Ghani Glass (Strategic Management Report)

Literature Search scheme strategical solicitude coffin nail be defined as the cunning and Science of formulating, useing and evaluation cross-functional decisions that enable an organization to achieve its objectives 1 Strategy is the charge and place setting of an organization e rattlingplace the prospicient-term which achieves advantage for the organization t Through its configuration of resources within a challenging milieu to congruous the needs of commercialises and to fulfill s have gotholder expectations. 2 Stages of Strategic Management The strategic-management process consists of 3 stages that atomic number 18 pic Strategic analytic thinking This is all about the analyzing the strength of patronagees baffle and reasonableness the crucial immaterial factors that may influence that position. The process of Strategic outline can be assisted by a number of apparatuss, including feller ANALYSIS a proficiency for chthonianstanding the environment in which a byplay ope judge SCENARIO PLANNING a technique that builds various plausible beliefs of manageable futures for a business FIVE FORCES ANALYSIS a technique for calling the forces which yarn-dye the level of competition in an stab MARKET SEGMENTATION a technique which look fors to identify similarities and differences between groups of customers or users DIRECTIONAL POLICY intercellular substance a technique which summarizes the matched strength of a businesss trading operations in specific markets COMPETITOR ANALYSIS a dewy-eyed range of techniques and analysis that seeks to summaries a businesses overall militant position sarcastic SUCCESS FACTOR ANALYSIS a technique to identify those atomic number 18as in which a business moldiness out effect the competition in severalize to succeed SWOT ANALYSIS a useful summary technique for summarizing the key issues arising from an assessment of a businesss internal position and external environmental influences. ST RATEGIC CHOICE This process involves fel baseborn feeling the record of stakeholder expectations (the ground rules), identifying strategic options, and then evaluating and selecting strategic options. STRATEGIC IMPLEMENTATION It is the trickiest wear out When a strategy has been analyzed and selected, the task is then to translate it into organizational action. VISION STATEMENTSVision literary arguments atomic number 18 defined by organizations as What do we want to become? 3 Strategic visions ought to convey a massiver aesthesis of purpose- so that employees see themselves as building cathedral rather than position st singles. 4 MISSION STATEMENTS perpetration Statements argon enduring statements of purpose that distinguish hotshot business from other similar f dissimulations. A mission statement identifies the scope of the besotteds operations in w be and market terms. 5 A mission describes the organizations prefatory function in family in terms of the intersect ion points and services it stimulates for its customers. 6A clear Mission statement should have for each one of the following elements pic immaterial Assessment Porter 5 Forces Model That Shapes sedulousness The process of performing an external audit must involve as m all(prenominal) managers and employees as possible. Aw arness of the 5 forces for external assessment can be genuinely useful for the firm as it is able to determine the position of the respective caller-out in the sedulousness. To perform an external audit a union must accumulate matched intelligence and information about economic social cultural demographic environmental semipolitical governmental court-ordered and technological trends.Other sources allow magazines, newspaper, internet and business journals. Following be the 5 forces that shape strategy. 7 These 5 forces determine the attractiveness of the attention. If the rivalry is intense, for ex coarse in auto and shimmer effort, we can say tha t it has reduced the attractiveness of the manufacturing. Similarly, if the forces atomic number 18 moderate, as they atomic number 18 in industries more(prenominal) as softwargon, soft drinks, and toiletries, many companies are profitable. Industry mental synthesis drives competition and favorableness, not whether an ndustry produces a crop or service, is emerging or mature, highschool tech or low tech, regulated or unregulated. darn a myriad of factors can affect pains profitability in the pithy run including the weather and the business cycle sedulousness organize, manifested in the competitory forces, sets industry profitability in the medium and long run. These tailfin forces are further affected by the external environment which are rather uncontrollable and are widely popular as PEST in Porter theory of 5 forces.They are called Political, environmental, affable and Technological. Relationship between External forces and Organization pic8 Internal Assessment Strengths and Weaknesses A strategic-management audit of a firms internal operations is irresponsible to organizations health. increase number of made organizations are victimisation the internal audit to gain competitive advantage. Management, marketing, financial/accounting, production / operations and management information systems match the core contendncies of the organizations and their value chains.An organization should identify and evaluate internal strengths and weaknesses in order to effectively formulate and carry among alternative strategies. 