Professional Documents
Culture Documents
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Table of Contents
Question One (35 Marks):.................................................................................................................6
1- ABSTRACT..............................................................................................................................6
2- INTRODUCTION.....................................................................................................................6
3- Overview of - SANVIX Company..........................................................................................7
4- Industry Overview...................................................................................................................7
5- Industry challenges.................................................................................................................8
6- Why start a cosmoceutical and pharmaceutical Line?.......................................................8
7- SANVIX Company fact...........................................................................................................9
8- Activities and organization.....................................................................................................9
Applying strategies.............................................................................................................................9
1- Cosmoceutical & pharmaceutical Line Business Plan – Executive Summary................9
2- Mission, Vision.......................................................................................................................10
2-1 Mission............................................................................................................................10
2-2 Vision..............................................................................................................................10
2-3 Value...............................................................................................................................11
2-4 Goal.................................................................................................................................11
2-5 Objectives.......................................................................................................................11
2-6 Our Competitive Advantage.........................................................................................12
2-7 Buying and production..................................................................................................13
2-8 Logistics and distribution..............................................................................................13
2-9 Check List / Milestone..................................................................................................14
3- Organizational Behavior within SANVIX Company using models and theories...........15
3-1 Organizational design:..................................................................................................15
3-2 Our Business Structure................................................................................................15
3-3 Roles and Responsibilities...........................................................................................17
4- How we trying to apply different organizational behavior Theories in Organization: -. 19
4-1 The motivation theory used in SANVIX Company: -................................................19
4-2 Strategies SANVIX using: -..........................................................................................20
5- LEADERSHIP THEORY we are using within the organization: -....................................20
6- Challenges of SANVIX Company.......................................................................................21
7- Our Pricing Strategy.............................................................................................................22
8- Payment Options...................................................................................................................22
9- Start – Up Expenditure (Budget).........................................................................................22
10- Generating Funds / Startup Capital for SANVIX Company.........................................23
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11- Strategy analysis...............................................................................................................23
11-1 Cosmoceutical & pharmaceutical Line strategy Plan – SWOT Analysis of
Sanvix Company.......................................................................................................................23
11-2 Strengths and Weakness IFE – SANVIX COMPANY...........................................25
11-3 Opportunities and Treats EFE – SANVIX COMPANY..........................................25
11-4 Competitive Profile Matrix (CPM)............................................................................26
11-5 SWOT - TOWS ANALYSIS......................................................................................27
11-6 Space matrix..............................................................................................................28
11-7 BCG Matrix.................................................................................................................28
11-8 Grand Strategy Matrix...............................................................................................29
12- Strategy formulation..........................................................................................................29
12-1 The strategy of SANVIX Company is both lower costs and differentiation:.......30
12-2 SANVIX Company growth strategy.........................................................................30
12-3 Business strategy......................................................................................................30
12-4 Functional strategy....................................................................................................30
13- Cosmoceutical & pharmaceutical Line Business Plan – MARKET ANALYSIS.........31
13-1 Market Trends............................................................................................................31
13-2 Our Target Market.....................................................................................................31
13-3 Cosmoceutical & pharmaceutical Line Business Plan – SALES AND
MARKETING STRATEGY.......................................................................................................32
14- Cosmoceutical & pharmaceutical Line Business Plan – Publicity and Advertising
Strategy..........................................................................................................................................33
15- The Company Pricing Strategy.......................................................................................34
15-1 Payment Options.......................................................................................................34
16- Start – Up Expenditure (Budget).....................................................................................34
17- Quantitative Strategic Planning Matrix (QSPM)............................................................35
12-5 Market Penetration Strategies.................................................................................36
12-6 New Market Development Strategies.....................................................................36
12-7 New Product Development Strategies...................................................................36
18- Strategy implementation..................................................................................................36
19- Evaluation and control......................................................................................................37
conclusion and recommendation....................................................................................................37
1- Recommendation for SANVIX Company...........................................................................37
Question Two (15 Marks):................................................................................................................38
1- Recommendation 1 evaluation............................................................................................38
2- Recommendation 2 evaluation............................................................................................38
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3- Recommendation 3 evaluation............................................................................................39
RECOMMENDATIONS....................................................................................................................39
1- Customer Support.................................................................................................................39
2- Threat of Job Security..........................................................................................................39
3- The social problems..............................................................................................................39
4- Distribution Channels Improvement...................................................................................39
5- Healthy products...................................................................................................................40
List of figures
Figure 1Strategic management model.............................................................................................7
Figure2 the four elements of strategic management.....................................................................7
Figure3SWOT analysis model (Zhao 2010)..................................................................................11
Figure4 Hierarchy of strategy (Wheelen & Hunger 2006, 16).....................................................13
Figure5 the strategic decision-making process (Wheelen & Hunger 2006, 22-23).................16
Figure 6 Benefits of strategic management (Fred 2011, 48)......................................................18
Figure 7 building the strategic marketing Plan..............................................................................27
Figure 8 the Product Life Cycle PLC..............................................................................................29
Figure 9 Organizational structure of SANVIX Company..............................................................44
Figure 10 BCG MATRIX OF SANVIX COMPANY......................................................................59
Figure 11 Grand matrix of sanvix...............................................................................................59
List of table
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Question One (35 Marks):
You are appointed to become the head of a Business Development
Committee for a starting big company. You are in charge to present a report. To do
so, you need to do what follows:
1- Develop a new vision, mission, and values for your organization briefly
demonstrating the method you used to do so.
