many managers and employees as possible. Awareness of the 5 forces for external assessment can be very useful for the firm as it is able to determine the position of the respective company in the industry. To perform an external audit a company must accumulate competitive intelligence and information about economic social cultural demographic environmental political governmental legal and technological trends.
Other sources include magazines, newspaper, internet and business journals. Following are the 5 forces that shape strategy.  These 5 forces determine the attractiveness of the industry. If the rivalry is intense, for example in auto and gaming industry, we can say that it has reduced the attractiveness of the industry. Similarly, if the forces are moderate, as they are in industries such as software, soft drinks, and toiletries, many companies are profitable. Industry structure drives competition and profitability, not whether an ndustry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated. While a myriad of factors can affect industry profitability in the short run – including the weather and the business cycle – industry structure, manifested in the competitive forces, sets industry profitability in the medium and long run. These five forces are further affected by the external environment which are rather uncontrollable and are widely popular as PEST in Porter theory of 5 forces.
They are called Political, Environmental, Social and Technological. Relationship between External forces and Organization [pic] Internal Assessment: Strengths and Weaknesses A strategic-management audit of a firm’s internal operations is imperative to organization’s health. Increasing number of successful organizations are using the internal audit to gain competitive advantage. Management, marketing, financial/accounting, production / operations and management information systems represent the core competencies of the organizations and their value chains.
An organization should identify and evaluate internal strengths and weaknesses in order to effectively formulate and choose among alternative strategies.  GENERIC COMPETETIVE STRATEGIES The second central question in competitive strategy is a firm’s relative position within its industry. Positioning determines whether a firm’s profitability is above or below the industry average. A firm that can position it well may earn high rates of return even though industry structure is unfavorable and the average profitability of the industry is herefore modest. Each of the generic strategies involves a fundamentally different route to competitive advantage, combining a choice about the type of competitive advantage sought with the scope of the strategic target in which competitive advantage is to be achieved. The cost leadership and differentiation strategies seek competitive advantage in a broad range of industry segments, while focus strategies aim at cost advantage (cost focus) or differentiation (differentiation focus) in a narrow segment.
The specific actions required to implement each generic strategy vary widely from industry to industry, as do the feasible generic strategies in a particular industry. While selecting and implementing a generic strategy is far from simple, however, they are the logical routes to competitive advantage that must be probed in any industry.  COST LEADERSHIP: Cost leadership is perhaps the clearest of the three generic strategies. In it, a firm sets out to become the low-cost producer in its industry.
The firm has a broad scope and serves many industry segments, and may even operate in related industries — the firm’s breadth is often important to its cost advantage. The sources of cost advantage are varied and depend on the structure of the industry DIFFERENTIATION: The second generic strategy is differentiation. In a differentiation strategy, a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs.
It is rewarded for its uniqueness with a premium price. FOCUS: The third generic strategy is focus. This strategy is quite different from the others because it rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment of group of segments in the industry and tailors its strategy to serving them to the exclusion of others. By optimizing its strategy for the target segments, the focuser seeks to achieve a competitive advantage in its target segments even though it does not possess a competitive advantage overall. STUCK IN THE MIDDLE:
A firm that engages in each generic strategy but fails to achieve any of them is “stuck in the middle. ” It possesses no competitive advantage. This strategic position is usually a recipe for below-average performance. A firm that is stuck in the middle will compete at a disadvantage because the cost leader, differentiators, or focusers will be better positioned to compete in any segment. If a firm that is stuck in the middle is lucky enough to discover a profitable product or buyer, competitors with a sustainable competitive advantage will quickly eliminate the spoils.
In most industries, quite a few competitors are stuck in the middle. Ghani Glass – An Introduction: The founder of Ghani Group Sheikh Abdul Ghani (late) started business in 1963 and established a coal / silica sand mining firm in the name of Ahmad Brothers and Company. Now, the group is running a diverse range of businesses including three glass manufacturing plants, an automobile plant and a number of leading mining companies have an annual turnover of over Rs. 8 Billion. The origins of this group can be found in the mining industry given its involvement in coal, salt and sand mining since 1959.
