What strategies can Embassy silicones adopt to achieve their

goal of greater sales and attaining the position of a market

leader?

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CONTENTS PAGE

Acknowledgements. Page 3

Executive summary.. Page 4

Research proposal. Page 5-9

Introduction... Page 10

Main results and findings

- Employee survey results.. Page 11-12

Analysis and interpretation

- SWOT analysis Page 13

- Ansoff matrix Page 14-15

- Boston matrix Page 16-17

- 4 PS.. Page 18-20

- Goal setting theory Page 21

Conclusion ..........Page 22

Recommendations..page 22

Bibliographypage 23

Appendixpage 24-25

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 ACKNOWLEDGEMENTS

Mr. kapil khanna: executive director of the company.

For providing adequate information about the company and also appearing for an

interview.

Employees: for taking out time and truthfully filling in the questionnaires

provided.

Mr. Emmanuel George: for his continuous guidance and aid in formation of this

report.

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EXECUTIVE SUMMARY

Embassy silicones is private limited company operating in Mumbai that deals with

the manufacturing and selling of enzymes. It is a company that is operating since 2 and a

half decades with steady profits, however now the company aims to increase its sales and

emerge as a market leader in the industry, but is facing certain unknown obstacles which

is stopping them to achieve the long term goals and objectives

Hence my research question is What strategies can Embassy silicones adopt to achieve

their goal of greater sales and attaining the position of a market leader?

A comprehensive analysis of primary data collected by interviewing the director

of the company and certain employees, observing working of current employees along

with secondary data collected through examining the financial documents of the firm was

carried out that revealed certain strengths and weaknesses of the firm.

This searched data was analyzed and evaluated using non-financial tools such as the

SWOT analysis, Ansoff matrix, Boston matrix, the 4PS and the goal setting theory.

Hence through evaluation of these techniques it was reveled that if Embassy

silicones uses marketing techniques and improves the existing ones along with a little

change in their motivational style they will surely climb up the ladder in achieving their

goal of grater sales and emerging as a market leader.

WORD COUNT: 220

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 RESEARCH PROPOSAL

RESEARCH QUESTION

What strategies can Embassy silicones adopt to achieve their goal of greater sales and

attaining the position of a market leader?

THEORITICAL FRAMEWORK

Through this report, I plan to look at the existing strategies that Embassy silicones has

adopted to work towards achieving their goal concerning the objectives, marketing

techniques and motivation.

The surveys carried out will help reveal the effectiveness of the existing strategies and

hence help me devise and suggest new strategies that Embassy silicones can use to

achieve greater sales and the position of a market leader. The tools used for this purpose

are SWOT analysis, Ansoff matrix, Boston matrix, the 4ps and the goal setting theory.

RATIONALE

Embassy silicones is a private limited company based in Mumbai that deals with the

manufacturing and selling of chemicals, it is a company operating since two and a half

decades and its main aim is to increase sales and o achieve the position of a market leader

in the chemical industry, however they are having some trouble in doing so, the employee

motivation being one major hindrance, hence through this project I will investigate as to

what is the hindrance in the way to their goal and what other improvements will help

them fulfill their mission.

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Key Areas of syllabus covered

Unit 1.6 - organizational planning tools

- SWOT analysis

Unit 1.7- Growth and evolution-

- Ansoff matrix

Unit 4.3- marketing product

- Boston matrix.

Unit 4.2 - marketing planning

- 4 ps.

Unit 2.5- Motivation

- Goal setting theory

Methodology

PRIMARY RESEARCH

Interview with the director of the company in order to assess the current financial

and non-financial position of the company and understand the future goals and

hindrances faced for achieving them.

Questionnaires for the ex employees to determine the HR issues faced by them

during the course of their work in the company.

Observation type of primary research to assess the working environment and the

relations between employees and employers.

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SECONDARY RESEARCH

Review of financial records to assess productivity in work.

Examine employee profiles to examine their qualifications.

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ACTION PLAN

DATE TASK MODIFICATION

1-7th September Selection of topic.

11th September Submission of research

proposal

15th September Questionnaire prepared for

employees and director.

1st November 2014 Interview carried out with

the director and

questionnaire given to

employees.

3rd November 2014 Employee observation of

tasks carried out.

7th November 2014 Obtained financial repots

and other data.

3rd December 2014 SWOT analysis

5th December 2014 Complete non-financial

analysis: ansoff matrix,

Boston matrix, 4 ps, goal

setting theory.

