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Shezan was established in 1964. Since then it has continued to provide quality products to its customers with products and packaging innovations. Shezan is one of the Pakistan’s best companies in bottle juices. The company is trying their level best to differentiate themselves from other local companies and trying to win the competition in juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. This project report covers the broad area of impacts of controllable and uncontrollable variables in remote environment for the company, like economic boom or slump, segmentation on the basis of cultural likings and disliking of the consumers along with the social set up and their purchase behavior, food laws, taxation, import duties and the technological advancements. This report also provides the information how these variables pose threats and offer opportunities for the company and how the company should neutralize threats and exploits opportunities. An important part of this project report comprises the market situation in which Shezan is competing. Market acceptability of its products and the upcoming trends regarding to juices and drinks are also discussed. Detailed information about competitors like Nestle which is also the market leader and Haleeb, and how they are affecting the company is also provided. An overview of distribution system and criteria of Shezan in case of juices. A brief description of the company’s marketing; non marketing and management’s capability is given which tells us about the company’s internal strengths and weaknesses. Then comes the most important portion of the company’s operations, which is the strategic management. A comprehensive detail is provided about the company’s strategies devised to maintain and develop the product line (juices), strategies to set and quote the prices, their distribution patterns and logistics. The image Shezan wants to develop in the minds of their customer and the extent to which they are succeeded through their promotional campaigns is explained in this report.
Business Strategy An additional portion of this report including the SWOT analysis, twos matrix, CPM, Grand Strategy Matrix, BCG Matrix and detailed financial analysis explain the strategic position of the company.
The company was incorporated in 1964 as a Private Limited Company, with the main objective to set up an industrial undertaking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from fruits and vegetables. Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A. The agricultural background of the Pakistani sponsors induced them to establish this agro-based industry. Taking advantage of abundance of fruits available in Pakistan and the advanced technology provided by the American partners, Shezan became a pioneer in the field of converting fruits into pulps, concentrates and juices. Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country's local as well as export needs. In 1971, Shahnawaz group purchased all the shares of Alliance Industrial Development Corporation. The company has since shown sustained growth in both domestic and export fields. In 1980-1981 a separate unit was installed in Karachi which now caters for Karachi, Sindh and export demand. A new bottle filling plant was set in 1983 in the Lahore unit, increasing the capacity fivefold. An independent Tetra Brick plant was commissioned in 1987 making the unit leading manufacturers with the comprehensive range of production in the fruit processing field in Pakistan. In the year 1990 it was decided to install a juice factory at the Hattar industrial estate in North West Frontier Province of Pakistan. In order to take advantage of the government incentive new wholly owned subsidiary of Shezan International Limited was incorporated as Hattar Fruit Products Limited which was later merged into the parent company. Complete bottling plant locally manufactured along with four lines of Tetra Pak was installed, three are filling 250 ml juices and one line is for 1000 ml packs. In all respects the subsidiary is now a complete unit and is manufacturing the complete range of Shezan products except for pickles and canned products.
PEST Analysis Forces Model: PORTER five
Low Threat of new entrants
Somewhat High power of the Supplier suppliers
Somewhat Low power of the buyer
Rivalry among the firms is high
Moderate threat of the substitutes
(For detailed PORTER Analysis see annexure)
Political or legal forces:
If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes are imposed from government side and it varies from industry to industry. Currently juice industry has 16 % sales tax on it.
Labor laws also effect the industry and government keep on revising the laws related to labor force e.g. laws related to child labor and forced labor. Government recently increases the minimum salaries of an employee to Rs. 7000. These laws directly affect the industry.
Environmental protection laws:
Environmental protection laws also affect the industry. By law industries must treat their wasted water and must not pollute the environment through smoke. All the industries are to abide these laws.
The government’s stability plays a great role for any industry. In Pakistan, government faces a lot of difficulties from terrorism, clash with Supreme Court and other political issues like corruption and Swiss bank accounts. These all activities effect badly on the industries and no one is ready to invest in the country. Recently the electricity shortage problem, caused due to mismanagement and negligence of government also created lot of problems to the operations of the industry.
Economic forces: Inflation rate:
Now in Pakistan, the inflation rate is about 13.6 %. So if there is increase in inflation rate than increase in prices of juices is obvious.
Economic Growth Rate:
Economic growth rate of the country is 4.3% (2009 est.).
Social Factors: Health consciousness:
Today people are more health conscious. As the awareness in people is rising they are becoming more and more health conscious.
In Pakistan the population growth rate is 1.589 % and population is 184,404,791 (July 2010 est.)
Age Structure Up to 14 Years
% of Total Population 36.7 % 59.1 %
15 - 64 Years Above 65
184,404,791 (July 2010 est.) Growth rate: 1.589% (2010 est.) Birth rate: 25.3 births/1,000 population (2010 est.)
Death rate: 7.06 deaths/1,000 population (July 2010 est.)
The lifestyle of people keeps on changing so it is very important to stay update with those changes, it is very important to take the advantage and to attain and retain the customers. Consumer adopts the trends of changing environment and because of modernity as well as globalization. People are aware about each and every thing happening around them.
Technological Forces: New products:
Businesses are focusing on concentric and conglomerate diversification because in present era it is not possible for any organization to exist in the market for long run
Business Strategy by providing just a single product. Organizations have to be diversified to according to changing demands of the customers and trends.
Product innovation is becoming more necessary for the organization because of the globalization; people are becoming aware about the changes being taking place around them and in order to respond them organizations have to focus on product innovation by introducing new flavors or changes in packaging etc.
Productivity Improvement through New Technology:
Automation and new technology does not matter a lot but it does contribute towards the productivity and improvement. It reduces labor cost and increase the production level. New juice manufacturing and packing machines are on their way to enter in the market, number of local suppliers and international suppliers available with the advance and cost cutting techniques.
Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of small units in the informal sector are working. The present installed capacity is estimated around 400,000 metric tons per annum with a demand for juices growing at a combined annual growth rate of 27 %. The fruit juice industry reported sales of 8.52 billion Rupees in year 2008. Pakistani people drink approximately 2,500,000 liters juices per month and per day it becomes 83330 liters. The market of juices is growing as because the consumption of juices is growing every year and expected to increase continually due to people’s changing lifestyle and more health consciousness, they prefer juice, especially natural juice on other soft drinks. The market for Squashes in Pakistan is mainly influenced by branded competitors in this specific product category. These competitors have firm distribution channels.
