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BUISNESS POLICY

Name of project : - Shezan Company

BY :- Group Members

Mobeen Ahmad (Mbe SP-07-20)


Umair Zubair (Mbe FA-06-11)
Abdul Sattar (Mbe FA 07-02)
Iftikhar (Mbe FA 07 -10)
Shafiq (Mbe FA 06 -17)
Nadeen Shahzad ( )

Comsat, Lahore 2010


MISSION STATEMENT:

Our mission is to provide a hygienic, fresh and healthy beverages


and snacks to the nation at an affordable price at their doorsteps. We will achieve this by putting
the natural resources along with the highly trained staff to extract the purest nutrition of the
nature by latest technology with continuous strive for developing the highest quality products
that meet consumer needs.

VISION STATEMENT:

To be known as the pioneers of quality confectioners and a market


leader in producing all hilal beverages and snacks with the help of our up to date employees to
make it a profitable business in all circumstances, focused on the needs of the time and the trends
of tomorrow in a highly competitive environment.

EXTERNAL AUDIT:

1. Level of disposable income


2. Propensity of people to spent
3. Interests rates
4. Inflation rates
5. Money market rates
6. Federal govt budget
7. Gross domestic product trend
8. Consumption patterns
9. Unemployment trends
10. Worker productivity trends.
11. Value of dollar in world market
12. Number of marriages
13. Number of deaths
14. Immigration and immigration rates
15. Social security plans
16. Life extinct
17. Life styles
18. Trust in government
19. Buying habits
20. Attitude towards investing
21. Average level of education
22. Attitude towards customer service
23. Attitude towards career
24. Air pollution
25. Environmental Protection Laws
26. Socio culture policy
EXPLANATION OF KEY EXTERNAL FACTORS
1- Level of disposable income means “The amount of income left to an individual after taxes have
been paid, available for spending and saving.”

Disposable Income

Within the country the demand will be affected if the disposable income will be reduced. There are lot
many substitutes of the groceries products of the company. But other than its direct use, these are also
used in bakery and confectionery items and so many other foods whose demand is dependent on
disposable. So any decrease in disposable income of the consumers will also be affecting Shezan
Company negatively.

2- Second factor is Propensity of people to spend. Some People spend a lifetime glued to the
telephone. How well his country or team performs and patriotism is not necessarily the major
factor. The same visionary similarly had absolutely no explanation when Imtiaz Sheikh was.
Change of heart or propensity of people to muck around with surveyors.

3- Third factor is interest rate how I choose this factor as Discover and connect with people
of similar interests. There are opportunities as well as threats for the company in the external
environment. The features and nutritional factors are very conducive to health of human body.
The following are our company's weaknesses: • Due to high rate of taxes our. On the basis of
interest rate we should select Opportunities, threats, weaknesses and strengths.

Interest rates increase and decrease has significant impact upon the financial performance of the Shezan
because the company has take loans from the banks. It is also noticeable that the company takes the long
term loans from the banks on the regular basis. So, if in the future the interest rates increase, it will be
unfavorable for the Shezan But such increase is not expected in near future.

4- Fourth factor is In the short run, the effects of inflation are minimal on the performance
of the Shezan But if we take it in longer perspective the inflation in the country will increase the
cost of production, which will increase the sale price. And at high sale price the product will
become in-competitive in the international market as the company is involved in the export. So
the pan of export will be adversely affected by the inflation.

5- Federal government budgets are also external factor. Usually in order to support some
industry and improve economy, government allocates some fund to R & D. Unfortunately our
government doesn’t have any money for R & D. Due to this non-serious behavior of
government this sector along with others, is suffering very much. There is more need of R&D
work in this industry in Pakistan than any other industry. It is because of the sensitivity and
importance of this industry in our lives. It is a fact that our food industry is very poor in the field
of technological advancement. Shezan is well aware of this fact; the company has the best and
most advance technology in the respective industry. Shezan continuously upgrading it on annual
basis. The 15% of total net profit invest on the automation of the technology every year.

6- Life styles is also a external factor it explains like The consumption of Juices, squashes,
sauces, pickles and squashes is very much related with the life styles of people. Now people, all
around the world, are becoming more and more health conscious. They are well aware that a
high consumption of heavy foods will increase the cholesterol, which leads to heart disease.
That is why, a significant change in the consumption of foods is being observed in last many
months. As the growth rate of fast food industry is spectacular in the country. That is most
favorable for the Shezan. it is because more consumption of fast foods will increase the demand
of Mitchell's products.

