Strategic Management

Final Project Presentation

on
Shield Corporation Limited
Presented to:
Dr. Hanif Mohammed
Presentated by:

Shiraz S. Syed (ID: 1942)

KASBIT
Karachi, Pakistan

Note: Data presented in this presentation were anticipated (educated guess).

2
Purpose of the Presentation

Purpose of this presentation is to present the

organizations strengths, weaknesses, opportunities,
threats and then evaluates how organization is
responding to it, using strategic management matrixes.

3
Overview Of The Organization

Shield is the leading baby and oral care Product

Company in Karachi, Pakistan. We believe Shield
has a potential to become world class
organization in its baby and oral care category.

4
Organization’s History
Shield Corporation Limited came into existent about 30 years
ago in 1976. Shield formerly used to known as “Transpak
Corporation Ltd.”, it was renamed as Shield Corporation
Ltd in July 2003. Shield is a part of Premier Group of
companies, which came into existent during 1971 as Premier
Distributors. Premier Distributors have one of the largest
distribution net works in Pakistan. Now Premier Group
consists of following companies;
– Premier Distributors 1971
– Premier Agencies 1975
– Shield Corporation Limited 1976
– Zaman Textiles Mills Limited 1985
– PharmEvo (Pvt.) Ltd 1998

5
Vision Statement

“To become the best personal and house

care company and amongst the most
trusted names in product categories we
decide to be in”

6
Mission Statement (CW)
Shield is a house hold name (8) which provides products
from birth to adulthood (1). Shield is the manufacturer of
wide variety of dental and baby care products such as
toothbrushes, baby feeders, soother, teether, toothpaste
and baby toiletries (2). Our main emphasis is to retain
position of a market leader in baby care products (3) we
will continue to use environmental friendly technology (4)
and not compromising on quality at any cost which will
increase our profit and growth on long term basis (5).
Shield uses world class food grade raw material. To be
100% sure that they are providing best for their consumers
(7). Shield believes in a philosophy to have a purpose in all
activity performed (6). Shield treats its employees as a
business partner and an equal opportunity employer (9).
7
External Factor Evaluation (EFE)

S. No

1 Oppo
8
External Factor Evaluation (EFE) Cont.
• We have provided highest weightage (0.15) on exploring
export market. Overall there is a need to export from our
region. Shield is responding well in exploring export market.
Shield has done very well in meeting local market demand
and acquiring technological advancement. Within a span of
four years, Shield has launched 36 products in local market.
However there are lots of imported products available that
Shield need to provide it to local market.

• Major threat faced by local market is low cost Chinese

products and un-availability of power supply on continuous
basis. Shield has responded to it by introducing low cost
products, however it still posting threat. Overall we have given
2.52 weighted score, because we believe Shield is above
average organization.

9
 Competitive Profile Matrix (CPM)

C ritic a l s u c c e s
o
M a rk e t s h a re 10
Competitive Profile Matrix (CPM) Cont.

Overall Shield has an edge over their competitors

when comparing with any critical success factors
mentioned above. Following critical factors are
making Shield a leader in baby care products;
product quality, customer loyalty and group owned
distribution channel. Shield has maintained its
product quality and ensured timely availability, which
has made them a house hold name from loyal
customers for over thirty years.

11
Internal Factor Evaluation (IFE)

S No

1 Larg
2 Well
12
Internal Factor Evaluation (IFE) Cont.

• On one hand, following are the major strengths;

using food grade raw materials in producing baby
care products, long term planning with respect to
meet increasing market demand and well know
trusted house hold name. On the other hand, a
major weakness is; Shield has no niche market
product and high operating cost.
• Overall Shield is above average organization with
the weighted score of 2.80. They are responding
well to the internal factors.

13
 SOWT Analysis
Strengths-S Weaknesses -W
1. Largest baby care in Pakistan 1. Factory located in Landhi

2. Well known brand in Pakistan 2. No niche market

3. Foreign qualified staff 3. Higher employee turnover

4. Long term planning 4. High operating cost

5. Using food grad material 5. HR merged with admin

Opportunities-O SO-Strategies WO-Strategies

1. Export opportunities 1. Global expansion of business to cater 1. Investment in product development will
foreign customer(S2,S3,O1,O2) capture the new segment (W2, O5, O4)
2. Cheap labor available

3. Local market demand 2. Increasing investment in R & D to 2. Investment on technological

increase the market equipment will decrease the payroll
4. Technology advancement share(S3,S4,O4,O5,O3) (W4, O4)
in production
machine

5. Increasing product
Threats-T ST-Strategies WT Strategies
portfolio
1. Low cast Chinese product 1. Advertisement to create awareness 1. Investment in local raw material will
about Shield product verity & higher decrease cost of production (W3,T3)
2. Political instability quality food grad material (S4,S5,T1,T4)

3. Costly imported raw 2. Investment in power generation plant  

material to increase the efficiency of smooth
production (S2, T5)
4. Media restriction   14
5. Un-certainty of power  
Boston Consultancy Group (BCG) Cont.

