Reg.No.

: 20222013 Major: General

Strategic Management Final Project

Under Supervision: DR. Hanady Ragaii

Presented By: Ahmed Ibrahim Ali Ali El Misiny

ID: 20222013
Major: General
Winter 2023

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 Table of contents
. About the Company……………………………………………………………………………………………………… 3
• Company overview……………………………………………………………………………………………………..
. Vision, Mission and Core Values…………………………………………………………………………………… 4
•Vision……………………………………………….…………………………………………………………………………. 4
•Mission……………………………………………………………………………………………………..………………… 5
•Values………………………………………………………………………………………….…………………………..….
. The Input Stage…………………………………………………………………………………………………………… 6
• External Environment Assessment…………………………………………………………………………….. 7
➢ PESTEL Analysis………………………………………………………………………………………………………... 7
➢ Porter Five Forces Analysis……………………………………………………………………………………….. 13
➢ External Factor Analysis Summery Matrix (EFAS)………………………………………………………. 15
➢ Competitive Profile Matrix (CPM)……………………………………………………………………………... 16
• Internal Environment Assessment……………………………….................................................. 17
➢ VRIO Analysis…………………………………………………………………………………………………………… . 17
➢ Porter Value Chain Analysis………………………………………………………………………………………. 21
➢ Internal Factor Analysis Summery Matrix (IFAS)………………………………………………………… 27
. The Matching Stage…………………………………………………………………………………………………….. 28
• Quadratic Analysis ………………………………………………....................................................... 29
➢ SWOT Analysis…………………………………………………………………………………………………………. 29
➢ TOWS Analysis …………………………………………….............................................................. 31
• SPACE Matrix……………………………………………………............................................................ 35
• BCG Matrix………………………………………………………………………………………………………………….. 37
. The Decision Stage……………………………………………………..................................................... 39
• Quantitative Strategic Planning Matrix (QSPM)……………………………………………………………. 40
. Strategy Formulation …………………………………………………………………………………………………….
• Strategic Objectives ……………………………………………………………………………………………………..
• Corporate Strategy ……………………………………………………………………………………………………….
• Ansoff Matrix ……………………………………………………...........................................................
• Marketing 4 Ps ……………………………………………………………………………………………………………..
Strategy Implementation…………………………………………………………………………………………………
• Implementation Matrix …………………………………………......................................................
. Strategy Evaluation and Control…………………………………………………………………………………...
• Balanced Score Card …………………………………………….........................................................
Business Plan ………………………………………………………………………………………………………………….
References ………………………………………………………………………………………………………………………

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 JUHAYNA FOOD INDUSTRIES COMPANY
Juhayna Food Industries is a leading Egypt-based manufacturer specialized in the
production, processing and packaging of milk, yoghurt, juice and juice concentrate.
During the past three decades Juhayna has succeeded in winning the loyalty of
consumers who have come to view our wide variety of quality products as trusted
household names. Juhayna has the well-earned reputation as trendsetter in both
manufacturing know-how and product innovation. Recent market studies indicate
that Juhayna enjoys a level of brand awareness that is significantly more pronounced
than its leading competitors on the Egyptian market.

By building a state-of-art industrial infrastructure, Juhayna has steadily increased

production capacity while developing and expanding its product range. Today the
company has 209 different products on supermarket shelves that are produced at six
separate manufacturing facilities with the industrial capacity to yield a total of 2,900
tons per day.

Juhayna has catered to diverse market segments with a wide range of products that
are developed with specific needs to serve all tastes of their target market segments.
In 1987 Juhayna became the first Egyptian company to offer safe, healthy, packed
milk products to the local market. In Dairy Milk we have below brands: Juhayna Milk,
Bekhero Milk, Halebo, Mix, Jino and Foam Milk Yogurt, Cream and Cheese: In 1987
Juhayna was the first company in Egypt to launch a natural, packed yoghurt product.
For over two decades Juhayna has maintained market leadership with its innovative,
high-quality yoghurt and yoghurt-based products. In Yogurt, Cream and Cheese we
have below brands: Plain Yogurt, MIX Yogurt, Actilife, Zapado, Rayeb, Creams and
Cheese Juice: Since 1987 when we first introduced our packed juice to the market we
have been producing the highest- quality juices from the largest and most modern
manufacturing facilities for juices and drinks in Egypt and the Middle East, equipped
with the latest, state-of-the-art technology. In Juice we have below brands: Juhayna
Juice, Pure, Bekhero, Jump and Tingo.