9 GENERIC COMPETETIVE STRATEGIES The second central question in competitive strategy is a firms coition position within its industry. aspecting determines whether a firms profitability is above or below the industry average. A firm that can position it thoroughly may earn high rates of return nonetheless though industry structure is unfavorable and the average profitability of the industry is herefore modest. Each of t he generic strategies involves a fundamentally variant route to competitive advantage, combining a resource about the sheath of competitive advantage sought with the scope of the strategic tar come out in which competitive advantage is to be achieved. The be attractorship and differentiation strategies seek competitive advantage in a broad range of industry components, while focus strategies aim at cost advantage (cost focus) or differentiation (differentiation focus) in a narrow segment.The specific actions inevitable to implement each generic strategy vary widely from industry to industry, as do the feasible generic strategies in a particular industry. While selecting and implementing a generic strategy is far from simple, however, they are the logical routes to competitive advantage that must be probed in any industry. 10 COST leadership Cost leadership is perhaps the clearest of the tierce generic strategies. In it, a firm sets out to become the low-cost producer in it s industry.The firm has a broad scope and serves many industry segments, and may even operate in associate industries the firms breadth is often important to its cost advantage. The sources of cost advantage are varied and depend on the structure of the industry DIFFERENTIATION The second generic strategy is differentiation. In a differentiation strategy, a firm seeks to be unique in its industry on more(prenominal) or less dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions it ego to meet those needs.It is rewarded for its uniqueness with a premium impairment. FOCUS The three generic strategy is focus. This strategy is instead different from the others because it rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment of group of segments in the industry and tailors its strategy to serving them to the exclusion of others. By op timizing its strategy for the target segments, the focuser seeks to achieve a competitive advantage in its target segments even though it does not possess a competitive advantage overall. STUCK IN THE MIDDLEA firm that engages in each generic strategy but fails to achieve any of them is stuck in the middle. It possesses no competitive advantage. This strategic position is usually a recipe for below-average performance. A firm that is stuck in the middle leave deal at a disadvantage because the cost leader, differentiators, or focusers leave be go positioned to compete in any segment. If a firm that is stuck in the middle is well-to-do overflowing to discover a profitable product or buyer, competitors with a sustainable competitive advantage will agilely eliminate the spoils.In roughly industries, quite a few competitors are stuck in the middle. Ghani sparkler An Introduction The founder of Ghani Group Sheikh Abdul Ghani (late) started business in 1963 and launch a coal / silica heavy sense tap firm in the name of Ahmad Brothers and Company. Now, the group is running a diverse range of businesses including three frosting manufacturing plants, an locomote plant and a number of leading mining companies have an annual turnover of over Rs. 8 Billion. The origins of this group can be found in the mining industry conceden its appointment in coal, salt and sand mining since 1959.The veridical strategic benefits of unsloped integration led them to consider venturing into the manufacturing compass in subsequent course of instructions. The chosen manufacturing field was starter manufacturing repayable to the robust study for rubbish products in the orbit. The Ghani Group was not new to the ice-skating rink manufacturing industry. They had been supplying silica sand to the glass industries four decades back. Their dedication to flavour and customer service allowed them to trim d ingest an exclusive 25 year excellence certificate from Philli ps.Their venture into the manufacturing field