2- Match the organization’s resources with the needs of the external
environment in order to establish long-term objectives and to generate
strategies. Discuss the opportunities and threats that your organization faces in
doing so.
3- Select the long-term objectives and strategies that best meet the
requirement of the organization’s mission.
4- Establish annual objectives and short-term strategies that are in accord with
the long-term objectives and strategies.
5- Explain how you will implement the selected strategies through proper
resource allocation within the implementation capability of the organization such
as supportive leadership, organizational culture, structure, reward system and
technologies.
6- How can technological forecasting differ in your industry help you find new
ways to differentiate your product?
7- Mention how you will measure and evaluate the performance.
Prepare this report in whatever form you want (PowerPoint/word file). You are
not restricted with any number of words.
1-ABSTRACT
To answer the above question, I will assume that the company name is
SANVIX company and it is a new entry in the cosmoceutical and pharmaceutical
market so we will focus on the strategic management of SANVIX Company and the
strategies that SANVIX Company will do to achieve the core of the strategy plan.
The main report problem is how to make analysis to make the strategy plan and how
to implement it because it is a new entry company. The main report method will be a
qualitative and quantitative research by analyzing the company data and making
analysis in the same market to get all data to be able to make the strategy.
2-INTRODUCTION
No one can deny that the start point of a new project or organization is the
hardest decision. But it will be easier and clearer if they make a plan with scientific
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analysis to start this organization, it is the only successful way for any company to
make and sell excellent goods and services. Most companies can get profits by
achieving the plan in the right way with the right time.
4-Industry Overview
With this kind of business, if we want to start on a small scale, we can choose to
start serving our city and places in the country. All would we need is contacts,
packaging, networking and good marketing and customer service skills. However, if
we intend starting it on a large scale, then we should consider spreading beyond our
city to state level and even national level.
5-Industry challenges
Every industry has its challenges that will affect the business and it can make
this business very risky according to our study for this industry the head of a
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Business found in the following challenges as shown in the table (1) below, and the
head of a Business will explain how will he deal with all of those challenges later.
NO PROBLEM NO PROBLEM
2 Dishonesty 9 Manufacturing
5 competitors 12 Objectives
The ability to know what business to start and the right time to launch the
business is a skill that separates highly successfully entrepreneurs from
entrepreneurs that struggle with their new business. If we intend starting a business
and we don’t want to struggle much in growing the business and generating sales,
then we should look towards starting a business whose products or services are
needed in our daily existence. One of such businesses is a cosmoceutical and
pharmaceutical products manufacturing company.
Cosmoceutical and pharmaceutical products are products that are used in all
parts of the world and of course those that are in the business of producing
cosmoceutical and pharmaceutical products, are known to generate sales year after
year if the business is well – managed. in fact, economic downturn hardly affects the
consumption of cosmoceutical and pharmaceutical products simply because it is a
commodity that plays a major role in our daily living.
In as much as people can start this business on a small scale, it will be a wise
decision to write a good business plan document especially
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cosmoceutical and pharmaceutical line production company business plan that will
help us successfully launch our own business.
With a clear vision and mission, SANVIX Company is performing very well
even in the country recessionary environment. It can be shown in the facts below.
• SANVIX Company has almost 35 medical stores in the markets and expanding
continually.
• SANVIX Company does not own any factories. Instead, they work with about 10
independents Suppliers located primarily in Egypt.
Applying strategies
1-Cosmoceutical & pharmaceutical Line Business Plan –
Executive Summary
The facility has government approval for the kind of business the head of a
Business wants to run and it is easily accessible and the head of a Business is
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deliberate about that to facilitate easy movement of raw materials (chemicals and
packaging containers) and finished product.
The company is aware that there are several big scale and small scale
cosmoceutical & pharmaceutical care product manufacturing companies scattered all
around Egypt whose products can be found in every nooks and crannies of Egypt,
which is why the company spent time and resources to conduct our feasibility studies
and market survey so as to enable us locate the business in an area that will support
the growth of our business and also for us to be able offer much more than our
competitors will be offering.