Business Strategy As a majority of the country’s population is in lower-lower to lower-middle class, this is the reason that people are more price conscious and secondly the also look for the convenience of products due to this reason there is a demand shift observed in the squash industry. The demand of Squashes is now limited only for few months in major areas of country. The Business of Squashes in Lahore is at its peak between May and November So Mitchell’s play a different strategy as far as region Lahore is concerned but on the other side business in Karachi remains stale and on the same level of graph thorough out the whole year thus Mitchell’s imply different strategy in terms of Karachi. The reason of this limited demand according to the market analysis is because that you cannot relate squashes with different occasions for example the way red syrup Jam-i-Sheerin and Rooh Afzah are relating themselves to Ramadan and Muharam, another big reason of the limited demand of the Squashes is because of its usage which is limited up to a thirst quenching drink but red syrup can be utilized in many ways apart from drinking such as toping, used in milk etc
According to this framework the juice industry falls in progressive change quadrant. It is so because these days industry is facing evolutionary change and neither core assets nor core activities face imminent threat of obsolescence. Change is occurring in the industry as people are more health conscious these days and tends to buy energy drinks or natural juices or nectar juices. This change is slow and within the framework of the industry.
VALUE CHAIN ANALYSIS
Value chain analysis is widely used to determine where cost improvements could be made or value creation improved. This process involves the analysis of all the activities starting from the raw material provisions to the distribution of final product. That is why it is necessary to understand the complete procedure of production and distribution.
ORGANIZATION VALUE CHAIN
All these activities are broadly categorized into two main heads, which are Primary activities and Support activities.
The primary activities of the organization are grouped into five main areas: Inbound logistics, operations, outbound logistics, marketing and sales & services.
Service Marketing Outbound Operations Inbound & Sale logistics
Shezan has its own fruit farms for raw material. The raw material coming for the production of juice reaches Shezan Juices in one to three days. However the raw material related to packaging takes more lead time and it is planned according to the lead time so that it is also received in time. The raw material is then inspected and if the quality of raw material is not up to the standards then it is rejected. If the raw material is in good quality then it is
stored in the warehouse. The raw material is ordered in such a quantity that it is enough for one week of production , because the juice production is a continuous process and totally depends on the demand , therefore the raw materials directly depends on the demand of the juices. If the raw material is stored for more days, the quality of raw material starts to decrease and therefore they have to keep small inventory of their raw material in order to maintain the quality. Some of the delays are done in receiving the raw material from the suppliers. It causes some delay in the whole supply chain. It is sometimes due to late delivery, rejection of raw material due to poor quality, due to unavailability of space in the warehouse and most importantly moving the raw material in the warehouse and taking it out of it.
The raw material is moved to the production area. First of all, the material is sent to the boiler so that the pulp can be formed which is used to make the final product. Then it is sent to the plate heat exchanger where the temperature of the pulp is cooled down. When the temperature is cooled down, the material is stored in the pulp storage tank. Then according to the type of juice, the pulp is sent to the juice mixing tank where sugar, food color, citric acid and other preservatives are added to make a certain flavored product. Then this product is mixed thoroughly and sent to the packaging line for packaging.
The juice is packed into different sizes like one liter pack, 300 ml packs, in 250 ml bottles. After the packaging, labeling is done on the bottles and then they are packed according to the orders of distributors. Bottles are placed in the plastic crates while the juice packs are packed in boxes. After the packaging the finished product is stored in the cold storage so that the
quality of juice is not reduced. The delay also occurs from moving the final product from cold storage to the distributors.
Out bound logistic:
In Shezan Company the activities that include in outbound logistics are, they establish their sale and distributive offices in big cities like, Lahore, Multan, and Faisalabad etc. The final product is moved from cold storage and sent to the distributors. Most of the delays in the overall supply chain occurs here. In Lahore city, Shezan juices are distributing their product on their own. While for the other cities they have hired different distributors. For distribution in Lahore city, the salesmen reach the cold storage and the final product is loaded on their transportation. They distribute the products to the retailers. The distributors in Faisalabad, Multan who use their own warehouses for the storage of Shezan juices and they have the distribution rights in their own city. The problems arise when these distributors give the product to small distributors for distribution. Due to this factor, the prices of the product increase and the product reaches more time in reaching to the retail shops. When the product doesn’t gets on the retail shops in time then Shezan has to bear stock out cost.
Marketing & Sale:
As marketing is defined as the identifying the needs, wants and demands of the customers and delivering the customer value and customer satisfaction, it has a great impact on the success of any business. As far as Shezan Company’s marketing analysis is concerned regarding soft drink juices the company is delivering what the customers exactly want from it. The company’s strategic planning is exactly in accordance with the mission and goal of the company.
As far as sales is concern, there is an export and marketing department, who control and monitors the activities of regional sales offices of the company that are situated in Lahore, Faisalabad and Multan. These regional sales offices are responsible for effective distribution of the products of the company. The marketing department is responsible for the marketing and promotion of new and existing products of the company.
Shezan using the following processes of distributions and they are using these processes by following their plans: • • • • • • • • Billboards Televisions Radio Newspaper Broachers Internet User trials Free gifts
They are using the well fame people to advertise their products and give a huge amount of the income for the earth quick victims and also provide the discount benefit for the bulk buyers and they are providing free sample to advertise their products.
The nature of the products not requires any significant level of services for the customers. However, there is a formal system for taking corrective actions upon the complaints of the customers. Proper feedback is given to the customers who have any complaint regarding the quality of the Shezan products.
The support activities can be divided into four groups, which are procurement, technology development, human resource management and infrastructure.
Shezan has its own fruit farms for raw material. The raw material coming for the production of juice reaches Shezan Juices in one to three days. So the planning and stores department is sufficiently performing the activity of procurement with the collaboration of departments.
R&D and Process development researches are very important in food groceries industry in Pakistan. So in the company value chain, this thing should be emphasized much, rather it has a big contribution in total value addition. The Shezan's working on the technology development on continuous basis. The most advance and automation of the plant and machinery is the top priority of the Shezan's fruit farms limited.
Human resources management:
Human resource management involves the training and development of workers and employees in order to increase their productivity and efficiency. For this purpose company make their employees to work with the senior worker to get the experience, apart from this on-the job training, they have separate training program for new employees. The company has good planning, quality control systems and future orientation, which although does contribute directly in value addition and increase the effectiveness of whole process.