7- Level of education is also an important factor it explains in a way Level of education is


directly related with awareness and health consciousness. In countries where education rate is
high the people more like the nutritious products. In Pakistan, as well as in foreign markets the
rate of literary is increasing which will effect the organization positively. High level of literacy
will lead to high level of nutritious products consumption and people started switch towards the
products that are more favorable for their health and fitness.

8- It has already mentioned that Mitchell's has the best technology for the operations of the
business. Shezan is competing the market with its qualitative and innovative products. All these
are possible as the result of intense R&D, new product developments and new recipes for the
fulfilling the changing needs and wants of the market.

9- Threat of entry depends upon the extent to which there are barriers to entry. A food
company requires a big manufacturing unit which requires a huge capital investment; like
Shezan has more than 800 crore paid up capital. So we can say that groceries-manufacturing unit
is highly capital intensive and because of high capital investment it has high risk for new to enter
into production.

10- The Shezan fruit farms is a public limited company. The company is paying all sorts of
taxes that are due to the Shezan As the honesty is the dominant value of the company, all the
payments to government are made fairly and honestly.

11- Business Plan for launching new juice shop Business plan .Social factor Health
consciousness are up In juices market Juice bucks juices has great threat for substitute like
Shezan, Haleeb etc. In external stimuli family also play a major role.

12- Socio cultural factors like demographics; income distribution, life style etc. can also
affect the company in different ways. Let’s see which of them are more concerned to Mitchell's
fruit farms limited.

13- Employment is not a matter of high concern for the organization because it is already
following all the labor laws. But recently the Government increases the wages of the employees
but Shezan has not affected by that, because the minimum wage limit in Shezan is Rs. 3000 that
is high from the minimum wage limit of the government of Pakistan.

14- It has already mentioned that Shezan has the best technology for the operations of the
business. Shezan is competing the market with its qualitative and innovative products. All these
are possible as the result of intense R&D, new product developments and new recipes for the
fulfilling the changing needs and wants of the market.

OPPORTUNITIES

1-VALUE of dollar in world market is increasing all the time so it’s good opportunity for company to
increase its business and make good profit

2-Stock markets trends have a minimal effect on company when u see its growing then sell ur shares

3-By social security programs u give good facilities to your employees who have safe hand in future

4-Attitude towards product quality make u leader in current market, its only way to get customer
satisfaction

5-By waste management properly u should see your country in better way. Less disease rates
Import export regulation increases and in this way our country value of rupees increasing.

THREATS

1-INFLATION rates effects lot, due to rising price of sugar in our country
It’s always a bigger threat to our company
2-Unemployment trends also focus of our country and a great threat , because its effect our turn rate

3- Price fluctuations also affect our business and tax rates always on higher side by low position our
country so they are major threats to our company.

4-Water pollution is also a great threat to our company because its effect our position in country and our
business.
EFE MATRIX FOR SHEZAN COMPANY

KEY EXTERNAL WEIGHTED


FACTORS WEIGHT RATING SCORE

OPPORTUNITIE
S

1- Value of dollar in world markets 0.06 2 0.12


2-stock market trends 0.08 2 0.16
3-social security program 0.08 3 0.24
4- attitude towards product quality 0.08 4 0.32
5-social program 0.05 3 0.15
6-number of high school and college 0.08 2 0.16
graduates by geographic area
7- waste management 0.08 4 0.32
8-import export regulations 0.08 2 0.16

THREATS
9-Inflation rate 0.08 1 0.08
10- unemployment trends 0.08 1 0.08
11-price fluctuations 0.08 3 0.24
12-tax rates 0.05 2 0.1
13-organization of petroleum exporting 0.06 2 0.12
countries (opec) policies
14-water pollution 0.06 2 0.12

TOTAL 1 2.37
IFE Matrix

Weighted
Strength Weight RATING Score
1.ISO certification 0.08 4 0.32
2.Better product Quality 0.06 3 0.18
3.Strong Financial position 0.09 4 0.18
4. Increase market share 0.05 3 0.15
5.Public listed company 0.06 3 0.12
6. Qualified Staff 0.05 4 0.15
7.Advertisement 0.02 3 0.02
8.Increasing Inventory turnover
rates 0.06 3 0.18
9.INTERNATIONAL OPERATION 0.08 4 0.16
Weaknesses
1.Inefficient distribution
management 0.07 2 0.14
2.Price Competitiveness 0.05 1 0.05
3.Lack of company outlet or stores 0.04 2 0..08
4.No Online business 0.05 1 0.05
5.Lack of innovation 0.08 2 0.16
6.Low variety 0.09 2 0.18
5.Low empolyee moral 0.07 2 0.14
1 2.18

EXPLANATION OF KEY INTERNAL FACTORS

Strengths:

Product quality:
Shezan produces best quality products amongst its competitors it uses pure and fresh fruits
and vegetables.