The company ensured that all facility is easy to locate and the company have
mapped out plans to develop a wide distribution network for all areas around us.
Much more than producing quality and safe cosmoceutical & pharmaceutical, our
customer care is going to be second to none. the head of a Business know that our
customers are the reason why the company is in business which is why we will go
the extra mile to get them satisfied when they visit purchase any of our product and
also to become our loyal customers and ambassadors.
The company has a CRM software that will enable us manage a one on one
relationship with our customers (wholesale distributors) no matter how large the
numbers of our customer base may grow to. the head of a Business will ensure that
the company gets its customers involved when making some business decisions that
will directly or indirectly affect them.
2- Mission, Vision
The world is changing all around us. To go forward to thrive as a business over
the next ten years and beyond, we must look ahead, understand the trends and
forces that will shape our business in the future and move swiftly to prepare for
what’s to come. The company must get ready for tomorrow today.
That’s what our 2020 Vision is all about. It creates a long-term objective for our
business and provides us with a “Road-map” for winning together.
2.1 Mission
Our mission is (to provide a very high-quality healthcare services that: PATIENTS
recommend to family and friends, PHYSICIANS prefer for their patients,
PURCHASERS select for their clients, EMPLOYEES are proud of, and INVESTORS
seek for long-term returns).
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2.2 Vision
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what the company needs to accomplish in order to
continue achieving sustainable, quality growth.
1-People: Be a great place to work where people are inspired to be the best
they can be.
2-Portfolio: Bring to the world a portfolio of quality that satisfies people’s desires
and needs.
2.3 Value
2.4 Goal
“Within 3 years from starting the company aim to have 20 products in the
market as a short-term goal”
“the company growth strategy is for each individual store to strengthen the
SANVIX Company while also contributing to increased sales and profitability,”
In order to grow fast, SANVIX Company always take all kinds of measures to
keep the quality and production speed. All the employees must ensure that
everything they can do to satisfy the customer in the best way.
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2.5 Objectives
a. Product: the company care about quality (packaging and efficacy) more than cost.
b. People: the company aim to have a highly qualified team.
c. Portfolio: the company is insisting to have a strong mixed portfolio including
cosmoceutical and food supplements. within 5 years the company aims
to have toll card to make new generation of pharmaceutical products.
d. profit: according to our vision we aim to the following:
- the company is hiring to reach the dead line at the end of 2020 (profit
=expense)
- Within 2020 the company is hiring to gain profit over 10% and make a
strong trade name (SANVIX) by increasing its customers by penetrate the
hidden and unexpected markets and to make great value for SANVIX.
e. Productivity: the company aims to increase its products from 7 to 20 within 2021.
Within 3 years from starting the company the company aim to have 20 products
in the market as a short term goal because the head of the business believes that if
the company have variety in its product the company will be able to compete and
penetrate more areas as fast as the company can and the profit will be exceeds to
enable the company to achieve its long term goals.
The company is aware of the stiffer competition and the company well prepared
to compete favorably with other cosmoceutical & pharmaceutical care product
manufacturing companies in Egypt.
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Part of what is going to count as competitive advantage for SANVIX Company is
the vast experience of our management team, the company have people on board
who are highly experienced and understands how to grow business.
So also, the wide varieties of cosmoceutical & pharmaceutical care products that
the company produces its large national distribution network and of course its
excellent customer service culture will definitely count as a strong strength for the
business.
Lastly, the company’s employees will be well taken care of, and their welfare
package will be among the best within its category (startups cosmoceutical &
pharmaceutical care products manufacturing companies), meaning that they will be
more than willing to build the business with the company and help deliver its set
goals and achieve all its aims and objectives. The company will also give good
working conditions and commissions to freelance sales agents that the company will
recruit from time to time.
SANVIX Company does not have any factories of its own. It depends on a
network of external suppliers managed through two departments: Buying and
Production. SANVIX Company’s method of production is customer-driven, and its
buying function focuses on customers, and composition of the range. SANVIX
Company puts high attention to research and prediction of market. we use both
innovative research means and traditional research means such as street trends.
The activity is performed by central staff and local offices which are responsible for
detecting new trends.
3-The suppliers conform to the company’s code of conduct as for working conditions.
In order to reduce lead times, production offices also deal with sample
packages and other checking and testing. The decision of which supplier is the right
one, is not only a matter of cost-efficiency but also depends on other factors such as
transport times, the purity degree of the raw material and quality aspects. Buying is
carried out on an ongoing basis throughout the year to minimize risk.
