NATIONA

L FOODS
18th April 2022
STRATEGIC
MANAGEMENT

PRESENTED BY:
AMNA IMRAN IQRA KHALID ARISHA RIZWAN
MARYAM BURHAN AREESHA ALI SANA VANCY
 VISION
STATEMENT

“Creating food that enriches the lives of people everywhere.”

 INTRODUCTIO
N
• Founded in 1970, National Foods began its operation as a spice company.
• Currently, the company incorporates a versatile range of 250 products, 165+ SKUs for the domestic
market, and over 100 different products for the international markets. 
• National Foods has expanded its global presence in 40 countries across five continents, in UAE, UK, and
Canada. 
• Vision 2022, where the National pledges excellence, creativity, and delivering the best spices quality. 
• National Foods leads the market with 70% of the market shares. 
• Some facts to support the National claims and to understand the market position of Nationals are stated
below:
• Around 29 million Pakistani families enjoyed National’s Pickle products in 2020. 
• In 2021, National Ketchup will become the loved ketchup for 14.5 million Pakistani families. 
• In 2021, approximately 32 million Pakistani households will use the National Recipe Mix. 
 MISSION
STATEMENT
“We will achieve our vision by designing and manufacturing food and related
products, conforming to international standards and guidelines for nutrition,
health, wellness, and quality, and bringing joy and happiness to people
everywhere.”
 CORE VALUES

National Foods Core Values revolve around five

ideas. These includes:
 Passion - Go above and beyond
 Customer-centric - Prioritize Customer
Experience
 Teamwork - Trust each other and achieve together 
 Excellence In Execution - Lead, Commit, and
Deliver the best
 Ownership - Own it and deliver it
 PHILOSOPHY
The founders of Nationals envisioned and followed the
following brand philosophy
 Must get recognized as market leaders on a local and
global scale by building a reliable brand name. 
 Must prioritize customer needs and provide high-quality
products that meet international and local standards.
 Must continuously produce new, well-researched,
innovative products to promote health
 Projects to be identified and launched that will
positively impact Pakistan's economy.
 Must foster an environment where talent is nurtured and
people are given every opportunity to advance in their
careers.
 NATIONAL
ORGANIZATION
AL CHART
 BOARD OF
DIRECTORS

Chairman Mr. Abdul Majeed

CEO Abrar Hassan

Director Mr. Zahid Majeed

Director Mrs. Noreen Hassan

Director Mrs. Saadia Naveed

Director Mr. Ehsan A. Malik

Director Mr. Ali H. Shirazi

 National Foods Product Portfolio

Ingredients Salt Ketchup Pickles Snacks Seasonings

Mayo Desserts, Jams, Chutney,
Recipe Sauces, &
Mixes & Jellies
Pastes
PRODUCT
PORTFOLIO

Salt
 VISION STATEMENT ANALYSIS

“Creating food that enriches the lives of people everywhere.”

 A vision defines a company’s vision of what to become in the upcoming

years.
 Vision statement of National foods clearly states the company's goal to
enrich people's lives.
 The vision statement is short and shares a realizable dream.

 It talks about enriching people's lives everywhere (thus indicating a plan

to expand on national and international grounds).
 Further, a vision is industry-oriented.

 Examining the National’s vision statement indicates the food industry,

highlighting the scope and room to diversify within the industry.
 Hence, the National’s vision statement is well-stated. 
 MISSION STATEMENT ANALYSIS
The mission statement is evaluated on nine dimensions. We aim to assess the National’s
vision statement by employing these nine dimensions. 
1. Customers - doesn’t identify the target market. 
2. Products or services - mentions food and related products 
3. Markets - everywhere (indicating national and international markets)
4. Technology - doesn’t incorporate the technological component 
5. Concern for survival, growth, and profitability - the mission statement lags the
future vision to growth and profitability. 
6. Philosophy - bringing joy and happiness to people by bringing them quality products.
7. Self-concept - the phrase, designing and manufacturing food and related products,
conforming to international standards and guidelines for nutrition, health, wellness,
and quality, defines the self-concept of National Foods.
8. Concern for public image - National Foods' mission statement hasn’t catered to the
element of the public image within their mission statement. 
9. Concern for employees - the mission statement has missed the employees. 
 PROPOSED MISSION STATEMENT

