Karachi University Business School

Strategic Business Analysis

PROBLEM ANALYSIS Writeup 03

COMPANY: SGS PAKISTAN

Prepared for: Dr. Danish

Prepared by:
GROUP: S4
Muhammad Asif (HR)
Abeer Siddiqui (HR)
Daniya Fayaz (MKT)
Hina Agha (MKT)
Aylia Abbas (MKT)

(MBA [2.5] HR/MKT Semester 03)

Date: November 18, 2023

 INDEX
SR TITLE PG NO

1 PROBLEM 3

2 ROOT CAUSE ANALYSIS 3-4

3 SIGNIFICANCE 4

4 SOLUTION 4-5

5 CASHFLOW 5-6
 PROBLEM
TECHNOLOGICAL IMPLEMENTATION
Co2(ForFumigation/ HPLC (For pesticides residues in food/vegetable)
Staying updated with the latest technologies for testing, inspection, and certification is crucial for
SGS to provide satisfactory services to its consumers.
The problem is that the recruited and retained staff in unskilled and unprofessional in fields such
as engineering, chemistry, and regulatory compliance, especially to use latest advanced
equipment's.
Maintaining strong relationships with clients and understanding their evolving needs is crucial.
But with the help of unskilled and unprofessional staff, consumer expectations and ensuring
quality services can be a challenge, especially with diverse client requirements.
Comparison of total revenue of last five years
Rupees in million
REVENUE 2018 2019 2020 2021 2022
PCSIR 275.00 290.00 335.00 315.00 335.00
SGS 278.00 280.00 320.00 310.00 330.00
PAKISTAN
BVT 280.00 285.00 325.00 320.00 340.00
PAKISTAN

ROOT CAUSE ANALYSIS

● Root Causes: Lack of technological expertise, resistance to change, inadequate resources
for implementation.
● Analysis: Technology can streamline processes and enhance efficiency, but its successful
implementation requires overcoming barriers such as skill gaps, change management, and
resource allocation. Organizations should carefully plan technology adoption, provide
training, and allocate sufficient resources for smooth integration.
● . Identify the Need:
● - Root Cause Identification: Determine why staff might be facing challenges in using
advanced equipment effectively. Is it lack of training, inadequate resources, or
unfamiliarity with technology?
● 2. Assessment and Analysis:
 ● - Process Evaluation: Analyze current training methodologies and processes. Identify
gaps between existing training programs and the skills required to handle advanced
equipment.
● - Feedback Collection: Gather feedback from staff regarding their difficulties,
challenges, and specific areas where they need support.
● 3. Root Cause Prioritization:
● - Significance Determination: Prioritize the root causes based on their impact on staff
performance and consumer satisfaction. Is there a critical gap that significantly affects
service quality?

SIGNIFICANCE
1.Training and Skill Gap: Unskilled employees using advanced equipment may struggle due to
a lack of training or familiarity with the technology. This gap in skills can lead to inefficiencies,
errors, and a decline in productivity.
2. Safety Concerns: Operating complex equipment without proper training can pose significant
safety risks. Unskilled employees might not be aware of safety protocols or may not understand
the potential hazards associated with the equipment, leading to accidents or injuries.
3. Quality and Accuracy: Inadequate training can impact the quality and accuracy of work
performed by unskilled employees. This could affect the accuracy of data collection, testing, or
analysis, impacting the company's credibility and reliability.
4. Low Productivity and Efficiency: The inability to effectively use advanced equipment can
result in slower work processes, inefficiencies, and lower overall productivity. This might lead to
delays in project completion or delivery timelines.
5. Resource Wastage: Mistakes made by unskilled employees using advanced equipment might
lead to resource wastage, including raw materials, time, and energy, which could affect the
company's bottom line.
6. Competitive Disadvantage: Inability to leverage advanced technology due to a lack of skilled
workforce can put the company at a competitive disadvantage. Competitors who effectively use
such technology may outperform SGS Pakistan in terms of efficiency, quality, and innovation.

SOLUTION
Invest in technology infrastructure, provide adequate training for employees, conduct thorough
testing and evaluation before implementation, and maintain a balance between automation and
human interaction to deliver personalized service.
Assessment and Strategy Development
Needs Assessment: Conduct a thorough evaluation of staff skills, knowledge gaps, and
consumer demands concerning the use of advanced equipment.
Strategy Formulation: Develop a comprehensive training strategy aligned with the identified
needs, outlining goals, timelines, resources required, and key performance indicators (KPIs)
Training Program Design:
Customized Curriculum: Create tailored training modules focusing on the functionalities,
troubleshooting, safety protocols, and maintenance of the advanced equipment.
Learning Methodologies: Utilize a blend of methods including classroom sessions, practical
hands-on training, simulations, and e-learning tools to cater to different learning styles.
3. Resource Allocation and Support:
Resource Provision: Ensure access to adequate resources such as manuals, expert guidance,
physical tutorials, and equipment manuals to support staff learning.
Expert Involvement: Bring in trainers or experts familiar with the equipment to provide
specialized guidance and mentorship.

Expected Cash Flows Post-Implementation - Solution

Rupees in million
2024 2025 2026 2027 2028
PCSIR 340.00 360.00 380.00 400.00 420.00
SGS 350.00 380.00 410.00 430.00 450.00
PAKISTAN
BVT 345.00 365.00 385.00 410.00 430.00
PAKISTAN

Expected Cash Inflow OF M/s SGS Pakistan after Solution

2024 2025 2026 2027 2028
SGS 350.00 380.00 410.00 430.00 450.00
PAKISTAN
Less Training 5.00 5.00 5.00 5.00 5.00
Cost
345.00 375.00 405.00 425.00 445.00
Increase 25.00 25.00 25.00 25.00 25.00
Expected
For example: there is an instrument called Bromometer, this equipment is worth 2 million PKR.
The only company SGS Pakistan has the privilege to own the equipment. Company generates
cash flow about 2.5 million within 3 months.
The equipment is used for the monitoring the level of CO2.equipment can be used to attract the
customers and revenue can be generated by providing the services to the customers.
And by providing the equipment cost can be divided in each service provided, so in this way cost
of equipment can be regained.

------------------------------------------