Strategic Management Project

Juhayna company

Prepared by:
Marian Moanis 21121198
Mahmoud Abdelsameaa 21120822
Mohamed Tawfeek 21121024
Rafeek Adel 21120965

10.01.2023
Strategic Management

Dr. Ashraf Labib

Table of Contents
1. Introduction to Juhayna ........................................................................................................................ 4

2. Mission .................................................................................................................................................. 4

3. Values .................................................................................................................................................... 5

4. Vision..................................................................................................................................................... 6

5. Generic Strategy.................................................................................................................................... 6

6. External environment ........................................................................................................................... 6

6.1. Pestle Analysis ....................................................................................................................................... 6

6.1.1. Political factors ...................................................................................................................... 7

6.1.2. Economic factors ................................................................................................................... 8

6.1.3. Social factors ....................................................................................................................... 10

6.1.4. Technological factors .......................................................................................................... 12

6.1.5. Legal factors ........................................................................................................................ 14

6.1.6. Ecological ............................................................................................................................ 15

6.2. Issue Priority Matrix for PESTEL Factors ................................................................................. 22

6.2.1. Political ................................................................................................................................ 22

6.2.2. Economics ........................................................................................................................... 23

6.2.3. Social ................................................................................................................................... 24

6.2.4. Technological ...................................................................................................................... 25

6.2.5. Legal .................................................................................................................................... 26

6.2.6. Ecological ............................................................................................................................ 27

6.3. Industry/Task Environments (Porter 5 forces).................................................................................... 28

6.3.1. Bargaining power of buyers/ Customers: ........................................................................... 28

6.3.2. Bargaining power of Supplier:............................................................................................. 29

 6.3.3. Threat of New Entrants ....................................................................................................... 30

6.3.4. Substitute Products ............................................................................................................. 31

6.3.5. Rivals ................................................................................................................................... 32

6.4. Issue Priority Matrix for Porter 5 Forces Factors ................................................................................ 32

6.5. Strategic Group Map ........................................................................................................................... 33

6.6. Strategic Type: .................................................................................................................................... 34

6.7. Value Discipline Triad .......................................................................................................................... 34

Issue Priority Matrix for Value Discipline Triad........................................................................................... 35

6.8. BCG Matrix .......................................................................................................................................... 36

6.9. Industry Matrix.................................................................................................................................... 38

6.10. External Factor Analysis Summary (EFAS)................................................................................... 39

7. Internal Environment Analysis ............................................................................................................ 40

7.1. Value Chain Analysis ........................................................................................................................... 40

7.2. VRIO Analysis ...................................................................................................................................... 41

7.3. Internal Factor Analysis Summary (IFAS) ............................................................................................ 43

8. Strategic Factor Analysis Summary (SFAS) .......................................................................................... 44

9. TOWS Analysis..................................................................................................................................... 46

10. Quantitative Strategic Planning Matrix............................................................................................... 47

11. Space matrix........................................................................................................................................ 48

12. Financial Statements and Ratios ......................................................................................................... 49

13. Balanced score card ............................................................................................................................ 55

1. Introduction to Juhayna
Juhayna Food Industries is a leading Egypt-based manufacturer specialized in the production, processing,
and packaging of milk, yoghurt, juice and juice concentrate. Juhayna utilizes the most up to date global
technology to produce the highest quality dairy and juice products and has continued ever since to
reinvent itself in response to both global trends and local market needs.
Today, Juhayna has a well-earned reputation as a trendsetter in both manufacturing know-how and
product innovation. Recent market studies indicate that Juhayna enjoys a level of brand awareness that
is significantly more pronounced than its leading competitors on the Egyptian market. By building a state-
of-the-art industrial infrastructure, Juhayna has steadily increased production capacity while developing
and expanding its product range. Today the company has more than 250 different products on the
supermarket shelves produced at seven separate manufacturing facilities.
With an eye for strategic investing, Juhayna has carried out a number of incremental expansions in line
with its primary objective to offer the market a diversified bouquet of products. It is Through its well-
established and considerably the largest distribution network among its peers, Juhayna is able to reach a
wider consumer base while adhering to their different habits and tastes. Juhayna has 31 Distribution
centers, a fleet size of over 1200 vans and trucks reaching over 60,000 retail outlets allowing Juhayna to
remain at the summit of its industry.
Juhayna has taken major steps to expand its upstream business in an attempt to secure supply of raw
materials to ensure efficiency, deliver high-quality products and avoid the ill-effects of production
disruptions and fluctuations in commodity prices. In 2008, Juhayna began production of its concentrates
segment, used as raw materials for juice products through the establishment of Modern Concentrate Co.
(Modern Concentrate) and the acquisition of El Marwa Food Industries Co. (El Marwa).
In 2009, Juhayna established Al Enmaa for Agricultural Development & Livestock (Al Enmaa) to carry out
agricultural and farming activities. In 2014, Juhayna inaugurates Egg food factory for dairy products in
Assiut

2. Mission
Juhayna exists to build an exceptional Egyptian legacy by offering healthier and higher
quality products while positively impacting the communities where Juhayna operate.
3. Values
Big Goal “BHAG”: A Juhayna pack in every hand and a smile on every face in the Middle
East and Africa
Integrity: Juhayna ensure honesty, accuracy and fairness in all our
actions. Juhayna refuse to take shortcuts and will always do the right
thing.
Achievement: Juhayna are one team who has an unyielding drive to win,
nothing stands between us and our goals. Yet Juhayna always remain
humble and respectful.
Continuous Improvement: Juhayna don’t rest on our laurels. Juhayna
celebrate our success, but Juhayna don’t settle, Juhayna pursue excellence & drive change
with vigor.
Innovation: Juhayna are game changers who creatively think of how to
change ” the present “. Juhayna keep abreast of trends focusing on ideas that will place
us at our pinnacle.
Ownership: Juhayna are entrepreneurs who hold us accountable. Proud
of anything that bears our name. To us, Juhayna comes first , always .
Positivity: Juhayna inspire others with our passion, determination and good vibes. Juhayna
are problem solvers who see an opportunity in every challenge.

Juhayna mission statement revealed clearly about:

● Customers: Communities in the Middle East and Africa.
● Products : Juhayna focuses on healthier and higher-quality products so they are concerned about
what they will offer to the market.
● Market/Customer group served: Segment B the Middle east & Africa.
● Technology: referred to under innovation.
● Concern for growth and survival: They are concerned about continuous improvements .
● The public image: positively impacting the communities where Juhayna operate.
● The company philosophy: Juhayna clearly listed their beliefs and values.
● Self-concept: They want to be perceived as a provider of healthier and higher quality products.
 ● Concern of employees: Juhayna is keen to have a team that acts as an ambassador team of values,
believing that success will not be achieved without the efforts and dedication of their employees.
but they didn’t refer to opportunities for growth and enrichment to employees.
Proposed mission statement:
Juhayna exists to build an exceptional Egyptian legacy by offering healthier and higher quality products
while positively impacting the communities in the middle east & Africa, generating significant value for
our shareholders and other stakeholders alike. To stand out we keep abreast of the latest technology,
pursue excellence & drive change with vigor.

4. Vision
• Vision describes the strategic target that is being the leading source of a
healthier and tastier quality of life for customers.
• Vision guide manager to efficiently allocate the company resources and achieve
the desirable future.
• The vision statement is a bit long, so it is not easy to be memorable.

5. Generic Strategy
Juhayna Have been carefully selected its Generic strategy based on (Differentiation).
Differentiation provides wide range of products that satisfies the targeted segment of the market with
the best price and quality. Also to achieve operation profits while minimizing the COGS.
Today Juhayna has more than 250 different products on the supermarket shelves produced at seven
separate manufacturing facilities.

