“SURSUBZ AGRO CHEMICALS”

INTRODUCTION
“Sursubz Agro Chemicals” started their journey in 2009 as a distribution company in Pakistan to
facilitate growers to overcome their problems as far as their agriculture crop is concern. Sursubz
started conferences, exhibitions and seminars in April 2015 and arranged various local and
international tours yearly along with musical and entertainment shows for its valuable 150+
dealers.

The company is authorized by government of Sindh & Balochistan agriculture department and a
specific member of Pakistan crop protection association and also a certified tax payer by FBR.
Sursubz gives a special attention on its R & D department by visiting fields to discover various
issues and resolve them. “Sursubz Agro Chemicals” offers more than 100 products including
pesticides, seeds and fertilizers for a wide range of crops including wheat, rice, sugarcane and
cotton etc. By winning the trust of its consumers, Sursubz has become the most well-known and
trusted names in Crop Protection Industry and provide various training and awareness programs
in their own areas. Currently more than 40 employees including labors and staff are working in
the organization and also give the opportunities to join them by offering vacancies through social
media, portal and news paper.
COMPANY’S VISION

“Sursubz Agro Chemicals the agriculture based company deals in seeds, fertilizer and
pesticides. We provide the various solutions to the growers who are generating the food itself
and food ingredients for the nation.”

Clear Future Customer Customer Need Product And Business Value

Oriented Services

Yes -- Yes Yes Yes --

ANALYSIS
In the above vision statement, products and services are clearly defined along with customers
(Growers) and their needs. The statement shows the current status of the company by making the
statement in present tense which doesn’t give the insight that where the company would stand in
future. Also the statement doesn’t seem attractive for its stakeholders as the company didn’t talk
about the long-term growth, profits and sustainability.
RE-WRITE VISION
“Sursubz Agro Chemicals” the agriculture based company deals in seeds, fertilizer and
pesticides. We provide the various solutions to the grower who are generating the food itself and
food ingredients for the nation. The company’s main focus is to maximize the quality and high
profits simultaneously and become the leading company all over the world.
COMPANY’S MISSION
“We need to be particular and very specific to keep our growers in very comfort zone as far as
their agriculture crop is concerned.”

Customer Products Market Technology Survival, Philosophy Self- Public employee

&services growth & concept image
profitability

Yes -- -- -- -- -- -- -- --

ANALYSIS
In the above mission statement, the company just discuss about the customer’s comfort zone
which doesn’t make any sense. Although they mention their customers but the whole statement
shows irrelevancy.

RE-WRITE MISSION
“Sursubz agro chemicals” is a recognized leader among the agriculture products that are seeds,
fertilizers and pesticides in Pakistan. We provide the best quality products by using latest
technology at best affordable rates comparatively and keep our products environment friendly for
health & safety with ethical conduct. We are not just specific to facilitate our growers as far as
their agriculture crop is concerned but also facilitates our associates by leading a sound success,
growth and high profits in agriculture market.
 EFE - SURSUBS AGRO CHEMICALS
KEY EXTERNAL FACTORS WEIGHTAGE RATING WEIGHTED
% SCORE
OPPORTUNIIES
Start up in a country like Pakistan 0.18 4 0.72
Technological advancement 0.16 3 0.48
Youth 0.06 3 0.18
Expansion of business internationally 0.14 1 0.14
Less competitors 0.12 3 0.36
THREATS
Changes in government policies 0.08 4 0.32
Heavy bribes for approval of new chemicals launching 0.10 3 0.30
Illiteracy of farmers 0.07 3 0.21
Imports 0.09 3 0.27
TOTAL 1.00 2.98

EFE ANALYSIS
External analysis chart shows that the company is performing above average as it show 2.98
weighted score.

