3.

SCOPE OF THE STUDY

The scope of work included the following but not limited to:

3.1. AS IS analysis

For better understanding and to know all the available gaps, bottlenecks, and

weaknesses of Hibret Manufacturing and Machine Building Industry (HMMBI),

an in-depth AS-IS analysis or current state analysis will be conducted. The

analysis includes the following:

 In related to its establishment

 Understanding the rationale behind its establishment and

progressive change happened with HMMBI.

 Assessing the entire legal framework in related to its

establishment, reform, change and actual conditions. Under

this case, in addition to evaluating the entire expected legal

document for any governmental manufacturing industries, the

consultant group will try to evaluate the availability of a policy

or procedure support.

 In related to its objective and responsibility

 Assessing the current objective, vision, mission and values of

the industry

 Expected responsibility and the actual situations of HMMBI

will be assessed

 In related to organizational structure and staffs

 Assessing the actual organizational structure, command path

and available man power, educational background of the staffs,

mix of expertise, salary, and other related.

 Assessing the compatibility of the organization structure and

the available market in the country

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  Assessing staffs performance, altitude and readiness to

change the industry

 In related to existing facilities and/or available technology

 Assessing the available facilities/machinery and there capacity

which are ready for work.

 Assessing actual machinery utilization rate and identifying the

reason beside for the high/medium/low utilization rate of the

machineries.

 Evaluating the contribution of the owned technology to absorb

the countries market

 Evaluating the staff’s capacity to manage, operate, utilize, and

maintain the available technologies.

 In related to raw materials and inputs requirement

 Assessing the availability of raw materials and other inputs to

the industry. If there is a problem; identifying the main

reason behind.

 Evaluating the possible alternatives which were considered by

the industry.

 In related to product mix

 Assessing the type of product mix which is considered as the

main business line of HMMBI

 Evaluating their product mix selection with respect to the

available market and company successes.

 In related to source of finance, profit and loss

 Understanding/knowing the main finical source

 Assessing the actual financial standing of the industry

(revising the audit report)

 In related to working procedures

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  Assessing the availability of systems procedure manuals

 Assessing the availability quality management certification,

ISO certification, or other third party certificate

 In related to market availability

 Evaluating the availability of the market and there strategy to

be followed by the industry

 Identifying main customers and partners of HMMBI

 Assessing the main reasons behind the for good/bad market

available

3.2. SWOT and PEST Analysis

To evaluate the strategic position of HMMBI, the consultant team will conduct a

SWOT (Strength, weakness, opportunity and threat) and PEST (Political, economic,

social and Technological) analysis. They are used to analyze the industry and the

environment in which it operates. Information in a SWOT and a PEST analysis is

organized into internal and external factors.

Even though both of the analysis has some differences, both of them help the industry

to understand opportunities and threats. The consultant team will focus on the PEST

Analysis that looks at big picture factors that might influence a decision, a market, or

a potential new business. As the same time, they focus on SWOT Analysis that helps

the team to explore factors at a business, product-line or product level.

3.3. Other additional analysis to be condacted

In addition to what proposed above, the consultant group will perform the

following:

 Competitor analysis

 Demand–supply gap analysis

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  Price analysis

 Marketing strategy

3.4. Revised products and services

From the identified problems, weakens, and strength which will be conducted in above

parts of the AS IS, SWOT and PEST analysis, the consultant team will recommend to

revise their industry objectives, management style, salary scale, product mix,

marketing strategy, relationship with other governmental and private companies,

source of finance, and other important main principles of the industry.

3.5. Bussins plan

Analyzing the available information or data, the consultant will come-up with a detail

business plane, general working procedures and additional recommendation. The plane

includes Product and production mix, market strategy, raw material requirement,

additional facilities required, revised organization and human resource requirement, HR

capacity building, required Systems and procedures improvement, finance requirement

(Investment and operation budget), finance source, rough profit estimation, etc.

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