6. External environment

6.1. Pestle Analysis

The remote environment comprises factors that beyond and usually irrespective of any single firm
operating situation. However remote environment is beyond firm's control it is a critical criterion for any
organization as it affects organizations, policy, resources allocation, production style, profitability, society
perspectives, and sustainability.
Remote environment comprises:
 • Political factors
• Economic factors
• Social factors
• Technological factors
• Legal
• Ecological factors

6.1.1. Political factors

Political factors define the legal and regulatory parameters within which firms must operate. The direction
and stability of political factors are a major consideration for mangers on formulating company strategy,
It measures the Political policy, Stability of government, Governmental attitude towards foreign firms,
Foreign policy as below:
Factor Current Situation Opportunity/Threat Impact on the organization
Political policy The Politics of Egypt are based on Opportunity High, while the Sustain of
republicanism, with a semi-presidential political healthy Policy allow
system of government. The current business to expand and
political system was established in 2013 growth continue
when Egyptian takeover of President
Abdel Fattah El-Sisi who is elected for six-
year term. He can appoint up to 5 percent
of the parliament and the overall climate
are relatively stable
Stability of Egypt faces an election in 2024, but the Opportunity High, Gives more stability
government current government expected to govern insights and positive
until 2030. indication of business
continuity
Loppies Egyptian Businessmen’s Association & Threat Medium
federation of Egyptian industries
Governmental Egypt aims to Increase investor's Threat High, Egypt has
attitude confidence and the reactivation of Egypt’s implemented a number of
towards interbank foreign exchange (FX) market regulatory reforms,
foreign firms have attracted foreign portfolio including a new investment
 investment and grown foreign reserves. law in 2017; a new law for
The Government of Egypt (GoE) also companies and a
understands that attracting foreign direct bankruptcy law in 2018; and
investment (FDI) is key to addressing a new customs law in 2020.
many of its economic challenges and has These laws aim to improve
stated its intention to create a more Egypt’s investment and
conducive environment for FDI business climate and help
the economy realize its full
potential in other side let a
lot of foreign companies to
come and invest in the
market with huge
investments
Foreign policy Egypt's foreign policy operates along a Opportunity High, Foreign policy gives
non-aligned level. Factors such as opportunity for business
population size, historical events, military growth and increase the
strength, diplomatic expertise and a opportunity for Products
strategic geographical position give Egypt and services for
extensive political influence in the Middle neighboring countries
East, Africa, and within the Non-Aligned
Movement as a whole. Cairo has been a
crossroads of the Arab world's commerce
and culture for centuries, and its
intellectual and religious institutions are
at the center of the region's social and
cultural landmarks.

6.1.2. Economic factors

Have a direct effect on organization nature and direction as it affects, availability of credit, tendency of
people to spend, interest rates, inflation rate and economic growth.
Factor Current Situation Opportunity/Threat Impact on the organization
Level of One of the key majors of the economy Threat High , By reaching 2022 ,
economic that Egypt is facing these days is the GDP, GDP expecting to reach
development Egypt was suffering since the pandemic 6.6% which can represent
GDP from low GDP 3.49%, 3.28% in 2020/21, an opportunity investment
respectively. which can imply that there is for diary industry and for
a poor potential growth in Egypt in the last Juhayna specific .
couple of years and things begin to have
potential growth for the country and for
diary industry as well .
Population Egypt can be the largest population in the Opportunity High , as the Per capita in
Middle east region , population growth increasing which indicate
with an average 1.8% .38% of age bracket that the standard of living
25-54 years can indicate the consumer and quality of life of the
behavior related to the income. population is being
GDP per capita growth 8% and 18% in enhanced and this can
2020 and 2019 , respectively . which can change the customer
indicate that segments
Inflation rate Egypt has an increase inflation rate which Threat high, this will increase the
reached to 13.1% end of year Inflation price of the goods and it
rate, end of period consumer prices can be a big threat to
compared to Egypt GDP rate currently. Juhayna as it will reduce the
punching power for the
consumers and will
decrease the demands on
the products
Unemployment Egypt Unemployment Rate averaged 7.3 Threat High , will lead to lead to lay
%. , and due to Egypt circumstances , this of the employee due to for
can force Juhayna lay out some of its reduction cost
employees due to the increase of the
interest rate , inflation rates , decreasing
 the purchasing power due to the inflation
.
Interest rate Egypt has increased its interest rates by 8 Threat High , as this can be a threat
percentage points in 2022 and expected to Juhayna company for
to be raised next year by 3%. as an slowing down potential
increase in interest rates is used to slow investment projects .
down inflation and protect the EGP
currency .
Currency Egypt now having an increase in the Threat High , will affect the
devaluation - inflation rate in addition to an increase in company to pay more for its
EGP against the USD demanded to meet its obligations foreign obligations and this
USD will limit the resources
needed for importing .

6.1.3. Social factors

Involve beliefs, attitudes, opinions and lifestyles. It is developed from cultural, demographic, religious,
educational and ethical conditions. As social attitudes change demand for various types of products
changes. “Social attitudes are dynamic, as customers continuously trying to satisfy their needs and
desires”. One of the most profound social changes in the recent years has been: “the entry of large
numbers in women into the labor market as its effect created wide range of products and services; e.g.
convenience food, microwave ovens, and day care centers.
Factor Current Situation Opportunity/Threat Impact on the organization
Values and Juhayna is Inspired by ‘Our Consumers’ Opportunity High
beliefs Everyday life’, Juhayna’s brand strategy
has led the company to become one of
Egypt’s most loved household brands. Our
healthy, age-specific products and family-
friendly brand has stretched across the
market in various categories, including
plain and flavored milk, spoonable and
drinkable yoghurt, premium-quality
 juices, specialty drinks, and Cooking
Cream Range.

Languages Juhayna always respect the language they Opportunity High

provide in their campaigns , promotions
and media advertising .
Juhayna did a very good advertising
campaign in 2017 with a very respectable
language for all audience which had a big
impact for the Egyptian conception in the
mother’s day and have a good reputation
to marketing teams .
“We think Juhayna Dairy’s campaign will
be one of the best campaigns for Mothers’
day 2017. It will be effective because it
evokes a positive emotion as well as, it is
relevant to the Egyptian consumer and
specifically, the decision makers.”
Religious Juhayna always make sure that all its Opportunity High
beliefs products and animals are treated fairly
with the country’s religious and traditions
treatment. also comply with all the
certifications related to its animal imports
that the country required.
Egypt has established a new organization
IS EG Halal as the sole halal certification
body for food products imported into
Egypt (Ministerial Decree No. 35/2020).
This Market Access Advice provides
information on Egypt’s new process for
halal certification. From 1 October 2021,
milk and milk products exported to Egypt
require halal certification from IS EG Halal.
IS EG Halal has been contacting exporters
as import permits have been issued to
provide certification. The department is
confirming an implementation date for
edible non-prescribed goods.
Social Juhayna always continue to show her Opportunity High
institutions support to community by launching many
campaigns for females in the workplace in
addition to initiatives for violence against
women, reinforcement of mothers to the
workforce , national donation for Baheya
and many advertising campaigns for
mother days .