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SANVIX Company will operate with two main kinds of products per year, one
in food supplement and the other in cosmoceutical. There are numbers of sub-
products; therefore, customers could always find new products here. The purpose of
the company is to find the optimal time and supplier to order each item. For this
reason, quick is not always the best – while medical products require very short lead
times, many products may be ordered well in advance. For products which are
selling well, the company can get supplementary orders in a few weeks.
SANVIX Company will control every stage in the logistic chain. And the
continuous IT development will provide support to SANVIX Company logistics. While
the stock management is primarily handled within the SANVIX Company
organization, transport is contracted to third parties.
A large part of the flow of products will be routed from production sites via
medical stores in Cairo. There will be a distribution center in every area, so that
products can be quickly inspected and allocated either in a store or in the centralized
stock room (referred to as “Call off warehouse) when arrival. The role of “Call off
warehouse” is to supply products levels in stores according to selling orders.
The main distribution channels are proprietary stores. SANVIX Company will
sell by telephone order in a lot of areas. The company will begin its “selling online”
service after starting. And the “selling online” service should be continuously
improved. However, the medical stores continue to be the main distribution channel.
Owning of a proprietary network, SANVIX Company can keep its control of the
expansion strategy and of business locations.
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17 Design of The Company’s Logo 100% Immediate
Graphic Designs and Printing of Packaging Marketing /
18 100% Very High
Promotional Materials
19 Recruitment of employees 100% Very High
Purchase of the Needed furniture, racks, shelves, computers,
20 100% Immediate
electronic appliances, office appliances and CCTV
21 Creating Official Website for the Company 80% Medium
Creating Awareness for the business both online and around
22 50% Medium
the community
23 Health and Safety and Fire Safety Arrangement (License) 100% Immediate
24 Opening party / launching party planning 100% High
Establishing business relationship with vendors – wholesale
25 80% Very High
suppliers / merchants
SANVIX Company realizes that it needs to be able to meet the all changing
demands of its customers. And because of this the company pushed towards
decentralization in nineties, and even more so recently. SANVIX organization has
three operating groups’ cosmoceutical, food supplement, medical instruments and
equipment. There are also operating groups divided by two regions such as: Cairo,
and sharkia government. By allowing decisions to be made on a more local level, the
organization can quickly respond to changing market demands, and with the help of
this higher level of management can focus more on long term planning.
Certain divisions of company that are centrally located within the corporate
division of the company are finance, human resource, marketing, strategy and
planning. Some of these functions are take place at lower levels in each of the region
of the company.
the head of a Business will ensure that the company only hires people that
are qualified, honest, hardworking, customer centric and are ready to work to help us
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build a prosperous business that will enhance benefits all the stake holders (the
owners, workforce, and customers).
At the end of 2020 the company will create a new position which called it the
district manager and the company will give him all what he needs to can get all
information from the first line employees to enable us to keep in touch with them
area manager is also a member of this team. This team consists of 21 employees.
There are 21 people that answer directly to the area manager; the area manager will
be able to receive input from a wide variety of divisions because of this leadership
team. The company will do that to facilitate decision being made closer to the local
markets.
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Figure 1 Organizational structure of SANVIX Company.
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6- Responsible for signing checks and documents on behalf of the company
7- Evaluates the success of the organization.
1- Manages vendor relations, market visits, and the ongoing education and
development of the organizations’ buying teams
2- Responsible for the purchase of raw materials and packaging materials
3- Responsible for planning sales, monitoring inventory, selecting the
merchandise, and writing and pricing orders to vendors
4- Ensures that the organization operates within stipulated budget.
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V. Sales and Marketing Manager
1- is to manage the external research and coordinate all the internal sources of
information to retain the organizations’ best customers and attract new ones
2- Models demographic information and analyze the volumes of transactional
data generated by customer purchases
3- Identifies, prioritizes, and reach out to new partners, and business
opportunities et al
4- Responsible for supervising implementation, advocate for the customer’s
needs, and communicate with clients
5- Develops, executes and evaluates new plans for expanding increase sales
6- Documents all customer contact and information
7- Represents the company in strategic meetings
8- Helps to increase sales and growth for the company
VI. Accountants
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3- Through interaction with clients on the phone, uses every opportunity to build
client’s interest in the company’s products and services
4- Manages administrative duties assigned by the manager in an effective and
timely manner
5- Consistently stays abreast of any new information on the company’s products,
promotional campaigns etc. to ensure accurate and helpful information is
supplied to clients
6- Receives parcels / documents for the company
7- Distributes mails in the organization
8- Handles any other duties as assigned the line manager
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4- How we trying to apply different organizational behavior
Theories in Organization: -
the best achiever for the employee that do his best and get the best results,
and the thanks reward is for the employee that did his best with high potential but
didn’t get the result that he deserve and we feel that he did what he should do but
was unlucky this month so we motivate him by thanks reward.