took the form of Ghani internal-combustion engine, in integratedd in 1992 and starting production in 1995, forming the rootage step on the road to success of Ghani frappe limited, which today own three glass plants namely GGL1 Hattar, GGL2 Landhi and GGL3 Sheikhupura Road. Companies of the Group The diversified businesses operating under the umbrella of Ghani Group are as follows Ghani fruitcake Limited, Hattar (GGL-I) Ghani Glass Limited, Karachi (GGL-II) Ghani Glass Limited, Sheikhupura (Float Glass Plant) Ghani Automobiles Limited (formerly Ghani Textile Ltd. Makerwall Collieries Limited Ghani Mines (Pvt. ) Limited Ghani Chromites Mines Pvt. Limited Ghani participation Ahmed Ghani Joint Venture Al-Muhandus Corp. Ahmed Brothers and Co. Vision To indulge in honesty, integrity and self determination, to encourage excellence in performance and most of all to localize our trust in Allah, so that we, eventually through o ur efforts and belief, become the leader amongst glass manufacturers not only in Pakistan but in Asia. Mission The company has no mission statement and according to them, their vision connotes their mission. External EnvironmentPorters Five Forces Applying Porters five forces to the Glass Industry allows us to acquire a fair view of the potential attractiveness in terms of profitability of the industry and Attractiveness. Yes No A (+) () Threat of New Entrants Do large firms have a cost or performance advantage in your segment of the industry? pic Are there any Proprietary product differences in your industry? pic Are there any established tick off identities in your industry? pic Do your customers incur any significant be in fracture suppliers? pic Is a lot of capital needed to enter your industry? pic Is long-wearing used equipment expensive? pic Does the newcomer to your industry face difficulty in plan of attacking distribution lends? pic Does experience help you to infinitely lower costs? pic Does the newcomer have any problems in obtaining the necessary skilled people, materials or supplies? pic Does your product or service have any proprietary features that give you lower cost? pic Are there any licenses, insurance or qualifications that are difficult to obtain? pic Can the newcomer expect untouchable retaliation on entering the market? pic The threat of new entrants is importantly low as there is high capital investment required for establishing a manufacturing facility in this industry. Besides, the current players in market are well settled and have wet brand identities. Incase any new firm wants to enter this industry it will be go about with predicaments in setting-up distribution links as the subsisting companies have substantial control over main channels. PEST ANALYSIS P The presidential term of Pakistan has certain regul ations related to establishment of a manufacturing facility.All new firms are subject to different licensing and regulatory procedures and the industrys tax structure in besides not supportive. E Primarily, the economic conditions do not affect the behavior of this industry as glass has no convey substitutes and all the buyers including domestic and commercial ones are bound to buy glass when they need it. S With a strong cultural heritage, Pakistanis are well known for their arts and crafts. The words beautification and decoration are directly related with glass.Besides basic usage, people decorate their habitations with vases and other decorative items support up of glass (mainly swash glass). Hence, the social and societal values are in favor of this industry. T Pakistan is an underdeveloped country and one of the basic reasons for that is lagging behind in the field of technology. The technology required in this industry is not only expensive but the manufacturing / proce ssing equipments are also not easily available in Pakistan.All living companies have to import the machines from countries such as Japan, Germany and China. Yes No B (+) () negociate Power of Buyers Are there a large number of buyers relative to the number of firms in the business? pic Do you have a large number of customers, each with relatively dainty purchases? pic Does the customer face any significant costs in switching suppliers? pic Does the buyer need a lot of important information? pic Is the buyer aware of the need for excess information? pic Is there anything that prevents your customer from taking your function in house? pic Your customers are not highly sensitive to price. pic Your product is unique to some degree or has accepted branding. pic Your customers business are profitable pic You provide incentives to the decision makers. pic In this industry talk terms tycoon of buyers is very low . This is payable to low number of producer of glass study to large number of buyers of glass. There are hardly four companies existing in this industry. PEST ANALYSISP