6.1.4. Technological factors

Refers to the firm’s awareness of technological changes that might influence its industry. Creative
technological adaptation can suggest possibilities for new products, possibilities for improving existing
 products, possibilities for improving manufacturing techniques and possibilities for improving marketing
techniques. Technological breakthroughs can have sudden and dramatic effects on the firm environment
thus firms have to strive to understand existing technological and strive to understand probable future
advances that can affect their products or services. Technological forecasts can help protect and improve
the profitability of the firm in a growing industry.
Factor Current Situation Opportunity/Threat Impact on the organization
Possibilities for Juhayna has recently launched several Opportunity High, this has a direct effect
new products new products (e.g. Non-diary milk and on the market share, as
Greek yogurt), and there is possibility for being able to launch new
more. products can keep up with
customer changing taste
and attract more
customers, while failing to
do so gives the competitors
an edge.
Possibilities for Juhayna works continuously on improving Opportunity High, as the case in the
improving existing products, shape and content, and previous point, it has a
existing is likely to continue doing so. direct effect on the market
products share.
Possibilities for As there is an emerging market for new Opportunity High, as the new products
improving products, it is expected that the are still new, there is room
manufacturing manufacturing techniques of those for improvement for their
techniques products will improve. manufacturing techniques,
and this can dramatically
affect customer preference.
Possibilities for Marketing industry is in continuous Opportunity High, as a large number of
improving improvement, and Juhayna is keeping up the products are of
marketing with those improvements homogeneous nature,
techniques marketing technics play an
important role in the selling
process.
 6.1.5. Legal factors
Could be place of firm, tax program, minimum wages legislation, pollution, and pricing. As laws and
regulations are commonly restricted, they tend to reduce the potential profits of firms.
Factor Current Situation Opportunity/Threat Impact on the organization
Effectiveness The Egyptian legal institutes are stable for Opportunity High, as all firms have to
of legal system decades, and the laws are enforced. comply to the laws and
regulations, otherwise they
will not be able to operate.
Treaties with Egypt is participating in several trade Opportunity High, as there are markets
foreign nations treaties with foreign countries including: in foreign countries and
The African Continental Free Trade Area some of the production
(AfCFTA) inputs are imported.
The General Agreement on Tariffs and
Trade (GATT)
The General Agreement on Trade in
Services (GATS)
European Union-Egypt Free Trade
Agreement (Association Agreement)
Free Trade Agreement with EFTA States
Turkey-Egypt Free Trade Agreement
Greater Arab Free Trade Area Agreement
Agadir Free Trade Agreement among
Egypt, Morocco, Tunisia and Jordan
Egyptian-European Mediterranean
Partnership Agreement
The Common Market for Eastern and
Southern Africa (COMESA)
Pan Arab Free Trade Area (PAFTA)
Patent There is a lot of room for improvement in Threat High, the current situation
trademark the patent trademark laws in Egypt discourages R&D efforts
laws
Taxes Egyptian taxing laws are stable, enforced, Threat High, Taxes affect firm
and transparent. revenue
Currently the corporate income tax is
22.5% and the value added taxes is 14%
Due to the current unstable economic
situation, taxes might be change in the
near future.
Laws affecting Egyptian Food Safety authority is Opportunity High, Discourages non-
business firms responsible of enforcing the laws related conforming competitors
to F&B industry strictly
Salaries Minimum Wages in Egypt have increased Threat Low - As the Juhayna is
three times during the past 10 years, already targeting skilled
doubled in the past 4 years. talents, the legal limits on
In the current financial situations it is salaries are already
expected that those laws will be revised exceeded
again during the coming 5 years.

6.1.6. Ecological
refer to the relationships among human beings and the living things, air, soil, water that support them. As
a major contribution to ecological pollution, business now is being held responsibilities for eliminating the
toxic by-products of its current manufacturing process. Managers are being required by the governments
to incorporate ecological concerns into their decisions making. This could be achieved by reformulating
products, modifying processes, redesigning production equipment, and recycling by-products.
Factor Current Situation Opportunity/Threat Impact on the organization
Climatic risk Mandatory ESG reporting requirements Threat High
for Egyptian companies have already
been announced in a decree issued by
the FRA (Financial Reporting Advisory),
forcing corporates to report on key ESG
and TCFD
metrics quarterly and annually with their
financial statements.
 Juhayna already has a sustainability and
carbon footprint report. so it complies
with the requirements.
Juhayna upholds the guidelines of United
Nations Framework Convention on
Climate Change (UNFCCC) to limit and
reduce greenhouse gases emissions.
Juhayna disclosed their footprint through
an annual carbon footprint report to
promote transparency and robust
reporting across their industries and
sectors.
Juhayna drive energy efficiency practices
across the business to alleviate distress
on national grid and resources.
Juhayna own it solar energy station. The
station reduces emissions by c. 1.62 tons
of CO2 per year and decreases the
dependency on diesel by about 600,000
liters annually, simultaneously lowering
the operational costs and reducing
Juhayna carbon footprint.
RESOURCING Regulations set by the Ministry of Threat High
EFFICIENCY Environment and other relevant
AND WASTE government authorities related to best
CONTROL practices in waste minimization and best
practices in resource efficiency.
▪ Juhayna as an FMCG producer,
the waste extends beyond the
manufacturing cycle and to the
product packaging and how
 consumers choose to dispose of
it.
▪ Juhayna actively aims to reduce
milk and solid waste during
production and throughout the
supply chain.
▪ Juhayna remains dedicated to
creating product packaging that
bears minimal undesirable
impacts on the environment and
carton packaging that can be
easily collected and recycled.
▪ Juhayna sources all packaging
from Tetra Pak and Combi both
are FSC certified. (FSC
certification ensures that
products come from responsibly
managed forests that provide
environmental, social and
economic benefits).
▪ Juhayna disposes of hazardous
waste through trusted
companies that are licensed,
monitored, and penalized, if
needed, by the Environmental
Affairs Agency.
▪ Juhayna aim to make 100% of
their packaging for yogurt and
dairy cartons recyclable and
increase their r-PET by at least 25
by 2030
 ▪ Juhayna moved toward a mono-
material plan strategy to increase
packaging recyclability.
Juhayna partnered with the recycling
company reform to reuse company
waste ethically and sustainably.
▪ We joined E-Tadweer, an
initiative launched by the
Ministry of Environment and the
Waste Management Regulation
Authority, to responsibly dispose
of our electronic waste. 290 kg of
damaged electronics were
collected from Juhayna’s
headquarters and Tiba, Al-
Enmaa, and Al-Masreya, with the
help of waste recycling company
Green Waste, saving 321 kg of
CO2 equivalent.
Juhayna adheres to all of these policies.
• Standard operation procedures for best
practices in waste minimization
• Standard operation procedures for best
practices in resource efficiency
• Regulations set by the Ministry of
Environment and other relevant
government authorities
• ISO 50001:2018
Water According to the environmental law threat High
Stewardship 44/2000 Juhayna should manage its
water dependency.
 Juhayna operations rely on water for
producing juices and other beverages, as
well as for farming and manufacturing
purposes. Juhayna
therefore, exercise extreme caution in
rationing water uses and find a
convenient alternative, when possible, to
decrease their reliance on
natural resources.
Juhayna has substantially reduced the
water needed during the production
process by integrating advanced water
recycling technologies into the
production system. This helps Juhayna
reuse water during the manufacturing
cycle for purposes such as cooling.
Juhayna equipped their factories with
wastewater treatment facilities and
equipment worth over EGP 32 million to
efficiently manage specialized water
needs.
Biodiversity & Operating agriculture and dairy farming Threat High
Biosecurity means that Juhayna should meet the
regulations applied by the National Food
Safety Authority
▪ Juhayna adopt the Food and
Agriculture Organization (FAO)’s
good dairy farming practices and
uses innovative, state-of-the-art
practices in animal care and raw
materials preservation
▪ Juhayna applies the safe, pain-
free, and healthy life of herds
across their network to keep with
the FAO’s freedoms for animals
and this also improves the
volume and quality of each
animal’s yield.
▪ Juhayna align with UNSDGs 2 (a
world free from hunger) and 15
(Protect, restore and promote
sustainable use of terrestrial
ecosystems, sustainably manage
forests, combat desertification,
and halt and reverse land
degradation and halt biodiversity
loss)
▪ Juhayna follows strict safety
protocols to reduce harm and
the spread of diseases across its
network. Juhayna adopt “the
Animal Health Mgt Program”
primarily entails providing secure
boundaries and fencing around
each farm, avoiding direct
contact between visitors and the
herd to limit concerns, and
implementing biosecurity
measures that limit the transfer
of diseases from farm to farm
and from animal to animal.
 ▪ Adherence to the programs and
initiatives to animal welfare and
healthy yields. Juhayna has a
development department to
monitor adherence to animal
welfare standards and monitor
herd health to identify concerns
and recommend.
improvements.
▪ Juhayna has annual plans to
ensure that Al-Enmaa’s herd is
properly vaccinated. And require
all farms across the network to
provide certificates proving their
herds are free from Brucella and
Bovine Tuberculosis on a
semestral basis (biannually)
▪ Juhayna regularly set plans to
measure and closely address our
herd’s GHG emissions
▪ Juhayna conducts regular testing
on milk to ensure its safety and
quality.
▪ Two external audits are
conducted annually by the
Ministry of Agriculture in Egypt
at Al-Enmaa and the rest of our
network to ensure herd
wellbeing.
Ensuring that Mandisha Farm is
complying with NFSA regulations in terms
 of all hygienic procedures, systematic
processes, engineering designs, and
reporting and documentation.

