Name:

Kaleemullah
Roll:
B18107028
Class:
BBA 6th Semester
Course:
Strategic Management
Submitted to:
Ma’am Nida Masroor
ACKNOWLEDGMENT
 I am grateful to Ma’am Nida Masroor for his continuous support and guidance in the
development process of the project. I am pleased and thankful to my family for their emotional
as well as financial support in the whole period of this study.

Study of Strategic Planning in Descon

Engineering

Introduction
DESCON Engineering Limited is an integrated engineering service and Manufacturing
Company operating in Pakistan and the Middle East.  DESON is focused on providing
customized solutions for clients with projects that are in the Energy, Infrastructure, and
Process industry. The comprehensive set of services covers engineering manufacturing,
procurement, and commissioning, construction, and maintenance.  DESCON is a global
business that is renowned throughout this region due to its superior quality security,
punctuality, and prompt delivery of products and projects.  All faculties are required to
carry out the required projects within the organization.  This is a unique advantage that
allows us to offer solutions such as Engineering, Procurement, Construction, and
Commissioning as well as services to an array of international customers.

Descon is a Pakistani multinational corporation with its headquarters

within Lahore, Pakistan. The company was established on December 15, 1977.  It is
involved in the power, engineering, and chemical sectors. Descon is the sole Pakistani
engineering firm to be listed in the  News-Record (a US magazine) list since 2007.

The company was established by Abdul Razak Dawood as Design Engineering and

Construction Services (Descon) in 1977. The initial capital for the start-up was Rs 3.2
million. The company has since have expanded into three different sectors and now
operates in the UAE, Qatar, Saudi Arabia, Kuwait, Oman.  Iraq and South Africa.

The company was awarded its first deal in 1978 when  Attock Refinery asked to build a
tiny refinery back in 1978. In 1980, the company was awarded an even bigger project over
four years from National Refinery,  National Refinery which enabled the company to
expand.
The company was founded in 1982 and attempted to expand their business to the regional
market, and they assisted the Saudi company, and later got an initial project that was
located in Abu Dhabi. In 2018, the firm was earning 60percent of its revenue through
overseas markets, which helped the business become a billion-dollar business.

In the year 2018, Descon expanded its footprint into  South Africa by purchasing 26
percent of Plant Design and Project Services (PDPS) an engineering company in the
country.

Descon is the most renowned Engineering firm with a wide range of experience in areas
like Oil & Gas, Cement, Power, Hydro Power, Dams/Barrages/ Canals, fertilizers,
Renewable Energy, Sugar, Industrial, Chemical , and Petrochemicals. They are renowned
specialists in EPC, Construction, Maintenance/Industrial Services, Infrastructure,
Manufacturing, and Automation & Control projects.  Descon's presence in the world spans
its entire GCC, (including Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman), Iraq,
Pakistan, South Africa & Kenya.

Vision, Mission, Core Values

Vision
To develop into an international engineering manufacturing, construction, and
manufacturing company that operates internationally.

Mission
In order to  offer additional value to our customers
by providing comprehensive and integrated
procurement, engineering construction, and project
support with the commitment to quality, time as
well as service.

Core Values
Professionalism, Team Work, Open Communication, Leadership, Continuous Improvement
Goals & objectives of organization
 To promote the study and application of professional standards and practices in the
construction in accordance with international standards and practices.
 To provide training in technical advancement and technology, resulting in better
workers to make history.
 To share and exchange information of research, techniques information and
techniques in the construction and related industries.
 Collaboration and cooperation with international and local organizations and bodies
with similar goals, to aid in the development and promotion of the construction
industry within the country .
 In order to inspire team spirit, and productivity in the work force that has been
properly trained .
 To provide prosperity and happiness to our stakeholders as well as the society as a
whole by bringing value to society by utilizing engineering, technology and
management.

SWOT analysis
"The analysis of organization's strengths, weaknesses, opportunities and threats"

 Strengths
 Project portfolio
 Diversified service offering
 Industry recognition
 The Descon strength is distinct for different disciplines.
 For the whole company, the piping system is the main strength
 For the country it is among Pakistan largest oil and gas companies that uses the
most modern technologies and tools to implement projects.
 Descon is a highly professional and quality-conscious company locally, with one of
the most rapid development rates.