Value-Chain Activity Primary: Inbound Logistics Operations Outbound Logistics Marketing and Sale Service Support: Procurement Technology development HRM General administration
Yes/ No Yes Yes No Yes Yes Yes Yes Yes Yes
How Does Shezan Create Value for the Customer Shezan has its own fruit farms for raw material Shezan is the largest food processing unit having
delivering what the customers exactly want Proper feedback is given to the customers Shezan has its own fruit farms for raw material automation of the plant and machinery is the top priority employees work with the senior worker to get the experience Supportive participation from management at all levels of the co.
Interdependency of Value chain of Shezan:
Inbound Logistics Operati ons Inbound Logistics Operations Outbound Logistics Mkt&Sale Service Procurement Tech.develop ment HRM General Admin. Outbou nd Logisti cs Mkt &Sale Servi ce Procure ment Tech. Develop ment HR M Gene ral Admi n.
∙ ↑ ↑ ∙ ∙ ↑ ∙ ∙ ∙
↑ ∙ ↑ ∙ ∙ ↑ ∙ ∙ ∙
↑ ↑ ∙ ∙ ↑ ∙ ∙ ∙ ∙
∙ ∙ ∙ ∙ ↑ ∙ ↑ ↑ ↑
∙ ∙ ↑ ↑ ∙ ∙ ↑ ↑ ↑
↑ ↑ ∙ ∙ ∙ ∙ ∙ ∙ ∙
∙ ↑ ↑ ↑ ∙ ∙ ∙ ∙ ↑
∙ ∙ ∙ ∙ ↑ ∙ ∙ ∙ ↑
↑ ↑ ↑ ↑ ↑ ↑ ↑ ↑ ∙
No Interdependencies =
Is It Resource/Ac tivity Inbound Logistics Operations Outbound Logistics Marketing & Sale Service Procurement Technology HRM General admin. Valuabl e Yes Yes No Yes Yes Yes Yes Yes Yes Is It Rare Yes No No No No Yes No No No
Few substitute ? Yes No No No No Yes Yes No No Difficult to Make Yes No No No No Yes Yes No No
Resources of company and Competitive advantage due to these resources:
Shezan is strong brand name with its loyal customers. Shezan, to be known as leader of quality products in the region, initially launched only three flavors of squashes which were (mango, orange and lemon). But in current market it has 6 flavors (orange, mango, mix fruit, lemon and lemon barley, pomegranate). Shezan was available in 735 ml. glass bottle but now it is also available in pet bottle of 830 ml. Complete backward integration in case of this company since it is the only company that has its own fruit forms due to this Shezan is able to get fresh fruits for their juices that increase the quality having low price as compare to the other competitors. Taking advantage of abundance of fruits available in Pakistan and the advanced technology provided by the American partners, Shezan became a pioneer in the field of converting fruits into pulps,
concentrates and juices. Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country's local as well as export needs. A new bottle filling plant was set in 1983 in the Lahore unit, increasing the capacity fivefold. An independent Tetra Brick plant was commissioned in 1987 making the unit leading manufacturers with the comprehensive range of production in the fruit processing field in Pakistan. Company is getting edge with twist juices having different flavors. There is 60% natural pulp of fruits and only 40% acids are used in the manufacturing of Twist Juices while regular juices are composed of only 15% fruit pulp and 85% acids. Twist juices is the product that is introduced in tetra pack packaging with Pull Tab feature first time in Pakistan. Comprising of a blend of different fruit juices (mango, apple, pineapple, fruit punch, strawberry, raspberry) Shezan’s Twist juices opened the doors to a whole new worlds of possibilities. Available in easy to drink slim packaging, Twist juices are a must have in every household. These prove to be very refreshing to your body in the hot days enriched with different healthy vitamins.
The national market, particularly in the major cities was saturated with the imported foodstuff. Although foreign fruit preserves, sauces and drinks were visible on the shelves of the largest stores. It would appear that much of this merchandise continues to be brought into the country through unofficial channels without payment of imported duties. Despite these unhelpful conditions Shezan were able to achieve a significant increase of over 10% in the sales of juices and soft drinks, and succeeded at the same time in recording a marginal growth in our traditional beverages business.
In the beginning they have invested around Rs.30 million in putting up modern automated facility in the form of machinery. They purchased a new standby generator in January 2005 at a cost of Rs. 14 million this should result in
Business Strategy considerable savings in power bills. Internal cash generation and bank borrowing have met the capital expenditure bill in full.
Human Resource has also the pivotal importance for the company. Management and employee skills are constantly being updated through training courses and study tours both at home and abroad. Currently Shezan’s is operating with 18 executive staff members along with a big sales and labor force.
R & D DEPARTMENT
The success of Shezan’s products, and the taste that has been winning consumers' hearts for generations, is the result of the Company's ongoing investment in and emphasis on quality control, reinforced by research and development (R & D). Both sections closely coordinate with the Marketing and Exports Office in Lahore where product concepts are initiated and passed on to the R & D section for formulation. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation.
QUALITY CONTROL & TRAINING
Along with R & D, the Quality Control section ensures that all our products live up to the consumers' high expectations. From selection of the finest fruits, to processing and packaging, quality control plays a key role in keeping a vigilant and unrelenting eye on every step of the process. The Quality Control staff, with a main up-to-date laboratory, two line-control labs, ensures that there is no deficiency in quality standards during production. As the Company considers its employees it’s most important asset, management skills are being constantly updated by sending executives on training courses and study tours, both at home and abroad.
Results: The EFE total of 3.07 shows that Shezan is in good position to handle the external factor’s impact on the company. (See annexure)
Results: The IFE total 2.32 shows that Shezan needs to improve itself in its strengths and try to eliminate its weaknesses. (See annexure)
Total IFE 3.0 i ii iii 2.0
vii 4 3.0Total EFE 2.0
Score of IFE=2.32 Score of EFE=3.07
Results: IE Matrix of Shezan is telling us that the company is in “Grow and Build” quadrant. IE strategies: Grow • • • • and Build Backward, forward, horizontal integration Market Penetration Market Development Product Development
Strategic Group Map
Haleeb Nurpur Shezan
We took two variables, brand awareness and quality, to draw strategic group map of Shezan. To us, nestle is the current market leader in the juice industry and Shezan follows it in this segment as Shezan lacks in advertisement and relatively lower in financial position. Haleeb and Nurpur cover middle and lower middle class of the society and low in brand image and quality.
