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Lucky Final
Lucky Final
AMEERA JAHANGIR
HUMERA M HANIF
MADIHA RAZZAQUE
CEMENT INDUSTRY OF PAKISTAN
o All Pakistan Cement Manufacturer
Association (APCMA) is a governing
body for cement industry.
The price competition is also the second major threat that the
company is tackling with in the present situation.
WEAKNESSES
SWOT
(Strength,weaknesses,opportunitie
s,Threats) matrix
• The concept of
determining strengths,
weaknesses, opportunities,
threats is the fundamental
concept behind SWOT
model
• To present the model in a
more understandable way
scholars came up with
SWOT matrix
“SO “strategies “ WO” strategies
STRENGTHS
1. Financially strong
2. High product quality
SETUP NEW FACTORIES BUILD UP EXPOSURE
3. Highest export share
IN NORTHERN AND BETTER BRAND
4. High pay scale REGIONS OF PAKISTAN IMAGE THROUGH
(S1 , O1 )
RIGHT
1. Low advertising and PROMOTIONAL MIX
INCREASED EXPORTS
WEAKNESSES exposure ( W1 , O1 ,O2 )
TO GULF REGIONS
2. Low gratuity and PF ( S1 ,S2,O2)
funds DIVERSIFY IN GULF
3. Increasing general and REGION (W1,O2 )
administrative expenses
1. Upcoming national
OPPORTUNIT “ST “ strategies “ WT “ strategies
projects
IES 2. Demand for cement in
gulf region OVERCOMING REDUCE GENERAL &
3. Expansion in cement COMPETITOR’S ADMIN EXPENSES TO
PRESSURE THROUGH COPE WITH NARROW
industry
MORE QUALITY (S2,T2) COMPETITION
(W3,T2)
1. Govt regulation on slots RESOLVE ALLIANCE
THREATS 2. Price competition OPPOSITION THROUGH CONSIDER EMPLOYEE’S
3. Opposition alliance TOP MANAGEMENT PERKS TO AVOID
INVOLVEMENT HASSELS OF LABOUR
(S1,T3) UNIONS
(W2,T3)
FINANCIAL POSITION :-
SPACE MATRIX
COMPETITIVE POSITION :- rates
RATING
Increase in net sales revenue 4
Strong distribution network. -2
Continuous increase in stock value (PRs 130/=) 6
Increased Earning price share-EPS (PRs 2.1 per 5share)
5
Total: 15 High quality products. -3
INDUSTRIAL POSITION :
Increasing competition in construction sector 4
Increasing domestic demand for cement i.e. 92% 5
High export share. -4
Enhancement in the budget for Annual 5
Development Plan
Increasing growth rate 3
Total: 17 Market development in Gulf -2
STABILITY POSITION :-
Allowance of subsidized cement imports & lesser rebates
-4
Cut throat competition has created instability. -3 Govt. Project as DGP Army. -3
SP
DECISION STAGE
KEY FACTORS
GLOBAL EXPANSION RIGHT PROMOTIONAL MIX
OPPORTUNITIES:- WEIGHTS AS TAS AS TAS
Upcoming national projects 0.15 1 0.15 4 0.60
Demand for cement in Gulf 0.20 4 0.80 1 0.20
Expansion in industry due to 0.10 1 0.20 4 0.40T
house building loans by banks
THREATS :-
Government regulations 0.15 4 0.60 3 0.45
Price competition 0.10 2 0.20 3 0.30
Alliance opposition 0.15 2 0.30 3 0.45
Fluctuating currency rates 0.10 4 0.40 2 0.20
1.00
STRENGTHS:-
Strong financial position 0.15 3 0.45 4 0.60
High product quality 0.12 3 0.36 4 0.48
Highest export share 0.20 4 0.80 3 0.60
High pay scale 0.10 3 0.30 4 0.40
Larger dealer network 0.08 2 0.16 3 0.24
WEAKNESSES :-
Low advertising 0.10 1 0.10 3 0.30
Increasing Gen & Admi expenses 0.05 - - - -
Low gratuity & PF funds 0.10 1 0.10 3 0.30
Increased production cost 0.10 1 0.10 4 0.40
1.00 5.2 5.92 5.92
QSPM -QUANTITATIVE STRARTGIC PLANNING MATRIX
• This technique basically tells which strategy is the best for the
company.
• The two alternative strategies considered are GLOBAL
EXPANSION & EXPOSURE THROUGH BRAND IMAGE &
PROMOTIONAL MIX.
• The demand for cement in gulf areas are high in gulf areas as
compare to domestic market.
• The opportunity of expansion of cement industry due to house
building loan is more attractive with market penetraton strategy.
• The major threat of governmental regulations ,price competition
& currency rate are associated withdraw both alternative
strategies .
• The strong financial position , high product quality & pay scale
are attractive to brand image whereas market share of 19% is
highly attractive to capitalize the strengths.
• Advertising, gratuity fund & production cost should be reduced
and convert in to the strength.
RECOMMENDATIONS
MARKET PENETRATION :- Because of number of
construction projects have been initiated by the
Government and the rising trend of house
financing through banks and investment in real
estate and property.