Weaknesses

 There are many weaknesses that can be found in different situations.  The most
common weakness are
 Incomplete ownership.
 Legal procedures.
 Descon personnel resources discoloured by current projects. Geographically, the
Descon office is far away from the future customer's headquarters.
 Descon aren't politically linked.
  Descon top performers aren't made for boring, long and monotonous tanks.

Opportunities

 New projects
 Potential for growth in the petrochemical industry.
 Growth prospects: GCC region.
 Opportunities are plentiful in the field of oil and gas because it is in a lot of
demand. The company is working to diversify its knowledge because growth is
sustainable. In order to increase professionalism, you have to acknowledge your
mistakes and work to improve.  Descon is also of the opinion that every issue can be
a chance to learn from it.
 This contract with the government could result in an important increase in revenue
 Once we're in this system, then we will be able to obtain more government orders.
 The inclusion of this project into our portfolio could improve our reputation with
the public and government agencies.

Threats

 The increasing demand for infrastructure

 Cost overruns
 Costs of raw materials are rising.
 Descon could lose its old clients by shifting his resources to the new venture.
 Travel expenses can be extremely high , and over time, they could severely hinder
revenue growth.
 Bidding processes can be a serious burden on our finances as well as human
resource.

PEST Analysis
Political factors Economic factors
Political instability Economic Constancy

Govt. Policies Growth in the balance of payment

Positive Relations Employment opportunity

Terrorism & Corruption Industrial Expansion

Political Situation Foreign Exchange earnings

Govt. Sanctions
 Societal factors Technological Factors

Culture Change in technology

Demographic

Environmental

Political Factors;

These political conditions of Pakistan aren't palatable.  Due to those circumstances change
in the legislature every administration decides on its own exchange arrangements.
Govt. employs sustainable strategies to benefit the exporters as well as the importers
investor.

Economic Factors

The economic condition of Pakistan may also impact the distant the rate of swelling for
investors is increasing, making the process safer for those who are.  Furthermore thus
reducing the net income of the investor.

Social factors

These changes in the everyday life of the kin can lead to the growth of Descon results. The
shift in day-to-day tasks and requirements in a distinct demographics can also influence
the attention of clients. Due to everyone's changes Descon will be performing amazingly
for the incredibleness of this association, as well as to help the clients.

The technological aspect

The latest technological advancements in all sectors of the state have altered the general
economic conditions. Particularly in the engineering field , there is a great deal of
technological development.

Competitors
The nature of competition is very high. DESCON'S top competitors are

National engineering services Pakistan

OCI Ltd .company

LAHMEYER international GmbH

EKA chemicals Inc

ODEBECHT S.A

Worsley Parsons Ltd

ZISHAN Engineers Pvt. Ltd

Pakistan engineering company Ltd

United engineers & contractors Pvt. Ltd

Descon Engineering Interested Sectors

• Gas Processing and compression • Soda Ash • Fertilizer • Motorways

• Industrial Chemicals • Ammonia • Buildings

• Refining • Urea • Water Treatment
• Power • DAP • Public Health
• Thermal • Petrochemicals • Industrial
• Hydel • Polyester • Cement • Waste Water
• Wind • PTA • Demineralization
• Ethylene/Polyethylene • Infrastructure • Reverse Osmosis
• Chemicals • Polypropylene/PDH • Dams • Desalination
• Hydrogen Peroxide • Barrages
• PVC • Irrigation Channels

Descon Engineering Services

• EPC • Heavy Lifts/Rigging

• Basic and Detailed Engineering • Electrical

• Instrumentation & Control
• Procurement • Tanks
• Manufacturing • Buildings

• Construction • Testing
• Civil/Structural • Pre-Commissioning
• Mechanical • Commissioning
• Piping • Maintenance
• Equipment
• Painting • Retrofits & Upgrades
• Insulation

Descon Corporate Structure

• Descon Group
 Engineering Business
Descon Engineering C.E.O: Dr Salman Zakaria

• Company Subsidiaries
 Descon Integrated Projects (Pvt) Ltd. President: Muhammad Khawar Khan
 Presson Descon International (Pvt.) Ltd. C.E.O: Samad Goraya
 Descon Engineering -Abu Dhabi Head: Muhammad Iqbal Khan
 Olayan Descon -KSA GM: Wasif Hanif Khawaja
 Qatar, Kuwait, UAE C.E.O: Dr Salman Zakaria