Shezan’s Competitive Strategy
Initially Shezan launched only three flavors of squashes which were (mango, orange and lemon). But in current market it has 6 flavors (orange, mango, mix fruit, lemon and lemon barley, pomegranate). Shezan was available in 735 ml. glass bottle but now it is available in pet bottle of 830 ml, complete backward integration in case of this company since it is the only company that has its own sugar mill as well in the name of Shahtaj Sugar Mills, Mandi-bahauddin. Shezan has the most developed distribution channels network and therefore it has an advantage of reaching maximum customers throughout Pakistan with the help of small retailers as well as larger retailers. Shezan owns 60% of shelf space in all of the almost 16,000 outlets of Utility Stores Shezan is involved in advertisements and low cost promotional campaigns which makes it a very generic brand name in the mind of consumers when they are out shopping for squashes. Shezan is the largest food processing unit having developed and installed the capacity to meet the country's
Business Strategy local as well as export needs. Shezan has the highest production capacity as compared to its competitors.
CPM MATRIX FOR SHEZAN
Competitive Profile Matrix Nurpu Shezan Critical Success Factors
Advertising Product quality Price competitiveness Management Financial position Customer loyalty Global expansion Market share
0.2 0.15 0.1 0.1 0.1 0.1 0.15 0.1
Ratin Rating Score Rating Score Rating Score g
3 4 2 3 4 2 3 3 0.6 0.6 0.2 0.3 0.4 0.2 0.45 0.3 4 3 3 4 4 2 3 4 0.8 0.45 0.3 0.4 0.4 0.2 0.45 0.4 2 2 3 3 3 2 2 2 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.2 1 2 3 3 2 3 3 2
0.2 0.3 0.3 0.3 0.2 0.3 0.45 0.2
CPM MATRIX FOR SHEZAN
In the CPM the industry average take as 3.50, so the Nestle performing is the best as compared to their competitors in juices. Shezan is at second place. It deals in nectar juices, flavored juices and targets the lower income group of the population and its all sales is due to customer loyalty. Haleeb lunched its juices few years ago but their performance is good and it is in third number in field of juices due to their pure and nectar juices with high quality and reasonable prices. NurPur, being an unknown brand falls at number four.
1 2 3 4
Shezan Nestle Haleeb Nurpur
Differentiation Differentiation focus Cost Leadership Cost Focus
As know that nestle is using differentiation focus strategy as it focuses on its research and development to identify new niches in the market and to enter in them. Nestle selects a segment do research and develop strategy to enter that market through differentiated product. Nestle achieve competitive advantage by dedicating itself to these segments exclusively. The essence of focus is the exploitation of a particular market niche that is different from the rest of the industry. Nestle might expect narrow focus itself (“being different”) is simply not sufficient for above average performance. Nestle focuses differentiation strategy to improve competitive position. But there are some disadvantages if this strategy is not properly used. As if we select the niche with too much rivals it will be easier for the competition to imitate it easily in a shorter span of time as if nestle launches some new product Shezan immediately follows it and hence nestle loses its competitive advantage. Shezan uses the research and development of nestle and captures its share from the market. But it shows that Shezan is following the Nestle. This is a weakness in itself because it shows that Shezan has the potential to become market leader but they do not try to do so. The strategy of Shezan gives advantage as there are number of suppliers in the market that supply material to the industry. But Shezan gets its raw material from its on farms to get the advantage over its competitors and to reduce the suppliers bargaining power (Backward integration). Shezan provides the same product as its competitors are providing, as bargaining power of buyer is low and many
Business Strategy substitutes are available in the market with slight differentiation which do not makes difference so Shezan captures the market share of the competitors. Shezan competes its competitors like nestle and Haleeb is discussed in the above paragraph.
Industry Life Cycle
To us the juice industry is at growth stage as new research and development is taking place and people are getting more conscious about their health these days. People tend to buy natural juices rather than buying carbonated drinks. Shezan is also at growth stage by following the Nestle.
Business Strategy Reference: Interview with Mr. Fayyaz, Assistant Manager Marketing, Shezan
“Our mission is to provide the highest quality fruit and vegetable related juices and products to retail and food services customers. We will accomplish this by maintaining a tradition of pride in our products, growth through innovation, integrity in the management of our business and commitment to team management and quality improvement process.”
Market Oriented Mission:
We are committed to supply our customers with the finest, highquality products and to lead the industry in ….
Product Oriented Mission:
Our mission is to set up an industrial undertaking for the manufacturing of juices i-e • • • Sweet and Sour Fresh and refreshing Rich in vitamins
Setting company objectives and goals; Long-term Objectives
As our company produces variety of juices with competitive market prices to make market stable for long period of time and company has expanded its production capacity and exports. For long term objective company set units in different cities for the comprehensive range of production in the fruit processing field in Pakistan.
Business Strategy Our company wants to serve with the best quality in juices in Pakistan as in foreign countries to gain customer loyalty.
Our company also considers the customer preferences their likeness and dislike ness and will always consider the customer needs with the passage of time i-e taste, different packaging sizes (100ml, 250 ml, and 500 ml)
• • • Maintain positive, steady growth in each quarter Experience a growth in new customers who are turned into long-term customers. Realize an increase in occupancy in each subsequent year
• • • A double digit growth rate for each coming year Reduce the variable cost Continue to decrease the fixed cost
Competency Tree of Shezan
Ispaghol(in Sauces Jam Squashe Mango Fruits Pickle Ketchup (in Marmalade Juices (Cans) Chutney JamsKetchu SaltJuice Jellies Pickles Pickles Vegetables Ispagho Sal Pickle Sauce Jam Twist, s ss vinegar) oil) t l (Cans)
Superior Rich Juice p s Quality Taste
Corporate Level Strategy:
Shezan uses related diversification strategy to grow its business. Shezan is owned by Shahnawaz group of industries. Shezan buys sugar from the shahtaj sugar mill, owned by Shahnawaz group. Shezan have its own fruit farms to fulfill its needs. Shezan also have its own cod storage to store the raw materials. These all related diversifications provide Shezan an edge over its competitors. Shezan creates value for its customers by providing quality and rich in taste products. It has centralized organizational structure; all the operations are controlled by the Lahore central office. The related diversification provides Shezan to create its core competency over its competitors. The brand manager at Shezan told that they focus on R & D and quality assurance to maintain their taste and high quality.