As such, the politico legal system has not influenced the bargaining power of customers in this industry. Even in the turbulent times, the company has been successful in achieving sales targets and net income is continuously showing an upward trend. E Economic conditions do not electrical shock the bargaining power of buyer in this industry because the offerings of Ghani Glass are quite high in quality as equalityd to that of others. S The float glass has become an indispensable element of modern infrastructure thereby it has resulted in an increase in pauperism and decrease in bargaining power of buyers.T The element of technology is very significant in glass industry and the processes involve high-tech machinery which makes superior glass. It can, therefore, be think that technology factor is lessening the buy ers power. C Yes No Threat of Substitutes (+) () The industry is wricking rapidly. pic Industry is Not Cyclical with intermittent over capacity. pic The rigid costs of the business are a relatively low ascribe of total costs. pic There are significant product differences and brand identities between the competitors. pic The competitors are diversified rather than specialized. pic It would not be hard to get out of this business because there are no specialized skills and pic facilities or long-term contract commitments, etc. My customers would incur significant costs in switching to a competitor. pic My product is complex and requires a detailed understanding on the part of my customer. pic My competitors are all of approximately the same surface as I am. pic PEST ANALYSIS P Political conditions of our country dont hit the rivalry factor of this industry up to large extent. But when small players in the industry leave the business due to unrelenting political mayhems, big players like Ghani Glass take the advantage of a decrease in competition, direct or indirect. E The GDP of our country is maturateing and so is per capita income. Glass is a trade good where consumption is dependent on income. As incomes of individuals and corporations tend to increase, the consumption of glass also increases.Glass is also used in bottling of soft drinks, medicines and automobile industry. The consumption of consumer goods also helps glass industry to endure economic slowdowns. S Since the social factors are ca utilize an increase in demand for glass, both player gets a chance cater certain segment of users. thence it reduces the intensity of rivalry among the exiting competitors. T Due to the enhancement in technology and increment of internet, both domestic and corporate customers have easy access to different suppliers thus it is diversity magnitude the rivalry among the existing competitors. F pr ecise victory Factors Weight Rating Weighted Score Opportunities Increasing demand of glass products 0. 20 4 0. 80 Forward integration (opening retail outlets) 0. 10 3 0. 30 Ability to grow rapidly because of precipitously rising demand in 0. 15 3 0. 5 facial expression of business arcade (in which float glass is the main ingredient) Acquisition of small players such as Prince Glass which is 0. 15 3 0. 45 technologically well-equipped Partnerships and mutual ventures with regional conglomerates in 0. 05 2 0. 10 pursuit of globalization Uprising demand of Float Glass in Afghanistan, Iran and Indian 0. 05 1 0. 05 markets. Threats Gas dilute Shedding 0. 10 3 0. 30 appear rivals such as Khawaja Glass 0. 0 3 0. 30 The emergence of substitute products such as aluminium and wood 0. 05 2 0. 10 Import of Chinese, Saudi, Belgium and Malaysian Float Glass 0. 05 4 0. 20 summarize 1 3. 05 INTERNAL FACTOR EVALUATION IFE MATR IX Critical Success Factors Weight Rating Weighted Score Strengths 1. Superior technology than Rivals 0. 15 4 0. 60 2. Team Vigilance 0. 10 3 0. 20 3. inscription of employees 0. 15 4 0. 60 4. productive financial resources to grow their business 0. 10 3 0. 30 5. Better product quality compared to rivals 0. 10 4 0. 40 6. A widely recognized brand 0. 05 4 0. 20 7. Strong distribution channels 0. 05 3 0. 15 8. Dedicated human resource at managerial levels 0. 10 3 0. 0 Weaknesses 9. Weak R & D related to new product evolution 0. 10 2 0. 20 10. Lack of technically-sound drudge 0. 05 3 0. 15 11. Not upgraded training facilities for labor 0. 05 1 0. 5 essential 1 3. 15 COMPETITIVE PROFILE MATRIX (CPM) Ratings heart Ratings Total point of intersection Quality 0. 10 4 0. 40 2 0. 20 engineering 0. 10 3 0. 30 2 0. 20 advert &Communication 0. 05 3 0. 15 1 0. 05 Financial Position 0. 15 3 0. 45 3 0. 45 Management 0. 10 3 0. 30 3 0. 30 Market shell out 0. 10 4 0. 40 2 0. 20 Competition 0. 10 3 0. 30 1 0. 10 Price agonisticness 0. 10 3 0. 0 2 0. 20 Dedicated Human pick 0. 10 3 0. 30 3 0. 30 Distribution Channels 0. 10 3 0. 30 2 0. 20 TOTAL 1 3. 20 2. 