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 Vision
“Juhayna is a leading food for all ages, and a friend for all generations.”

Mission
“Juhayna perseveres in providing Products that are healthier, tastier, and classier
while increasing shareholder’s value and focusing on the most updated state-of the
art technology as well as our employees who represent our most valuable asset.”

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 Corporate Values
Our business model is based on the belief that growth must have a positive effect on
society. In addition to creating new job opportunities through the expansion of our
operations, our commitment to developing quality products and utilizing the most up
to date production techniques has helped to upgrade quality standards in the
Egyptian food industry.

Our values can be concluded in:

 Honesty.
 Transparency.
 Quality.
 Commitment

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 INPUT STAGE

2. External Assessment
2.1 PESTEL Analysis
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PESTLE is a strategic analysis tool. It is regularly seen because the nearest analytical
tools to examine the effects of external issues. It is a prolonged model of PEST analysis.
The abbreviation PESTLE stands for six elements that influence the business. The factors
are:

• Political

• Economic

• Social

• Technological

• Legal

• Environmental

Political:
10 years have passed since the Egyptian revolution broke out in 2011, the political
situation has changed continuously since the revolution, but things started getting more
stable when President Abdelfattah Al Sisi was elected for presidency in 2014 and
reelected for a second period in 2018.

Internal politics have been rough since 2013 after the Muslim Brotherhood were taken
out of control and President Mohamed Morsi and many other member of the
organization were arrested for trial. Since then, Egypt has been facing severe terrorist
attacks mainly in North Sinai, which resulted in many deaths among police and military
forces. On the other hand, huge efforts have been made by both the police and military
to maintain security and regain law & order. Thus, Egypt is considered a very secure
place now for touristic destination and investments.

As per foreign politics, relations with most countries have been excellent except for
specific situations. Relations with Qatar and Turkey have not been the best as their
current regimes were very close to the Muslim Brotherhood and many active members
of the organization have escaped to these countries after President Morsi was taken out
of control in 2013. On the other hand, there has been political instability with Turkey for

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other regional issues that represented a threat to Egypt's security and economic stability
that could be concluded in 2 directions, the war in Libya and gas in the Mediterranean.
However, Turkey and Qatar are trying lately to reestablish connections with Egypt in a
friendly way for being a strategic force in the Middle East.

On the African side, there is currently a dispute with Ethiopia on the replenishment of
the dam reservoir for the Ethiopian Grand Renaissance, because it poses a huge threat
to Egypt and may have a negative impact on Egypt's main water sources, because Egypt
is more dependent on the Nile. Due to delays on the Ethiopian side, more than 90% of
all discussions between Egypt, Sudan and Ethiopia on this issue have failed, which may
lead to serious actions soon.

Economic:
The GDP growth in Egypt declined from 5.6% in 2018/2019 to 3.6% in 2019/2020 due to
COVID-19 pandemic.
Egypt's real gross domestic product (GDP) was EGP 2221.457 billion in 2019 and due to
COVID-19 outbreak it is estimated to grow by 1.952% to be around EGP 2264.82 billion
in 2020. Egypt's per capita GDP was estimated at USD 3,019.72 whereas purchasing
power parity (PPP) based per capita GDP is estimated to be at USD 14,028.03 for the
year 2019.

In 2019, Egypt government's revenue was estimated to be EGP 1,083.46 billion whereas
the expenditure is estimated to be EGP 1,543.26 billion. This resulted in Egypt
government's net lending / borrowing negative at EGP 459.808 billion in 2019 indicating
that not enough financial resources were made available by the government to boost
economic growth.

Average inflation rates were 5.8% and 3% respectively during the first 3 quarters of
2019/2020 down from 14.5% and 8.6% during same period a year earlier.

The drivers of inflation changed recently towards services such as education and
healthcare as the main sources of increase through first 3 quarters of 2019/2020.

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The current account balance for Egypt was estimated to be negative at USD 7.119 billion
for the year 2019 and is expected to further increase at a CAGR of 9.91% and reach USD

4.223 billion by 2024. This negative current account balance indicates that Egypt will
remain a net borrower from rest of the world till 2024.

In World Bank's ease of doing business ranking Egypt was ranked 114 out of 190
countries in 2019. Egypt's ease of doing business ranking has improved from 120th
position in 2018.

In addition to its population being the largest in the region, the fact that disposable
incomes are set to rise markedly over the long term means Egypt’s country structure
benefits from probably the most dynamic upside potential, which confirms the country’s
standing as one of the Middle East’s most exciting investment destinations.