First strategy SANVIX will use to motivate its employee is their pay. SANVIX
will use this strategy to not only attract and keep employees but it will utilize it to get
the best performance out of their employees.
3rd strategy that SANVIX will use to motivating its employees and boost their
moral is something that they call employee forum. The employee forum is a program
allows employees to form groups with the members of the group with similar
interests. employees are allowed to meet once in a week and discuss their topics.
The forum definitely is a great way for the employees to increase their interest in the
company.
Good managers attain respect by all levels and should have in place staff
working as a team that is reliable and do the job exact every time. SANVIX company
trust in “Open Door Policy” is a very important and managers need to listen. In
SANVIX company Managers will keep employees “in the loop” with weekly meetings
with knowledge regarding the company. Too many get together make for a “bored”
employee tiring them out to want to be productive the rest of the day.
#In my point of view the relation between the leader and the follower must be refers
to a real system to warranty each other rights, but the main is how the leader will
create a healthy environment between him and followers, how to make them care for
the organization and love their work.
SANVIX Company follows the ongoing market and customer needs carefully and
develops the products based on those. However, the company could adopt the
practice of any rival company in creating the best.
1- Raw materials: the company spent more than 8 months to get the raw
material with high quality and good price. So, it should make its own raw
materials store.
2- Manufacturing: according to the company’s mission it must deal with a high
quality and good manner factory with affordable cost so the company
searched for about three months to deal with a factory that seems to have
those issues.
3- Dishonesty : to make a high quality product with affordable price you
should deal with honest suppliers and factories and unfortunately this
manner is too rare nowadays many people cheating even in the raw material
or the price even in the gradients that the product consist of they put a low
concentration to save some of them or put another gradients to finish their
mission and get money with no care about the patient that will take this
medicine but SANVIX should be very careful to observe every single details
to get the best.
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least after 2 months the company really faced this problem in the begging but
the company solve it by extending its time schedule by making its orders one
month early to be on time and avoid delaying so the company is fighting time.
In view of that, the company’s prices will conform to what is obtainable in the
industry but will ensure that within the first 6 to 12 months its products are sold a little
bit below the average prices of various cosmoceutical & pharmaceutical care product
brands in the Egypt. the head of a Business has put in place business strategies that
will help the company run on low profits for a period of 6 months; it is a way of
encouraging people to buy into its cosmoceutical & pharmaceutical care product
brands.
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8-Payment Options
The payment policy adopted by SANVIX Company is all inclusive because the
company is quite aware that different customers prefer different payment options as
it suits them but at the same time, the head of a Business will ensure that the
company abides by the financial rules and regulation of Egypt.
Here are the payment options that SANVIX Company will make available to its
clients;
In view of the above, the company has chosen banking platforms that will enable
its client make payment for farm produces purchase without any stress on their part.
Its bank account numbers will be made available on its website and promotional
materials to clients who may want to deposit cash or make online transfer for
products.
Aside from that, the company is not expected to spend much except for purchase
and servicing of distribution trucks, purchasing raw materials, paying of its
employees and utility bills.
These are the areas the company intends generating our start – up capital:
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All previous is considered as a base to create the company and put each
manager at his own management to know his role in the company to be able to do
the next step (SOWT analysis) which is very important to select our strategy to
achieve our goals.
In this section, a SWOT analysis of SANVIX Company has been given in the
following tables. These results are based on the data from annual reports, interviews
with SANVIX company staffs and official website. We know that the SWOT analysis
is the most important part in terms of strategy analysis.
The head of a Business is quite aware that there are several cosmoceutical &
pharmaceutical care product manufacturing companies both large and small in
EGYPT which is why the company is following the due process of establishing a
business so as to compete favorable with them.
This is the summary of the SWOT analysis that was conducted for SANVIX
Company
Strength:
Part of what is going to count as positives for SANVIX Company is the vast
experience of its management team, the company has people on board who are
highly experienced and understands how to grow up business from the bottom to
becoming a top phenomenon.
So also, the wide varieties of cosmoceutical & pharmaceutical care products that
the company produces its large local distribution network and of course its excellent
customer service culture will definitely count as a strong strength for the business.
Weakness:
A major weakness that may count against the company is the fact that the
company is a new production company and it doesn’t have the financial capacity to
engage in the kind of publicity that the company intend giving the business especially
when big names are already determining the direction of the market both in Egypt
and in the global market.
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Opportunities:
As a result of that, the company was able to conduct a thorough market survey
and feasibility studies so as to position its business to take advantage of the existing
market for cosmoceutical & pharmaceutical care products and also to create its own
new market. The company knows that it is going to requires hard work, and the
company is determining to achieve it.
