Professional Documents
Culture Documents
MM 2
MM 2
ID NUMBER 14612
(FALL19)
DATE 17-12-2019
ASSIGNMENT 02
Introduction and Background of the Company:
Lucky Cement Limited (LCL) is one of Pakistan’s largest cement manufacturing companies
and has made its name at the top of the list of the biggest cement producers and exporters of
the country, Lucky Cement Limited was established in 1993 by TabbaMemon family. Its
founders include Abdul Razak Tabba and Azam Soofi. In Pakistan, Lucky Cement has
evolved into a premium cement manufacturer delivering consistent quality, providing
unmatched customer satisfaction, and, most importantly, benefit from low production costs.
Lucky Cement is one of the largest cement producers in the domestic cement industry with a
production capacity of 9.35 MTPA and over two decades of cement manufacturing
experience in Pakistan at its plants in Pezu and Karachi.
Moreover, the Company now has an international production footprint in the Democratic
Republic of Congo and the Republic of Iraq. It has established various other business
concerns in textiles, cement, construction, power generation sectors, and real estate
development. It is also Pakistan’s first and largest exporter of loose cement and is the only
cement manufacturer to have loading and storage terminal at Karachi Port. Lucky Cement is
growing rapidly and offers a higher return to its stockholders. It has gained the highest market
share as compared to its competitors. It is successfully attaining its financial and nonfinancial
objectives on short term and long term basis. It is not only focusing on attainingits financial
objectives but also its strategic objectives, in which it decided to provide its customers with
dynamic, innovative products and to provide cost benefits to its customers, which then tend to
give higher satisfaction levels to its customers. LCL prioritizes its corporate social
responsibility (CSR) as a part of strategic objectives and it assists its employees and
communities by providing better education and health facilities. LCL cares a lot about its
employees and rewards them above market salary and benefits. It has the policy of equal
employment opportunities and nondiscriminatory behavior to its employees.
Mission:
We strive to be a growth-oriented company by identifying opportunities, making the right
investments, producing high-quality cement and using innovative technology to achieve cost
competitiveness and customer satisfaction. We endeavor to harness the best human resources
and providing them a level playing field in achieving long-term goals. We aim to deliver
sustained growth and enduring value to our stakeholders. We recognize our obligations
towards the environment and corporate social responsibility and seek to mitigate any adverse
effects on our environment.
Vision:
Ensure a sustainable leadership position in Pakistan and increase the global footprint in the
cement sector. Identify and capitalize on diversification opportunities to maximize
shareholders’ value while remaining socially responsive in all spheres of operations.
v. Environmental Factor:
The environment is a very critical issue for the company and product. The bad
environment when created in the country so company go down to lose and crash therefore
bad environment effect on the production sale and benefit of the company as suddenly
attack terrorist on the market then every customer not to move the market side and
become the strike there is bad impact on the product supplies and worker also not to come
for working in the company, there is long time very bad environment in KPK and star war
between government of Pakistan and Taliban near lucky cement in pezu this time very
difficult situation in the kpk the company product supplies and workers was not to proper
working in the company.
SWOT ANALYSIS:
SWOT is the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is a very
effective tool used in the Business industry to form strategies. SWOT analysis in marketing is
almost the same thing as a normal SWOT analysis. In this case, you analyze to form
marketing strategies. SWOT analysis in marketing will help you decide which marketing
strategy you should use to get the best result for your business. The strategy will help you to
capitalize on the opportunities using all the strengths. It will also help to avoid the threats and
minimize the weaknesses.
The lucky cement growth and share are increase strength in all country as brand quality result
is very strong become an impact on market share in all world out of the country sales and
share per value increase each rs 15 their market value and face value is each rs 13 in Pakistan
stock exchange and London stock exchange, the lucky cement brand and quality and
company assets is very high level to compare other companies. The branch of manufacturing
in Karachi, the growth and share are strength due to good brands and quality. Lucky Cement
is growing rapidly and offers a higher return to its stockholders. It has gained thehighest
market share as compared to its competitors. It is successfully attaining it's financial and
non-Financial objectives on short term and long-term basis. It is not only focusing on
attaining their financial objectives, but also its strategic objectives, in which it decided to
provide their customers with dynamic, innovative products, and to provide cost benefits to its
customers, which thentend togive higher Satisfaction level to its customers. LCL
prioritizesAward, and Corporate Excellence Award 2014. LCL cares a lot about its
employees and rewards them above market salary and benefits. It has the policy of equal
employment opportunities and non-discriminatory behavior to its employees. However, its
employees lodge grievances about relatively less gratuity and pension funds. LCL is lucky to
have its energy generation system too. Hence, the intensity of this threat is low. LCL has
installed giant and modern plants and has implemented many systems, which are eco-friendly
and minimize the cost of the production.Lucky Cement Limited is a market leader cum
industry leader in the cement sector of Pakistan. It is thebiggest producer, seller, and exporter
in this category. This giant company looks like an icon and records stupendous growth and
expansion over the years.
The lucky cement industry is weakness in internal and external factor as about the internal
weakness is workers shortage, employers shortage advance technology shortage and weak
managements.thers is a lot of problems created in the internal factor.the company brand of
lucky market is established so far from city and village in the area of mountain not worker
reach to company for duty on the time and not good facility of advance as interest easy
contact to other departments between share information and external factor is also in
weakness as transportation, supplies of goods to market and shortage water shortage
electronic shortage and gas shortage etc. It's also a low advertising brand.