6.2. Issue Priority Matrix for PESTEL Factors

6.2.1. Political
Opportunity Probability of impact on corporation
Political policy High Medium Low
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Stability of government High Medium Low
High
Probability of
Medium 3
occurrence
Low

Threat Probability of impact on corporation

Governmental attitude
High Medium Low
towards foreign firm
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Foreign policy High Medium Low
High 1
Probability of Medium
occurrence Low

Threat Probability of impact on corporation

Loppies High Medium Low
High
Probability of
Medium 3
occurrence
Low

6.2.2. Economics
Threat Probability of impact on corporation
Level of economic
High Medium Low
development GDP
High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Population High Medium Low
High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Inflation rate High Medium Low
High 1
Probability of
Medium
occurrence
Low
Threat Probability of impact on corporation
unemployment High Medium Low
High 2
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Currency Devaluation - EGP
High Medium Low
against USD
High 1
Probability of
Medium
occurrence
Low

6.2.3. Social

Opportunity Probability of impact on corporation

Values and beliefs High Medium Low

High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Religious beliefs High Medium Low

High
Probability of
Medium 4
occurrence
Low
Opportunity Probability of impact on corporation

Language High Medium Low

High
Probability of
Medium 3
occurrence
Low

Opportunity Probability of impact on corporation

Social institutions High Medium Low
High 1
Probability of
Medium
occurrence
Low

6.2.4. Technological
Opportunity Probability of impact on corporation
Possibilities for new products High Medium Low
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Possibilities for improving
High Medium Low
existing products
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Possibilities for improving
High Medium Low
manufacturing techniques
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Possibilities for improving
High Medium Low
marketing techniques
High 1
Probability of
Medium
occurrence
Low

6.2.5. Legal
Opportunity Probability of impact on corporation

Effectiveness of legal system High Medium Low

Probability of High 1
occurrence Medium

Low

Opportunity Probability of impact on corporation

Treaties with foreign nations High Medium Low
High
Probability of
Medium
occurrence
Low 6

Threat Probability of impact on corporation

Patent trademark laws High Medium Low
 High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Taxes High Medium Low
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Laws affecting business firms High Medium Low
High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of impact on corporation

Salaries High Medium Low
High 5
Probability of
Medium
occurrence
Low

6.2.6. Ecological
Threat Probability of impact on corporation
Climatic Risk High Medium Low
High 1
Probability of
Medium
occurrence
Low
 Threat Probability of impact on corporation
Resourcing Efficiency & Waste
Control High Medium Low
High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Water Stewardship High Medium Low
High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Biodiversity & Biosecurity High Medium Low
High 1
Probability of
Medium
occurrence
Low

6.3. Industry/Task Environments (Porter 5 forces)

The main aim of this environmental analysis is to identify industry’s attractiveness in order to predict
industry profitability.
Each variable / force could affect the organization either positively or negatively.
Analyzing each Variable / force and the balance between them, it is likely to determine the overall level
of competition and attractiveness of the industry.

6.3.1. Bargaining power of buyers/ Customers:

Refers to Customers abilities to force down prices or force for higher quality or more services.
A buyer group is powerful if:
• It purchases large volumes.
• Alternative suppliers are available due to un differentiated products
• The product is core and significant in its cost.
• It earns low profit (great intensive to lower its purchase cost)
• Product quality is less important.
• Buyers pose a credible threat of integrating backwards
Defining the buyers of Juhayna products:
• Retailers Hypermarkets (Carrefour, Hyper 1, …etc.)
• Wholesale distributors.
• McDonalds.
• Super markets.
Below Is Table Define each determinate which can give More bargaining power for buyer of Juhayna
product or not
Factor Determinant Threat
Bargaining Leverage
Buyer concentration versus firm High High
concentration
Buyer volume High High
Buyer switching costs relative to Low High
firm switching costs
Buyer information High High
Ability to backward integrate Low Low
Substitute products Pull-through High High
Price sensitivity
Price/total purchases Low High
Product differences Low High
Brand identity High Low
Impact on quality/performance High High
Buyer profits Low High

6.3.2. Bargaining power of Supplier:

Despite the fact that Juhayna has its own dairy farms it can only supply 10% of its required daily needs,
this means that Juhayna has a huge number of suppliers including:
 • Farmers
• Pest control companies
• Cow breed suppliers
• Fruit suppliers
• Animal feeding suppliers
• Technology providers

Juhayna is very selective when dealing with suppliers to achieve its goal of delivering safe and high-quality
products to ensure raise the quality of life of its consumers. Juhayna put their suppliers through rigorous
evaluations, this implies that the number of suppliers that Juhayna can deal with is somehow limited.
Accordingly, the suppliers have power over Juhayna. As per the sustainability report of 2021 published by
Juhayna, they had to secure more favorable contracts with their suppliers to overcome the risk that took
place due to repetitive delays in raw material arrival dates.
Furthermore, Juhayna collaborates with the dairy farmers and traders to empower them for the purpose
of increasing productivity and market efficiency. In addition, Juhayna provides financial support to farms
in the form of in-advance capital to develop their farms, purchase cows, to remain in the company’s value
chain at competitive prices.
Factor Determinant Threat
Bargaining Power of Suppliers
Differentiation of inputs Low Low
Switching costs of suppliers and Moderate Moderate
firms in the industry
Presence of substitute inputs Moderate Moderate
Supplier concentration Low High
Threat of forward integration Low Low

6.3.3. Threat of New Entrants

Refers to new entrants who have desire to gain market share. The threat of entry depends on, barriers
present and reaction from existing competitors. Six major sources for barriers to entry are, economics of
scale, product/brand differentiation, capital requirements, cost disadvantages independent of size
(experience), access to distribution channels and government policy.
• Economics of scale could be due to obstacles in production, research, marketing, service,
distribution.
 • Product/brand differentiation obstacles could be due to heavily expenses to overcome customer
loyalty and differentiate their products
• Capital requirements obstacles could be due to the need to invest large financial resources
• Cost disadvantages obstacles could be due to the learning curve (technology, distributors,
suppliers, location)
• Access to distribution channels obstacles could be due to limited wholesale or retail channels; the
more the existing competitors have these tied up, the tougher the entry into the industry.
• Government policy obstacles could be due to government control (license, limits on access to raw
materials, taxes, air and water pollution standards).
Juhayna is a big company in the market which has a big privilege in the distribution channels, Juhayna
consider one of the few companies that has a wide and largest distribution in great Cairo and upper Egypt.
Juhayna also has a high Economic of scale. Which indicates that it can produce a product of high quality
at a lower cost in addition to the diversification for its diary and juice products. Which will be a challenge
and high entry barrier for any competitor to compete with Juhayna.
Factor Determinant Threat
Economics of scale High Low
Proprietary product differences High High
Customer Loyalty High Low
Capital Requirements High Low
Experience High Low
Governmental and Monetary High Low
Policies
Access to Distribution Channels High Low

6.3.4. Substitute Products

Due to the homogeneous nature of most of Juhayna products, substitute product can form a big threat in
this industry.
Factor Determinant Threat
Switching costs Low High
Relative price performance of High High
substitutes
Buyer propensity to substitutes Low Low
 6.3.5. Rivals
Rivalry is related to the presence of a number of factors namely, competitors are numerous or equal in
size and power, industry growth is slow (fighting for market share), products or cost lack differentiation
or switching cost, fixed cost are high, and exit parries are high. Rivals have different ideas about how to
compete.
Factor Determinant Threat
Industry growth (Milk growth rate is Low High
5.9% & dairy Growth rate is 7.2 %
annually and increase slowly by
incremental rate
Fixed (or storage) costs/value added High High
Intermittent overcapacity low Low
Product differences Low High
Brand identity High High
Switching costs low High
Concentration and balance High High
Informational complexity
Diversity of competitors High High
Corporate stakes High High
Exit barriers High High