The substantial strategic benefits of vertical integration led them to consider venturing into the manufacturing field in subsequent years. The chosen manufacturing field was glass manufacturing due to the robust demand for glass products in the country. The Ghani Group was not new to the glass manufacturing industry. They had been supplying silica sand to the glass industries four decades back. Their dedication to quality and customer service allowed them to land an exclusive 25 year excellence certificate from Phillips.
Their venture into the manufacturing field took the form of Ghani Glass, incorporated in 1992 and starting production in 1995, forming the first step on the road to success of Ghani Glass limited, which today own three glass plants namely GGL1 – Hattar, GGL2 – Landhi and GGL3 – Sheikhupura Road. Companies of the Group The diversified businesses operating under the umbrella of Ghani Group are as follows: • Ghani Glass Limited, Hattar (GGL-I) • Ghani Glass Limited, Karachi (GGL-II) • Ghani Glass Limited, Sheikhupura (Float Glass Plant) • Ghani Automobiles Limited (formerly Ghani Textile Ltd. • Makerwall Collieries Limited • Ghani Mines (Pvt. ) Limited; • Ghani Chromites Mines Pvt. Limited • Ghani Corporation • Ahmed Ghani Joint Venture • Al-Muhandus Corp. • Ahmed Brothers and Co. Vision: To indulge in honesty, integrity and self determination, to encourage excellence in performance and most of all to put our trust in Allah, so that we, eventually through our efforts and belief, become the leader amongst glass manufacturers not only in Pakistan but in Asia. Mission: The company has no mission statement and according to them, their vision connotes their mission. External Environment
Porter’s Five Forces Applying Porter’s five forces to the Glass Industry allows us to acquire a fair view of the potential attractiveness in terms of profitability of the industry and Attractiveness. | | |Yes |~ |No | |A | |(+) | |(–) | | |Threat of New Entrants | | | | | |Do large firms have a cost or performance advantage in your segment of the industry? | | | | | |[pic] | | | | |Are there any Proprietary product differences in your industry? | | |[pic] | | |Are there any established brand identities in your industry? | | | | | | |[pic] | | | | |Do your customers incur any significant costs in switching suppliers? | |[pic] | | |Is a lot of capital needed to enter your industry? | | | | | | |[pic] | | | | |Is serviceable used equipment expensive? | | | | | | |[pic] | | | | |Does the newcomer to your industry face difficulty in accessing distribution channels? | | | | | |[pic] | | | | |Does experience help you to continuously lower costs? | | | | | | |[pic] | | | | |Does the newcomer have any problems in obtaining the necessary skilled people, materials or | | | | | |supplies? |[pic] | | | | |Does your product or service have any proprietary features that give you lower cost? | | | | | |[pic] | | | | |Are there any licenses, insurance or qualifications that are difficult to obtain? | | | | | | |[pic] | | | | |Can the newcomer expect strong retaliation on entering the market? | | | | | | |[pic] | | |
The threat of new entrants is significantly low as there is high capital investment required for establishing a manufacturing facility in this industry. Besides, the current players in market are well settled and have strong brand identities. Incase any new firm wants to enter this industry; it will be faced with predicaments in setting-up distribution links as the existing companies have substantial control over main channels. PEST ANALYSIS P: The Government of Pakistan has certain regulations related to establishment of a manufacturing facility.
All new firms are subject to different licensing and regulatory procedures and the industry’s tax structure in also not supportive. E: Primarily, the economic conditions do not affect the behavior of this industry as glass has no direct substitutes and all the buyers including domestic and commercial ones are bound to buy glass when they need it. S: With a strong cultural heritage, Pakistanis are well known for their arts and crafts. The words beautification and decoration are directly related with glass.
Besides basic usage, people decorate their houses with vases and other decorative items made up of glass (mainly float glass). Hence, the social and societal values are in favor of this industry. T: Pakistan is an underdeveloped country and one of the basic reasons for that is lagging behind in the field of technology. The technology required in this industry is not only expensive but the manufacturing / processing equipments are also not easily available in Pakistan.
