Professional Documents
Culture Documents
Low Threat of
new entrants
Somewhat High
Somewhat Low power of
power of the Supplier
the buyer
suppliers
Marketing and Sale Yes delivering what the customers exactly want
Inbound
∙ ↑ ↑ ∙ ∙ ↑ ∙ ∙ ↑
Logistics
Operations
↑ ∙ ↑ ∙ ∙ ↑ ↑ ∙ ↑
Outbound
↑ ↑ ∙ ∙ ↑ ∙ ↑ ∙ ↑
Logistics
Mkt&Sale
∙ ∙ ∙ ∙ ↑ ∙ ↑ ∙ ↑
Service
∙ ∙ ↑ ↑ ∙ ∙ ∙ ↑ ↑
Procurement
↑ ↑ ∙ ∙ ∙ ∙ ∙ ∙ ↑
Tech.develop
∙ ∙ ∙ ↑ ↑ ∙ ∙ ∙ ↑
ment
HRM
∙ ∙ ∙ ↑ ↑ ∙ ∙ ∙ ↑
General
∙ ∙ ∙ ↑ ↑ ∙ ↑ ↑ ∙
Admin.
Interdependencies = No Interdependencies = ∙
Resources
Resource/Activity Is It Valuable Is It Rare Few substitute? Difficult to Make
Operations Yes No No No
Outbound Logistics No No No No
Service Yes No No No
HRM Yes No No No
Price
Nestle
High
Haleeb
Nurpur
Shezan
Low
Low High
Quality
Competitive Profile
Matrix
Shezan Nestle Haleeb Nur
pur
Critical weighRatin Scor Ratin Scor Ratin Scor Ratn Scor
Success t g e g e g e g e
Factors
Advertising 0.2 3 0.6 4 0.8 2 0.4 1 0.2
Product quality 0.15 4 0.6 3 0.45 2 0.3 2 0.3
Price 0.1 2 0.2 3 0.3 3 0.3 3 0.3
competitiveness
Management 0.1 3 0.3 4 0.4 3 0.3 3 0.3
Financial position 0.1 4 0.4 4 0.4 3 0.3 2 0.2
1
Shezan Differentiation
2
Nestle Differentiation focus
3
Haleeb Cost Leadership
4
Nurpur Cost Focus
Industry Life
Cycle
Industry
Shezan
Competency Tree of Shezan
Juic Ketc Ja Vegetables Pickles (in Sa Ispa
es hup ms (Cans) vinegar) lt ghol
Squa Sau Chutn Jelli Marmal Fruits Pickles
shes ces ey es ades (Cans) (in oil)
Backward
Integration
Shezan’s Business
Portfolio:
Change in Business
Portfolio:
Change process in
Shezan:
Researchand development
New product development
◦ Two new flavors in Shezan Twist
Juice,
◦ Energy Drink,
◦ Carbonated Drinks
Financial Analysis
Financial Ratios 2009 2008 2007
leverage ratios
Debt to total asset ratio 0.43 0.44 0.45
Debt to equity ratio: 9.6 9.5 8.75
Long term debt to equity ratio: 0.77 0.86 1.15
Activity Ratios
Inventory turnover: 2.61 2.45 2.43
Total Asset Turnover: 2.01 1.89 1.49
Profitability Ratios
Gross Profit Margin : 28.38% 32.29% 31.49%
Operating Profit Margin 5.88% 10.87% 12.44%
Net Profit Margin: 3.75% 6.53% 6.46%
Return on Asset: 7.57% 12.32% 12.56%
Return on Equity: 13.17% 21.88% 22.49%
Earnings Per Share: 17.08 26.87 28.13
Growth Ratios
Marketing objectives:
◦ Maintain positive, steady growth in each quarter
◦ Experience a growth in new customers who are
turned into long-term customers.
◦ Realize an increase in occupancy in each
subsequent year
Financial objectives:
◦ A double digit growth rate for each coming year
◦ Reduce the variable cost
◦ Continue to decrease the fixed cost
Six Year Review at a
Glance
SALES
PROFITS
EXPENDITURE
BCG Matrix of
Shezan
7
0 Bottle juice Jams & sauces
6
?
0
5
0
4
0
Packet juice Pickles
3
0
2
0
1
0
0
10 9 8 7 6 5 4 3 2 1 0
0 0 0 0 0 0 0 0 0 0
Grand Strategy Matrix of
Shezan
GAP Analysis
•Lack of integration in
distribution
•Lack of information sharing
among departments
•Third Party suppliers
•Centralized distribution network
Suggestions
Improved communication
processes
Quality of raw material
Company owned transportation
Focus on primary and secondary
distribution centers