Threat:
The head of a Business is quite aware that just like any other business, one of
the major threats that we are likely going to face is economic downturn, worldwide
diseases and unfavorable government policies. as known that economic downturn
certainly affects purchasing power. Another threat that may likely confront the
company is the arrival of a new cosmoceutical & pharmaceutical care product
manufacturing company in same location where the company is located.
A SWOT matrix is often used to organize items identified under each of these
four elements.
Strengths
Weakness
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2. weak medical representative performance 0.05 3 0.15
TOTAL 1 3.15
opportunities
Treats
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TOTAL 1 3.15
Critical Success Factors Weigh Ratin Scor Ratin Scor Ratin Scor
t g e g e g e
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11.5 SWOT - TOWS ANALYSIS
Strengths Weaknesses
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Table 6 CPM for Sanvix Company
Conservative FP Aggressive
CP -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 IP
-2
-3
-4
-5
-6
Defensive SP Competitive
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Table 7 Space matrix for Sanvix Company
- Industry Strength: +6
BCG matrix lets the firm classify each Strategic Business Units in terms of
market share relative to key competitors and annual industry growth. With this
matrix, the company can determine which SBUs are dominant and whether their
industries are growing, stable, or declining. The matrix’s major assumption is that the
higher an SBU’s market share, the lower its per-unit costs and the higher its
profitability.
Sanvix Company
3. Question mark is an SBU that has had little impact (low market share) in an
expanding industry (high growth). It needs substantial cash to improve its position.
4. Dog is an SBU with limited sales (low market share) in a mature or declining
industry (low growth). It has cost disadvantages and few growth opportunities.
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Sanvix Company states in the star area according to the market.
Rapid Market
Growth
Quadrant II Quadrant I
0 SANVIX 0
Weak Strong
Competitive Competitive
Position Position
From the figure 11 the grand matrix of the company stat that the company
located in the Quadrant II because this industry is growing up but the company is a
new entry so still in the weak competitive position.
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strategy. All three are used in a company’s strategic management. The different
strategies must support and complete each other in order to be efficient.
The company is constantly looking for reduce cost in every step of the business
in order to offer to the customers the best prices with high quality. First the company
has a simply supply chain management that is based on a “just in time” management
system. Delivery times vary from 1-2 days to one week, depending on the type of
product and the distance. It is therefore important to be able to order each item at the
right time for stores and pharmacies in order to have it on time. The short delivery
times is not always wanted because they must consider the compromise between
price, time and quality. The company also saves cost in producing in the industrial
area of Badr in Egypt and they have partnership with cheap suppliers that produce
fast and cheap.
In the same time the company really wants to be different than the competitors in
order to have a competitive advantage. This sector is really competitive and SANVIX
Company needs to be different to attract the customers and increase the market
shares. To achieve this differentiation, the company regularly develops and makes
Varity in products eternal and external.
SANVIX Company has a constant growth strategy based on really fast market
coverage by covering new areas every week. The company has plans to double its
number of products by 2020 that implies that it plans to cover about four new areas.
It means that the company open everyone months a new area. The company wants
to be present everywhere in the Egypt and in every activity pharmacy and medical
store. The company is also always looking for occupying markets share from the
competitors and increasing the amount of sales, the popularity and the profit.
12.3Business strategy
The business strategy is the attitude of a company to react from its competitors.
It could be a competitive strategy or a cooperative strategy. SANVIX Company have
a really aggressive competitive strategy as it does not cooperate with no one and is
always looking for eating the market share from competitors by using fair prices and
as the researcher will talk about their differentiation competitive advantage.
12.4Functional strategy
The Functional strategy is when a company uses one functional area on its
organization in order to achieve the objectives and be more competitive (Wheelen &
Hunger2006,15). For example, a multinational company such as Abbott will surely
have a functional strategy based on research and development in order to create
new products and be more competitive.
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ingredients in order to be different from the competitors. We use more than ten
designers to create the new packaging and the new physical appearance in order to
be unique and not following what the competitors did. In addition, as we previously
seen, we also work sometimes with famous factories in Egypt to make special
products.
These strategies must complete and consistent with each other in order to have
an efficient strategy. But we must also say that these strategies must be in
accordance with the goals and the image that the company wants to share with
customers. In this case SANVIX Company has a goal that is really different to the
strategy is that the company wants to offer products that are good in term of quality,
nevertheless at the same time they use cheap suppliers in order to be competitive
and offer the best price to the customers.
13.1Market Trends
If you are conversant with the existing trend in the cosmoceutical &
pharmaceutical care products manufacturing industry, you will quite agree that
despite the fact that there are competitions in different stages of the industry. That is
competitions amongst bigger corporations and also competitions amongst smaller
and medium scale cosmoceutical & pharmatheutical care product manufacturing
companies.