Egypt's unemployment rate was 8.612% of total labor force in 2019. Due to slowdown in
global economic activity due to COVID-19 pandemic the unemployment is expected to
increase by 16.34% and reach 10.294% in 2020.

2018 2019 2020 2021

GDP 5.3 5.6 3.6 3.3
GNP $274.94B $269.86B $307.45B $365.80B
National $243.43B $292.07B $353.89B $391.74B
income
Interest Rate 16.75% 12.25% 8.25% 14.50 %

Inflation rate 14.40% 9.15% 5.04% 5.55%

Unemployment 9.82% 7.84% 9.17% 9.33%

rate

Socio Cultural:
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Social, cultural,
demographic, and
environmental changes:
With a population of 90
million,
Egypt is the largest
market in the Arab
world. Population growth
at 2.0% is considered
high
compared to developed
countries. Nearly 45.0%
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of the population is under
the age of 18, which
creates a sizeable
consumer base. Income
per capita is enjoying
higher than average
growth as
a result of ongoing
economic reforms. The
expansion of the middle
class segment, economic
openness and better
living standards have
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improved health
consciousness across
growing
segments of the Egyptian
population. Industry
statistics point to strong
growth for years to
come, supported by
favorable demographic
and economic profile.
Socio Cultural:
Egypt is estimated to have population of 101.493 million in the year 2020 and expected
to reach 112.244 million by 2024, growing at a CAGR of 2.48%. Egypt is the largest
market in the Arab world. Population growth at 2.0% is considered high compared to
developed countries. Nearly 45.0% of the population is under the age of 18, which
creates a sizeable consumer base. Income per capita is enjoying higher than average
growth because of ongoing economic reforms.

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Poverty rate has declined to be 29% in 2019/2020 instead of 32.5% in 2017/2018.

Egypt has a unique culture that existed since thousands of years; the ancient Egyptian
civilization is one of the oldest in the world. In 2019, 24.6% of population that are 10
years old or more; were considered illiterates. That means around 16.5 million people.
Illiteracy among youth that are between 15-24 years is lower than it is between people
older than 60, it is estimated to be 6.9% for youth and 63.4% for old people.

The expansion of the middle-class segment, economic openness & better living
standards have improved health consciousness across growing segments of the
Egyptian population.

Technological:
Egypt's information technology and communications sector is improving; its
contribution to GDP in 2019 was 4% instead of 3.5% in 2018.

Egypt's vision for 2030 includes a roadmap for digital transformation of a wide range of
education, health, and government services. In connection with the Covid-19 pandemic
in Egypt, a digital transformation plan has emerged.

The peak time of Internet usage has increased from 7 hours a day to 15 hours a day, and
the utilization rate has increased by 99%.

Mobile data usage has increased by 35%, and the number of international calls has
increased by19%.

Due to the pandemic and blockade, the usage of certain applications (such as Zoom
3465%,Telegram 1100% and YouTube 115%) has increased significantly.

The use of automated systems is taking over; it helps so much in reducing the time of
production while increasing the capacity and production. Example: the microchip
injected in cattle to monitor and make sure that all the herd has been milked.

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Also, there is the infrastructure of communication and connectivity that made it easier
to communicate and so manage the supply chain.

The high-tech laboratories that enable fast and accurate examination of the products
for healthy concerns and for the R&D.

Juhayna is using the social media channels intensively such as an informative

web & other social media platforms.

Ecological:
Egypt has many environmental problems that are related to different reasons as aridity,
concentration of population in a very limited area, shortage of arable land and pollution.

Soil fertility has declined due to over cultivation and agricultural land is decreased
because of urbanization.

Over usage of pesticides and inappropriate sewage systems as well as waste coming
from factories have caused severe water pollution issues.

Expanding irrigation of desert after building the high dam in Aswan in 1970 has
increased the salinity of soil. As of 1994, 28% of the soil in Egypt was damaged because
of salinity.

There are 26,000 factories with outdated facilities in Egypt that cause air pollution. And
since1999, the black cloud/black smoke was observed in Cairo as a major cause for air
pollution which results from burning farm waste and garbage in open air.

Legal:
The Egyptian legal system is a civil law system and is based on the established legal code
system. Regarding transactions between individuals or legal persons, the Egyptian Civil
Code (ECC) of1948 is the main law and is still the main source of laws and regulations
governing contracts. ECC is based on the French civil code and various other European
laws, as well as Sharia (Islamic law), especially laws related to personal identity.