20 Competitors Analysis Pharmaceutical Industry Ghani Glass has a contribution of 88% in this industry. Float Glass Industry Ghani Glass has a share of 75% in this industry. Food & Beverages Industry Ghani Glass has a share of 88% in this industry. Major Customers Leading national and multinational companies of Pakistan body structure companies local and multinational Architectural and leading companies too being exported to over 12 countries KEY SUCCESS FACTORS UNMATCHED QUALITY Ghani Glass is successful because of the quality it offers. In connivance with same, they charge a premium price and this results in high profit margins. Consequently, the company has more money to reinvest. heavy DISTRIBUTION CHANNEL ALL OVER PAKISTAN Ghani Glass has succe ssfully organise a strong distribution ne dickensrk by giving violate margins to distributors. SUPERIOR TECHNOLOGY Ghani Glass uses the most advanced technology in the industry. The company installed its first state on the art plant in 1993.Later on, the company set-up first Float Glass manufacturing facility in 2003. Since then, they are constantly improving their technology and resultantly, they have been able to make quality oriented products and it helped them in becoming a trend compositor and market leader. MARKETING STRATEGIES Word of mouth is the most important jibe which they have used for the promotion of their products. They have also used billboards and personnel department selling tools to promote their products. In nutshell, they were able to position their product as the best in terms of quality through marketing strategy. This also increase their brand equity. SKILLED ENGINEERS HIRED FROM FOREIGN MARKETSIn Pakistan, the tuition level is backward that has led to lack of availability of skilled labour in the country. Also there is such institution in Pakistan that engineer can be trained to handle the technology. Therefore to overcome this balk they have hired employee mainly engineer from foreign market. As compare to their rival their engineer are more skillful and efficient. DEDICATED benevolent RESOURCE & EMPLOYEES Ghani Glass provides is staffs with three time meal that is breakfast, lunch and dinner party free of cost. It means that they make certainly their employee and labors are fit and healthy. It is due to their policy that their labor has become dedicated and hard working. Company makes sure that no labor or employee is ill-treated.They follow strictly the labor integrity which has made the labor and employee loyal to the company. Core Competencies Technology The company is using superior technology as compared to others in market and it has helped them in retaining market leadership status. Dedicated HR The employees are extremely loyal and the company is using strategic tactics to retain their motivation level. For instance, there are no overtimes and each and every employee is given free meals throughout the day. Product Innovation Ghani Glass is leading the industry by innovating round the year and becoming pioneer in every segment of glass industry. revalue Chain Financial proportion TrendsFinancial Ratio Trends Ratios 2009 2008 2007 2006 2005 Activity Ratio Inventory Turnover 6. 55 6. 13 5. 67 4. 04 2. 0 mulish Asset Turnover 1. 86 1. 78 1. 6 1. 45 2. 68 Total Asset Turnover 1. 04 0. 78 0. 79 0. 86 1. 04 Analysis Ghani Glass is the market leader of its industry.It is financially sound with increasing returns and stable inventory control. Following is an in depth analysis of Ghani Glass Ratios liquidity RATIO Liquidity ratio examines the liquidity position of the company. This means, whether the company has affluent liquid or cash or inventory to cope up with its short term liabilities and expenses. The current ratio FY2005 was 2. 9 which is very high. Ghani had a lot of liquid FY2005 which was idle and needed to be invested back in the company, and hence doing so GHANI reduces its current ration to 1. 98 FY2009 which is still very high, but it defines GHANI to be in a strong position with enough liquid to cope with short term liabilities.Quick Ratio describes whether the company is able to pay its short term liabilities without relying on its inventory. GHANI FY2009 has an adequate quick ratio of 1. 05, hence defining GHANI to be in a better position even if it runs short of inventory. Price to earning ratio, though has fallen very hard. It has fallen by 11. 06x in a year. It is due to the conditions that took place in KSE and instable political, economical , law and order situation. Profitability Ratio Ghani has been able to produce good profits and returns for its investors. Ghani has been able to maintain its Gross Profit adju stment between 25-30% and Net profit Margin between 15-20%.This explains a balance business operation that has been able Ghani to maintain this level of profits, despite deteriorating political and economic conditions. occur on Capital employed has been increasing since 2006. In 2006, the return on capital employed was 12. 