Sadat Academy for Management Sciences

MBA 2022/2023
Strategic Management

Group project Juhaina

Presented to Dr. Farid Aly Shosha
Prepared by: Reem Attia Hassan
MBA 2022/2023
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

2.5 Competitive Profile Matrix (CPM)

Enjoy Juhaina Almaraai
Critical Success Factors Weight R WS R WS R WS
Market share 0.18 3 0.54 4 0.72 4 0.72
Product Quality 0.12 3 0.36 4 0.48 4 0.48
Consumer Loyalty 0.15 3 0.45 4 0.6 4 0.6
Global Expansion 0.1 2 0.2 4 0.4 4 0.4
Organizational Structure 0.04 2 0.08 3 0.12 2 0.08
Production Capacity 0.12 3 0.36 3 0.36 3 0.36
Price Competitive 0.04 4 0.16 2 0.08 2 0.08
Management Experience 0.08 2 0.16 4 0.32 3 0.24
Advertising 0.1 2 0.2 4 0.4 3 0.3
Financial Position 0.07 2 0.14 4 0.28 3 0.21
Total 1.00 2.65 3.76 3.47

CPM above implies that the eakest company is Enjoy and the
strongrest is Juhaina.

2.5 Opportunities & threats

Opportunities:
1- Egypt benefits from a large pool of cheap labor, particularly useful
for labor intensive commodities.
2- The government will continue to invest in land reclamation
projects increasing area available for agricultural output and so
cattle breeding.
3- Future trends will most likely be more transparent, helping firms
not politically connected with the government secure lucrative
contracts.
4- Efforts towards banking-sector consolidation should bring down
the cost of private sector credit and fuel small business growth
over the long run.
5- Both global milk consumption and international dairy trade to
continue to grow over the next decade.
6- Current competitive position and ability to grew milk supply
provide an opportunity to deliver increased economic benefits to
the company.

Page 2 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

7- There is a phenomenal scope for value addition with innovation in

product development packaging and presentation such as Butter,
Yogurt and Cheese.
8- Exports opportunities in milk proteins through Casein Caseinates
and other dietary protein.
9- Introduction of value added products with different flavors ,ice
creams, flavored milk, Dairy sweets etc are to be undertaken.
10- High birth rates which opens opportunity for infant foods such
as milk is a basic for nutrition.
11- Efforts are on to exploit export potential of reputed brands.
12- Following the new GATT Treaty, opportunities will increase
tremendously for the export of Agricultural products in general
and dairy products in particular.
Threats:
1- Urban construction is taking over on the already limited land
suitable for agricultural production.
2- With the prices of many agricultural commodities increasingly
volatile, Egypt will face increasing competition for many key imports.
3- Poor irrigation and diminishing water supply.
4- High unemployment may lead to political resistance to privatization
plans.
5- Although levels of education are relatively high, there us a
considerable mismatch between the skills taught in schools and those
required by employers.
6- Most countries in the world have huge long term potential to
increase milk supply.
7- Global competition will be tougher “USA, New Zealand, Brazil,
Pakistan, China and Saudi Arabia”.
8- The Opportunities for growth in dairy exports may be lost if:
 Regulation unnecessarily restricts production volume.
 Dairying is unable to adopt more nutrient and water efficient farm
systems- leading to greater need to regulate.
9- Cost of production on- farm increases to uncompetitive level driven
by production (not profit)focus and/or compliance costs.
10- Product quality/integrity is undermined through bio-security,
food safety or industry reputation disaster.

Page 3 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

11- Changes in profitability of dairy compared to beef production

and cropping in areas of potential low cast production.
12- Milk vendors of the unorganized sector are occupying the
pride of place in the industry.
Organized dissemination of information and creation of public
awareness about the harm that the unorganized vendors do to the
producers and consumers will show a steady rise day by day.

2.6 External Forces Evaluation (EFE)

Key External Factors Weigh Ratin Weighted
t g score
Opportunities:
1- Egypt benefits from a large pool of 0.05 3 .15
cheap labor, particularly useful for labor
intensive commodities.
2- The government will continue to invest .08 3 .24
in land reclamation projects increasing
area available for agricultural output
and so cattle breeding.
3- Efforts towards banking-sector .05 2 .1
consolidation should bring down the
cost of private sector credit and fuel
small business growth over the long
run.
4- Both global milk consumption and .1 4 .4
international dairy trade to continue to
grow over the next decade.
5- There is a phenomenal scope for value .05 4 .2
addition with innovation in product
development packaging and
presentation such as Butter, Yogurt and
Cheese.
6- Introduction of value added products .15 4 .6
with different flavors ,ice creams,
flavored milk, Dairy sweets etc are to be
undertaken.
7- High birth rates which opens .15 2 .3
Page 4 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

opportunity for infant foods such as

milk is a basic for nutrition.
Threats:
1- Urban construction is taking over on the 0.12 2 .24
already limited land suitable for
agricultural production.
2- With the prices of many agricultural 0.06 2 .12
commodities increasingly volatile, Egypt
will face increasing competition for
many key imports.
3- Poor irrigation and diminishing water 0.08 1 .08
supply.
4- Most countries in the world have huge 0.03 2 .06
long term potential to increase milk
supply.
5- Global competition will be tougher “USA, 0.05 3 .15
New Zealand, Brazil, Pakistan, China and
Saudi Arabia”.
6- Cost of production on- farm increases to 0.03 3 .09
uncompetitive level driven by
production (not profit)focus and/or
compliance costs.

Total 1.00 2.73

With a score of 2.73 Juhayna shows an above average response in existing

opportunities and threats in the industry.