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o Agriculture, Irrigation & Fishing Crude Oil, Mining & Natural Gas Manufacturing
Industries & Petroleum Products Electricity & Water Construction & Building
Transportation & Communication Wholesale & Retail Trade Financial Services, Insurance
and Social solidarity

o Although there is a law prohibiting Urban construction taking over on the already
limited land suitable for agricultural production, however there is not much
enforcement - Some lack of awareness that leads to poor irrigation and diminishing
water supply.

o Regulations on labeling for food have increased in many developed countries

o Increased regulation of advertising – especially when aimed at children – in developed

countries.

2.2 Porter’s five forces

Porter's Five Forces is a model that identifies and analyzes five competitive forces that
shape every industry and helps determine an industry's weaknesses and strengths. Five
Forces analysis is frequently used to identify an industry's structure to determine
corporate strategy.

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Porter's model focuses on how Juhayna may create a long-term competitive edge in the
retail market. Managers at Juhayna may use this model to not only create a strategic
position in the Retail business, but also to investigate profitable prospects.

1-Threat of new entrants:

New retail entrants provide innovation and put pressure on Juhayna by lowering prices,
cutting expenses, and delivering new products to customers.
Juhayna is defending its position in the Egyptian market by:

 large distribution channels, by developing new products and services.

 by building Production facilities (capacity 2900 ton / day) and investing in
research and development.
 Governmental policies which are supporting national companies.

2- Rivalry among competitors:

a- Intensity
 Number of competitors
 High rate of population increases as well as the average income of customers
 High exit barriers of dairy milk and juice industry which requires expensive
facilities.
b- Basis of competition
 Price sensitivity of the Egyptian consumers specially in the dairy milk products as
its consumed on daily basis

3.Threat of substitutes:
 Very high into the Egyptian market but juhayna managed to introduce new
innovative products to create new customer habits which enables the company
to break into new markets and consumer segments leading to strong sales
growth.

4. Bargaining power of buyers:

Buyers can be demanding. They want to get the greatest products offered at the lowest
possible price.
•Juhayna is dominating the Egyptian market, its products are available everywhere with
the largest shelf space area into the dairy milk and juice industry.

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 •Customers trust the name of Juhayna, which they have been dealing with over 3
decades.

5. Bargaining power of Suppliers:

Almost all companies in the retail industry get their raw materials from a variety of
vendors.
Suppliers with strong positions can reduce the market margins that Juhayna can obtain.
They have a negative influence on retail’s total profitability.
Juhayna can manage this force by establishing an effective supply chain with various
vendors and by creating devoted suppliers whose existence is dependent on the firm.
•Backward integration (el Namaa Agriculture Development, Egy food, El Dawleya, Al
Marwa Food Industries)
•Joint venture ARJA (the modern concentrate company)

New entrants
(medium)

Bargaining Bargaining
power of Rivalry among power of buyers
suppliers (high) competitors (high)
(high)

Threat of
substitutes (high)

2.3 The External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted score
Opportunities:
1- Egypt benefits from a large pool of cheap labor, 0.05 3 0.15
particularly useful for labor-intensive commodities.

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2- The government will continue to invest in land 0.08 3 0.24
reclamation projects, increasing area available for
agricultural output and so cattle breeding.
3- Efforts towards banking-sector consolidation 0.05 2 0.1
should bring down the cost of private sector credit
and fuel small business growth over the long term.
4- Both global milk consumption and international 0.1 4 0.4
dairy trade to continue to grow over the next
decade.
5- There is a phenomenal scope for value addition 0.05 4 0.2
with innovation in product development,
packaging and preservation such as butter, yoghurt
and cheese.
6- Introduction of value-added products with 0.15 4 0.6
different flavors, Ice creams, flavored milk, Dairy
sweets, etc. are to be undertaken.
7- High birth rates which opens an opportunity for 0.15 2 0.3
Infant foods as milk is a basic for nutrition.
Threats:
1-Urban construction is taking over on the already 0.12 2 0.24
limited land suitable for agricultural production.
2- With the prices of many agricultural 0.06 2 0.12
commodities increasingly volatile, Egypt will face
increasing competition for many key imports.
3- the unstable economic situation that may causes 0.03 2 0.06
increasing in raw materials.
4- Global competition will be tougher. 0.05 3 0.15
5- Poor irrigation and diminishing water supply. 0.08 1 0.08
6- Most countries in the world have huge long- 0.03 3 0.09
term potential to increase milk supply.
1 2.73