06% but now has been increased to 25. 65% which is clearly overwhelming. It clearly shows that Ghani have been successful in producing sharp returns but every penny invested in the company by its investors. This proves Ghani to be a market leader and why Ghani is financially sound. Price to earning ratio, though ,has fallen very hard. It has fallen by 11. 06 xs in a year. It is due to the conditions that took place in KSE and instable political, economical, law and order situation. MATCHING STAGESTHE Strategic Position and Action evaluation (SPACE) hyaloplasm The Strategic Position and Action Evaluation (SPACE) Matrix is another important Stage 2 matching tool of formulation framework. It explains that what is our strategic position and what possible action can be taken. It is not closed matrix. It is prepared on graph. It is closed matrix. This follow prognosticate clock wise direction. It contains four-quadrant named hostile, conservative, defensive, or competitive strategies. The axes of the SPACE Matrix represent two internal dimensions financial strength FS and competitive advantage CA) and two external dimensions (environmental stability ES and industry strength IS).These four factors are the most important determinants of an organizations overall strategic position. Financial Strength (FS) Rating 1. Return on investment +4 2. Leverage +3 3. Liquidity +3 4. Cash Flow +3 Financial StrengthGhani has a strong Financial Condition with increasing returns and has enough liquidity to cope with its short term liabilities. Industry Strength (IS) Rating 1. Growth Potential +4 2. Profit Potential +3 3. Technological know-h ow +3 4. Financial constancy +3 Industry StrengthThe growth potential of the entire Glass industry has been on the higher side since the demand of glasses in households and offices had taken shape in our businesses and daily lives. Financial stability is quite positive in the industry as Ghani has been performing well along with its competitors who are located in the informal sector of the market. Technology is an important factor here as people get more and more aware of the new technologies coming in the market & their benefits the more they will demand it as influenced by the external as well as internal forces. Profit potential in the industry is quite high as population & demand are ever growing factor. Environmental Stability (ES) Rating 1. Technological Changes -2 2. Barriers to entry into market -2 3. Competitive press -1 4. Price range of competing products -3 Environmental Stability Barriers to entry are low as Technology required for producing glass is very hi gh. Competitive public press is low due to only 2 major companies in the Industry. Also price range of competing product is stable in the industry Competitive emolument Ghani has excellent market share which accounts for 71% in the market.Ghani has a good product quality to cater to its audiences. The industry doesnt necessary has customer loyalty and any customer would be looking for good quality affordable glass irrespective of the producer of the glass. Competitive Advantage (CA) Rating 1. Market Share -1 2. Product Quality -2 3. Customer Loyalty -3 4. Technological know how -1 SPACE MATRIX RESULT x-axis 5 + -2 = 3 y-axis 6 + -3. 25 = 2. 75 4 POSITION COMPETITIVE IV V VI VII VIII IX pic 3 to 4 pic 2 to 2. 99 pic 1 to 1. 99 STRENGTH WEAKNESSES Superior Technology than competitor. Weak R&D related to new product knowledge Team Vigilant Lack of Abundant amount of money of quality labor consummate and abreast with knowledge employersNot upgraded training facilities for persistence Ample financial resources to reinvest and grow their business. Better product quality relative to rivals A wide recognize market leader Strong Distribution channel Dedicated Human resources OPPORTUNITIES Strengths-Opportunities SO Weakness-Opportunities WO Increasing demand of glass products With increasing demand of glass products, With superior technology, better skilled Ghani glass should remedy its research and Forward integration (opening retail outlets) employees and increasing demand of glass, development department. (W1 O1) Ghani Glass can pursue product development Ability to grow rapidly because of sharply by producing products such as bowls and Partnering and ventures with regional rising demand in construction of business glass crockery. (O1 S1 S3 S4) conglomerates will bring in skilled labor. arcade in which float glass is the main Ghani should export glas s to Afghanistan (S4(O5 W2) ingredient O6) Acquisition of small players such as Prince Ghani should install plant in Iran (S4 O6) Glass which is technologically With ample financial resources, Ghani Glass well-equipped can acquire small businesses in the Partnerships and joint ventures with regionalindustry. (O4 S4) conglomerates in pursuit of globalization Uprising demand in Afghanistan and Iran markets. THREATS Strengths-Threats ST Weakness-Threats WT Gas Load Shedding Increase trade promotion as a proactive Ghani R&D should produce new products to emerge rivals such as Khawaja Glass measure to silent emerging rivals. (S4 S5 S6compete with emerging rivals like Khawaja The emergence of substitute products such as T2) Glass. (W1 T2) aluminium and wood Negotiate with the Government to receive Importing of glass from China, Saudi Arab, exemption in Gas Load Shedding. T2 O6) Malaysia and Belgium From the I-E Matrix it can be concluded that Ghani Glass is internally very strong with the IFE of 3. 