All existing companies have to import the machines from countries such as Japan, Germany and China. | | |Yes |~ |No | |B | |(+) | |(–) | | |Bargaining Power of Buyers | | | | | |Are there a large number of buyers relative to the number of firms in the business? | | | | | |[pic] | | | | |Do you have a large number of customers, each with relatively small purchases? | | |[pic] | | |Does the customer face any significant costs in switching suppliers? | | |[pic] | | |Does the buyer need a lot of important information? | | | | | |[pic] | | | | |Is the buyer aware of the need for additional information? | | | | | | |[pic] | | | | |Is there anything that prevents your customer from taking your function in – house? | | | | | | |[pic] | | | | |Your customers are not highly sensitive to price. | |[pic] | | |Your product is unique to some degree or has accepted branding. |[pic] | | | | |Your customer’s business are profitable |[pic] | | | | |You provide incentives to the decision makers. |[pic] | | | In this industry bargaining power of buyers is very low. This is due to low number of producer of glass compare to large number of buyers of glass. There are hardly four companies existing in this industry. PEST ANALYSIS
P: As such, the politico legal system has not influenced the bargaining power of customers in this industry. Even in the turbulent times, the company has been successful in achieving sales targets and net income is continuously showing an upward trend. E: Economic conditions do not impact the bargaining power of buyer in this industry because the offerings of Ghani Glass are quite high in quality as compared to that of others. S: The float glass has become an indispensable element of modern infrastructure thereby; it has resulted in an increase in demand and decrease in bargaining power of buyers.
T: The element of technology is very significant in glass industry and the processes involve high-tech machinery which makes superior glass. It can, therefore, be concluded that technology factor is lessening the buyers’ power. |C | |Yes |~ |No | | |Threat of Substitutes |(+) | |(–) | | |The industry is growing rapidly. | | | | | |[pic] | | | | |Industry is Not Cyclical with intermittent over capacity. | | |[pic] | | |The fixed costs of the business are a relatively low portion of total costs. | | |[pic] | | |There are significant product differences and brand identities between the competitors. | | | | | | |[pic] | | | | |The competitors are diversified rather than specialized. | |[pic] | | |It would not be hard to get out of this business because there are no specialized skills and | | |[pic] | | |facilities or long-term contract commitments, etc. | | | | | |My customers would incur significant costs in switching to a competitor. | | |[pic] | | |My product is complex and requires a detailed understanding on the part of my customer. | | |[pic] | | |My competitors are all of approximately the same size as I am. | |[pic] | PEST ANALYSIS P: Political conditions of our country don’t hit the rivalry factor of this industry up to large extent. But when small players in the industry leave the business due to unrelenting political mayhems, big players like Ghani Glass take the advantage of a decrease in competition, direct or indirect. E: The GDP of our country is growing and so is per capita income. Glass is a commodity where consumption is dependent on income. As incomes of individuals and corporations tend to increase, the consumption of glass also increases.
Glass is also used in bottling of soft drinks, medicines and automobile industry. The consumption of consumer goods also helps glass industry to endure economic slowdowns. S: Since the social factors are causing an increase in demand for glass, every player gets a chance cater certain segment of users. Thus it reduces the intensity of rivalry among the exiting competitors. T: Due to the enhancement in technology and emergence of internet, both domestic and corporate customers have easy access to different suppliers thus it is increasing the rivalry among the existing competitors. F | | | | | | |Critical Success Factors |Weight |Rating | | | | | |Weighted Score | |Opportunities | | | | |Increasing demand of glass products |0. 20 |4 |0. 80 | |Forward integration (opening retail outlets) |0. 10 |3 |0. 30 | |Ability to grow rapidly because of sharply rising demand in |0. 15 |3 |0. 5 | |construction of business arcade (in which float glass is the main | | | | |ingredient) | | | | |Acquisition of small players such as Prince Glass which is |0. 15 |3 |0. 45 | |technologically well-equipped | | | | |Partnerships and joint ventures with regional conglomerates in |0. 05 |2 |0. 10 | |pursuit of globalization | | | | |Uprising demand of Float Glass in Afghanistan, Iran and Indian |0. 05 |1 |0. 05 | |markets. | | | | | | | | | | | | | |Threats | | | | |Gas Load Shedding |0. 10 |3 |0. 30 | |Emerging rivals such as Khawaja Glass |0. 0 |3 |0. 30 | |The emergence of substitute products such as aluminum and wood |0. 05 |2 |0. 10 | |Import of Chinese, Saudi, Belgium and Malaysian Float Glass |0. 05 |4 |0. 20 | | | | | | |TOTAL |1 | |3. 05 | INTERNAL FACTOR EVALUATION | |IFE MATRIX | | | | | | |Critical Success Factors |Weight |Rating | | | | | |Weighted Score | |Strengths | | | | |1. Superior Technology than Rivals |0. 15 |4 |0. 60 | |2. Team Vigilance |0. 10 |3 |0. 20 | |3. Loyalty of employees |0. 15 |4 |0. 60 | |4.