10th December 2014 Feedback from supervisor Changes incorporated,

methodology improved

3rd January 2014 First draft feedback given Changes incorporated,

format corrected.

15th January 2014 Final submission

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POSSIBLE PROBLEMS AND SOLUTIONS

Problem Solution

1. Interviews with competitors might Obtaining information from the net.

be hard as they would be all big

multinationals.

2. Getting information out of the Anonymous surveys, so that their

employees might be difficult, as confidentiality is maintained.

they would refrain from speaking

against the company and its

management.

3. Biased interview, leading to wrong Cross checking with the secondary data.

information.

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INTRODUCTION

Embassy Silicones is a private limited company based in Mumbai headed by kapil

khanna. It is a 2 and a half-decade-old company dealing in specialty chemicals for the

textile processing and garment industry. They are channel partners to a few MNCS and

some Indian companies for marketing their range of products to the Indian customers and

they work in close context to Novozymes. The company has team strength of 30 people

with 6 dedicated technical team members situated in different locations to service the

customers.

The company has also started manufacturing in a small way by creating their own

formulations and marketing it to the consumer, Currently the company is very competitive

within the country, has loyal customers and enough finance to source their requirement.

However the company would like to expand further within the country as well as overseas

by increasing their range of products for the respective industry and achieving the position

of a market leader, but is having some trouble in doing so and it is taking them a lot of

time, this effort is being going on since the past 2 years now,1 thus the research question

what strategies can embassy silicones adopt to achieve their goal of greater sales and

attaining the position of a market leader.

Hence with the use of Tools such as the SWOT analysis, Ansoff matrix Boston

matrix can help the company make better and effective decisions hence get them into a

better position and achieve their goal, therefore answer the question.

1Refer to appendix Q1.

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MAIN RESULTS AND FINDINGS

Employee survey results

work timings

3%
satisfactory
37%
very good
poor
60%

leadership style

30% yes
45% no
nt really
4th Qtr
25%

employee employer
relations

2%
very good
33%
good
poor
65%
4th Qtr

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 salary satisfaction

25% yes
30%
no
not really
4th Qtr
45%

ANALYSIS AND INTERPRETATION

SWOT ANALYSIS

Strengths Weakness

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 Logistic support Limited customer base.

Marketing and technical service. Lack of hierarchy.

Quality innovative products. Lack of branding exercise.

Credit support

Threats Opportunity

Loss of business due to High demand for the product in

competitive price erosion. the market.

Threats from companies such as Opportunity for partnership with

archroma big mncs such as novozymes.

ANSOFF MATRIX

Ansoff growth matrix is a marketing planning tool that helps a business

determine its product and market growth strategy. 2It helps managers consider how to

2 "Topics of Interest." Ansoff Matrix. Web. 1 Mar. 2015. <http://ansoffmatrix.com/>.

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grow their business through existing or new products or in existing or new markets. 3In

this way it helps managers assess the differing degree of risks associated with moving

their oragnistaion forward thus make the right decision for the organisation. It would be

an effective tool for Embassy silicones as they are looking for expanding their market. 4

MARKET SHARE

HIGH LOW

3"Ansoff Matrix." Ansoff Matrix. Web. 1 Mar. 2015.

<http://www.tutor2u.net/business/strategy/ansoff_matrix.htm>.

4 refer to appendix Q1.

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 Market penetration Product development

HIGH

Market development Diversification

LOW

Out of the four proposed strategies by the Ansoff matrix, it would be best for

embassy silicones to opt for market development which is a medium risk growth strategy

that involves selling existing products in new markets,5 this is the best strategy for

embassy silicone as it has started manufacturing products it must now start selling them in

other markets, they must target other markets, they can do this through exporting their

products, or new product dimensions, new distribution channels or by different pricing

policies.

BOSTON MATRIX

5 Hoang, Paul. "Growth and Evolution." Business and Management. Second ed. 2011. 115. Print.

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 The Boston matrix is based on the product life cycle and is very useful for a

business that has a huge product portfolio as it helps to determine the priorities of the

business hence help the business invest its resources in the right place and avoid wasteful

investment.

MARKET SHARE

HIGH LOW

STARS- PROBLEM CHILDREN-

Enzyme cellulase Amylase

HIGH

CASH COWS DOGS

Catalase Protease

LOW

Since Embassy silicones has recently put their hands in manufacturing it is

important for them to realize their main revenue products, hence enable them to invest

their resources in the right way on the right product to avoid any wastage of resources.

