Alkbier Awie For

Business Consulting
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1
 El-kibeer
BMIC in few lines Awee for
Consulting

• BMIC was founded in 2007 with investment exceeded 2

billion EGP.
• The factory located in Asuit governorate for high quality
of raw materials, and to be near to the quarries
• The plant built by high standards and modern
technologies in cement industry.
• BMIC capacity in production 1.5 Million tons at a year
(ALTAMEER ).
• BMIC intended to increase production lines to product
other types of cement.
• BMIC share holders EKH , South valley, and other
shareholders.
Our customer portfolio

BMIC

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 El-kibeer
Industry Outlook and market analysis Awee for
Consulting
Region Capacity in (M Region Capacity (
Tons) M Tons)

Alex 5.3
Alexandria (Titan) 1.8
Amreyah (Cempor) 3.5

Delta 18.1
Suez (Italcementi) 4
Lafarge 8.1
Arabian Cement 2
Sinai Cement 3.5
Sinai White 0.5

Cairo 11
tourah (Italcementi) 3.4
Helwan (Ital Cementi) 4.1
National Cement 3.5

Upper Egypt 15.7

Cemex 5.5
Beni Suef (Titan) 3
Misr Cement (Quena) 2
Misr Beni Suef 2.9
Medcom Aswan 0.8
South Valley 1.5
Total Capacity 50.1
 El-kibeer
Industry Outlook and market analysis Awee for
Consulting

1. Segmentation
• Geographic :
Upper Egypt – Lower Egypt

2. Targeting
• Upper Egypt
( Assuit, Sohag & El Minia )
Advantages :
1. Big difference between supply & demand
2. Low distribution cost
3. high selling price
 El-kibeer
Domestic Market Share shows that key players in the market
Awee for
are SCGC, Lafarge & CEMEX. Consulting

Source: Ministry of Investment till June 2011

 kibeer
New capacities : one extensions and five new factories Awee
will start with added clinker capacity 9.6 M Tons for
Consulti
ng
Capacity M
Company Name  
Tons

Arabian Cement 2 Extension

Wadi El-Nil 1.5 New

Elsweedy Cement 1.5 New

Al-Nahda Industries 1.5 New

BMIC 1.5 New

Ministry Of Defense (Army) 1.6 New

Total New Capacity 9.6  

Total Capacity 59.7  

8
 El-kibeer
SWOT analysis Awee for
Consulting

Strength: Weakness:
-Asyut Quarry perception . -System &Process.
-Financial power perception . -No Written Strategy, Objectives.
-Centralization , No trust.

C
-multinational co employees..
--Very good relation with customers. -HR weakness system.

I
-BMIC Incentive program. - Weake Motivation actions
- ERP system

Opportunities :
-Customers profit.
-New cities.

B
-Marketing activities & new ideas.
-CEMEX weak incentive program.
MThreats:
-Price war.
-Energy High Cost.
-Loyalty.
-Rumors.
-Political & economical condition.
-Competitors Portfolio.
 BMIC Vision and Mission El-kibeer
Awee for
Consulting

Vision:

Mission:
 El-kibeer
New Vision and Mission Awee for
Consulting

Negatives:
Very generic and long statement
New Vision:
To become the leading manufacturer of building
materials in the Middle East region that achieves global
penetration.
New Mission:
To provide highest standard building materials and best
customer service with accord priority for health, safety and
environmental protection through engaging and enabling our
staff and other public bodies.
 Decision Making Process El-kibeer
Awee for
Consulting

Negatives
 Absolute Centralization
 Depend in his decision only on cost factor.
 The company is not analyzing the alternatives .
 Bias is clear (Immediate Gratification) ………… Result in Loans

New Decision Making process :

 De-Centralization & Centralization is needed to work effectively.
 Alternatives with clear analysis is needed and also Mind Mapping can help.
 Mind Mapping can help in solving the Immediate Gratification.
 Planning Process El-kibeer
Awee for
Consulting

The Actual Case :

As we notice due to the disappearance of the vision inside the organization, No plan was
found except for some department which develop a plan on it’s own .

New Planning Process:

 Plan for each department is needed.
 SMART Goals and Targets for each sector must be set clearly , Must be Measurable
Goals ( Clear KPI’s )
 El-kibeer
Company Strategy Awee for
Consulting

One of the major issues; we find in our case is no

written STRATEGY.

BMIC Strategy:
The growth strategy based on our value chain starting
by high quality products served by high caliber people
who optimize company resources to satisfy our
customers.
 El-kibeer
Company Strategy Awee for
Consulting

BMIC Strategic Objectives:

Qualitative objective Quantitative Details
1-Revenue and •To reach an annual revenue 3.5
Profitability/Resource billion in 5 years.
•Full utilization of ERP.
optimization.

2-Growth& Market share. •Two new production lines.

•Achieve a Compound average
growth rate 100%
•Reach a market share of 12% of
the total market .
 El-kibeer
Company Strategy Awee for
Consulting

BMIC Strategic Objectives:

Qualitative objective Quantitative Details
3-Products Quality. •Achieve the ISO 9001,14001
Management Systems.