Ample financial resources to grow their business |0. 10 |3 |0. 30 | |5. Better product quality compared to rivals |0. 10 |4 |0. 40 | |6. A widely recognized brand |0. 05 |4 |0. 20 | |7. Strong distribution channels |0. 05 |3 |0. 15 | | 8. Dedicated human resource at managerial levels |0. 10 |3 |0. 0 | | | | | | |Weaknesses | | | | |9. Weak R & D related to new product development |0. 10 |2 |0. 20 | |10. Lack of technically-sound labour |0. 05 |3 |0. 15 | | 11. Not upgraded training facilities for labor |0. 05 |1 |0. 5 | | | | | | |TOTAL |1 | |3. 15 | COMPETITIVE PROFILE MATRIX (CPM) | | |Ratings |Total |Ratings |Total | |Product Quality |0. 10 |4 |0. 40 |2 |0. 20 | |Technology |0. 10 |3 |0. 30 |2 |0. 20 | |Advertisement &
Communication |0. 05 |3 |0. 15 |1 |0. 05 | |Financial Position |0. 15 |3 |0. 45 |3 |0. 45 | |Management |0. 10 |3 |0. 30 |3 |0. 30 | |Market share |0. 10 |4 |0. 40 |2 |0. 20 | |Competition |0. 10 |3 |0. 30 |1 |0. 10 | |Price Competitiveness |0. 10 |3 |0. 0 |2 |0. 20 | |Dedicated Human Resource |0. 10 |3 |0. 30 |3 |0. 30 | |Distribution Channels |0. 10 |3 |0. 30 |2 |0. 20 | |TOTAL |1 | |3. 20 | |2. 20 | Competitors Analysis Pharmaceutical Industry: Ghani Glass has a share of 88% in this industry. Float Glass Industry: Ghani Glass has a share of 75% in this industry. Food & Beverages Industry: Ghani Glass has a share of 88% in this industry. Major Customers: Leading national and multinational companies of Pakistan • Construction companies – local and multinational • Architectural and engineering companies • Also being exported to over 12 countries KEY SUCCESS FACTORS UNMATCHED QUALITY: Ghani Glass is successful because of the quality it offers. In connivance with same, they charge a premium price and this results in high profit margins. Consequently, the company has more money to reinvest. STRONG DISTRIBUTION CHANNEL ALL OVER PAKISTAN: Ghani Glass has successfully formed a strong distribution network by giving better margins to distributors. SUPERIOR TECHNOLOGY: Ghani Glass uses the most advanced technology in the industry. The company installed its first state on the art plant in 1993.
Later on, the company set-up first Float Glass manufacturing facility in 2003. Since then, they are constantly improving their technology and resultantly, they have been able to make quality oriented products and it helped them in becoming a trend setter and market leader. MARKETING STRATEGIES: Word of mouth is the most important tool which they have used for the promotion of their products. They have also used billboards and personnel selling tools to promote their products. In nutshell, they were able to position their product as the best in terms of quality through marketing strategy. This also increased their brand equity. SKILLED ENGINEERS HIRED FROM FOREIGN MARKETS:
In Pakistan, the education level is backward that has led to lack of availability of skilled labour in the country. Also there is such institution in Pakistan that engineer can be trained to handle the technology. Therefore to overcome this hindrance they have hired employee mainly engineer from foreign market. As compare to their rival their engineer are more skillful and efficient. DEDICATED HUMAN RESOURCE & EMPLOYEES: Ghani Glass provides is staffs with three time meal that is breakfast, lunch and dinner free of cost. It means that they make sure their employee and labors are fit and healthy. It is due to their policy that their labor has become dedicated and hard working. Company makes sure that no labor or employee is ill-treated.