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 The product for which they have a high market share and a high market growth is

the product cellulase, this is thus their star product that generates high amount o cash for

them which they can use to invest in other required areas.

The product in which they have a high market share but is in a low growth market

is catalase hence this is their cash cows that generates a lot of revenue for them as it is

present in a mature market hence they must invest maximum resources in this and

maintain its position to gain most of it.

The product amylase is the product that operates in a high growth market,

however embassy silicones as a low share for it, hence this is their problem children,

embassy silicones must pay close attention to this and find reasons for low share and

develop strategies to improve their standing.

And lastly protease is the product that operates in a low growth market along with

a low market share for embassy silicones, hence this is considered as dogs, these products

are serious concerns for the company as they use up most resources but do not generate

much cash, hence embassy silicones must think of strategies to increase its share or just

remove these products form their product range to avoid wastage.

MARKETING MIX 4PS

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 The 4 PS of a marketing mix are the essential aspects that a business requires in

order to achieve its organizational goals and objectives.

PRODUCT

Product is any good or service provided by an organization and in the case of

embassy silicones it is the tangible good.

Embassy silicones has a range of products but it has a strong need to look into its

product life cycle.

Embassy silicones has also started manufacturing products to an extent hence it

must use effective branding strategies that will differentiate its products from the rivals

and help create a legal identity in the market, as it creates a legal identity it will help

foster brand loyalty by their customers (ie other firms) hence firms would prefer their

products over any other competitor and this will also affect the price mix of the firm as

consumers will be ready to buy products irrespective of price , as they will become

inelastic demand for them

PRICE

Price is one of the main factors of the marketing mix and embassy silicones can

take great advantage of this factor to create profits, as for instance as they manufacture

their own products embassy silicones can use the skimming price strategy where initially

they set a higher price for the product in order to recoup all their costs and then after the

required demand is created they can lower the price, this strategy wouldnt even affect the

performance of the business or its customer base as the high price would be set for a

product that only they sell and is not available anywhere in the market , also if they

manage their product mix through effective branding it will help create an inelastic

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demand as mentioned above thus the demand would not be affected at all on the basis of

price.

PLACE

Place is the aspect that explains how the product is sold to customers.

This is one aspect that is very essential for embassy silicones, as this is a company that

deals with chemicals that have a very limited shelf life hence it is required that they have

warehouses in accessible areas close to their factories where they can store the chemicals

well and this will also help them reduce transportation costs.

PROMOTION

Promotion refers to the methods of communicating message to the market with

the intention of selling firms products.6

Since Embassy Silicones does not use this aspect of marketing mix at all, there is an

urgent need for them to use this method to inform people about their products and

persuade them to but it thus increase their sales. The company must use both above the

line as well as below the line techniques for a full proof promotion.

The company must publicize about its company, what it specializes in, its strengths and

the competitive advantage it has over others.

Embassy must advertise in brochures and send it to big companies mentioning the name

of the companies it is already affiliated with

For instance embassy is affiliated with Novozymes which is a huge company known by

everyone, it is also affiliated with the company Biocon headed by the very well known

6 Hoang, Paul. "Promotion." Business and Management. Second ed. 2011. 482. Print.

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and reputed businesswomen kiran Muzumdar, embassy also supplies chemicals to them.

By stating these facts the company will be able to create a image for itself, as by stating

names of companies that they are affiliated with, other companies will understand their

standard and automatically try to join hands.

This is a sort of extension strategy where you use well-reputed company names with your

own company creating an image.

The company secondly must work on its logo, currently it has a logo that is plain

with the company name, it must have something attractive, and appealing with a very

catchy slogan, that attracts attention and is easily identifiable.

Thirdly the company must attend seminars and meetings abroad also, at he

moment the company attends seminars and meeting but only in Mumbai or in areas close

by, this will help the company to expand locally not nationally, hence the company must

make efforts to attend seminars abroad also where they can meet new companies,

exchange brochures and make relations with other companies.

GOAL SETTING THEORY

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 According to the goal setting theory, goals are the most important factors affecting

the behavior and motivation of employees. Goal setting theory emphasises on specific

and challenging goals in achieving motivated behavior. They often involve quantitative

targets for improvement in behavior.7

According to this theory challenging and specific goals are more effective than

when a person is told, to do his best Challenging goals are difficult buy not impossible

to attain, and more challenging the goal the more motivated the employee as he gets

determined to achieve his best8, to prove himself and then be entitled to the benefits of

achieving this goal, being successful in achieving a challenging goal will induce self

confidence and efficiency in the employee who will automatically feel motivated to carry

out other tasks.