The best opportunities are available for the increase to the growth and share in the market
abroad as Afghanistan, Iraq, sham Syria and the north area of Pakistan as Waziristan,
Miranshah,sawaletc.the government decide new underpass creating different place cities. And
decrease custom duty on the imports to goods for new market share and interest sale and
profits the lucky cement ger best opportunities to create or caught new foreign market and
increase sale growth of cement.
THREATS:Threats are external factors that you have no control over. You may want
to consider putting in place contingency plans for dealing with them if they occur
Main The threat for the lucky cement are as follows:
Governmental regulations
Fluctuation in currency rates
Price competition
Alliance the lucky cement opposition
Fluctuation in demand
Political instability
Increase production cost
Lucky cement industry face to the threat external as market growth and share get down due to
inflation create in the country as government change custom duty increase strike in flood low
brand quality and other threat are founred if government changes become so market share and
growth decrease.if created inflation so people purchasing power will be weak then threat will
be face to market share and growth of lucky cement industry or other country abroad close
business to our country then threat will be founded and other threat as decrease value of
currency to our country to other countries.
Primary Activities:
Primary activities relate directly to the physical creation, sale, maintenance and support of a
product or service. Primary activities are directly concerned with creating and delivering a
product. They can be grouped into five main areas: inbound logistics, operations, outbound
logistics, marketing and sales, and service. Each of these primary activities is linked to
support activities which help to improve their effectiveness or efficiency; and According to
Porter (1985), the primary activities are:
Inbound logistics:
These are all the processes related to receiving, storing, and distributing inputs internally.
Your supplier relationships are a key factor in creating value here. Refers to goods being
obtained from the organisation's suppliers and to be used for producing the end product.
Operations:
Raw materials and goods are manufactured into the final product. These are the
transformation activities that change inputs into outputs that are sold to customers. Here, your
operational systems create value. Value is added to the product at this stage as it moves
through the production line.Lucky cement faced problems:
Outbound logistics:
Once the lucky cement products have been manufactured they are ready to be distributed to
distribution centres, all the lucky cement wholesalers, retailers or customers. Distribution of
finished goods is known as outbound logistics. These activities deliver your product or
service to your customer. These are things like collection, storage, and distribution systems,
and they may be internal or external to your organization.
To identify the wants and create customer satisfaction through product innovation, product
quality and customer service Lucky cement limited takes assistance of sales representative.
The marketing department of Lucky cement limited is a comprehensive one which helps
them to withstand the severe competition persisting in cement industry.
Service:
After the product/service has been sold what support services does the organisation offer
customers? This may come in the form of after sales training, guarantees and warranties.
These are the activities related to maintaining the value of your product or service to your
customers, once it's been purchased. In the Lucky Cement Pakistan, Service increases the
value of the entire product to the final consumer. Especially in cement like product being
commodity quality doesn’t matter much what matters is product as per specification and after
sales services. Competitors too are very sharp in the cement industry the only way to
differentiate and set a bench mark is the after sales services.
Support Activities:
Support activities assist the primary activities in helping the Lucky Cement Limited (LCL)
achieve its competitive advantage. There are four main areas of support activities:
procurement, technology development (including R&D), human resource management, and
infrastructure (systems for planning, finance, quality, information management etc.). These
activities support the primary functions above. In our diagram, the dotted lines show that each
support, or secondary, activity can play a role in each primary activity. For example,
procurement supports operations with certain activities, but it also supports marketing and
sales with other activities.
1. Procurement:
This department must source raw materials for the business and obtain the best price for
doing so. The challenge Of LCL for procurement is to obtain the best possible quality
available (on the market) for their budget. This is what the organization does to get the
resources it needs to operate. This includes finding vendors and negotiating best prices. The
procurement is value addition to purchase it is something more than just purchase which just
talk about what ,when and how but procurement should include all the things discussed
further in the section. The procurement process in LCL is systematic as it is process industry
every stage in the process requires approval from the authority.
2. Technology Development:
These LCL activities relate to managing and processing information, as well as protecting a
company's knowledge base. Minimizing information technology costs, staying current with
technological advances, and maintaining technical excellence are sources of value creation.
The use of technology to obtain a competitive advantage is very important in today's
technological driven environment. Technology can be used in many ways including
production to reduce cost thus add value, research and development to develop new products
and the internet so customers have 24/7 access to the firm.Improving quality of blended
cement through innovative processing utilizing industrial by-products for improved quality
performance of LCL.Conservation of resources through maximizing the use of low-grade
limestone forcement manufacture.Development of new products or discovering new methods
of analysis .Productivity research for increased efficiency in use of resources.Recycling of
wastes and research for efficient use of scarce materials.Characterization of industrial wastes
and looking into possibilities of environment friendly co-processing of wastes in cement
manufacture, leading to thermal substitution and conservation of natural resources.
3. Human Resource:
The LCL will have to recruit, train and develop the correct people for the organisation to be
successful. Staff will have to be motivated and paid the market rate if they are to stay with the
organisation and add value.People are a significant source of value, so businesses can create a
clear advantage with good HR practices.