As the score evaluated the company’s performance on following scale:

 Less than 2.5 = Bellow average

 Equal to 2.5 = Average
 Greater than 2.5 = above average

OPPROTUNITIES

Start up in a country like Pakistan: Pakistan has a vast availability of fertile land and
favorable climate. The agricultural industry of Pakistan contributes 26% to GDP. As
Sursubz has started up from Pakistan and it is very beneficial for them because the
demand for their product is always available.
Technological advancement: Innovation in technology is increasing all over the world
in every industry and to meet the best requirement, the advance technology based
planning and development is needed. Sursubz gives a special attention on their Research
& Development department which connects them with the information of latest
technology. It is a good opportunity for the company to become a market leader by
grabbing the latest technology first to meet the market requirements.
Youth: The young people can work better than the old ones and the major part of
Pakistani population is youth. The company has 70% of youth employment and they have
a good opportunity to maintain this ratio easily.
 Expansion of business internationally: The agricultural market have been
internationalizing since 1970’s to give a boost in business success. Sursubz is a local firm
and has the opportunity to explore the international market.
Less competitors: Competition in business means the customers have the options to
choose either your product or others’ product. Sursubz is facing less competition because
of their strong distribution network.

THREATS

Changes in government policies: There is a massive fluctuation in government policies

of Pakistan that leads to downfalls and sometimes complete shut down for businesses. In
these scenarios Surbubz survives very well because of its strong financial position as the
company is not only the manufacturer but also supply products by importing them from
international market.
Heavy bribes for approval of new chemicals launching: Corruption is widespread all
over in Pakistan specifically in the government sector. The companies have to pay heavy
bribes for approving and launching their products even though the products have fulfilled
all the legal formalities. As the company has a strong background, it manages to pay
these bribes.
Illiteracy of farmers: Because of the illiteracy, the farmers are very rigid in their
decisions and are also very reluctant to adopt new methods of cultivating crops. By this
mean, Sursubz showed interest by providing training and development programs to the
growers in their own areas.
Imports: As CPEC is coming up with lots of advantages in Pakistan but it could be a
threat for the agricultural sector as the foreign investors also find the opportunity to invest
in agricultural sector which could lead the high competition in local market. In this
situation Sursubz may not face the hurdles as it imports the quality raw material for their
products and also import those products which cannot be manufacture in Pakistan.
 IFE - SURSUBS AGRO CHEMICALS
KEY INTERNAL FACTORS WEIGHTAGE RATING WEIGHTED
SCORE
STRENGTHS
Training and development programs for growers 0.16 4 0.64
Bonuses and incentives offered to retain employees 0.11 3 0.33
Arrange yearly conferences/ seminars locally and internationally for
0.08 4 0.32
engaging dealers and employees
Usage of energy saving technology 0.13 3 0.39
Diverse organizational culture 0.10 4 0.40
Pay attention on R & D activities 0.17 4 0.68
WEAKNESSES
Still a local firm 0.12 1 0.12
Most of the transactions are carried out on credit 0.06 2 0.12
Disturbance in production when temporary labor left suddenly 0.07 2 0.14
TOTAL 1.00 3.14

IFE ANALYSIS
Internal analysis chart shows that the company is performing above average to good as it show
3.14 weighted score.

As the score evaluated the company’s performance on following scale:

 Less than 2.5 = Bellow average

 Equal to 2.5 = Average
 Greater than 2.5 = above average

STRENGTHS

Training and development programs for growers: The farmers in Pakistan are
illiterate, they don’t know how to use modern technology to make land fertile after
harvesting crops and are also unaware of new methods of cultivating crops. Sursubz pay
special attention to facilitate the farmers by proving trainings to enhance the skills of
farmers in their own areas which make farmers more loyal to have good business relation
with the company.
Bonuses and incentives offered to retain employees: Many researches are conducting
on retention of talented employees because of high employee turnover rate in Pakistan.
To retain the talented employees, company offers incentives and bonuses which include
lucky draws for cars, bikes, Umrah tickets and other allowances.
Arrange yearly conferences/ seminars locally and internationally for engaging
dealers and employees: Sursubz is not an international company yet but it has spread its
name in the international market by conducting yearly conferences and seminars locally
 and internationally for its valuable dealers and employees to maintain long term relation
with them.
Usage of energy saving technology: Technological advancement is increasing day by
day and if one would not adopt it by the time could become a thread for them. Sursubz is
using energy saving plants which reduces the consumption of energy which ultimate
reduces the cost of production per unit.
Diverse organizational culture: Diversity of organizational culture plays a very
important role in the success of any organization. The company has hired employees
from different cities who can easily understand the behaviors of their citizen farmers
which help them to coordinate them easily and maintain healthy relationships with
farmers all over the country.
Pay attention on R & D activities: Sursubz get the assistant from Agricultural
University Tando Jam for its research and development activities which make them
informative about the market, technology and trends.