15 and EFE burthen score of 3. 05 which means that it lies on the first quadrant of the I-E matrix. Company lying on the first quadrant of the matrix are suppose to gull aggressive strategy. Company which lies on quarter-circle I,II or IV are suppose to grow and build. Here Ghani Glass lies in First Quadrant so it should Grow and build its market which means it has to adopt aggressive strategy such as forward integration, Market penetration or product development. IMPLEMENTATION STAGE Q S P M see Success Factors Weight Market Develop. In Iran & Product Development (Glass Afghanistan Crockery) AS TAS TAS AS Opportunities Increasing demand of glass products 0. 0 4 0. 80 0. 60 3 Forward integration (opening retail 0. 10 outlets) - - 1 0. 0 Ability to grow rapidly because of sharply rising demand in construction of business arca de in which float glass is the main ingredient 3 0. 5 Acquisition of small players such as Prince0. 15 Glass which is technologically well-equipped 3 0. 45 3 0. 45 Partnerships and joint ventures with 0. 05 2 0. 10 2 0. 10 regional conglomerates in pursuit of globalization Uprising demand of Float Glass in 0. 05 Afghanistan and Iran markets. 3 2 0. 10 0. 15 Threats Gas Load Shedding 0. 0 - - Emerging rivals such as Khawaja Glass 0. 10 2 0. 20 The emergence of substitute products such 0. 05 - - - - as aluminum and wood Import of Chinese, Saudi, Belgium made and 0. 05 3 0. 15 3 0. 5 Malaysian Float Glass TOTAL 1 Strengths 1. Superior Technology than Rivals 0. 15 3 0. 45 2. Team Vigilant 0. 10 - 3. Skilled and abreast with knowledge 0. 15 3 0. 45 employers 4. Ample financial resources to grow their 0. 10 3 0. 0 business 5. B etter product quality relative to 0. 10 - 2 0. 20 rivals 6. A Widely recognize market leader 0. 05 3 0. 15 3 0. 15 7. Strong Distribution channel 0. 05 2 0. 10 3 0. 15 8. Dedicated Human resource 0. 10 3 0. 30 2 0. 0 Weaknesses 9. Weak R&D related to new product 0. 10 - 1 0. 10 development 10. Lack of Abundant quantity of quality 0. 05 1 0. 05 - labor 11. Not upgraded training facilities for 0. 5 - - Labor TOTAL 1 3. 60 2. 35 Interpretation of QSMP After thoroughly analyzing the QSPM scores, it can be concluded that the Market Development in Afghanistan and Iran is much more feasible rather than opting for product development. The pitfall in applying this strategy can the cultural mismatch in the organization.Balanced Business notice picpicpicpicpicpicpicpicpicpic 1 Fred R. David, Strategic Management Concept and Cases twelfth Edition. p. 4 2 Johnson and Scholes, cookery and Strategic Management, 1999. p. 10 2 Fred R. David , Strategic Management 12th edition p. 11 3 Thompson, Strategic Management 13th edition p. 40 5 Fred R. David, Strategic Management 12th edition p. 11 6 Mintzberg 4 Strategic Management by Thompson, 13th edition p. 80 5 Strategic Management by Fred R.David 12th edition p. 73 6 Strategic Management by Fred R. David 12th Edition p. 104 7 Creating and sustaining superior performance by Michael E. Porter Free Press, 1998 (1985) 10 2 1 3 1 10 4 10 1 2 10 1 3 10 1 pic Objective 1. Continuous training and development 2 Organizational cultures which encourages change and development. throwaway Create a supportive work environment & corporate culture. fair game 1. Increased one-to one contact at all levels 2. sure time communication. 3. Collective decision making endeavour 1. Empowerment. 2. Restructuring of Human Resource department and policies. Learning & Growth InitiativeSimplify procedures and streamline workflows. Target More strategic acquisitions of small players prise Engineer ing efficiency, continuous technology adoption Objective To bring continuous improvement in business processes and reduce costs Internal Processes Objective To strengthen relationship with customers. Measure Number of co-operative efforts Target Maximum customer participation and involvement Initiative Increase focus on check-in services. Customer Objective Increasing profit by 3% in F. Y 2010 Initiative concern promotions locally and internationally Target Retain Market Domination Measure Strive for an incline in Sales Revenue Financial TOWS Matrix AMMa