Benefits of Related Diversification:
The benefit of related diversification that gave Shezan a competitive edge is its pooled negotiation power that it achieves through bulk buying for its different products as sugar is major ingredient of its most products. It also provides Shezan with secure supply of raw materials. Simplified procurement and administrative procedures helps Shezan in eliminating the need to deal with various suppliers and distributors. This gave Shezan with a chance to focus on new business opportunities and as a result Shezan, in few years launched few new products e.g. energy drink, carbonated drink, new flavors in Shezan twist, Ispaghol, salt etc.
Shezan’s Business Portfolio:
Shezan is a customer oriented organization so it is manufacturing the products for every kind of consumers. Shezan have a very rich brand
Business Strategy portfolio with national and international brands. In order to provide their customers the wide range of products Shezan is using every kind of management strategies. One of the core competencies of Shezan is their variety of products; they are using branding strategies in order to compete with rivals of the products, multi branding, brand extension and line extension. The wide range of products of Shezan is a major contribution towards the success of the company. The current portfolio of Shezan is as follows:
Change in Business Portfolio:
As we know that the change process t Shezan is evolutionary, so it keeps on adding new flavors to its businesses. Recently it introduced three new products in past few years; it is because company uses growth strategy to enhance its business and also it believes on evolutionary change.
Change process in Shezan:
As it is said that, “Change is the only constant in our life.” It is very important for any business to keep on changing itself according to the need of the environment and keep improving itself accordingly. In Shezan, if it is surviving in the industry, it means it is adopting change in it. We analyzed that Shezan follows a continuous change process rather than discontinuous change process. It is observed that after every two to three years Shezan launches a new product according the need of the market to keep innovating itself. Shezan launched Ispaghol and salt about five to six years back. After that it launched Shezan twist in the market. After one year it added two new flavors to Shezan twist. Shezan launched its energy drink with the name of “Speed” about two years back. In last year it launched its carbonated drinks with flavors of apple, lemon and cola. These all things shows that it keeps on adopting the change according to the need and market trends. After all the above analysis we concluded that Shezan is adopting the continuous change strategy because it is more helpful in long term because discontinuous, dramatic change works only for short time. The research and development department of Shezan is very strong and keep eye on the market trends and adapt change as it is required. It means that Shezan apt evolutionary change process.
Continuous Change Perspective
Magnitude of Change Pace of Change
Moderate, Piecemeal, Undramatic Gradual, Steady, Constant
The Magnitude of Change: Scope of change:
Business Strategy In continuous change perspective, the high number of piecemeal adjustments needed to be done, with broader scope of change, the scope of each individual change may be narrow.
Amplitude of change:
Evolutionary change needs gradual
Scope of Change
A m pl it u d e of C h a n g e
Comprehensive Moderate Change Evolutionary Change
Focused Radical Change
development out of present situation by the means of moderate steps. The amplitude of change should be low.
We have seen that Shezan has gone under evolutionary change with narrow scope of change in short term but low amplitude of change, thus seeking evolutionary change.
The pace of change:
We have seen that the tempo of change demands a constant rate of change without interruption at steady pace. The timing of change is also very important because it is very important to keep on changing as it is needed rather than taking a giant leap at once. Here in Shezan we observed that the pace of change is at steady pace and in time.
Steps taken to increase core competency:
Shezan is very keen to focus on its core competency. It has a good research and development department to conduct continuous research in new product development as well as focuses on changing market trends in
Business Strategy the industry. The launch of new flavors in Shezan twist juice, launch of energy drink, launch of carbonated drinks shows that Shezan is taking steps to keep pace with change on real basis.
Detailed Financial Analysis
Financial ratios are a valuable and easy way to interpret the numbers found in statements. It can help to answer critical questions such as whether the business is carrying excess debt or inventory, whether customers are paying according to terms, whether the operating expenses are too high and whether the company assets are being used properly to generate income. When computing financial relationships, a good indication of the company's financial strengths and weaknesses becomes clear. Examining these ratios over time provides some insight as to how effectively the business is being operated.
*(For detailed financial analysis see annexure)
Summary of Financial Analysis
Financial Ratios leverage ratios Debt to total asset ratio Debt to equity ratio: Long term debt to equity ratio: Activity Ratios Inventory turnover: Total Asset Turnover: Profitability Ratios Gross Profit Margin : Operating Profit Margin Net Profit Margin: Return on Asset: Return on Equity: Earnings Per Share: Growth Ratios Sales Growth: Net Income Growth: 10.54% -36.43% 13.50% 14.01% 28.38% 5.88% 3.75% 7.57% 13.17% 17.08 32.29% 10.87% 6.53% 12.32% 21.88% 26.87 31.49% 12.44% 6.46% 12.56% 22.49% 28.13 2.61 2.01 2.45 1.89 2.43 1.49 0.43 9.6 0.77 0.44 9.5 0.86 0.45 8.75 1.15 2009 2008 2007
The Du Pont Analysis:
Net profit margin = net income / sales 2009= 102471 / 2728709= 3.75% Total Asset Turnover = sales / total asset 2009 = 2728709/ 1354385 = 2.01 times Equity multiplier = Total Assets / Total Equity 2009=1354385 / 777820 = 1.74 times ROE=Profit margin * Total Asset Turnover * Equity Multiplier = = 3.75% * 2.01 *1.74 13.11%
This 13.11% ROE is exactly what we had before. The Du Pont identity tells us that ROE is affected by three things: 1. Operating efficiency (as measured by profit margin) 2. Asset use efficiency (as measured by total asset turnover) 3. Financial leverage (as measured by the equity multiplier)
Business Strategy The conclusion of the financial position of the Shezan Company is not good as we have seen that the sales are increasing from 2008 – 2009 but the profits of the company is decreasing because the company net profit growth goes negatively. And we have also seen the decrease in the profitability, liquidity, cash and other ratios of the company. Some of the ratios are increasing but not much effected. This shows that the company sales are increasing but there are some other factors involved in it which affect the company negatively. The company overall financial position is decreasing. We have seen the increase in the average inventory sales period, average collection period. The company return on assets and return on equity also decreases. We have seen the increase in the total assets turnover which shows positive impact on the business. But if we overall look at the financial position of the company then we say that the financial position of the company is bad. In simple words we can say that the company is not going in right direction.
