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MANAGEMENTREPORT
assignment.
in corporateworld.
You truly are a standout teacher because of your sheer dedication to your students.
Being able to count on you for extra help and clarification was really special to us and
shows how much you care about the success of your students. This assignment proved
to be a tremendous learning for us. This subject was never taught to us in the manner
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We especially loved the way you always related the lessons to real-life examples that
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Sincerely,
Humera M Hanif
MadihaRazzaq
Ameera Jahangir
CONTENTS PAGE NO
6
EXECUTIVE SUMMARY
8
VISION AND MISSION STATEMENT
INFORMATION GATEHERED
STRENGTHS +WEAKNESSESS +OPPORTUNITIES +THREATS 9
INPUT STAGE
IFE, EFE, CPM MODELS 10----12
MACHING STAGE
SWOT matrix + SPACE matrix 13 ----16
DECISION STAGE
QSPM 17
ANALYSIS
VISION + MISSION + STRATEGIES 18-----20
RECOMMENDATIONS
CONCLUSION + BIBLIOGRAPHY 21 -----22
After surveying and observing the management particularly strategic procedures,p practices,
and policies at Lucky Cement we have conducted a detailed analysis of internal as well as
external environment of organization
We developed IFE matrix and calculated a weighted score of 3.00 which shows company is
effectively utilizing its strengths and overcoming its weaknesses we also developed EFE
matrix and calculated a weighted score of 2.55 which shows company’s strategies effectively
taking advantage of existing opportunities and threats in the industry
SPACE matrix shows that company is on aggressive strategy. BCG model shows company is in
STAR quadrant.QSPM matrix Shows Company is working on two different strategies I.e.
MARKET DEVELOP MENT and MARKET PENETRATION. All other relevant matrices are also
developed
INTRODUCTION:-
Lucky cement was founded in 1994 by Mr. Abdul RazzaqTabba. The company initially
started factories in pezu district of KPK (Khyber pukhtunikwah).it now also owns a
factory in Karachi
Lucky cement has been sponsored by one of the largest business group in Pakistan the
younus brothers (YB) group. The YB group is engaged in diversified manufacturing
activities including textiles, weaving, spinning, and power generation. Currently lucky
cement has the capacity of producing “25000 tons” per day of dry cement processes
Lucky cement
Lucky star
Lucky sulphate resistant cement (SRC
Lucky slag cement (OC)
Ordinary Portland cement (OPC)
MISSION:-
Our mission is to be a premium cement manufacturer by building a professional organization,
having state-of-the-art technology, identifying new prospects to reach globally and maintain
service and quality standards to cater to the international construction needs with an
environment-friendly approach.
Weaknesses:-
1) High transportation cost
2) Low advertising and exposure
3) Increasing general and admin expense
4) Capital intensive industry
5) Increased production cost
6) Highly Localized and regionalized markets
7) Low gratuity and PF funds
Opportunities
1) Upcoming national building projects
2) Increasing demand for cement in gulf region
3) Market development and penetration
4) Infrastructure development
5) Population increase causing increase in real state
6) Increase production to reduce cost and achieve economies of scale
7) Global expansion
8) Undiscovered markets of northern regions of Pakistan
Threats: -
1) Governmental regulations 7) Fluctuation in currency rates
2) Price competition
3) Alliance opposition
4) Fluctuation in demand
5) Political instability
6) Increase production cost
INPUT STAGE:-
The above IFE matrix lists the top 12 key factorsof lucky cement .lucky cement is doing best
STRENGTHS WEIGHT RATING WEIGHTED
SCORE
Revenues increased 0.09 4 0.36
High product quality 0.12 4 0.48
High pay scale 0.10 3 0.30
Highest export share 0.20 3 0.60
Inventory turnover up 3.58 to 0.05 3 0.15
4.00
Larger dealer network 0.08 4 0.32
Employee development 0.06 4 0.24
WEAKNESSES
Low advertising 0.05 2 0.20
Increase in cost of production 0.10 1 0.10
High transportation cost 0.07 1 0.07
Highly regionalized and localized 0.08 1 0.08
market.
TOTAL 1.00 2.90
on “export share” and “high product quality “ whereas lucky cement is having major
problems with its “regionalized and localized market” and “transportation” .
The most important factor being successful in the cement industry “product quality “as
indicated by weight of 0.20
From this table “lucky cement “is strongest in “product quality, managementand financial
position” indicated by rating of “4”
DG khan cement is strongest in advertising (rating of 4)
Over all “lucky cement “isstrongest asindicatedby the total weighted average score of “3.5”
MATCHING STAGE:
SWOT ANALYSIS:-
1. Financially
strong
STRENGTHS 2. High product
quality SETUP NEW BUILD UP
3. Highest export FACTORIES IN EXPOSURE AND
share NORTHERN BETTER BRAND
4. High pay scale REGIONS OF IMAGE THROUGH
PAKISTAN RIGHT
(S1 , O1 ) PROMOTIONAL
1. Low MIX
advertising INCREASED ( W1 , O1 ,O2 )
WEAKNESSES and exposure EXPORTS TO
2. Low gratuity GULF REGIONS DIVERSIFY IN
and PF funds ( S1 ,S2,O2) GULF REGION
3. Increasing ((w1,o22 )
general and
administrative
expenses
1. Upcoming
national “ST “ strategies “WT “ strategies
OPPORTUNITIES projects
OPPORTUNITIE 2. Demand for
S cement in gulf OVERCOMING REDUCE GENERAL
region COMPETITOR’S & ADMIN
3. Expansion in PRESSURE EXPENSES TO
THROUGH COPE WITH
cement
MORE QUALITY NARROW
industry
(S2,T2) COMPETITION
(W3,T2)
1. Govt RESOLVE
THREATS regulation on ALLIANCE CONSIDER
slots OPPOSITION EMPLOYEE’S
2. Price THROUGH TOP PERKS TO AVOID
competition MANAGEMENT HASSELS OF
pg. 13strategic management report (2014-15)
3. Opposition INVOLVEMENT LABOUR UNIONS
alliance (S1,T3) (W2,T3)
SPACE MATRIX (STRATEGIC POSITION AND ACTION MATRIX)
DECISION STAGE:-
QSPM (quantitative strategic planning matrix)
STRATEGIC ALTERNATIVES
Global Exposure and brand image by right
expansion promotional mix
KEY FACTORS WEIGHTS AS TAS AS TAS
Opportunities
Upcoming national 0.15 1 0.15 4 0.60
building projects
The Sum Total Attractiveness Score is 5.2 for strategy ” GLOBAL EXPANSION” and 5.92 for
strategy “ BUILD UP EXPOSURE & BRAND IMAGE BY RIGHT PROMOTIONAL MIX”.