WEAKNESSES

Still a local firm: Although Sursubz has build its name in international market but it is
still a local firm.
Most of the transactions are carried out on credit: Company is facing a lot of recovery
issues because most of its transactions are carried out on credits.
Disturbance in production when temporary labor left suddenly: When the temporary
labor left suddenly, it slow down or disturbs the process of production temporarily which
affects the cost of production.
 COMPETITIVE PROFILE MATRI (CPM)
SURSUBZ AGRO PAK AGRO
CRITICAL SUCCESS WEIGHTAGE RATING WEIGHTED RATING WEIGHTED
FACTORS % SCORE SCORE
Market share 0.15 2 0.30 3 0.45
Financial position 0.16 3 0.48 4 0.64
Product quality 0.10 3 0.30 3 0.30
Sales distribution 0.08 3 0.24 4 0.32
Consumer loyalty 0.05 3 0.15 2 0.10
Organization structure 0.07 2 0.14 3 0.21
Product capacity 0.09 2 0.18 3 0.27
Price competitive 0.13 4 0.52 2 0.26
Management experience 0.11 2 0.22 3 0.33
Global expansion 0.06 3 0.18 3 0.18
Total 1.00 2.71 3.06

CPM ANALYSIS
As in total weighted score of Sursubz Agro shown low weightage than the competitor’s

 Market share and Financial position: Sursubz is bit weaken and less responsive than
Pak agro because competitor is a group of company which has larger market share and
stronger financial position.
 Product quality and Sales distribution: Both companies response same in proving the
quality of product but Sursubz has less sales distribution channels than Pak Agro to make
their product available to end user.
 Customer loyalty and Price competitive: Sursubz Agro provide some packages and
have good policies to maintain their customers’ loyalty also Sursubz provide low rates
comparatively which makes them competitive in market.
 Organization structure and Product capacity: As Sursubz is small in size, they don’t
have capacity to produce large amount of products than Pak agro so they are less
responsive to both.
 Management experience and global expansion: Pak agro is older than Sursubz, so they
have more experienced management but in global expansion both companies were
equally responsive.
 SWOT MATRIX
STRENGHTS WEAKNESSES
1. Training and development 1. Still a local firm
programs for growers 2. Most of the transactions are
2. Bonuses and incentives carried out on credit
offered to retain employees 3. Disturbance in production
3. Arrange yearly conferences/ when temporary labor left
seminars locally and suddenly
internationally for engaging
dealers and employees
4. Usage of energy saving
technology
5. Diverse organizational culture
6. Pay attention on R & D
activities
OPPORTUNITES SO STRATEGIES WO STRATEGIES
1. Start up in a country like
Pakistan (S3,O4): MARKET PENETRATION (W1,O4): MARKET DEVELOPMENT
2. Technological advancement (S6,O5): DIVERSIFICATION
3. Youth
4. Expansion of business
internationally
5. Less competitors
THREATS ST STRATEGIES WT STRATEGIES
1. Changes in government
policies (S1,T3): MARKET PENETRATION (W1,T4): PRODUCT DEVELOPMENT
2. Heavy bribes for approval
of new chemicals launching
3. Illiteracy of farmers
4. Imports

SWOT MATRIX ANALYSIS

SO ANALYSIS

 (S3, O4): We have chosen Market Penetration strategy because Sursubz has already
explore the international market by Arranging yearly conferences/ seminars locally and
internationally for engaging dealers and employees and it has the opportunity to Expand
their business internationally by grabbing international customers as well.
 (S6, O5): We have chosen Diversification strategy because Sursubz is good at R & D
work so they can identify the latest need of customer and make the product accordingly
as they have the opportunity of less competitors, they can become a market leader.