6.4. Issue Priority Matrix for Porter 5 Forces Factors

Threat Probability of impact on corporation

Bargaining power of buyers High Medium Low
High 1
Probability of
Medium
occurrence
Low

Threat Probability of impact on corporation

Bargaining Power of Suppliers High Medium Low
High
Probability of
Medium 4
occurrence
Low
 Threat Probability of impact on corporation
Threat of New Entrant High Medium Low

High
Probability of
Medium 7
occurrence
Low

Threat Probability of impact on corporation

Substitute Products High Medium Low
High 1
Probability of
Medium
occurrence
Low

6.5. Strategic Group Map

Customer Priorities Juhayna Lamar El Maraai Obour Land Lactel
Price Medium Medium Medium Low High
Distribution High Medium High Low Low
Quality High Medium Medium Medium High
Marketing High Medium High Low Medium
Variety High High High Low Medium
Packaging High High High Low High
 High
Juhayna

Distribution Al Maraai

Lamar

Lactel

Low Obour Land

Low High
From the graph we can see that Juhayna is competing with Lamar & Al Maraai.

6.6. Strategic Type:

Juhayna is considered an analyzer firm, as they have a wide variety of products, yet they are not cost
oriented, and not competing over the price.
Conclusion:
Two most important priorities Price & Distribution
Direct competitors El Maraai & Lamar
Biggest Market share Juhayna

6.7. Value Discipline Triad

Main objective is to define the corporate position in the generic strategies comparing with all competitors.
It consists of three main variables:
• Product Leadership.
• Operational Excellence.
• Customer Intimacy.
 Product Leadership

Juhayna
Lamar
Al Maraai
Lactel
Obour Land

Operational Excellence Customer Intimacy

Issue Priority Matrix for Value Discipline Triad

Opportunity Probability of Impact on Corporation

Product Leadership High Medium Low

High 1
Probability of
Medium
occurrence
Low

Opportunity Probability of Impact on Corporation

Customer Intimacy High Medium Low

Probability of High 1
occurrence Medium
 Low

Threat Probability of Impact on Corporation

Operational Excellence High Medium Low

High
Probability of
Medium 4
occurrence
Low

Conclusion:
• Juhayna position is perfect in the differentiation "product leadership" which is the main generic
strategy Juhayna as Its product is the best in the market and highly valued by the customers.
• Juhayna position is perfect in the "customer intimacy" they Exceed the expectation of the
customer.
• Juhayna position in the cost leadership "operation excellence" generic strategy is accepted and
issue priority matrix indicates that it’s better to enhance its strategy to improve their position.

6.8. BCG Matrix

The BCG matrix is a strategic management tool which helps in analyzing the position of a strategic business
unit and the potential it has to offer. The matrix consists of 4 classifications that are based on two
dimensions. The first dimension is the industry or market growth rate. The second dimension is the
relative market share of the strategic business unit. Strategic business units are placed in one of these 4
classifications.
Juhayna Relative Market
Largest competitor
Item Juhayna Products Market Market growth
Market share
share share rate
1 N&G 35% 40% 114% 60%

2 Plan Milk 20% 58% 290% 6%

3 flavored milk 30% 57% 190% 6%

4 YOGURT 20% 28% 140% 8%

5 GREEK YOGURT 30% 28% 93% 159%

 6 Drinkable Yogurt 25% 50% 200% 8%

7 Rayeb 35% 10% 29% 4%

8 Juice 20% 25% 125% 30%

9 Natural Juice 30% 10% 33% 30%

BCG MATRIX
High Low

Market Growth Rate

High

STARS QUESTION MARKS

Greek Yogurt Natural Juice
N&G
Juice
Relative Market Share

CASH COWS DOGS

Plain Milk Rayeb
Low

Flavored Milk
Yogurt
Drinkable

Conclusion:
• Investment priority will be directed towards “Star Products” which include Greek yogurt,
N&G products, & juice for the reason that these are the products with high market share
and high market growth.
• With regards to the “Cash Cow products” and since these are the most profitable
products, Juhayna will invest in a moderate way in this group to maintain their current
market share.
• Juhayna will give investing in Rayeb the last priority since this is a Dog that generates low
cash returns.
• Juhayna, should conduct some investigation to identify the reason behind the low market
share of pure juice “Question Mark Product” and see if it is worth investing in to push it
to become a star.
 Opportunity Probability of Impact on Corporation
BCG Matrix Star Product
High Medium Low
(Greek Yogurt, N&G, Juice)
High 1
Probability of
Medium
occurrence
Low

According to the BCG Matrix, Juhayna will seize the opportunity of investing in the star products to
generate more profit and invest in a moderate way in cash cow products.

6.9. Industry Matrix

The main objective of industry Matrix is to help the organization know its position in the industry
compared to other competitors according to the main key success factors in that market, each industry
has different key success factors.
Juhayna Lamar Al Maraai
Industry Success Factors Weight
Rate Weighted Rate Weighted Rate Weighted

Economics of Scale 0.23 5 1.15 3.75 0.8625 4 0.92

Access to distribution Channels 0.17 4 0.68 3 0.51 3.5 0.595

Differentiation in inputs 0.04 4.5 0.18 4 0.16 4 0.16

Product Differentiation 0.1 4.5 0.45 4 0.4 4.5 0.45

Brand Loyalty 0.05 4 0.2 3.5 0.175 4.5 0.225

Quality 0.1 5 0.5 4 0.4 4 0.4

Price 0.1 3.5 0.35 4 0.4 4 0.4

Health and safety 0.09 4 0.36 3.5 0.315 4 0.36

Herd Size 0.05 4 0.2 4.5 0.225 2 0.1

 Agriculture Farms 0.07 4 0.28 3.5 0.245 3 0.21

Sum 1 4.35 3.6925 3.82

Issue Priority Matrix for Industry

Opportunity Probability of impact on corporation

Industry Matrix High Medium Low

High 1
Probability of
Medium
occurrence
Low

Conclusion:
Juhayna position in the industry is good compared to its competitors and has competitive
advantages in both Economy of scale, Distribution channels and product differentiation key
success factors, but need more investment to improve the factors of Operation Excellence.
Industry Matrix is an Opportunity for Juhayna.

6.10. External Factor Analysis Summary (EFAS)

EFAS is a technique aimed at evaluating the external environment of the company, and the
performance of the company in these environments.
The EFAS model includes a set of opportunities and threats for the company, which allows the
company to prioritize between factors.
The weighted score is used to evaluate optimal strategic objectives for the company besides the
internal environment analysis.
Opportunities Weights Rate Weighted Score
BCG Star Products "Greek
0.11 5 0.55
Yoghurt, N&G, Juice
Stability of government 0.05 3 0.15
Foreign policy 0.05 3 0.15
 Product Leadership 0.1 4 0.4
Possibilities for new products 0.02 5 0.1
Customer Intimacy 0.07 4 0.28
Economic of scale 0.12 5 0.6
Subtotal 0.52 2.23
Threats Weights Rate Weighted Score
Governmental attitude towards
0.05 2 0.1
foreign firms
Level of economic development
0.06 2 0.12
GDP
Inflation rate 0.1 2 0.2
Currency Devaluation - EGP
0.1 4 0.4
against USD
Interest Rate 0.05 3 0.15
Bargaining power of buyers 0.04 4 0.16
Substitute Products 0.05 3 0.15
Climatic risk 0.03 5 0.15
Subtotal 0.48 1.43
Total 1 3.66

Conclusion:
Since the total weighted score is higher than 3, this means that Juhayna position is good, and
business is doing well.