“We will achieve our vision by designing and manufacturing food and related products (products),

conforming to international standards and guidelines for nutrition, health, wellness, and quality

(self-concept), and by employing high-end technologies (technology). Aiming to prepare for

challenges of inclusive growth and sustainability (concern for growth, survival, and profitability),

it advocates bringing joy and happiness (philosophy) to food-lovers (customers) everywhere

(market). National Food is firmly committed to integrating CSR into its strategic vision (public

image) as a socially responsible organization. National values its employees and provides them with

a grooming environment to nurture their personal and professional skills (employees)”

 COMPANY’S CULTURE
 The culture of a company is defined as the values, beliefs and ways of
interactions that shapes up the distinct social and psychological environment
of the company.
 National Foods Ltd. defines its culture as advanced, forward thinking,
entrepreneurial.
 The culture at NFL provides freedom to the employees to excel and improve
in their careers.
 According to our interview, the employees over there enjoy working in the
company because they believe that NFL’s culture motivates them to dream
and lead the direction of the business.
 The culture of NFL is robust in nature, as the company concentrates on
diversity in workplace including people from different religions, race,
gender etc.
 This progressive culture helps to motivate the employees and allows them to
build a strong professional career.
 PEST-C ANALYSIS

 Political
 Economical
 Social
 Technological
 Competitive
 Opportunities R(1 -10) WT S (1 -4) WS
1. CPEC Development/Trading Routes 8 0.06 2 0.12
1. Increasing foreign investments 7 0.06 2 0.12

EFE
1. Increased Disposable Income 7 0.06 3 0.18
1. Changing customer trends/preferences 9 0.08 3 0.24
1. Potential in e-commerce business 9 0.08 3 0.24

MATRIX
1. Long-product life cycle 8 0.06 3 0.18
1. Scope for product diversification 9 0.07 3 0.21
1. Partnerships/Mergers/Acquisitions 6 0.05 1 0.05
  63 0.52   1.34
 
Threats        
1. Political Instability leading to Investment 7 0.06 1 0.06
doubts
1. Increased taxes on food industry 9 0.07 2 0.14

1. High Inflation Rates 7 0.06 1 0.06

1. Devaluation of money 6 0.05 2 0.10

1. Availability of Substitute Products 8 0.06 3 0.18
1. Health-conscious customer segment 6 0.05 3 0.15
1. Lack of Research and Development 7 0.06 3 0.18
1. High secondary competition 9 0.07 2 0.14
  61 0.48   1.01
  124 1.00   2.35
 PORTER’S 5 FORCES MODEL
 
STRENGTH FORCE INDSUTRY PROFITABLITY
Overall Industry Profitability:
HIGH   Low Medium High Low Medium High

Threat of new entrants        

Threat of new substitutes        

Rivalry of existing
       
competitors

Bargaining power of buyers        

Bargaining power of
       
Suppliers
 COMPETITIVE PROFILE MATRIX
    National Foods Shan Foods Mitchell’s

R Score Score
Critical Success Factors WS WS WT Score WT
(1-10) (1-4) (1-4)
Advertising 9 0.12 3 0.36 4 0.48 2 0.24
Product Quality 10 0.12 4 0.48 4 0.48 3 0.36
Financial Position 8 0.10 4 0.40 4 0.4 3 0.30
Market Share 8 0.10 4 0.40 4 0.4 2 0.20
Customer Loyalty 8 0.10 3 0.40 4 0.4 3 0.30
Price 9 0.12 3 0.36 4 0.48 3 0.36
Global Expansion 8 0.10 4 0.40 4 0.4 2 0.20
Sales Distribution 9 0.11 3 0.33 3 0.33 2 0.22
Management 10 0.12 4 0.48 4 0.48 3 0.36
Total 79 1.00   3.61   3.85   2.54
 VALUE CHAIN ANALYSIS

Primary
Operations/
In-bound Out-bound Market &
Manufacturin After Sales
Logistics Logistics Sales
g