• Chemicals Business
 Descon Chemicals Pvt Limited C.E.O Taimoor Saeed
 Company Subsidiaries
 Descon Oxychem Limited

• Power Business
 Descon Power Solutions Pvt Limited C.E.O: Waseem Qazi
 Company Subsidiaries
 Rousch Power Pakistan Limited
 Altern Energy Limited

Current Strategies
Corporate Level Strategy (Descon Group)

 Diversification
 Defensive

Business Level Strategy (Descon Engineering Limited)

 Related Diversification
 Market Development
 Product Development
Quality Management System

Olayan Descon nature administration framework will be designed to follow to the

requirements of SO 9001.2008.  The company must have created and backed these high-
quality frameworks, and the frameworks are conferred to continuously improve its
effectiveness Each and every one of the agencies employees should be accountable for
adhering to the tenets The rules will meet all the requirements specified.  Every one of the
methods must be being monitored for conformity to the specific requirements.  The form is
evaluated against established criteria/objectives and reduced to their adequacy.  The
method owners, via meeting, Advancement Audit Furthermore dialogs ensure that the
desired results are achieved. It's also when the obligation to initiate the essential activities
to achieve these goals and also for constant change in methodologies.

Quality goals
Production executives have to set quality goals for the various functions and methods in
their respective business units. The goals are listed below.

 Marketing
 In-time time for submission of quotations.
 The volume of sales increase
 Improve results from surveys of customer satisfaction
 Design
 Meet deadlines for design outputs
 Reduction in design-related complaints
 Reduction in revisions of drawings
 Procurement
 The prompt arrival of all materials ordered
 Reduced rejection of materials in the process of receiving inspections by acquiring
the right quality materials
 Execution
 Exceeding delivery commitments or meeting them.
 Ensuring that there is a reduction in nonconformance

Quality policy
Every Olayan Descon Worker ought to make every effort to ensure the satisfaction of
claims made by our clients by providing their workers with the highest quality items. In
addition, we should offer administration is a hallmark of Olayan Descon. Olayan
Descon. We must ensure the satisfaction of our clients by determining the caliber that
could be the immediate obligation regarding each individual.  We will meet every one of
the specific requirements and needs of clients.  In totality, we are gathering our obligations
with respect to time, and each long-term.
 putting in at least our value of effort in a protected and solid earth. Continuously
improving our skills and knowledge through training and so on.  increasing the contribution
of employees toward change and achieving the company's goals.

creating a generally useful association with suppliers.  Emulating those personal

satisfaction administration framework In view of ISO 9001:2008, ASME heater and weight
pressure vessel codes Also other national/international measures Furthermore
administrative necessities. Continuously improving the effectiveness of the framework of
caliber administration. more, periodic reviews are directed to this caliber approach in
order to ensure a sound manner.

Stages of Strategy Planning

Strategy Strategy Strategy

Formulation Implementation Evaluation

Strategy Formulation
The meaning of "World top EMC Company" relies on the mission statement or
interpretation by the Board of Directors or by Head of Departments or the mutual
agreement between the two.

In accordance with their interpretations, they devise strategies to achieve their the ultimate
goal of the company, which is to be a world Class internationally renowned EMC
Company.

By focusing on one part of the vision "to be a world-class business", Descon engineering
is currently implementing strategies to improve technological advancement, speedy project
completion, and also on the quality side, while the other parts have strategies for market
development. This situation is in line with the objectives of the strategy.
The Head of the Department created his own strategy, which was referred to as an
initiative. The principal goal of the initiative is to improve the efficiency of business
processes or introduce new concepts to the business.  Sometimes, these initiatives evolve
into business-level strategies.

Directors and C.E.O. of Directors and C.E.O or the mutual consent of the Heads of
department and the Board of Directors plus C.E.O make business plans in their meetings.
These strategies are transformed into an annual objectives. These annual goals translate
into monthly objectives for the particular department.

There are two types of business level strategies in Descon by time limit.

 Short term (within 1 year)

 Long term (1 to 3 years)

Whereas by nature they also have two types of business level strategies.