They follow strictly the labor law which has made the labor and employee loyal to the company. Core Competencies: – Technology: The company is using superior technology as compared to others in market and it has helped them in retaining market leadership status. – Dedicated HR: The employees are extremely loyal and the company is using strategic tactics to retain their motivation level. For instance, there are no overtimes and each and every employee is given free meals throughout the day. – Product Innovation: Ghani Glass is leading the industry by innovating round the year and becoming pioneer in every segment of glass industry. Value Chain Financial Ratio Trends
Financial Ratio Trends |Ratios |2009 |2008 |2007 |2006 |2005 | |Activity Ratio | | | | | | | | | | | | | |Inventory Turnover |6. 55 |6. 13 |5. 67 |4. 04 |2. 0 | | | | | | | | |Fixed Asset Turnover |1. 86 |1. 78 |1. 6 |1. 45 |2. 68 | | | | | | | | |Total Asset Turnover |1. 04 |0. 78 |0. 79 |0. 86 |1. 04 | Analysis Ghani Glass is the market leader of its industry.
It is financially sound with increasing returns and stable inventory control. Following is an in depth analysis of Ghani Glass Ratios: LIQUIDITY RATIO Liquidity ratio examines the liquidity position of the company. This means, whether the company has enough liquid or cash or inventory to cope up with its short term liabilities and expenses. The current ratio FY2005 was 2. 9 which is very high. Ghani had a lot of liquid FY2005 which was idle and needed to be invested back in the company, and hence doing so GHANI reduces its current ration to 1. 98 FY2009 which is still very high, but it defines GHANI to be in a strong position with enough liquid to cope with short term liabilities.
Quick Ratio describes whether the company is able to pay its short term liabilities without relying on its inventory. GHANI FY2009 has an adequate quick ratio of 1. 05, hence defining GHANI to be in a better position even if it runs short of inventory. Price to earning ratio, though has fallen very hard. It has fallen by 11. 06x in a year. It is due to the conditions that took place in KSE and instable political, economical , law and order situation. Profitability Ratio Ghani has been able to produce good profits and returns for its investors. Ghani has been able to maintain its Gross Profit Margin between 25-30% and Net profit Margin between 15-20%.
This explains a balanced business operation that has been able Ghani to maintain this level of profits, despite deteriorating political and economic conditions. Return on Capital employed has been increasing since 2006. In 2006, the return on capital employed was 12. 06% but now has been increased to 25. 65% which is clearly overwhelming. It clearly shows that Ghani have been successful in producing excellent returns but every penny invested in the company by its investors. This proves Ghani to be a market leader and why Ghani is financially sound. Price to earning ratio, though ,has fallen very hard. It has fallen by 11. 06 xs in a year. It is due to the conditions that took place in KSE and instable political, economical, law and order situation. MATCHING STAGES
THE Strategic Position and Action Evaluation (SPACE) Matrix The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2 matching tool of formulation framework. It explains that what is our strategic position and what possible action can be taken. It is not closed matrix. It is prepared on graph. It is closed matrix. This follow counter clock wise direction. It contains four-quadrant named aggressive, conservative, defensive, or competitive strategies. The axes of the SPACE Matrix represent two internal dimensions financial strength [FS] and competitive advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]).
These four factors are the most important determinants of an organization’s overall strategic position. |Financial Strength (FS) |Rating | | | | |1. Return on investment |+4 | |2. Leverage |+3 | |3. Liquidity |+3 | |4. Cash Flow |+3 | Financial Strength:
Ghani has a strong Financial Condition with increasing returns and has enough liquidity to cope with its short term liabilities. |Industry Strength (IS) |Rating | | | | |1. Growth Potential |+4 | |2. Profit Potential |+3 | |3. Technological know-how |+3 | |4. Financial Stability |+3 | Industry Strength
The growth potential of the entire Glass industry has been on the higher side since the demand of glasses in households and offices had taken shape in our businesses and daily lives. Financial stability is quite positive in the industry as Ghani has been performing well along with its competitors who are located in the informal sector of the market. Technology is an important factor here as people get more and more aware of the new technologies coming in the market & their benefits the more they will demand it as influenced by the external as well as internal forces. Profit potential in the industry is quite high as population & demand are ever growing factor. Environmental Stability (ES) |Rating | | | | |1. Technological Changes |-2 | |2. Barriers to entry into market |-2 | |3. Competitive Pressure |-1 | |4. Price range of competing products |-3 | Environmental Stability Barriers to entry are low as Technology required for producing glass is very high. Competitive pressure is low due to only 2 major companies in the Industry. Also price range of competing product is stable in the industry Competitive Advantage Ghani has excellent market share which accounts for 71% in the market.