7. Internal Environment Analysis

7.1. Value Chain Analysis

While transforming the inputs into outputs, the production in Juhayna is divided into a set of activities,
those activities can be categorized into two categories:
 • Primary activities
• Supporting activities
Value chain analysis is performed to examine the contribution of each activity to the value of the product.
The activities can be summarized in the table below:
Management And Administrative Services (4)

Activities
Human Resource Management (3)

Support
Competitive Technology Development (2)
Advantage Procurement (1)
Marketing Outbound Operations Inbound
Service (5)
& Sales (4) Logistics (3) (2) Logistics (1)
Primary Activities
Activities are further analyzed in the following section.

7.2. VRIO Analysis

Activity Value Rareness Imitability Organization

1 Inbound Logistics - "Purchasing Dept."
1.1 Cost I/P √ √ √
1.2 Quality I/P √ √
1.3 Time I/P √ √
1.4 Quantity I/P √ √
2 Operations - "Production Department"
2.1 High tech Production lines √ √ √ √
2.2 Downtime reduction by applying √ √
standards
2.3 Packing √ √ √
2.4 Efficiency of operations through √ √
minimizing waste
2.5 Efficiency of Quality Control √ √
2.6 Efficiency of Production √ √ √
2.7 Quality of Products √ √ √ √
2.8 Quality of production Process √ √
3 Outbound Logistics - "Distribution
Unit"
3.1 Geographical Coverage √ √ √ √
3.2 Distribution time √
3.3 Distribution Cost √ √ √ √
3.4 Relation with distributers √ √ √
3.5 Sales Representatives productivity √
4 Marketing & Sales Activities
4.1 Corporate Brand √ √ √ √
4.2 Corporate Reputation √ √ √ √
4.3 Marketing Mix √ √
4.4 Customer & Partners Relationship √ √ √ √
Marketing competition √ √ √ √
National and International Sales √ √ √ √
5 Service & After Sale services
5.1 Quality √ √
5.3 Response time √ √
5.4 Customer satisfaction √ √
6 Procurement
6.1 Strategic relation with √ √ √ √
suppliers/vendors
6.2 Reduce inventory cost √ √ √ √
6.3 Agility √ √
7 Technology Development "R&D"
7.1 Improve existing products & services √ √ √ √
7.2 Develop new products & services √ √ √ √
 8 HRM
8.1 organization structure √ √ √
8.2 Skilled functional & technical workers. √ √ √
8.3 Selection criteria √ √ √
8.4 Training √ √
8.5 salaries & incentives √ √
9 Management & Administrative
Services
9.1 Financial Dept. √ √ √ √
9.2 Net Profit Margin √ √ √
9.3 Gross Profit Margin √ √ √
9.4 Debt ratio √ √ √
9.5 Debt Equity ratios √ √ √
9.6 Liquidity ratios √ √ √
9.7 Return on equity √ √ √ √
10 IT Dept.
10.1 Operational Excellence √ √
10.2 Continuous Improvement √ √
10.4 Response time √ √

7.3. Internal Factor Analysis Summary (IFAS)

IFAS analysis is used to measure the firm’s strengths and weaknesses by evaluating the internal factors.
Strengths Weights Rate Weighted Score
high-tech Production lines 0.05 5 0.25
Quality of Products 0.07 4 0.28
Geographical Coverage 0.08 4 0.32
Distribution Cost 0.07 5 0.35
Corporate Brand 0.08 5 0.4
 Customer & Partners
0.03 4 0.12
Relationship
Marketing competition 0.05 4 0.2
Strategic relation with
0.05 3 0.15
suppliers/vendors
Develop new products & services 0.02 4 0.08
Financial Dept. 0.07 4 0.28
Subtotal 0.57 2.43
Weaknesses Weights Rate Weighted Score
Inbound Costs 0.05 4 0.2
Packing 0.07 3 0.21
Efficiency of Production 0.1 4 0.4
organization structure 0.05 3 0.15
Skilled functional & technical
0.1 3 0.3
workers.
Net Profit Margin 0.03 4 0.12
Employee's Selection Criteria 0.01 3 0.03
Gross Profit Margin 0.02 4 0.08
Subtotal 0.43 1.29
Total 1 3.72

The total is higher than 3, which indicates that the company is able to make use of its strengths and deal
with its weaknesses in a good manner.

8. Strategic Factor Analysis Summary (SFAS)

This tool combines both EFAS and IFAS, and helps in focusing on the most important factors of both the
external and the internal environments.
Opportunity Weights Rate Weighted Score
Economic of scale 0.09 5 0.45
Product Leadership 0.06 4 0.24
BCG Star Products "Greek Yogurt,
0.05 5 0.25
N&G, Juice
Customer Intimacy 0.05 4 0.2
Stability of government 0.02 3 0.06
Subtotal 0.27 1.2
Strengths Weights Rate Weighted Score
Corporate Brand 0.07 5 0.35
Distribution Cost 0.06 5 0.3
Geographical Coverage 0.07 4 0.28
Quality of Products 0.06 4 0.24
Financial Dept. 0.06 4 0.24
Subtotal 0.32 1.06
Threats Weights Rate Weighted Score
Currency Devaluation - EGP
0.07 4 0.28
against USD
Inflation rate 0.06 2 0.12
Governmental attitude towards
0.05 2 0.1
foreign firms
Bargaining power of buyers 0.02 4 0.08
Substitute Products 0.03 3 0.09
Subtotal 0.23 0.67
Weaknesses Weights Rate Weighted Score
Efficiency of Production 0.05 4 0.2
Skilled functional & technical
0.05 3 0.15
workers.
Packaging 0.04 3 0.12
Inbound Costs 0.02 4 0.08
 organization structure 0.02 3 0.06
Subtotal 0.18 0.41
Total 1 3.34

We see that, based on that score, Juhayna is in a good shape in the market, and is able to utilize strengths
to seize opportunities, overcome threats and deal with weaknesses in an acceptable manner.

9. TOWS Analysis
Strengths Weaknesses
Corporate Brand efficiency of Production
Distribution Cost Skilled functional & technical
workers.
Geographical Coverage Packaging
Quality of Products Inbound Costs
Strong Financial Department organization structure
Opportunities - Increase market share of star - Enhancing Production efficiency by
Maximizing profits through products (Greek Yoghurt, N&G) by hiring a recruitment agency to head-
Economic of scale 5% within 3 years. hunt skilled workers.
Product Leadership - Increase the number of distribution
BCG Star Products "Greek Yogurt, channels by 5%
N&G, Juice
Customer Intimacy
Stability of government
Threats - Reduce cost by 3% by increasing No need for retrenchment strategies
Currency Devaluation - EGP against agility and saving in warehousing as Juhayna is well performing.
USD costs by lowering inventory days.
Inflation rate
Governmental attitude towards
foreign firms
Bargaining power of buyers
Substitute Products

Conclusion:
Juhayna has the following grand strategies:
- Market Penetration
- Market Development
- Profit Strategy
To identify which grand strategy to adapt, we have to use QSPM and SPACE analysis.
 Marekt Penetration Market Development Profit Strategy (Cost Reduction) Profit Strategy (Effeciency Increase)
Star Products Distribution Channel skilled workers
Key Factors
Weights Attractiveness Total Attractiveness Attractiveness Total Attractiveness Attractiveness Total Attractiveness Attractiveness Total Attractiveness
Opportunites
Maximizing profits through Economic of scale 0.09 3 0.27 5 0.45 5 0.45 4 0.36
Product Leadership 0.06 5 0.3 5 0.3 2 0.12 4 0.24
BCG Star Products "Greek Youghrt, N&G, Juice 0.05 5 0.25 4 0.2 2 0.1 3 0.15
Customer Intimacy 0.05 3 0.15 1 0.05 2 0.1 4 0.2
Stability of government 0.02 4 0.08 4 0.08 3 0.06 2 0.04
Threats
Currency Devaluation - EGP against USD 0.07 2 0.14 3 0.21 5 0.35 4 0.28
10. Quantitative Strategic Planning Matrix