Financial position:
Shezan’s financially very strong it have much amount in retained
earning. And other financial resources.

Market shares:
It is also major strength of it has much more shares than its competitors.

Listed company:
Shezan is listed company in Lahore and Karachi stock exchange so it
can easily raise capital by issuing shares.
Qualified staff:
Employee of a company is the major strength of a company. Shezan have
qualified and well experienced marketing a finance staff.

Advertisements:
Advertisement plays an important role in consumption habit and choice of
customers. Shezan also focusing on advertisement in it increases its advertisement budget
up to 150 Million.

Inventory turnover rate:


A production base company completely relies on its sales if they fail
to boost up the sale they cannot survive. Shezan sales continuously increases every year
it targeting more range of customers.

International Operations:
It is also the major strength of the shezan the earning almost half of
the total revenue by exporting their products.

Weaknesses

1 Distribution Management:
Shezan has his own distributors but it fail to manage his distribution
style efficiently.

2 Price Competitiveness:

Shezan uses pure fruits in its products in its product prices are
slightly higher than its competitors.

3 Lack of company outlet or stores:

Shezan has only one outlet or store through this it selling its
products directly to customers. It needs to build up new stores

. 4 No Online business:

Shezan have its well organized web site but it has no sale or order
booking system electronically. It has the resources to build such system.

5 Lack of Innovation:

Shezan is not adding ne products in it product line continuously


some of its product have same old style.

6 Low employee moral:

This is the one of the major weakness of shezan. It offerings less


promotion chances and low incremental benefits to its employees.
CPM MATRIX FOR SHEZAN COMPANY

Competitive Profile Matrix


Good Luck
Shezan National Foods Bakers
Critical success
factors weight Rating Score Rating Score Rating Score
Advertising 0.2 3 0.6 2 0.4 1 0.2
Product quality 0.15 4 0.6 3 0.45 2 0.3
Price competitiveness 0.1 2 0.2 3 0.3 3 0.3
Management 0.1 3 0.3 2 0.2 3 0.3
Financial position 0.1 4 0.4 2 0.2 2 0.2
Customer loyalty 0.1 2 0.3 2 0.3 2 0.3
Global expansion 0.15 4 0.6 2 0.3 2 0.3
Market share 0.1 3 0.3 2 0.3 2 0.2

Total 1 3.3 2.45 2.1

Here we have the CPM Matrix for shezan in which we have compared them with their up coming rivals
With the help of this matrix we can clearly observe that SHEZAN is well placed in the market with the
help of high financial sources and the quality products.

However SHEZAN has a bit expensive products than the rivals but obviously they do not compromise on
the quality so the prices are a bit higher but this is not the issue for the health conscious customers these
days.

Customers of shezan are really loyal to its juices. It has been noted that the customers of shezan juices
does not go for other juices as shezan is providing a high slandered juice range for its customers on a
comparatively low price if it is compared with the international brands such as Nestle juices etc. Shezan
juices are a good substitute that is a bit cheaper to these Nestle juices providing the good quality and taste
as far as the variety is concerned; shezan is providing a huge range of juices in different tasty flavors.

Due to ISO certification and high resources, SHEZAN is also now exporting the products to other
countries. They have not only increased their national market but also they have moved to the
international market thus increasing the goodwill of the company and also helping them keeping there
customer intact and increasing there customers
SWOT MATRIX FOR SHEZAN
Strength Weaknesses
1-ISO certification 1-Inefficient distribution
2-Better product Quality of management
3-Strong Financial position 2-Price Competitiveness
4-Global Expansion 3-Low Customer loyalty
5-Increasing Market share 4-No Online business
6-Increasing Inventory turnover rates