 Business Plan strategy

 Future Business strategy

According to the visit and interview observations the proper, documented, and
comprehensive strategy formulation frameworks are not included in Descon.  Descon has
its own method to formulate strategies. These strategies are verbal. In Descon no the
formal document is used to assess strengths, weaknesses, opportunities and threats of the
business even though Descon used it without conscious thought.  The SWOT is executed in
accordance with the nature of the proposed scenario, and if the circumstances are of a high
stakes the SWOT can be conducted verbally during the Board of Directors, or HOD or
both. If it is a low stake situations, it is carried out with the Chief Executive Officer and
HOD of the concerned department.

The choice of any strategy is contingent on the financial and strategic results.  One of these
outcomes is

 Return on the investment

 Cash flows
 Income Analysis of Costs
 Market share
 Quality
 Goodwill
 Profits
 The higher the probability of these results for specific strategies is the greater
chance to pick the strategy.

Strategy Implementation
Strategies are implemented through Descon through a top to the bottom method. The
strategy that was developed and decided on at the top is being pushed downwards.
Business level strategy becomes departmental goals for concerned departments. Then,
these objectives of the department become annual goals for the concerned department and
then they become monthly goals. The monthly objectives now become individual
objectives for the personnel concerned.

Example: If the business strategy is to introduce the most recent technology in computers,
hardware's and software's to the business within six quarters following strategy
selection. This strategy of technological advancement will is the main goal of the
department ICT department whose primary function is to satisfy requirements in
information and communication technology.

For instance, the number of computers is 35000 on Descon. Descon the annual goal will be
structured as "upgrade 72% of computers within the first four quarters following
selecting" This annual goal will now is broken down into monthly objectives such as
upgrading to 6% of computers between July 2014 through June 2015.  The monthly goal
will focus on the concerned employees.

It is evident that Descon may encounter some difficulties during the process of
implementing strategy. A majority of companies had to deal with the following issues
while the implementation of their strategy, but the issues vary according to strategy.

 Shortage of Human Resource needed

 Resources movement
 Allocation of funds
 The behaviour of employees
 Communication problems
 Interblot

As issues differ from strategy to strategy , solutions similar to this solution of problem
differs from strategy to.

Strategy Evaluation
In Descon strategies, they are monitored and evaluated by a monthly review periodic
review. The primary purpose behind the monthly reviews is to assess progress toward
accomplishment against the plan.  If there is a problem or error, corrective measures are
adopted.

There is a different method to manage the strategy's implementation.  It is a evaluation of

performance. Each month, certain objectives assigned to employees becomes their to
fulfill. This employee is now graded in accordance with their progress in regards to
strategic objective enhancement within the defined time frame . The individual employee
will not considered an individual for the purposes of strategically objective
complementation. Now , the Performance appraisal system follows a the bottom-to-up
method. The department head who is concerned will also be assessed for strategic
enhancement. Strategies are also evaluated using expected outcome vs actual result.
Consider the example of a technology advancement strategies to make understanding
simple. Each month, tasks were assigned to specific employees.  The day of the
performance appraisal the employee will be assessed in accordance to their
performance. This mechanism is now moving upwards and the head of department will be
evaluated based on the performance of employees.

Conclusion
Descon engineering is among the most prominent engineering firms in Pakistan.  The
management system, the way of working and the policies and the decentralized decision-
making environment are truly impressive.  This report is essentially an attempt to
determine the areas that require improvement.

In this age of expertise and competition, "information" will be the main ingredient to
success in business. The successful businessman can provide the correct evidence at the
right time and location. This leads to an understanding that sharing of information process
needs to be enhanced. The analysis overall shows that the growth of the business is
primarily due to the commitment of the employees.  The efficiency of the company's
management, their willingness to seize opportunities and experimentation with shifting
economic conditions and this is all contributing to the greatly better and more secure
position of the company. This is a testament to the dedication and perseverance of the
entire workforce of the business.

Descon engineering Limited places importance to their employees and their

performance. Certain standards are established by the company to assess the efficiency of
employees. They provide positive feedback and bounce at the basis of the
performance. Descon engineering firm adheres to all rules when it comes to performing
performance management. They believe in providing a good work environment for their
employees, in order that employees are able to be productive and efficient.  Management
tools that are the best available.  Open door policy. Tasks clearly defined with time
lines. Allocate resources. Balance of authority & power