4-Customer satisfaction. •Opening new warehouses in Delta

areas by end of 2014.
•Launching 2 new products at end of
2021 “CEM2 , LCC”.
•Increase customer satisfaction by 15%
through conducting satisfaction surveys
•Decrease time of order delivery from 2
working days to 12 hours .

Company Strategy
BMIC Strategic Objectives:
Qualitative objective
5-Community service.
6- Employees Quality.
El-kibeer
Awee for
Consulting
Quantitative Details
•Dedicate 2% of revenue to community
service.
•Through attraction , retention and
satisfaction plan.
•Retain 90% of high calibers
•Decrease turn over to 20%.
•Monitor performance through
appraisal normal distribution curve
•Conduct an employee satisfaction
survey.
•Training budget is estimated as 1-2%
of sales revenue

Risk Management Process
BMIC Risk Management Process:-
Step 1: Risk Identification
List of Possible Risks
-Lack of Financial Resources.
  -Political and Drastic Conditions.
 - sales from our distributor not sufficient.
 -lack of safety for our products' transfer
 -shortage of diesel fuel to run the
production line
El-kibeer
Awee for
Consulting
Step 2: Risk Assessment Step 3: Risk Management
Likelihood Impact
What can we do about it?
H/M/L H/M/L
H  -Financial Forecast.
L (Allocation of Budget)
M  -Freezing of internal Market with
minimum payment and depend on
M exportation.
H -Direct Distributors.
-Expansion of Distributors.
-Removing non beneficial
H Distributor.
H  -Insurance on transfer of the
products.
-Decrease the price to encourage
the customer to come to take the
H products.
H
 -Use coal to run the production
H Line.
 El-kibeer
Risk Management Process Awee for
Consulting
BMIC Risk Management Process:-

Person Responsible

Chairman

customer
marketing risk
development
manager
manager

marketing
marketing risk
risk vores auditor and
team
customer service
 Organization Chart El-kibeer
Awee for
Consulting

Chairman

Vice Chairman

Managing Director

M.D Office Manager

Business
Financial Commercial
Project Manager Plant Manager Development
Manager Manager
Manager

Deputy Project Deputy Plant Domestic Sales HR Manager

Manager Manager Manager

Financial
Deputy Project Controller
HSE Manager Marketing Manager IT Manager
Technical Manager

Quality Control Admin. Manager

Manager Logistic Manager

Sales Admin Section

Head
 Motivation Process El-kibeer
Awee for
Consulting

BMIC Motivation :-

- :Negative

The Motivation plan contain only Medical Insurance for the company's-
.employees
-The salaries are below the average according to the salary survey.

Action:-

-We make Satisfaction Survey to Identify individual needs.

-Make Motivational Plan according to Survey.
 Motivation Process El-kibeer
Awee for
Consulting
BMIC Motivation :-

Time Scale Motivation Plan

January .Goal Setting( setting organization and work Objectives) -1
January Salary Adjustment according to annual increase, performance appraisal, -2
Budget, Inflation Rate
January Incentive Scheme according to achievement -3
January . Career Path and Promotion Policy -4
June Life Insurance -4
July Cycle meeting to evaluate employees’ performance and achievement -5

July Iftar Ramadan with attendance of Chairman and Feast Bonus -6

Every quarter Training and Development-8

At the end of Reward System -9
year
 Leadership El-kibeer
Awee for
Consulting

The CEO of the company is:

Autocratic depend on his position power.
Personal leadership development:
He must be act as situational leader and develop
an Environment of trust – Involve the team –
Enhance self stem – sense of ownership and
support – Listen and respond with empathy.
Also he need to develop the Other leadership
traits in him through(Drive-self confidence-
creativity-cognitive ability- motivation-flexibility-
honesty)
 Controlling process El-kibeer
Awee for
Consulting

Situation: there is no controlling system can

monitor their performance (No feed forward ,
concurrent and feedback).
Negative: No clear objectives .
No standards to measure on.
No Employee discipline system.
 Controlling process El-kibeer
Awee for
Consulting

BMIC controlling system

1-Set clear objectives and standards(from strategic
objectives ) focus 1st on 1,2,6.
2-Measure performance result through activation
software to monitor Employee performance, appraisal
normal distribution curve ,Quarterly business
meetings ,assignments , KPI,and surveys .
3-Compare results.
4- Take corrective action (action plan form to correct
problem ).
 El-kibeer
Risk Management Process Awee for
Consulting

BMIC Risk Management Process:-

Person Responsible :-

-The key how to monitor our company. Chairman Supervise two separate
teams Customer Development, Marketing Risk.
•Marketing Risk Team
-Report to Marketing manager
•Risk Vores
-Specialized team to monitor the market.
- Hunting market opportunities.
- Predicting the risk we might face and set alternative plans.
•Marketing Editor And Auditing
- Evaluate our Marketing Activities.
- Assess the marketing team now and then.
- Monitoring the efficacy of the plan and assess people awareness.
 
 Entrepreneur Manager El-kibeer
Awee for
Consulting

Warehouses Cost problem.

The Solution:
The company will write a long term contract with the
contractors of new cities that the contractors will provide
the company to stored cement in the new cities against
incentives to the contractors.
The revenue penetrate delta market.