Six Year Review at a Glance
According to Six Year Review at a Glance analysis (see annexure) we find that Shezan Company made continues sales increase in last 5 years because of new product development. According to interviewee before 2005 company had not growth infect company gone for diversification. But the acceptance of the new product in the market Shezan establish again and sale grownup another time. Interviewee said that we follow the market trend and develop the product according to market demand. Sales are goes high because of comparatively good quality and taste. Since 2005 to 2010 sales are in growth as per graph (see annexure) but on other hand 2005 to 2008 the profit margin was increasing and on 2009 and 2010 profit margin went down. The main reason for that is the increasing of expenditure. Another big reason is electricity failure in Pakistan. Company bears a hedge cost for standby guarantor and other over head charges. Distribution cost increases every year and also increases procurement and supply cost because of increase in fuel prices.
Business Strategy After analyzing the whole data and information provided to us we have seen that Shezan is in growth phase and it is responding to its external environment accordingly. It has adopted those strategies that are needed in this phase. They are growing and facing a change process with steady pace. It is very important for an organization to respond to its external environment accordingly, Shezan has some problems that need to be focused. As competition in the market is rising day by day, these days one has to be on your feet all the time. We analyzed grand strategy matrix and TOWS matrix, suggests some strategies that are being used by the Shezan. W also found in Shezan’s BCG matrix (See annexure for TOWS, Grand Strategy, BCG) that it has bottle juice as star, packet juice as cash cow, pickles at dogs’ quadrant and jams and pickles are at question mark. Shezan needs to be focus on them. We found some problems with their lower end of supply chain, they are lacking in the integration of the different departments. The gap analysis is discussed as below.
Some of the problems that we have observed in their distribution are: • Their overall Distribution is not properly integrated. They are not sharing information with each other. The logic behind identifying this problem is that they have their own farms and they are getting most of their raw material for the production from their own suppliers. And sometime when the raw material is reached at the warehouse for storage, the quality of fruits is not up to the standard and therefore they have to reject the supply. The point is, if they have their own supplier why can’t they check the quality of their raw material before dispatching it to the production plant. They are not sharing information and that’s why when the supply is rejected, they have to face loss of time and their production has to face lack of raw material.
Second problem we observed in their Distribution is their distribution channel. The main problem in their distribution channel is that they are not able to provide the delivery on time. Due to this reason the retailers have to face out of stock, and in
Business Strategy return the customers purchase the substitute product of another brand. Due to this problem, retailers prefer to have other brands on their shelves rather than keeping Shezan juice on it. And even those retailers who are keeping the shezan’s product on their shelves, they are not keeping more stock as compare to other brands. According to the retailers, when they order for the supply of Shezan juices, the distribution vans are late most of the times in delivery the product. So the customers either return back or most of the times they switch their brand and then they do not demand for Shezan Juice. Some of their sales vans are on contract basis and they work for Shezan only in the summer season when the demand is high. That’s why when they are called to pick up the supply from the cold storage, they do not come on time and after picking the product they are late in delivering the products to the retailers. Because they have no long term relations with the sales vans, that’s why they have to face these problems.
• First of all they have to improve their overall supply chain. They have main problems in their supplying side and the distribution channel. The problem of their raw material can be solved if they start inspecting their raw material for pulp formation at the farm before dispatching the supply. And they should use better trucks in which the quality of the fruits is not damaged. And when they temporary store their raw material in the warehouse, they must not store it for a long time and they should keep it in a dry and safe place. • They should reduce their inventory of fruits to a minimum level and move towards the just in time supplies. In this way they will be able to save the time which is wasted after rejection of raw material due to poor quality or poor handling or poor storage. Their major delays in their supply chain are at the raw material incoming and in cold storage waiting for distribution. • They should make their relations with the salesman on long term basis, and not on short term contract basis. Because then they are hired for short term, they do not give the productivity which is needed in the full demand season. They are not able to deliver on time and that’s why they lose their next orders from retailers. They should make long term relations with their salesmen and they should be trained well so that they can deliver the products on time. • And for other distributers like in Faisalabad and Multan, they have to discourage them to not give the product to smaller distributors for distribution. Because in this way they are facing two main problems, one is that it takes more time for the product to reach to the retail shop and secondly when the product is reaching the retailer after passing through two distribution channels , the price of their product is increased as compare to Lahore city. When the customers have to pay more for the same product, they will start switching to other brands. • Right now, they have a centralized distribution center in Lahore. They are distributing the products from the production plant facility. They should focus on primary and secondary distribution centers so that the On Shelf Availability of their
Business Strategy products in the markets and shops is increased and their existing customers do not switch to other brands.
As according to what we observed from the Shezan’s Strategies we have found that Shezan is sometimes proactive and some time it adopts reactive approach. Shezan is very much conscious and careful about its sales and about the customer satisfaction level and since 1964 they tried to maintain a same graph of satisfaction level and give customer a quality, fresh farm products direct from their own farms. Shezan is very much concerned about its SWOT analysis and keeping a closer eye on every action it can take for the better of its products. Every SBU has its own strategies to make and to implement and here at SBU level business strategy focus more narrowly on their own products. The MD plays an important and central role for the strategic planning to be more effective not just as a MD but also as a strategic thinker and corporate culture leader. Shezan’s management deals with developing a marketing mix to serve a designated market. Their main focus is on the strategies at SBU level where Shezan make their strategies considering three forces: • • • Customer Competition Corporation
And in addition to this internal and external factors also play an important role to develop strategy. Shezan is concerned about the external information pertains on social, economic, political and technological trends and product/market environment. The information is analyzed to identify the SBU’s strengths and weaknesses, which together with competition and customer define the objective of SBU. Shezan is also very concerned about the Corporate Appraisal and for this they keep a closer interact with all the groups of corporate publics having a stake in the organization. In this context Shezan is very much concerned about the Financial
Business Strategy Position of the company. And they evaluate this factor very closely for the further decision making of their products.