Hence it is very important that embassy silicones takes up this theory as till now

they are playing safe, assigning high risks tasks only to top end management, however

they must increase the intensity of challenge or employees and help them motivate

themselves rather than motivate them through some theory.

CONCLUSION

7 "Reference for Business." Motivation and Motivation Theory. Web. 1 Mar. 2015.
<http://www.referenceforbusiness.com/management/Mar-No/Motivation-and-Motivation-Theory.html>.
8 "Reference for Business." Motivation and Motivation Theory. Web. 1 Mar. 2015.
<http://www.referenceforbusiness.com/management/Mar-No/Motivation-and-Motivation-Theory.html>.

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 In conclusion we can say that an improvement in the marketing style of the

company, enhancing their marketing mix and using marketing tools such as the Boston

matrix to help invest their resources in the right path and consider all possibilities while

taking a decision will help them to be more systematic and organized thus help them

achieve their goal of increasing sales and becoming a market leader in the industry.

However since marketing is only one step of the ladder to achieve their goals and

employees being an important aspect of any company that ultimately determines the

success or failure of a business, embassy silicones must also adopt the goal setting theory

and avoid playing safe thus help employees self motivate themselves and increase

productivity thus reach the goal of a market leader.

RECOMMENDATIONS

With embassy silicones aim of greater sales and globalization, their main method

of leadership should be situational leadership and not democratic9, as they must be

flexible enough for flow of newer ideas and better decisions.

Also with growing competition they must provide fringe benefits to motivate

workers along with some training that can help them to serve customers better and attract

more sales.

BIBLIOGRAPHY

9 refer to appendix Q4.

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"Ansoff Matrix." Ansoff Matrix. Web. 1 Mar. 2015.
<http://www.tutor2u.net/business/strategy/ansoff_matrix.htm>.

"Topics of Interest." Ansoff Matrix. Web. 1 Mar. 2015. <http://ansoffmatrix.com/>.

Hoang, Paul. "Growth and Evolution." Business and Management. Second ed. 2011. 115. Print.

Hoang, Paul. "Promotion." Business and Management. Second ed. 2011. 482. Print.

"Reference for Business." Motivation and Motivation Theory. Web. 1 Mar. 2015.
<http://www.referenceforbusiness.com/management/Mar-No/Motivation-and-Motivation-Theory.html>.

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APPENDIX

INTERVIEW WITH THE DIRECTOR

1. What are the main long-term goals you would like youre organization to meet?

My business is doing quite well, and in financial terms is also able to cover the costs with

a large margin, however my aim is to become a market leader in the chemical industry

and also to some extent expand my sales overseas.

2. Do you see youre company meeting these goals?

My whole staff is trying their best to attain this goal; however since the past 2 years we

have got very meager results and are having great difficulty in attaining it.

3. What do you think are the problems acting as a hindrance in achieving youre

goal?

I have looked into all financial aspects, and thankfully I have all the finance that I could

use to attain my goal however I guess there is something lacking in my human resource or

other non financial aspects.

4. How do you carry out tasks in youre organization? How do you delegate the

tasks?

Usually I keep my employees involved in the decision making process, because I believe

it is important to take their opinion as they are the core of the organization, hence I give

the work to them and let them take decisions on how to go about it.

5. How do you motivate youre employees? Do you provide awards like employee of

the month or most efficient worker? ? Do you provide financial bonus?

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I do not provide any awards or financial bonus however I provide them with certain gifts

and benefits when I am impressed with their work.

6. What is youre biggest management weakness?

I think that somewhere my employees lack the required motivation, which affects their

productivity and attitude at work, and for this I am trying to set up a human resource

department.

7. Do you think it would be best for you to expand overseas or just expand with new

products or probably old products in the same market?

I am actually looking to expand overseas, as thats our main goal, however I havent

looked into the befits of expanding in the market itself over the benefits of expanding

overseas.

8. Does youre organization specialize in a particular product? Or do you sell a

range of products? And are all the different products providing you with enough

revenue?

Our organization is involved in manufacturing and selling a range of products such as

enzymes, chemicals, amylase, protease.

However not all provide the same revenue, some provide more while some provide less.

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