Strengths
•Manufacturing Strengths
Strengths
•Wide Strengths
Activities
Strengths •Quality
facilities at •A diverse availability of
•Secured new product range Assurances
SITE, Port the products
suppliers •Adoption of •High
Qasim, strategies to
•Strong
•Discovered customer
Nooriabad, & reduce wastage. digital
new regions •Inculcate cloud- loyalty
Gujranwala. presence
to gather raw based •Higher
•Cost-
materials technologies to
optimization track logistical market shares
Weaknesses
strategies. operations nationally
•Can consider Weaknesses
•State-of-the-art Weaknesses
importing •Long distances
•Low export
plants. from the
raw materials
Weaknesses manufacturing market shares
•Only one plant to various •Higher
cities prices than
manufacturing
plant towards competition
Northern
Punjab.
 VALUE CHAIN ANALYSIS

Secondary
Research & Development Human Resource Management
Strengths
•Investment in new Product
Strengths
•In-house learning management
Activities
Development system

Technology
Finances
Strengths
Strengths
•Introducing new technology to
•Cost optimization projects
improve process
Weaknesses
Weaknesses
•Higher cost of sales
•Higher maintenance costs
 Strengths R(1 -10) WT S (1 -4) WS

• Secured new suppliers 8 0.05 4 0.20

IFE
• Discovered new regions for raw materials 8 0.05 4 0.20
• State of the art Manufacturing facilities 9 0.06 3 0.18
• Diverse product range 9 0.06 3 0.18
• Strategies to reduce wastage 7 0.05 3 0.15

MATRIX
• Cloud-based technologies to improve logistical operations 7 0.05 4 0.20
• Ensured product availability 8 0.05 3 0.15
• Strong digital presence 9 0.07 4 0.28
• High customer loyalty 9 0.07 3 0.21
• Investments in new product development 9 0.07 3 0.21
• Cost-optimization projects 7 0.05 4 0.20
  90 0.63   2.16
   

Weaknesses        

• Chances of Exporting raw material 7 0.05 1 0.05

• One manufacturing plant in Northern Punjab 8 0.05 1 0.05
• Long distribution network 8 0.05 1 0.05
• Low export market shares 8 0.05 1 0.05
• Higher prices than competitors 8 0.05 1 0.05
• Higher cost of sales 9 0.07 2 0.14
• Higher maintenance cost of machines 7 0.05 1 0.05
  64 0.37   0.44
  154 1.00   2.60
 FINANCIAL ANALYSIS OF INCOME STATEMENT
 The company has made a higher
investment in manufacturing the
product, increase in 20%.
 company’s expenses have
increased, the change in sales is due
to the higher investment.
 Lastly, the company’s other income
has been reduced.
 Overall, the company profit for the
year have increased by 324,150.
 BALANCE SHEET ANALYSIS
 the company has invested in new product development
and improved its infrastructure.
 a significant increase in inventories, short-term
investments, and cash and bank balance can be seen.
 The increase in Share capital indicates that the
company has sold its shares to raise funds, paid off
debts.
 In Current Liabilities section, trade and other payables
have increased.
 Hence, if we conclude an increase in the total assets,
this increase can be justified with increased liability.
 PROFITABILITY RATIOS ANALYSIS
 The company in Fiscal Year 2021 retains 0.43% higher capital than in FY20, a decrease in the
operating profit to sales ratio.
 a 0.44 percent decrease in return on the equity ratio.
 Lastly, the earnings per share have increased. The company is earning 0.13 times higher for its
share in FY21 than in FY20.
 SWOT MATRIX
Overall Strategies:

From the SWOT Analysis, the following strategies have been identified;

1. New product development

2. Implement cloud technology to improve the e-commerce sales

3. Foreign investments can be used to bring finances and new ideas

4. Ensure product availability

5. Setting up a manufacturing plant in the Northern Pakistan

6. Partnership or merger to improve the export sales

7. Design an effective value chain by looking for new suppliers/ new areas for raw materials or cost-optimization
projects.
 
Relative Market Share

  High Low
High STARS: QUESTION MARKS:
 Recipe Masalas  Deserts
 Pickles  Mayonnaise
 Ginger Garlic Paste

Market
Growth
BCG
Rate Low CASH COWS:
 Ketchup
DOGS:
 Basmati Rice
MATRIX
 Sauces  Scene On (Snacks)
 Salt
 
 5 PORTER GENERIC STRATEGIES
• It comes under the fourth strategy ‘stuck in
the middle’.
• NFL products are placed under the low cost
of production against the strategic advantage
parameter which is actually the strategy
‘overall cost leadership’.
• But at the same time NFL deals with the
products that are food edibles and involves
food flavors which lead NFL to target mainly
condiment food segment
• And when they are analyzed demographically,
there is no specific segment they are targeting
instead almost all segments of population.
 GRAND STRATEGY MATRIX
Rapid Market Growth