3.Key Internal Forces

3.1 Management / Value Chain / Distribution Channels

Management
Juhayna’s operation is run by a solid management team headed by the
group’s founder and current chief executive. The company’s top executive
have a combined experience of more than 230 years in the fast moving
consumer goods industry (FMCGs) with reputable and regional firms
including Procter & Gamble and Arthur Anderson.
Page 5 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

Chairman & CEO

Safwan Thabet

Deputy CEO Manufacturing

Finance Director
Seif Eldin Safwan Director
Hany Shaker
Thabet Neils Thomson

The Value Chain:

On the supply side the farms of Juhayna uses Holstein cattle which is
a breed of cattle known as the worlds highest production dairy
animal, there is also medical care for the herd.
Bottles are made in Egypt through a fully automated system; while
the cartoon packages are imported from Saudi Arabia on high quality
standards.

Operations:
The herd is cleaned via an automated system to make sure they are
clean before milking, then air drying then to milking, which is also
automated. After finishing they clean the cows again for bacteria, and
then the milk is taken to 3 degrees fridges, then to storing towers ,
then to trucks. The trucks leave the factory in 1 hour time, the trucks
are cleaned before and after they are filled, trucks go to another area
to be pasteurized.

Quality Assurance and Controls:

Milk pasteurization through tubes heating up to 78 degrees to kill
bacteria, then the bottles are prepared and the expiry date is printed
with a rate of 50,000 bottles per hour, filling takes 6 seconds per
bottle, then the milk is checked again and defected products are

Page 6 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

removed manually and good products are taken to storage unit using
a bar code system to store all the products, this system is fully
automated.
Also the R & D hardly checks products and check the juice tasting.
Then the products are taken to distribution center and then to
distributers.

Distribution Channels

B2B Distributers
10% 7%

Wholesalers
27%
Supermarkets
10%

Major Chains
8%
Retail
38%

3.2 Strengths & Weaknesses

Strengths:
1- Biggest Market share.
2- Strong brand name
3- Strong & high experiences management team.
4- Wide variety of business portfolio & products,
5- Well established distribution matrix.
6- Well established and financed R&D division
7- Reasonable product price which enables strong completion in the
market.
8- Concentration on healthy products
9- Spread in a large number of countries all over the world.
10- Availability of capital for expansion or expenses.

Page 7 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

Weaknesses:
1- Lack of resources for packaging,
2- Lack of skilled functional & technical skilled workers,
3- Seasonality of production reduces plant capacity utilization
increasing capital requirements and it restricts product mix.
4- Instable prices of fruits which affects the profit margin.
5- Dependability on imports in areas of shortages, such as milk
powders.
6- Processing industry is smaller in scale than the main international
competitors.
7- Scale in marketing is better than average but also below main
international competitors, leading to cost disadvantages.
8- Emergence of strong competitors such as Almaraai.

2.6 Internal Factors Evaluation (IFE)

Key Internal Factors Weigh Ratin Weighted
t g score
Strengths:
1- Biggest Market share. 0.14 4 0.56
2- Strong brand name 0.08 4 0.32
3- Strong & high experiences management 0.04 4 0.16
team.
4- Wide variety of business portfolio & 0.07 3 0.21
products,
5- Well established distribution matrix. 0.05 3 0.15
6- Well established and financed R&D 0.08 4 .32
division
7- Reasonable product price which 0.06 4 0.24
enables strong completion in the
market.
8- Concentration on healthy products 0.04 3 0.12
9- Spread in a large number of countries 0.05 3 0.13
all over the world.
10- Availability of capital for expansion or 0.09 4 0.36
expenses.
Weaknesses:
1- Lack of resources for packaging, 0.03 2 0.06
Page 8 of 10
Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

2- Lack of skilled functional & technical 0.04 2 0.08

skilled workers,
3- Seasonality of production reduces plant 0.05 2 0.05
capacity utilization increasing capital
requirements and it restricts product
mix.
4- Instable prices of fruits which affects 0.03 1 0.03
the profit margin.
5- Dependability on imports in areas of 0.04 2 0.08
shortages, such as milk powders.
6- Processing industry is smaller in scale 0.02 2 0.04
than the main international
competitors.
7- Scale in marketing is better than 0.01 2 0.02
average but also below main
international competitors, leading to
cost disadvantages.
8- Emergence of strong competitors such 0.08 1 0.08
as Almaraai.

1.00 3.01

Conclusion of the IFE:

Juhayna has a strong internal position with a score of 3.01

4.Integrating Strategies
4.1 Past & Current strategies
Juhayna pursued strategies are centered on building an integrated
operation and implemented vertical and horizontal expansion plans.
The existing business structure provides the company with presence
across different segments of the value chain starting with the supply
of quality raw milk and fruits passing through production and
ending with distribution. The recent addition of farming to the
group’s operations was aimed at gaining control over the quality and
supply of raw materials. Owning a distribution fleet and network has
the added benefit of optimizing distribution costs and monitoring

Page 9 of 10
 Strategic Management MBA 2022/2023
Prepared by: Reem Attia Hassan Presented to Dr. Farid Aly Shosha

customer satisfaction. Going forward, the company intends to

replicate its business model in a number of regional markets.
Juhayna accomplished integration strategies that were designed to
achieve three objectives:
1- Backward integrations, including supply of raw milk, fruits and
fruit concentrates through owning and operating agricultural
farms.
2- Horizontal and vertical integration through product and
geographic expansion.
3- Forward integration where Juhayna delivers its products to end
customers via its own distribution network.

Illustration of an Integrated Business Model

Backward Integration
\\\\ Horizontal Integration
Supply of raw material
Forward Integration
Raw Material Product Expansion
Distribution
Fruits Geographic Expansion

Fruit Concentrates

Page 10 of 10