WO ANALYSIS

 (W1, O4): We choose Market Development strategy because the company is still a local
firm and we can overcome this weakness by grabbing the opportunity of exploring the
international market.
ST ANALYSIS

 (S1, T3): We have chosen Market Penetration strategy because Training and
development programs for growers can help to minimize the threat Illiteracy of farmers
and can help to penetrate in market by enlighten farmers more towards the products.

WT ANALYSIS

 (W1, T4): We have chosen Product Development strategy because company is still a local firm
and imports could be a threat so the company should focus more on developing a product
according to the demand through which Pakistani farmers don’t need to import the products as
the can find the product locally on lesser prices.
 SPACE MATRIX
CALCULATIONS FOR FAINANCIAL RATIOS

NECESSARY DATA OF THE SURSUBZ AGRO CHEMICALS 31 DEC, 2018:

 Net Income = 1,520,723

 Shareholder’s Equity = 19,474,522
 Current Asset = 4,500,628
 Total Asset = 26,856,967
 Current Liabilities = 3,076,530
 Total Liabilities = 7,382,445

RETURN ON EQUITY

ROE = Net Income/ Shareholder’s Equity

1,520,723/19,474,522

ROE = 0.078 OR 7.8%

RETURN ON ASSET

ROA = Net Income/Total Asset

1,520,723/c

ROA = 0.057 OR 5.7%

LIQUIDITY RATIO

Current Ratio = Current Asset/Current Liabilities

4,500,628/3,076,530

Current Ratio = 1.46

LEVERAGE RATIO

Debt to Asset Ratio = Total Debts/Total Asset

7,382,445/7,382,445

Debt to Asset Ratio = 0.27 or 27%

 SPACE MATRIX
S. NO. FINANCIAL STRENGTH RATING
Return on Equity 2
Liquidity 5
Return on asset 7
Leverage 6
TOTAL 20
S. NO. INDUSTRY STRENGTH
Growth potential 5
Profit potential 4
Financial stability 5
Productivity 4
TOTAL 18
S. NO. ENVIRONMENTAL STABILITY
Technological changes -2
Inflation -3
Price range of competing products -2
Competitive pressure -3
Government Policies -3
TOTAL -13
S. NO. COMPETITIVE ADVANTAGE
Market share -3
Product quality -2
Technological know-how -2
Customer loyalty -2
Capacity utilization -4
Global expansion -3
Sales distribution -4
TOTAL -20

CALCULATIONS
FS: 20/4 = 5

IS: 18/4 = 4.5

SP: -13/5 = -2.6

CP: -20/7 = -2.85

X-CORDINANT = CP + IS = -2.85+4.5 = 1.65

Y-CORDINANT = FS + SP = 5+ (-2.6) = 2.4

SPACE MATRIX ANALYSIS
The rating scale of Space matrix shows the company responsiveness towards the four dimensions
in which Financial Strength (FS) and Industry Strength (IS) dimensions which values ranging
from +1 (worst) to +7 (best) and Competitive position (CP) and Environment Stability (ES)
dimensions which values ranging from -1 (best) to -7 (worst).

As we can see, the arrow lies in Aggressive area hence, the company can choose the following
strategies:

 Backward and Forward Integration

 Market Penetration
 Market Development
 Product Development
 Diversification (Related and Unrelated)
STRATEGY SELECTION
 Market Penetration
 Product Development

REASON FOR CHOOSING STRATEGY

The company can choose Market Penetration and Product Development strategy because CPEC
project is going to start in Pakistan which makes the ease of imports and exports in Pakistan and
imports could be a threat for the company. So, by choosing Market Penetration and Product
Development strategy, company can fulfill the demand of customers’ needs
 BOSTON CUNSULTING GROUP (BCG) MATRIX CHART
SURSUBZ AGRO PAK
AGRO
PRODUCTS SALE SALE PROFIT PROFIT INDUSTRY MARKET SALE
2017 2018 % GROWTH SHARE 2018
RATE
1. FERTILIZER 2,000,000 2,800,000 600,000 60% 0.4 0.6 4,500,000
2. WEEDICIDE 1,800,000 2,400,500 235,000 23% 0.3 0.75 3,200,000
3. FUNGICIDE 1,020,000 1,200,500 175,000 17% 0.18 0.4 2,800,000
TOTAL 4,900,100 6,401,000 1,010,000 10,500,000