In view of that, the company has conducted its market research and it has ideas of
what its target market would be expecting from us. The company is in business to
engage in wholesale distribution and to retail cosmoceutical & pharmaceutical care
products to the following groups of people:
1- Doctors
2- medicine stores
3- Government hospitals
4- pharmacies
5- medical centers
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6- medical clinics
7- gym
8- medical insurance companies
The company is well positioned to take on the available market in Egypt –and
every city where its cosmoceutical & pharmaceutical and products care will be sold
and the company is quite optimistic that it will meet its set target of generating
enough income / profits from the first six month of operations and grow the business
and its clientele base.
The company has been able to critically examine the cosmoceutical &
pharmaceutical care products manufacturing industry and it has analyzed its
chances in the industry and it has been able to come up with the following sales
forecast. The sales projections are based on information gathered on the field and
some assumptions that are peculiar to startups in Egypt.
Before choosing a location for SANVIX Company and also the kind of
cosmoceutical & pharmaceutical care products we produce, the company conducts a
thorough market survey and feasibility studies in order for the company to be able to
be able to penetrate the available market in its target market locations.
The company has detailed information and data that it was able to utilize to
structure its business to attract the numbers of customers it wants to attract per time
and also for its products to favorable compete with other leading brands in Egypt
The company hired experts who have good understanding of the cosmoceutical
& pharmaceutical care product manufacturing industry to help itself develop
marketing strategies that will help the company to achieve its business goal of
winning a larger percentage of the available market in sharkia Egypt
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In other to continue to be in business and grow, the company must continue to
sell its products to the available market which is why the company will go all out to
empower or sales and marketing team to deliver its corporate sales goals. In
summary, SANVIX Company will adopt the following sales and marketing approach
to sell its product:
Despite the fact that it’s kind of production plant is a standard one with a wide
range of cosmoceutical & pharmaceutical care products that can favorably compete
with other leading brands, the company will still go ahead to intensify publicity for all
its products and brand. The company is going to explore all available means to
promote, SANVIX Company.
As a matter of fact, its publicity and advertising strategy is not solely for selling its
products but to also effectively communicate its brand. Here are the platforms the
company intend leveraging on to promote and advertise SANVIX Company;
• Leverage on the internet and social media platforms like; Instagram, Facebook,
twitter, et al to promote its cosmoceutical & pharmaceutical care product brand
• Install our Bill Boards on strategic locations all around major cities in Egypt,
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• Position its Flexi Banners at strategic positions in the location where the company
intend getting customers to start patronizing our products.
• Ensure that its products are well branded and that all its staff members wear its
customized clothes, and all its official cars and distribution vans are customized and
well branded.
In view of that, its prices will conform to what is obtainable in the industry but will
ensure that within the first 6 to 12 months its products are sold a little bit below the
average prices of various cosmoceutical & pharmaceutical care product brands in
the Egypt.
The company has put in place business strategies that will help the company run
on low profits for a period of 6 months; it is a way of encouraging people to buy into
its cosmoceutical & pharmaceutical care product brands.
15.1Payment Options
The payment policy adopted by SANVIX Company is all inclusive because the
company is quite aware that different customers prefer different payment options as
it suits them but at the same time, it will ensure that it abide by the financial rules and
regulation of Egypt.
Here are the payment options that SANVIX Company will make available to its
clients:
In view of the above, the company has chosen banking platforms that will enable
its client make payment for farm produces purchase without any stress on their part.
Its bank account numbers will be made available on its website and promotional
materials to clients who may want to deposit cash or make online transfer for its
products.
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a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a
facility and also in purchasing mixing, blending, compounding and packaging.
Aside from that, you are not expected to spend much except for purchase and
servicing of distribution trucks, purchasing raw materials, paying of your employees
and utility bills.
The company would need an estimate of L.E 3000000 to successfully set up our
cosmoceutical & pharmaceutical care products production plant in Egypt. note that
this amount of money includes the salaries of all the staff for the first 3 month of
operation. And the amount of money will be upgraded to 5000000 L.E after 6
months.
2 Demand exceeds supply of experienced medical rep 0.05 2 0.10 2 0.10 2 0.10
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1 administration employee experience 0.05 2 0.10 3 0.15 2 0.10
4 good relationship with customers and suppliers 0.05 2 0.10 1 0.05 2 0.10
According to the QSPM able 8 we can find that the first strategy market
penetration score is 3.90 , the second strategy score is 3.65 and the last strategy
score is 3.55 so the first strategy is the most effective in the beginning it will let the
company test all product quality ,price, physical appearance and efficacy when
customers use them as a result if we had good impressions we will be able to sell
more quantity so gain profit this profit will let us go to the second strategy which is
developing the market by entering new areas get new customers when this
happened we will go to the third strategy which is developing a new products
according to the saturation peak and the performance of the two previous strategies
as follow:
According to the above data analysis tables and the company’s industry
nature the head of a Business intended to make three types of strategy in parallel.