External Factor Analysis
External Factors Weig ht Opportunities Ratin g Weighted Score Comments
Value of dollar in world markets Make good
0.06 2 0.12
profits Minimal effect if company is
Stock market trends
growing Good facility to
Social security program
employees To get more
Attitude towards product quality
0.08 4 0.32
For health conscious Social program Number of high school and college graduates by
0.08 0.08 2 4 0.16 0.32 0.05 3 0.15
Highly growing segment CSR
geographic area Waste management
Follow rules properly to get Import export regulations
0.08 2 0.16
Rising price of Inflation rate
0.08 1 0.08
sugar Turnover rate can be effect because of
Market Price fluctuations
0.08 3 0.24
situation Insatiability of
govt. policy May increase
Oil & gas regulatory authority (ogra) price review
0.06 2 0.12
transportation cost Effect our
Water pollution Total
Internal Factor Analysis
Internal Factors Weig ht Ratin Weight g ed Score
Experienced marketing and
Strong advertiseme nt budget up Advertisement
0.02 3 0.02
to 150 Million Every year increase targeting more
Increasing Inventory turnover rates
strength Best quality
Better Product Quality
Very strong maintained
Strong Financial Position Increase market share
earning More shares than its
Business Strategy competitors
Listed company easily rise its Public listed company
0.06 3 0.12
Almost half of the total revenue by
Global operation Weaknesses
0.0 Lack of company outlet or stores 0.04 2 8
Needs to build up new stores
No up dated No Online business 0.05 1 0.05 information Shezan is market Lack of innovation Low variety 0.09 Low employee moral 0.07 2 0.14 2 0.08 2 0.16 follower Limited product 0.18 range Low incremental benefits Lack in management Inefficient distribution management 0.07 2 0.14 procedure Price is Price Competitiveness 0.05 1 0.05 slightly high
Business Strategy STRENGTHS(S) WEAKNESS (W) • Less promotional activities for its juice products. Lack of innovation. Shezan Company has very high prices in pure juices. No online Business Inefficient Distribution
TOWS Matrix Shezan
• Shezan offer high quality products especially pure juices in market. • Shezan is one of the largest FMCG Company. • Management team of Shezan Company is very strong and educated. • Shezan have strong positioning in customer mind. • Shezan have large distribution network all over the Pakistan. SO Strategies OPPERTUNITIES (O) •
WO Strategies • Extensive
marketing There are a lot of campaign. untapped markets in different areas of • Market Pakistan. development The concentric (S1,O1) diversification in different juices products. • Product Backward integration can development (S4,O5) use in juice products It can become multinational and can target different market of different countries. WT Strategies • Increase budget on packaging (W1,T1) •• Usage rate of juices is increasing & promotional activities
ST Strategies • Positioning as quality product • among consumer.(S1,T1) Acquiring the local competitors(S5,T3)
THREATS (T) • There is strong competition in food products market.
Business Strategy • Different strategies adopted by competitors Nestle in juices products • New product advancement by different competitors.
SIX YEAR REVIEW OF SHEZAN AT A GLANCE
Grand Strategy Matrix Year Year Year Year of Shezan 2007 2008 2005 2006
Rupees in thousand Income Sales other operating income 13677 63 11737 1379 473 Expenditure cost of sale distribution cost Finance cost Other Operating expenses and share of loss 91076 9 24843 0 4112 40391 1203 702 12375 66 33288 9 8942 50786 1630 183 14898 45 35754 9 12940 70145 1930 489 16914 43 44719 1 8104 73317 2220 055 17980 05 18608 1816 613 21748 94 13240 2122 134 24685 72 19880 2488 452
27287 09 20155 2748 864
35281 34 19448 3547 542
19744 46 44386 2 6542 71995 2496 845
25917 90 68190 5 17950 90718 3382 363
Profit before Taxation Taxation Profit after Taxation paid-up capital Reserves & inappropriate profit Unrealized gain/loss remeasurement of investment available for sale Share holder equity
17577 1 72134 1036 37 50000 42889 4 -250
18643 0 70302 1161 28 50000 49002 2 50
25765 5 11698 1 1406 74 50000 57569 6 -284
26839 7 10719 5 1612 02 60000 67689 8 -200
16057 0 58099 1024 71 60000 71917 1 -1351
16521 9 58474 1067 45 60000 79011 6 -1978
Business Strategy 4 breakup value per share in rupee Earnings per share in rupees Cash distribution per share in rupees Bonus per Share 2 108.0 1 23.23 11 0 2 104.2 4 23.45 11 0 8 122.9 2 26.87 10 20% 0 129.6 3 17.08 10 0 8 141.3 6 17.79
95.73 20.73 7.5 0
BCG Matrix of Shezan
Liquidity ratios Current Ratio:
The current ratio is an excellent diagnostic tool as it measures whether or not your business has enough resources to pay its bills over the next 12 months. The formula is: Current ratio = Current assets/Current liabilities 2009= 1043406/530603= 1.97 times 2008= 1002615/ 519497= 1.93 times 2007=836031/437654=1.91 times The current ratio of the Shezan Company is good it shows that the Shezan company has the more current assets in order to meet its short term bills. It shows the positive impact on the company but if we compare it with the previous year then we have found the increase of 0.04 times in the company current asset which is good for the company.
The quick ratio, sometimes called the acid-test, is a more stringent test of liquidity than the current ratio. This is because it removes inventory from the equation. Inventory is the least liquid of all the current assets. A business has to find a buyer if it wants to liquidate inventory, or turn it into cash. Quick ratio = Current Assets - Inventory/Current Liabilities
2009= 1043406- 755711/ 530603= 0.54 times 2008= 1002615- 689438/ 519497 = 0.60times 2007=836031-610903/437654=0.62 times The quick ratio of the company is decreasing in 2009 as compared to 2008. The decrease in the quick ratio is not good for the Shezan Company it shows bad impact on the company. But in 2009 we have seen from the ratio that the company does
Business Strategy not need to rely on their inventory to meet their short term liabilities. And this shows a positive impact on the company if it does not lose more.
The cash ratio is an indication of the firm’s ability to pay off its current liabilities if some immediate payment is demanded. Cash ratio = cash / current liabilities 2009= 70844/ 530603 = 0.13 times 2008= 84042/ 519497 = 0.16times 2007=108186/437654=0.24 times The cash ratio also decreases in 2009 as compared to 2008 which means that the company does not have much cash to meet their short term obligations. So, the company has to rely on the other current assets in order to meet their short term obligations. This will affect the company negatively. Because if some immediate payment is demanded then the company does not have the cash to meet this.