PRODUCT 1: PRODUCT 3:
IGR = Current Sales – Previous sales/ IGR = Current Sales – Previous sales/
Previous Sales Previous Sales

2800000-2000000/2000000 1200500/1020000

0.4 0.18

MS = Firm’s Sales/Competitor’s Sales MS = Firm’s Sales/Competitor’s Sales

2800000/4500000 1200500/2800000

0.6 0.4

PRODUCT 2:
IGR = Current Sales – Previous sales/
Previous Sales

2400500-1800000/1800000

0.3

MS = Firm’s Sales/Competitor’s Sales

2400500/3200000

0.75
BCG MATRIX
BCG MATRIX ANALYSIS
STRATEGY FOR PRODUCT 1 & 2:

As we can see in the above matrix, Product 1 and Product 2 lies in the stars. Hence the company
can choose the following strategies:

 Backward and Forward Integration

 Market Penetration
 Market Development
 Product Development

Company can go for Integration strategy through which they can minimize the cost.

STRATEGY FOR PRODUCT 3:

The above matrix shown that Product 3 lies in Question mark so the company can choose
Intensive Strategies which are:

 Market Penetration
 Market Development
 Product Development

Company can go towards Product Development strategy by which they can meet the quality of
product which increases the product demand and they can move towards the stars.
 INTERNAL - EXTERNAL MARIX (IE) CHART
DIVISION SALES SALES % PROFIT PROFIT IFE EFE
%
SURSUBZ 53,060,000 40% 10,900,000 38% 3.14 2.98
AGRO
PAK AGRO 78,512,000 60% 18,000,000 62% 3.58 3.24
TOTAL 131,572,000 100% 28,900,000 100%

IE MATRIX

IE MATRIX ANALYSIS
 QUANTITATIVE STRATEGIC PLANNING (QSP) MATRIX CHART
STRATEGY A STRATEGY B
PRODUCT MARKET
KEY FACTORS WEIGHTAGE
DEVELOPMENT DEVELOPMENT
AS TAS AS TAS
STRENGTHS
Training and development programs for growers 0.16 3 0.48 1 0.16
Bonuses and incentives offered to retain
employees 0.11 2 0.22 3 0.33
Arrange yearly conferences/ seminars locally
and internationally for engaging dealers and 0.08 1 0.08 4 0.32
employees
Usage of energy saving technology 0.13 4 0.52 3 0.39
Diverse organizational culture 0.10 2 0.20 4 0.40
Pay attention on R & D activities 0.17 4 0.68 3 0.51
WEAKNESSES
Still a local firm 0.12 1 0.12 4 0.48
Most of the transactions are carried out on credit 0.06 1 0.06 1 0.06
Disturbance in production when temporary labor
left suddenly 0.07 4 0.28 1 0.07
TOTAL 1.00
OPPORTUNIIES
Start up in a country like Pakistan 0.18 3 0.54 1 0.18
Technological advancement 0.16 4 0.64 4 0.64
Youth 0.06 1 0.06 1 0.06
Expansion of business internationally 0.14 2 0.28 4 0.56
Less competitors 0.12 3 0.36 2 0.24
THREATS
Changes in government policies 0.08 2 0.16 3 0.24
Heavy bribes for approval of new chemicals
0.10 3 0.30 1 0.10
launching
Illiteracy of farmers 0.07 3 0.21 1 0.07
Imports 0.09 4 0.36 4 0.36
TOTAL 1.00
TOTAL 5.55 5.17

QSP MATRIX ANALYSIS

REFERENCES
http://www.sursubz.com