This is to Increase the Market Share & Sales and because the Current
markets not saturated, we can penetrate the market to Increased economies of scale
provide major competitive advantage
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12.6New Market Development Strategies
This strategy will help us to be widely distributed and enable us to open new areas in
order to increase our market share by opening new channels of distribution –
reliable, inexpensive, good quality
This strategy will Increase the Market Share and Sales by improving present
products/services and developing new products/services when we arrive to the
saturated point
SANVIX Company provides a wide range of strategic decisions for its operations.
They are all extremely confident with decisions made by the corporation. Even
though the objectives are well stated and informed to be acted before, SANVIX
Company has not been able to provide anything except vague figures or results of
these strategic decisions. Here the head of a Business has a question, if the
company only wants to create an image of a responsible company and if it is really
implementing these strategically smart decisions. However, SANVIX Company does
show results of its strategic decisions. As the head of a Business mentioned before,
the sustainability of the company is a major part of SANVIX Company’s image as it is
showed in various conferences. In addition, the company maintains the importance
of the Code of Conduct created, as it is important in choosing who SANVIX
Company works with.
The group believed that vertical integration gave it more flexibility than its rivals
to respond to fickle the rapid development in the medical products. With the area's
markets becoming saturated, SANVIX Company had been looking at stretching its
product line and furthering its national expansion.
Although SANVIX Company is a new market within the business area, the
company has been utilized a strategic marketing move, including a strategic planning
in order to make the market be known in the marketing environment. The company
has also made it possible to be connected to their target market through the use of
technological advancement like the e-marketing. Moreover, this marketing entry
strategy can be considered as effective since the company has included the entire
factor to be assessed in order to make the business prolong its competitiveness and
survive in the threatening place of the market.
SANVIX Company uses different kinds of reports to evaluate and inform of its
past operations. For example, as a big part of SANVIX Company’s strategy,
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sustainability will be reported monthly and annually in a Corporate Sustainability
Report. The company also publishes an annual report to conclude overall activities.
In addition to all of these, SANVIX Company arranges press releases, weekly and
monthly general meetings and conferences to further evaluate and inform of its
activities. No doubt SANVIX Company will do an excellent job in evaluation part,
which is one of reasons about critical success.
In this section, the challenges that SANVIX Company is facing with are
summarized. Based on the SWOT analysis and the facts about SANVIX Company,
the recommendation from the perspectives of author are given below.
Most importantly, the head of a Business thinks that SANVIX Company doesn’t
need to reduce the expansion. In my opinion, it has the ability to control and monitor
the suppliers. the head of a Business also recommends that it can focus on some
different markets.
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1- Recommendation 1 evaluation
This recommendation was talking about the raw material problem in Coca-
Cola company and how to avoid this problem by improving and secure relationships
with suppliers using a few tactics such as minority ownership or strategic alliances by
using the backward vertical integration and purchase a supplier. But I think it is not
the final solution for this problem because Coca-Cola company is a huge
multinational company which mean that every company like to deal with it for its sake
the coca cola production amounts are very huge so the supplier will try to keep the
relation with Coca-Cola in the good direction and about the natural disasters I think
it will affect all of them and the whole world like COVID-19 we noticed that this virus
has weaken the world economy not just one company . so, it is better to make a
strong contract with them and save money to develop another problem like
packaging or water scarcity.
2- Recommendation 2 evaluation
3- Recommendation 3 evaluation
This recommendation was talking about that the Coca-Cola Company has
become highly criticized for the actions of its bottling partners in Colombia. I agree
with this recommendation to buy the bottling company or try to establish new bottling
company in Colombia to avoid this kind of problems in the future even if it will cost
money now but it will be good solution for the company and with development the
company can make profit from this new company. They can make plastic and
aluminum containers to be replaced by more environmentally friendly burlap cans.
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RECOMMENDATIONS
1- Customer Support
Workforce is a main input and asset nowadays for any big corporation. The
human resource management for the company should be good enough to support
every person and make him satisfied and loyal to the company. Job security is an
important issue that needs to be resolved in a perfect way to get an effective result.
Loyalty must not be considered as mandatory for the customers only, but it should be
also a part of the company's employees to love and be loyal to their jobs. Jobs
securities are to be resolved in order to get maximum employee retention and
ultimately the company's performance would be maximized.
the company needs to address more social and ethical issues to have an
encouraging role in development the society towards progressive country.
5- Healthy products
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Thanks
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