Inflation rate 0.06 2 0.12 3 0.18 5 0.3 4 0.24

Governmental attitude towards foreign firms 0.05 5 0.25 4 0.2 4 0.2 4 0.2
Bargaining power of buyers 0.02 3 0.06 2 0.04 4 0.08 2 0.04
Substitute Products 0.03 5 0.15 4 0.12 3 0.09 3 0.09
Strengths
Corporate Brand 0.07 5 0.35 4 0.28 3 0.21 2 0.14
Distribution Cost 0.06 5 0.3 5 0.3 2 0.12 3 0.18
Geographical Coverage 0.07 5 0.35 5 0.35 2 0.14 1 0.07
Quality of Products 0.06 5 0.3 4 0.24 2 0.12 1 0.06
Financial Dept. 0.06 4 0.24 5 0.3 3 0.18 2 0.12
Weaknesses
Effeciency of Production 0.05 3 0.15 3 0.15 4 0.2 5 0.25
Skilled functional & technical workers. 0.05 2 0.1 1 0.05 3 0.15 5 0.25
Packedging 0.04 1 0.04 1 0.04 2 0.08 4 0.16
Inbound Costs 0.02 1 0.02 2 0.04 5 0.1 3 0.06
organization structure 0.02 1 0.02 1 0.02 1 0.02 5 0.1
Total 1 3.64 3.6 3.17 3.23
 11. Space matrix

Rate Competitive advantage Rate Industry strength(5 Forces)

-5 Corporate Brand 4 Bargaining power of buyers

Distribution Cost Substitute Products
-5 3
BCG Star Products "Greek Yogurt, N&G,
Geographical Coverage
-4 5 Juice
Quality of Products Economic of scale
-4 5

-4 Efficiency of Production 4 Product Leadership

Skilled functional & technical workers. Customer Intimacy
-3 4

-3 Packaging
Inbound Costs
-4
organization structure
-3

- 35 25

-3.89 4.17

Total X 0.28

Rate Environmental stability (Pestel) Rate Financial strength(Ratios)

-5 Currency Devaluation - EGP against USD 4 Financial Dept

Inflation rate Inventory turnover
-5 4
Governmental attitude towards foreign
Liquidity
-2 firms 4

-1 Stability of government 4 Quick cash flow

-13 16

-3.25 4

Total Y 0.75
 Space Matrix
Financial strength
(Ratios)

Aggressive
Conservative

Industry strength (5
Competitive advantage
Forces)

Competitive
Defensive

Environmental stability
(Pestel)

As per the previous analysis, Juhayna is able to follow aggressive grand strategies, that supports the
market penetration and Market development strategies.

12. Financial Statements and Ratios

INCOME STATEMENT 2021 2020 2019 2018
TOTAL CURRENT ASSETS 1,801 1,436 1,592 1,612
CASH AND SHORT-TERM INVESTMENTS 453 183 97 36
CASH 328 84 87 34
CASH & EQUIVALENTS 125 98 9 3
SHORT TERM INVESTMENTS - - - -
TOTAL RECEIVABLES, NET 400 330 365 419
ACCOUNTS RECEIVABLES - TRADE, NET 217 184 191 181
TOTAL INVENTORY 890 886 1,075 1,090
PREPAID EXPENSES 56 30 49 50
OTHER CURRENT ASSETS, TOTAL 2 7 6 17
TOTAL ASSETS 5,460 5,136 5,318 5,233
PROPERTY/PLANT/EQUIPMENT, TOTAL - NET 3,546 3,588 3,613 3,514
PROPERTY/PLANT/EQUIPMENT, TOTAL - GROSS 5,940 5,689 5,485 5,171
ACCUMULATED DEPRECIATION, TOTAL (2,394) (2,101) (1,872) (1,656)
GOODWILL, NET 97 97 97 97
INTANGIBLES, NET - - - -
LONG TERM INVESTMENTS 15 14 15 9
NOTE RECEIVABLE - LONG TERM - - - 7
OTHER LONG-TERM ASSETS, TOTAL 1 1 1 1
OTHER ASSETS, TOTAL - - - -
TOTAL CURRENT LIABILITIES 1,620 1,548 1,512 1,581
ACCOUNTS PAYABLE 485 448 431 343
PAYABLE/ACCRUED - - - -
ACCRUED EXPENSES 88 115 111 80
NOTES PAYABLE/SHORT TERM DEBT 273 277 399 725
CURRENT PORT. OF LT DEBT/CAPITAL LEASES 168 354 296 274
OTHER CURRENT LIABILITIES, TOTAL 605 355 274 157
TOTAL LIABILITIES 2,292 2,233 2,591 2,597
TOTAL LONG-TERM DEBT 371 379 780 751
LONG TERM DEBT 262 271 693 610
CAPITAL LEASE OBLIGATIONS 109 108 87 141
DEFERRED INCOME TAX 300 287 276 245
MINORITY INTEREST 1 1 1 1
OTHER LIABILITIES, TOTAL 0 18 23 19
TOTAL EQUITY 3,168 2,903 2,726 2,637
REDEEMABLE PREFERRED STOCK, TOTAL - - - -
PREFERRED STOCK - NON-REDEEMABLE, NET - - - -
COMMON STOCK, TOTAL 941 941 941 941
ADDITIONAL PAID-IN CAPITAL 331 331 331 331
RETAINED EARNINGS (ACCUMULATED DEFICIT) 1,895 1,630 1,454 1,364
TREASURY STOCK - COMMON - - - -
ESOP DEBT GUARANTEE - - - -
UNREALIZED GAIN (LOSS) - - - -
OTHER EQUITY, TOTAL - - - -
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 5,460 5,136 5,318 5,233
TOTAL COMMON SHARES OUTSTANDING 941 941 941 941
TOTAL PREFERRED SHARES OUTSTANDING - - -

INCOME STATEMENT 2021 2020 2019 2018

TOTAL REVENUE 8,806 7,642 7,636 7,122
REVENUE 8,806 7,642 7,636 7,122
OTHER REVENUE, TOTAL - - - -
COST OF REVENUE, TOTAL 6,280 5,102 5,333 5,017
GROSS PROFIT 2,526 2,394 2,303 2,105
TOTAL OPERATING EXPENSES 7,972 6,804 6,823 6,270
SELLING/GENERAL/ADMIN. EXPENSES, TOTAL 1,545 1,393 1,397 1,216
RESEARCH & DEVELOPMENT - - - -
DEPRECIATION / AMORTIZATION 82 81 70 77
INTEREST EXPENSE (INCOME) - NET OPERATING (90) (178) - -
UNUSUAL EXPENSE (INCOME) 3 48 15 (5)
OTHER OPERATING EXPENSES, TOTAL 167 303 367 (36)
OPERATING INCOME 834 837 813 853
INTEREST INCOME (EXPENSE), NET NON- (68) (162) (315) (346)
OPERATING
GAIN (LOSS) ON SALE OF ASSETS - - - -
OTHER, NET - - (14) (12)
NET INCOME BEFORE TAXES 766 676 484 494
PROVISION FOR INCOME TAXES 240 247 155 88
NET INCOME AFTER TAXES 526 428 329 406
MINORITY INTEREST (0) (0) (0) (0)
EQUITY IN AFFILIATES - - - -
U.S GAAP ADJUSTMENT - - - -
NET INCOME BEFORE EXTRAORDINARY ITEMS 526 428 329 406
TOTAL EXTRAORDINARY ITEMS - - - -
NET INCOME 526 428 329 406
TOTAL ADJUSTMENTS TO NET INCOME - - - -
INCOME AVAILABLE TO COMMON EXCLUDING 526 428 329 406
EXTRAORDINARY ITEMS
DILUTION ADJUSTMENT - - - -
DILUTED NET INCOME 526 428 329 406
DILUTED WEIGHTED AVERAGE SHARES 941 941 941 941
DILUTED EPS EXCLUDING EXTRAORDINARY 1 0 0 0
ITEMS
DPS - COMMON STOCK PRIMARY ISSUE 0 0 0 0
DILUTED NORMALIZED EPS 1 0 0 0