Quadrant II Quadrant I

Strong
Weak Competitive Competitive
Position Position

Quadrant III Quadrant IV

Low Market Growth

 STRATEGY SELECTION
SWO
Strategies BCG IE GSM
T
1. New product development  

1. Implement cloud technology to improve the e-commerce sales    

1. Foreign investments can be used to bring finances and new ideas      

1. Ensure product availability      

1. Setting up a manufacturing plant in the Northern Pakistan      

1. Partnership or merger to improve the export sales    

1. Market penetration        
1. Increasing promotion and distribution efforts    
1. Acquiring a competitor in the same marketplace      

1. Forming strategic partnerships with other firms to gain access to each

     
partner’s distribution channels or brand.

1. National Foods can also explore consider diversification and can

     
consider unrelated diversification such as readymade soups or cereals.
 QSPM
Strengths WT AS TAS AS TAS
1. Secured new suppliers 0.05 3 0.15 4 0.20
1. Discovered new regions for raw materials 0.05 - - - -
1. State of the art Manufacturing facilities 0.06 4 0.24 2 0.12
1. Diverse product range     0.06 4
Acquire/
0.24 3 0.18
1. Strategies to reduce wastage 0.05
New Product 4 to
merge 0.20 2 0.10
Development improve
1. Cloud-based technologies to improve logistical operations 0.05 3
exports 0.15 1 0.05
       
Opportunities WT AS TAS AS TAS
1. Ensured product availability 1. CPEC Development/Trading Routes 0.06 0.05
2 0.12 3 - 0.18 - - -
1. Strong digital presence 1. Increasing foreign investments 0.06 0.07
3 0.18 1 2 0.06 0.14 3 0.21
1. Increased Disposable Income 0.06 - - - -
1. High customer loyalty 1. Changing customer trends/preferences 0.08 0.07
4 0.32 1 4 0.08 0.28 3 0.21
1. Investments in new product development
1. Potential in e-commerce business 0.08 0.07
- - - 4 - 0.28 2 0.14
1. Long-product life cycle 0.06 4 0.24 2 0.12
1. Cost-optimization projects 1. Scope for product diversification 0.07 0.05
4 0.28 3 2 0.21 0.10 4 0.20
1.  Partnerships/Mergers/Acquisitions 0.05 2  0.10 4   0.20 1.78   1.41
      1.24   0.85
Weaknesses Threats                   
0.06 -
0.05 - - 3 - 0.15 4 0.20
1. Chances of Exporting raw material
1. Political Instability leading to Investment
doubts
1. Increased taxes on food industry 0.07 0.05
- - - - - - - -
1. One manufacturing plant in Northern
1.
Punjab
High Inflation Rates 0.06 - - - -
1. Devaluation of money 0.05 - - - -
1. Long distribution network 1. Availability of Substitute Products 0.06 0.05
4 0.24 2 2 0.12 0.10 3 0.15
1. Low export market shares 1. Health-conscious customer segment 0.05 0.05
4 0.20 3 3 0.15 0.15 4 0.20
1. Lack of Research and Development 0.06 4 0.24 3 0.18
1. Higher prices than competitors 1. High secondary competition 0.07 0.05
4 0.28 3 4 0.21 0.20 3 0.15
1. Higher cost of sales     0.07
  0.94   4 0.76 0.28 3 0.21
      2.18   1.61
1. Higher maintenance cost of machines 0.05 - - - -
      0.88   0.91
      2.66   2.33
Total Scores     4.84   3.94
 IE MATRIX

 If we observe, the placement of the National

Foods is within the V quadrant with an EFE
score of 2.35 and an IFE score of 2.60.

• It means the company must adopt the hold and

maintain strategies, suggesting that the
company must focus on the market penetration
and product development strategies.
 RECOMMENDATIONS
STRATEGY IMPLEMENTATION
PROPOSED STRATEGIES:

 Product Development

 Diversification

 Market Penetration

 Market Development
 RECOMMENDATIONS

STRATEGY IMPLEMENTATION
CURRENT STRATEGIC OBJECTIVES:
 Market Leadership by providing value to customers

 Cost Optimization through Kaizen approach

 Product Diversification
THANKYOU