Net Working Capital Ratio: A measure of both a company's efficiency audits short-term financial health. The working capital ratio is calculated as:
2009= 1043406 – 530603 = 512803 2008=1002615 –519497 = 483118 2007=836031-437654 = 398377 As in both years the working capital is positive which shows that the company has the ability to pay off its short term liabilities. As we have seen that the working capital increases in 2009 which affect the company positively. On other hand the positive working capital shows that the company will continue its operations and has sufficient balance to meet upcoming operational expenses. And this affects the company positively.
Debt to total asset ratio:
It is the percentage of total funds provided by creditors. Debt to total asset ratio = Total debt / total asset 2009= 576565/ 1354385 = 0.43times 2008= 571355/ 1308055= 0.44times 2007=494935/1120347= 0.45 times If it is between 0.5 to 0.6 then it is efficient and best for the company but if it is more than the 0.6 then it is risky and if it is below the 0.5 then it is inefficient. So in this company the result in 2009 is 0.43 and in 2008 the result is 0.44 then we can say that the company’s performance is better.
Debt to equity ratio:
It is percentage of total funds provided by creditors versus by owners. Debt to equity ratio = total debt / total stock holders equity 2009 =576565 / 60000 = 9.6times 2008 = 571355/ 60000=9.5 times 2007=437654/50000=8.75 times
Long term debt to equity ratio:
Long term debt to equity ratio = long term debt / total stockholders equity 2009= 45962/ 60000= 0.77times 2008= 51858/ 60000= 0.86times 2007=57281/50000=1.15 times
It is the ratio of the total assets to the total equity. It tells us about how much the company has assets for the equity. It can be calculated as: Equity multiplier = Total Assets / Total Equity 2009=1354385 / 777820 = 1.74 times 2008 = 1308055/ 736700= 1.78 times 2007= 1120347/625412=1.79 times
Activity ratios Inventory turnover:
It tells about whether a firm holds excessive stocks of inventories and weather a firm are slowly selling its inventories compared the industry average.
Inventory turnover = CGS / Inventory 2009 = 1974446 / 755711 = 2.61 times 2008 = 1691443/ 689438= 2.45 times 2007= 1489845/610903=2.43 times If it is above the previous year then it is best for the company so in this company the ratio is above the previous year so we can say the company is going well.
Days Sales in Inventory ratio:
Business Strategy The days’ sales in inventory tells you the average number of days that it took to sell the average inventory held during the specified one-year period Days Sales in Inventory = 365 days / Inventory turnover 2009= 365 / 2.61= 140 days 2008= 365 /2.45 = 149 days 2007=365/2.43=150 days This shows that the company takes 149 days to sell the average inventory in 2008 and it increases to 140 days in 2009 to sell the average inventory held during the specified one year period. This decrease in the average number of days shows that company is doing its operations well.
Fixed Assets Turnover:
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments Fixed assets turnover = Net sale / Net Fixed Assets 2009= 2728709/ 310979= 8.77 times 2008= 2468572 / 305440= 8.08 times 2007=2174894/284316=7.65 times
Total Asset Turnover:
It tells about the sales productive and plan and equipment utilization. Total fixed asset = sales / total asset 2009 = 2728709/ 1354385 = 2.01 times 2008 = 2468572 / 1308055= 1.89 times 2009= 2174894/1120347= 1.94 times So if the result is more than 1 then it is healthy for the company and if the result is below the 1 then the company is weak and inefficient so in this company the result is more than 1 in both years so we can say the company is efficient and healthy.
Profitability ratios Gross Profit Margin:
It tells about the total margin available to cover operating expenses and yield a profit. Gross profit margin = Gross Profit / sales 2009 = 774408/ 2728709= 28.38 % 2008 = 797009 / 2468572= 32.29 % 2007= 685049/2174894= 31.49% If it more than the previous year then it is best and healthy for the company. But for this company we have seen that it is increasing in 2009 as compared to 2008 which means that the company is performing well. And the impact of increase in the Gross profit margin will positively affect the company.
Operating Profit Margin:
It tells the profitability without concern for taxes and interest.
Business Strategy Operating profit margin = EBIT / Sales 2009 = 160570/ 2728709 = 5.88 % 2008 = 268397/ 2468572 = 10.87 % 2007= 270595/2174894= 12.44% It is not better than the previous so the company is not in good position.
Net Profit Margin:
Net profit margin = net income / sales 2009= 102471 / 2728709= 3.75% 2008 = 161202 / 2468572 = 6.53% 2007= 140674/217489=6.46% It tells the after tax profit per Rs. of sales. It is better than the previous so the company is in performing well.
Return on Asset:
Return on asset = net income / total asset 2009 = 102471 / 1354385 = 7.57 % 2008 = 161202 / 1308055= 12.32% 2007=140674/1120347=12.56% It tells after tax profit per dollar of asset and also called ROI. It is not better than the previous so the company is not healthy and performing efficiently.
Return on Equity:
Return on equity = net income / total stock holders’ equity 2009 = 102471/ 777820= 13.17 % 2008 = 161202 / 736698 = 21.88% 2007=140674/625412=22.49% It tells after tax profits per dollar of stockholders investment in the firm. We have seen a much increase in it. So it will show good impact on the company. This shows that the company is performing well.
Earnings per Share:
Earnings per share = net income / number of share of common stock outstanding 2009 = 17.08 2008 = 26.87 2007=28.13 It tells the earning available to the owners of common stock. It decrease in 2009 and it shows that the company is doing its operations not well.
Growth ratios Sales Growth:
Sales growth = current sales – previous sales / previous sales 2009 = 2728709 –2468572 / 2468572 = 10.54 % 2008 = 2468572 - 2174894 / 2174894= 13.50 % 2007=2174894-1798005/1798005=14.01%
Business Strategy It tells the firms growth in sales. It is below than the previous year so it is bad for the company.
Net Income Growth:
Net income growth = current N.I – previous N.I / previous N.I 2009 = 102471- 161202 / 161202= -36.43% 2008 = 161202 – 140674 / 140674 = -14.59% 2007=140674-116128/116128=-18.58% It tells the firm growth rate in profits .so the profit growth rate is not better than the previous year so the company is not going in good direction.
www.scribd.com www.shezan.info http://www.indexmundi.com/pakistan/ http://downloadsoftwarestore.com/program/screenshot/46344 http://blog.accountingcoach.com/days-sales-in-inventory/
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