CASH FLOW 2021 2020 2019 2018

NET INCOME/STARTING LINE 766 676 484 494
CASH FROM OPERATING ACTIVITIES 768 983 813 273
DEPRECIATION/DEPLETION 344 313 290 291
AMORTIZATION - - - -
DEFERRED TAXES - - - -
NON-CASH ITEMS 73 221 225 284
CASH RECEIPTS - - - -
CASH PAYMENTS - - - -
CASH TAXES PAID 257 152 79 50
CASH INTEREST PAID - - - -
CHANGES IN WORKING CAPITAL -416 -227 -186 -797
CASH FROM INVESTING ACTIVITIES -201 -196 -269 -176
CAPITAL EXPENDITURES -241 -340 -361 -259
OTHER INVESTING CASH FLOW ITEMS, TOTAL 40 144 93 83
CASH FROM FINANCING ACTIVITIES -298 -698 -479 -139
FINANCING CASH FLOW ITEMS -65 - 0 0
TOTAL CASH DIVIDENDS PAID - -188 -188 -94
ISSUANCE (RETIREMENT) OF STOCK, NET - - - -
ISSUANCE (RETIREMENT) OF DEBT, NET -233 -510 -290 -45
FOREIGN EXCHANGE EFFECTS 1 -3 -5 -7
NET CHANGE IN CASH 270 86 61 -50
BEGINNING CASH BALANCE - - 36 86
ENDING CASH BALANCE - - 99 36
FREE CASH FLOW - - 452 14

NAME COMPANY INDUSTRY

P/E RATIO TTM 16.37 8.32
PRICE TO SALES TTM 0.8 1.35
PRICE TO CASH FLOW MRQ 6.29 27.05
PRICE TO FREE CASH FLOW TTM 354.3 68.53
PRICE TO BOOK MRQ 2.57 2.67
PRICE TO TANGIBLE BOOK MRQ 2.65 2.82

PRETAX MARGIN
TTM (%) 7.29%
5 YEAR AVG. (%) 7.33%

GROSS MARGIN TTM 25.86% 23.51

GROSS MARGIN 5YA 29.75% 24.72
OPERATING MARGIN TTM 7.55% 9.38
OPERATING MARGIN 5YA 10.50% -147.89
PRETAX MARGIN TTM 7.29% 8.23
PRETAX MARGIN 5YA 7.33% 383.31
NET PROFIT MARGIN TTM 4.88% 5.33
NET PROFIT MARGIN 5YA 5.22% 366.87
REVENUE/SHARE TTM 11.09 22.48
BASIC EPS ANN 0.56 2.22
DILUTED EPS ANN 0.56 2.22
BOOK VALUE/SHARE MRQ 3.45 7.73
TANGIBLE BOOK VALUE/SHARE MRQ 3.34 7.48
CASH/SHARE MRQ 0.62 2.81
CASH FLOW/SHARE TTM 0.22 4.35

RETURN ON INVESTMENT
TTM (%)13.08%
5 YEAR AVG. (%)13.47%

RETURN ON EQUITY TTM 15.37% 24.04

RETURN ON EQUITY 5YA 14.94% 14.97
RETURN ON ASSETS TTM 8.45% 11.95
RETURN ON ASSETS 5YA 6.89% 9.41
RETURN ON INVESTMENT TTM 13.08% 17.02
RETURN ON INVESTMENT 5YA 13.47% 14.44

EPS(MRQ) VS QTR. 1 YR. AGO MRQ -10.64% 54.09

EPS(TTM) VS TTM 1 YR. AGO TTM -4.62% -82.04
5 YEAR EPS GROWTH 5YA 57.95% 31.38
SALES (MRQ) VS QTR. 1 YR. AGO MRQ 23.04% 36.62
SALES (TTM) VS TTM 1 YR. AGO TTM 24.45% 30.63
5 YEAR SALES GROWTH 5YA 12.02% 8.69
5 YEAR CAPITAL SPENDING GROWTH 5YA -15.26% -6.94

QUICK RATIO MRQ 0.31 0.58

CURRENT RATIO MRQ 1.07 1.29
LT DEBT TO EQUITY MRQ 3.21% 8.87
TOTAL DEBT TO EQUITY MRQ 37.33% 44.11
EFFICIENCY
ASSET TURNOVER TTM 1.73 1.46
 INVENTORY TURNOVER TTM 5.9 6.22
REVENUE/EMPLOYEE TTM - 6.19M
NET INCOME/EMPLOYEE TTM - 816.23K
RECEIVABLE TURNOVER TTM 37.63 47.51

DIVIDEND YIELD ANN 2.81% 4

DIVIDEND YIELD 5 YEAR AVG. 5YA 2.17% 4.23
DIVIDEND GROWTH RATE ANN - -4.72
PAYOUT RATIO TTM 51.81% 33.4

13. Balanced score card

The Balanced Scorecard is a carefully selected set of quantifiable measures derived from an organization’s
strategy. BSC translates an organizational mission and strategy into comprehensive set of performance
measures that provides the frame work for strategic measurement and Management system.
The following is the balanced score card for the market penetration strategic alternative
Strategic Main
KPIs Target Time Frame Objective KPIs Target Time Frame
Objective Objective
Actual Market Increase
Increase
Finance Share / Market 1 1 1 1 1
Market
Dep' Targeted share by % % % % %
share by 5%
Market Share 5%
Actual Increase
Advertising advertising
Improve
campaigns / and radio 5 4 3 2 1
Advertising
Targeted promotion % % % % %
Increase Campaigns
Advertising campaigns
market
Campaigns by 15%
share of Actual
increase
star Market
Increase Increase digital
products Share /
Market 1 1 1 1 1 Customer # Share of voice engagemen
(Greek Target
share by % % % % % Experience & # of t by 50% 1 1 1 1 1
Yogurt, ed
5% (Digital clicking/targete through 0 0 0 0 0
N&G) by Market Customers
Marketing d Share of voice Chatbot % % % % %
5% Share
engagement & # of clicking and social
within 5
) media
years.
platform
implementi
ng new
Strengthenin CRM
4 4 4 4 4
g customer Actual/Target platform
% % % % %
relationships and
increase
cross
 selling by
20%
Actual Sales / 3 Quarterly
1 1 1 1 1
Promotion Target promotion
2 2 2 2 2
Promoted Sales Campaigns
Increase
distribution
New channels to
3 3 3 3 3
distribution reach 150
0 0 0 0 0
channels channel , 30 per
year .
Actual / Target
Decrease
the AHT
Provide
(average
excellent
handling
Improve customer
time) for 2 2 2 2 2
after sales support for
after sales % % % % %
services existing and
service and
new customers
reduce the
Actual / Target
complaints
by 10%
Increase
Storage area
increase
and centers by
Geographica 3 per year 3 3 3 3 3
15 center.
l Coverage
# Storage
/Targeted
Process Enhance and
add value to
raw milk
process through
daily inspection tracking
in addition to the
enhance the implement
Enhance
freezing, ation to 2 2 2 2 2
Raw Milk
Harding ,pasteu increase of % % % % %
processes
rization and 10% in Raw
steam Milk
generating. production
Actual milk
production/Tar
geted
production
Enhancing
ongoing
manufacturing
tracking for
process
Enhance value-add-
efficiency by 1 1 1 1 1
Production chain
5 % through % % % % %
and Capacity process to
implementing
enhance by
JIT approach
5%
Actual
 efficiency/Targe
ted Efficiency
contracting with
high-rate HR
Hiring new sites and
to reach
calipers for improve the 3 3 3 3 3
150
marketing retention for 0 0 0 0 0
caliper .
and sales excellent
employees .
Actual / Target
Increase
training and
workshops
quota for new
Training and To reach 40
and existing 8 8 8 8 8
Workshops workshop .
Learning employees in
& Growth addition to on-
site workshops
Actual / Target
make semi-
annually
revision on the
internal policy
to be
revising the to make sure all
revised 2
Internal the employees 2 2 2 2 2
times per
Policy are familiar with
year
the policy and
being
implemented
Actual/Target