Ghani has a good product quality to cater to its audiences. The industry doesn’t necessary has customer loyalty and any customer would be looking for good quality affordable glass irrespective of the producer of the glass. |Competitive Advantage (CA) |Rating | |1. Market Share |-1 | |2. Product Quality |-2 | |3. Customer Loyalty |-3 | |4. Technological know how |-1 | SPACE MATRIX RESULT |x-axis: 5 + -2 = 3 | |y-axis: 6 + -3. 25 = 2. 75 | 4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |POSITION | | | | | | |COMPETITIVE | | | | | | | | | | | | | | | | | | | | | | | | | | |IV |V |VI | | | | | |VII |VIII |IX | [pic] 3 to 4 [pic] 2 to 2. 99 [pic] 1 to 1. 99 |STRENGTH |WEAKNESSES | | |Superior Technology than competitor. |Weak R&D related to new product development | | |Team Vigilant |Lack of Abundant quantity of quality labor | | |Skilled and abreast with knowledge employers|Not upgraded training facilities for Labor | | |Ample financial resources to reinvest and | | | |grow their business. | | |Better product quality relative to rivals | | | |A Widely recognize market leader | | | |Strong Distribution channel | | | |Dedicated Human resources | | |OPPORTUNITIES | Strengths-Opportunities SO |Weakness-Opportunities WO | |Increasing demand of glass products | |With increasing demand of glass products, | | |With superior technology, better skilled |Ghani glass should improve its research and | |Forward integration (opening retail outlets) |employees and increasing demand of glass, |development department. (W1 O1) | | |Ghani Glass can pursue product development | | |Ability to grow rapidly because of sharply |by producing products such as bowls and |Partnering and ventures with regional | |rising demand in construction of business |glass crockery. (O1 S1 S3 S4) |conglomerates will bring in skilled labor. |arcade in which float glass is the main |Ghani should export glass to Afghanistan (S4|(O5 W2) | |ingredient |O6) | | |Acquisition of small players such as Prince |Ghani should install plant in Iran (S4 O6) | | |Glass which is technologically | | | | | | | | | | | | | | | | | | | | | | | | | | | | |With ample financial resources, Ghani Glass | | |well-equipped |can acquire small businesses in the | | |Partnerships and joint ventures with regional|industry. (O4 S4) | | |conglomerates in pursuit of globalization | | | |Uprising demand in Afghanistan and Iran | | | |markets. | | |THREATS |Strengths-Threats ST |Weakness-Threats WT | |Gas Load Shedding |Increase trade promotion as a proactive |Ghani R&D should produce new products to | |Emerging rivals such as Khawaja Glass |measure to silent emerging rivals. (S4 S5 S6|compete with emerging rivals like Khawaja | |The emergence of substitute products such as |T2) |Glass. (W1 T2) | |aluminum and wood |Negotiate with the Government to receive | | |Importing of glass from China, Saudi Arab, |exemption in Gas Load Shedding. T2 O6) | | |Malaysia and Belgium | | | | | | | | | | | | | | | | | | | | | | | | | | | From the I-E Matrix it can be concluded that Ghani Glass is internally very strong with the IFE of 3. 15 and EFE weighted score of 3. 05 which means that it lies on the first quadrant of the I-E matrix. Company lying on the first quadrant of the matrix are suppose to adopt aggressive strategy. Company which lies on Quadrant I,II or IV are suppose to grow and build. Here Ghani Glass lies in First Quadrant so it should Grow and build its market which means it has to adopt aggressive strategy such as forward integration, Market penetration or product development. IMPLEMENTATION STAGE Q S P M | |Key Success Factors |Weight |Market Develop. In Iran & |Product Development (Glass | | | |Afghanistan |Crockery) | | |AS | | |TAS | | | |TAS |AS | | |Opportunities | | | | | | |Increasing demand of glass products |0. 0 | | | | | | | |4 |0. 80 | |0. 60 | | | | | |3 | | |Forward integration (opening retail |0. 10 | | | | | |outlets) | |- |- |1 | | | | | | | |0. 