15
Boston Consultancy Group (BCG) Cont.
• Baby feeder is considered as Star with high market
share and growth rate, toothbrushes and toothpaste
are considered as Question Marks with high growth
rate but low market share and toiletries are
considered as Dog with low market share and
growth rate

16
Internal External Matrix (IE)
Internal Factor Evaluat ion (IFE)

S Weight Rating
Strengths Score
No (0 to 1) (1 to 4)
1 Largest baby care manufacturer in Pakistan 0.2 3 0.6
2 Well Known (house hold) Brand name 0.25 4 1.0
3 Using food grade raw material 0.15 4 0.6

S Weight Rating
Weaknesses Score
No (0 to 1) (1 to 4)
1 No niche market 0.1 2 0.2
2 High operating cost 0.2 2 0.4
3 Media restriction on baby care products 0.1 1 0.1
Total 1.0 2.9

External Factor Evaluation (EFE)

S Wei ght Rating

Opportunities Score
No (0 to 1) (1 to 4)
1 Opportunity for export 0.2 2 0.4
2 Increase product portfolio 0.3 3 0.9
3 Technological Advancement 0.25 4 1.0

S Weight Rating
Threats Score
No (0 to 1) (1 to 4)
1 Low cost Chine se products 0.10 1 0.10
2 Costly imported raw material 0.10 2 0.20
3 Un-certainty of power supply 0.05 3 0.15
Total 1.0 2.75
17
Internal External Matrix (IE) Cont.
Internal Factor Evaluation (IFE)

S Weight Rating
Strengths Score
No (0 to 1) (1 to 4)
1 Well Known (house hold) Brand name 0.20 3 0.60
2 Using food grade raw material 0.25 3 0.75
Largest baby care manufacturer in
3 0.10 2 0.20
Pakistan

S Weight Rating
Weaknesses Score
No (0 to 1) (1 to 4)
1 No niche market 0.20 1.0 0.20
2 Expensive raw material 0.15 1.5 0.25
3 Low awareness activities (Marketing) 0.10 1.0 0.10
Total 1 2.75

External Factor Evaluation (EFE)

S Weight Rating
Opportunities Score
No (0 to 1) (1 to 4)
1 Export opportunities 0.2 2 0.4
2 Increase in product portfolio 0.2 3 0.6
3 Cheap labor 0.2 2 0.4

S Weight Rating
Threats Score
No (0 to 1) (1 to 4)
1 Low cost Chinese products 0.15 1 0.15
2 Increase in inflation rate 0.15 2 0.30
3 Un-certainty of power supply 0.10 1 0.10
Total 1 1.95

18
Internal External Matrix (IE) Cont.

S
No Divisi
19
Internal External Matrix (IE) Cont.

We have chosen baby care and dental care to be

used in IE matrix. Our baby care division comes in
Intensive or Diversification strategy which is hold
and maintains strategy. Shield baby care sales and
profit are greatest among other organizations
product. Dental care division comes under
defensive strategy which is harvest or divest.

20
Internal External Matrix (IE) Cont.

21
The Strategic Position & Action Evaluation Matrix
(SPACE)

Variables
Financia
1. Our eq
22
The Strategic Position & Action Evaluation Matrix
(SPACE) Cont.

Compe
1. Food
2. Quali 23
The Strategic Position & Action Evaluation Matrix
(SPACE) Cont.

FS

Conservative Aggressive

CA IS

(2.33, -0.70)
Defensive
Competetive

ES

24
The Strategic Position & Action Evaluation Matrix
(SPACE) Cont.

Our organization is emerging as Competitive, a

lower right quadrant of SPACE matrix. Market
development, horizontal integration and concentric
diversification are the strategies best suitable for
Shield

25
The Grand Strategy Matrix (GSM)

Shield come in quadrant 1, because they have high growth rate as found
in BCG Matrix and showing strong Competitive position as found in
SPACE Matrix.

1. Market Development. Strategy 1 Exploring export market

2. Horizontal Integration. Strategy 2 Acquiring competitors
3. Concentric Diversification Strategy 3 Product development

26
The Quantitative Strategy Planning Matrix (QSPM)

Key Factors
Opportunities
1. Explore internat 27
The Quantitative Strategy Planning Matrix (QSPM)
Cont.
When comparing different strategies we found that
strategy 1 is best suited for Shield. Strategy 1 score
is 6.7 compare to 5.8 and 6.05 for strategy 2 and 3
respectively. It is recommended that Shield should
strive hard to export

28