Opportunities are highly attractive in building brand image by right promotional mix. Threats
show more concerns with global expansion. Government regulations, price competition and
currency rates are most attractive threats to be reduced. Financial position, product quality
and pay scales are attractive to build up brand image whereas export share shows highly
attractive to capitalize the strengths. Advertising, gratuity funds and production costs are
highly attractive to improve the weaknesses.
Proposed Vision:-
“To transform lucky cement into a model cement manufacturing company engaged in nation
building through most efficient utilization of resources and optimally benefiting all
stakeholders while enjoying public sector and goodwill in local and international market.”
Proposed Mission:-
“Our mission is to be perceived by our customers by providing highest quality of cement
using state of the art technology and retaining personnel of exceptional ability while
maintaining its leading position aims to build up on its present state of profitability with a
view to maximize shareholders wealth and care for global environment.
analysis :-
Of the information obtained we sorted out different strengths, weaknesses, threats and
opportunities for the purpose of developing models.
In “IFE “matrix lucky cement has received a total of 2.90 indicates a greater score compared
to the average weighted score of 2.5. It also depicts that lucky cement is above average in
its overall strengths. However there still remains a room for improvement to achieve the
highest score of “4”
In “EFE matrix” lucky cement has scored a total of 2.87 which shows that company is pretty
well performing by taking advantage of external opportunities and avoiding the threats facing
the firm. Lucky cement must capitalize on “unexploited markets of northern regions of
Pakistan “and increase production to reduce cost” and increase in infrastructure
opportunities and the “fluctuation in market “Threat
In competitive profile matrix (CPM) lucky cement has got the highest score of “ 3.5” but it’s
close competitor “DG cement” has got the highest score in “advertisement” therefore lucky
cement should go for more and more advertisement in order to give exposure to consumers
and creating effective brand loyalty
The matrix shows that lucky by being financially strong and with the opportunity of upcoming
national projects leads to setup factories in northern regions of Pakistan. Being financially
strong & high product quality, Lucky cement should devise a strategy to diversify in gulf
region as having demand for cement thereCompany can minimize the price competition and
maintain its product quality by overcoming competitor's pressure through more quality.
The company have the ability to consider employee's perk to avoid Hassel's of labor by
disengaging the opposition alliance and by minimizing the low gratuity & provident funds.
We also found that lucky cement lies in first right quadrant of SPACE matrix.it implies that C
COMPANY is staying at close is their basic competencies. The industry is growing and
company is financially stable with profound competitive advantage. Lucky cement is in
“market penetration “through aggressive selling and market development (new factories
being set and exports to gulf region).
The QSPM analysis indicates lucky cement should build up better brand image by
promotional mix.
RECOMMENDED STRATEGIES:
After conducting thorough research study and keeping in view the external and internal
environment of the company, we suggest Lucky Cement Pvt Ltd to go for these strategies:
2. Market Development: During recent years, the demand for cement has drastically
increased in Gulf region. In order to cater to the increasing demand and to develop
new markets, Lucky Cement should increase its exports towards Gulf region and also
in other countries, hence developing a market in a new geographical segment.
GENERAL RECOMMENDATIONS:
1. Lucky Cement despite of being the industry leader, still has not captured the brand
image as its other competitors. The reason is the lack of publicity and advertisement.
Lucky Cement should concentrate on the consumer market through better
promotional mix programs.
2. Although the pay scale of employees currently working with Lucky Cement is quite
high, in comparison with its competing cement manufacturing organizations, still the
turnout rate is very high. The reason being low gratuities and benefits after retirement
due to which most of the employees quit. In order to retain its valuable Human
Resource, Lucky Cement should pay attention towards this area.
3. Lucky cement need to implement contingency planning to cope with the future
constraints.
CONCLUSION: -
Lucky cement like any other responsible organization is redefining its business operations in a
fundamental way. It is working to promote sustainable development and integrating its
endeavors of profitable growth with the initiative of environment all protection &uplifting
the quality of life of the present &the future generations .The company have undertaken
projects that will enable them to meet the need for global sustainable development while
enhancing share holder value.
BI BLIOGRAPHY: _-
Strategic management (concepts and cases) by Fred.R.David ( thirteen edition )
www.pakistaneconomist.com
www.dgcement.com