Strategic Management

Assignment

Strategic Factor Analysis Summary

By :
Aashika Shrestha
Avash Pradhanang
Kamal Raj Neupane
Ojaswi Pudasaini
Samikshya Shrestha
Smarika Thapa
Sushrut Paudel

BBIS IV
 Strategic Factors analysis summary (IFAS) of Shivam Cement Industry Pvt.
Ltd:

Duration
Type Strategic Weightage Rating Weighted Remarks
Factors Score S I L
h n o
o t n
r e g
t r
m
e
d
i
a
t
e

S1 Brand Name 13% 4 0.52 X The company has 348 dealers all over Nepal
and its vision is "To be the largest and most
respected cement company in Nepal that
partners in nation building."

S2 Loyal customer 11% 4 0.44 X It is one of the biggest manufacturing Cement

Company, who believes in providing the finest
quality of cement to our customers. With the
slogan of "Quality को मामला मा No
Compromise", it stands for high quality
standards adopting the motto “Quality over
quantity”. It believes in providing the finest
quality of cement to its customers because as a
provider it believes that success means
satisfied and happy customers.So the
customer's loyalty is very high.

S3 Market share 10% 4 0.40 X Shivam Cement Private Limited was converted
into Public Limited Company in the year 2015
to provide its customers and the stakeholders
to be a part of the company.

W4 Weather 12% 4 0.48 X Weather has a significant impact on the cement

business. Between May and October,
approximately two-thirds of cement is
produced. Cement makers frequently use the
winter months to produce and stockpile.

W5 Energy cost 8% 4 0.32 X Shivam Cement has allegedly failed to pay Rs.
 2.34 billion in electricity tariffs to the Nepal
Electricity Authority (NEA). The said amount
has accumulated over the past five years as
Shivam failed to pay the charges of using NEA
Hetauda distribution center’s dedicated feeder
power line.

O6 Focus on 13% 4 0.52 X Nepal is expected to see a huge investment in

national the infrastructural development as can be seen
infrastructure in the recent MCC policies signed by the
development government. Furthermore, the establishment of
NIFRA and the rising conglomerate
investment gives Shivam a source of funds to
focus on infrastructure rather than just the
household and small projects.

O1 Increased 10% 4 0.40 X High focus on urbanization of rural areas has

Urbanization built up the demand for raw materials like
concrete. So, this provides an opportunity for
Shivam Cement to grow in production and
increase its sales. This also creates marketing
opportunities and captures the new market
share created by urbanization.

T1 Intense 12% 4 0.48 X The cement industry is becoming more

competition competitive. The investment in this sector is
increasing. There are around 55 cement plants
in operation in Nepal. There is a price war
among the competition to gain new customers
and retain the old ones and conquer more
market shares.

T6 Unfriendly 11% 4 0.44 X The ambiguity in the government policies

government might bring difficulty in the legal compliance
policies which might bring litigation threats for
Shivam. Furthermore, the different ideology of
political parties might bring a political and
legal threat from the governmental policies of
the leading party.
 Conclusion

According to the SFAS table conducted for Shivam Cement, we identified an overall

rating of 4 which falls in the good and very good attribute based on the

strength,weakness, opportunities and threats influential on the overall business

performance of the company. The individual elements of the strength,weakness,

opportunities and threats are rated using a 5 point scale with 1 being poor and 5 being

excellent.The successful understanding of strength,weakness,opportunities and threats

of Shivam cement helps to understand the environmental, political and legal, technical,

economical, socio-cultural prospects that Shivam can grab to gain the market

competencies and also be secured from the outside obstacles and risks that arises for

Shivam.Executives must be aware of trends and changes in the general environment,

as well as the condition of their specific industry, as elements of both have the potential

to change considerably over time.