SO STRATEGIES WO STRATEGIES
OPPORTUNITIES 1-S3, O5 (they should explore more 1-w5,s3 ( they can make the moral higher of the
1-Value of dollar in world markets markets globally employees by providing SSP)
2-stock market trends
4-attitude towards product quality s4,o7 (should go for product development)
5-social program 2-w3, o7 (keep the customers
6-number of high school and college intact by providing more variety)
7-graduates by geographic area 2-s1, o4 (ISO will help them to gain
8-waste management more customers)
9-import export regulations
THREATS ST STRATEGIES WT STRATEGIES
1-Inflation rate 1-s1,s2, t1 ( we can attract
2-Standered conscious customers more customers by adverting 1-t5,w2) they should find other
3-price fluctuations fuel substitutes to lower price
4-tax rates
ISO certification
2-w4, t4 ( they should create
5-Fuel Prices online business as there is no
6-Water pollution 2- s5,t4 ( they can lighten the tax tax on these promotions)
weights
By increasing their market share)

This is the SWOT matrix for the shezan company as we see that they have a good strength that makes
them strong enough to counter the threats and to find new opportunities in the market by developing more
markets around the nation as well as globally

Another positive thing in the shezan is their ISO certifications that can help them lead the market as
quality leaders and can expand their markets internationally as the other rivals of shezan does not have the
ISO standard so this can give them a huge edge if they promotes it in their ads and can become a quality
leader in Pakistan in all the Juices and confectioners items as well

As far as the weaknesses are concerned, Shezan has though inefficient distribution channel that can be a
problem and if ignored, can become a threat for a longer period. Shezan has to pay attention to this
weakness as soon as possible now as they have some rivals coming up such as GOURMET and CAKES
& Bakes. Customers are always willing to move to a product that suits them better especially in FMCG
industry. To keep the customers intact the Shezan has to look forward to the Quality management as well
as economic price. In short they have to provide a quality product in lowest possible price to the customers
Another weakness is which is very common in Pakistani businesses is the lack of knowledge about online
marketing and sales. Same is the problem here with Shezan as well as they do not have some online
shopping site or any other online marketing channel that is the need of the time as people do not have
much time these days to go for longer time to the markets. Online and E-commerce is very popular these
days globally and shezan should also look into it as an opportunity rather than a weakness.

They can also retail and gain there customers by Advertisements as they have a strong hold in finance
comparatively to their rivals.

Shezan must pounce upon the opportunities they seek in the market such as youth mostly. The students do
like juices instead of soft drinks. Health conscious people always prefer juices and milk products over soft
drinks which

they should advertise in their Ads. This will definitely boost their sales and can give them an edge over the
soft drinks. Colleges, Schools and universities can be a big opportunity to expand the markets of shezan as
they should arrange some awareness programs as how juices are beneficial or arrange some music
concerts, sponsoring sports events, sponsoring job fairs etc to get them more renowned in the market

Universities can be a big opportunity as universities holds students that come all over from Pakistan so
they can get themselves in the rural areas.
STRATEGIES

On the behalf of the SWOT Matrix we have concluded some strategies that can be worth useable for the
SHEZAN. These strategies are made with the help of the available strength and opportunities, with the
help of the proposed strategies we can make SHEZAN to wok better, faster and with more growth in the
market not only at national level but also at international level as well.

QSPM (Quantitative strategy planning matrix) FOR SHEZAN

I n QSPM matrix we compute most feasible strategies and choose the


strategy with high total attractive score.

Step one:
In QSPM we use the information fro the IFE AND EFE matrix. At least 10,10 factors are included
from IFE AND EFE matrix.

Step two:
In this step we assign the weights to selected factors. Those weights should be identical to that
IFE AND EFE matrix.

Step three:
In this we examine the strategies and select more feasible and suitable strategies.

Step four:
In this step we assign the attractiveness score to each factor. In this we check the effectiveness
of each factors to those selected strategies one by one.
Score 1 is indicate that no attractiveness.
Score 2 indicates some what attractiveness.
Score 3 indicates reasonably attractive.
Score 4 indicates highly attractive.

Step five:
We compute the total attractiveness score by multiplying weights and attractiveness score of
each factor.

Step six:
In this we compute the sum total of attractiveness score by adding total attractiveness score of
each column of each strategy in QSPM. Higher attractiveness score indicate more attractive strategy.

There are also some important consideration in construct the QSPM which are given below. The
selected strategies must be of same category.

Do not assign the same score in a row.


If you given the score to factor related to strategy you must also given the score to the other selected
strategy.

Conclusion
After all the QSPM we suggest that shezan should go for market development as well as for the product
development strategies that can boost up the revenue of Shezan in no time