0 | |Ability to grow rapidly because of sharply | | | | | | |rising demand in construction of business | | | | | | |arcade in which float glass is the main | | | | | | |ingredient | | | | | | | | | | | | | | | |3 |0. 5 | | | |Acquisition of small players such as Prince|0. 15 | | | | | |Glass which is technologically | | | | | | |well-equipped | | | | | | | | |3 |0. 45 |3 |0. 45 | |Partnerships and joint ventures with |0. 05 | 2 |0. 10 |2 |0. 10 | |regional conglomerates in pursuit of | | | | | |globalization | | | | | | |Uprising demand of Float Glass in |0. 05 | | | | | |Afghanistan and Iran markets. | | | |3 | | | | |2 |0. 10 | |0. 15 | | | | | | | | |Threats | | | | | | |Gas Load Shedding |0. 0 | | | | | | | |- |- | | | |Emerging rivals such as Khawaja Glass |0. 10 | | |2 | | | | | | | |0. 20 | |The emergence of substitute products such |0. 05 |- |- |- |- | |as aluminum and wood | | | | | | |Import of Chinese, Saudi, Belgium made and |0. 05 | 3 |0. 15 |3 |0. 5 | |Malaysian Float Glass | | | | | | | | | | | | | |TOTAL |1 | | | | | | | |Strengths | | | | | | |1. Superior Technology than Rivals |0. 15 |3 |0. 45 | | | |2. Team Vigilant |0. 10 |- | | | | |3. Skilled and abreast with knowledge |0. 15 |3 |0. 45 | | | |employers | | | | | | |4. Ample financial resources to grow their |0. 10 |3 |0. 0 | | | |business | | | | | | |5. Better product quality relative to |0. 10 |- | |2 |0. 20 | |rivals | | | | | | |6. A Widely recognize market leader |0. 05 |3 |0. 15 |3 |0. 15 | |7. Strong Distribution channel |0. 05 |2 |0. 10 |3 |0. 15 | |8. Dedicated Human resource |0. 10 |3 |0. 30 |2 |0. 0 | |Weaknesses | | | | | | |9. Weak R&D related to new product |0. 10 |- | |1 |0. 10 | |development | | | | | | |10. Lack of Abundant quantity of quality |0. 05 |1 |0. 05 |- | | |labor | | | | | | |11. Not upgraded training facilities for |0. 5 |- | |- | | |Labor | | | | | | | | | | | | | |TOTAL |1 | |3. 60 | |2. 35 | Interpretation of QSMP After thoroughly analyzing the QSPM scores, it can be concluded that the Market Development in Afghanistan and Iran is much more feasible rather than opting for product development. The pitfall in applying this strategy can the cultural mismatch in the organization.
Balanced Business Scorecard | | | [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] ———————–  Fred R. David, Strategic Management Concept and Cases 12th Edition. p. 4 2 Johnson and Scholes, Planning and Strategic Management, 1999. p. 10  Fred R. David, Strategic Management 12th edition p. 11  Thompson, Strategic Management 13th edition p. 40 5 Fred R. David, Strategic Management 12th edition p. 11 6 Mintzberg  Strategic Management by Thompson, 13th edition p. 80  Strategic Management by Fred R.
David 12th edition p. 73  Strategic Management by Fred R. David 12th Edition p. 104  Creating and sustaining superior performance by Michael E. Porter Free Press, 1998 (1985) ———————– 10 2 1 3 1 10 4 10 1 2 10 1 3 10 1 [pic] Objective 1. Continuous training and development 2 Organizational cultures which encourages change and development. Measure Create a supportive work environment & corporate culture. Target 1. Increased one-to one contact at all levels; 2. Real time communication. 3. Collective decision making Initiative 1. Empowerment. 2. Restructuring of Human Resource department and policies. Learning & Growth Initiative
Simplify procedures and streamline workflows. Target More strategic acquisitions of small players Measure Engineering efficiency, continuous technology adoption Objective To bring continuous improvement in business processes and reduce costs Internal Processes Objective To strengthen relationship with customers. Measure Number of co-operative efforts Target Maximum customer participation and involvement Initiative Increase focus on check-in services. Customer Objective Increasing profit by 3% in F. Y 2010 Initiative Trade promotions locally and internationally Target Retain Market Domination Measure Strive for an incline in Sales Revenue Financial TOWS Matrix AMMa
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