Interpretation: Juhayna’s score is 2.73, which is slightly above the borderline (2.5),
which means that Juhayna needs to be stronger against the global external factors.
Nevertheless, Juhayna has better response to exploit the Opportunities with 1.99
weighted score rather than avoiding the Threats with 0.74 weighted score

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 3. Competitive Profile Matrix (CPM)
Enjoy Juhayna Almaraai
Critical Success Factors Weight Rate We. Score Rate We. Score Rate We. Score
Market Share 0.18 3 0.54 4 0.72 4 0.72

Product Quality 0.12 3 0.36 4 0.48 4 0.48

Consumer Loyalty 0.15 3 0.45 4 0.6 4 0.6

Global Expansion 0.1 2 0.2 4 0.4 4 0.4

Organization Structure 0.04 2 0.08 3 0.12 2 0.08

Production Capacity 0.12 3 0.36 3 0.36 3 0.36

Price Competitive 0.04 4 0.16 2 0.08 2 0.08

Management 0.08 2 0.16 4 0.32 3 0.24

Experience
Advertising 0.1 2 0.2 4 0.4 3 0.3

Financial Position 0.07 2 0.14 4 0.28 3 0.21

Total 1 2.65 3.76 3.47

Comments: CPM shows that Juhayna weighted score is 3.76 which is the highest score
which reflect that its performance is better than the two main competitors (Enjoy &
Almaraai).

This shows that Juhayna is the leading company in the market as it has the most
competitive profile out of the 3 companies.

4. Internal Assessment
4.2 VRIO Analysis
VRIO stands for Value, Rarity, Imitability, and Organization. This analysis helps to
evaluate all company’s resources and capabilities. The VRIO Analysis of JUHAYNA
Company will look at each of its internal resources one by one to assess whether these

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provide sustained competitive advantage. The JUHAYNA Company VRIO Analysis also
mentions at each stage whether these resources could be improved to provide a greater
competitive advantage.

Valuable:
● According to the VRIO Analysis of JUHAYNA Company, its local food products are a
valuable resource as these are highly differentiated. This makes the perceived value for
these by customers high. These are also valued more than the competition by
customers due to the differentiation in these products.

● The JUHAYNA Company VRIO Analysis shows that JUHAYNA Company's employees are
a valuable resource to the firm. A significant portion of the workforce is highly trained,
and this leads to more productive output for the organization. The employees are also
loyal, and retention levels for the organization are high. All of this translates into greater
value for the end consumers of JUHAYNA Company's products.

● According to the VRIO Analysis of JUHAYNA Company, its patents are a valuable
resource as these allow the firm to sell its products without competitive interference.
This results in greater revenue for JUHAYNA Company. These patents also provide
JUHAYNA Company with licensing revenue when it licenses these patents out to other
manufacturers.

● The JUHAYNA Company VRIO Analysis shows that JUHAYNA Company's distribution
network is a valuable resource. This helps it in reaching out to more and more
customers. This ensures greater revenues for JUHAYNA Company. It also ensures that
promotion activities translate into sales, as the products are easily available.

● According to the VRIO Analysis of JUHAYNA Company, its cost structure is not a
valuable resource. This is because the methods of production lead to greater costs than
that of competition, which affects the overall profits of the firm. Therefore, its cost
structure is a competitive disadvantage that needs to be worked on.

● The JUHAYNA Company VRIO Analysis shows that the research and development at
JUHAYNA Company is not a valuable resource. This is because research and
development are costing more than the benefits it provides in the form of innovation.
There have been very few innovative features and breakthrough products in the past
few years. Therefore, research and development are a competitive disadvantage for
JUHAYNA Company. It is recommended that the research and development teams are
improved, and costs are cut for these.

Rare:

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● The financial resources of JUHAYNA Company are found to be rare according to the
VRIO Analysis of JUHAYNA Company. A few companies in the industry only possess
strong financial resources.

● The local food products are found to be not rare as identified by JUHAYNA Company
VRIO Analysis. Other competitors easily provide these in the market. This means that
competitors can use these resources in the same way as JUHAYNA Company and inhibit
competitive advantage. This means that the local food products result in competitive
parity for JUHAYNA Company. As this resource is valuable, JUHAYNA Company can still
make use of this resource.

● The employees of JUHAYNA Company are a rare resource as identified by the VRIO
Analysis of JUHAYNA Company. These employees are highly trained and skilled, which is
not the case with employees in other firms. The better compensation and work
environment ensure that these employees do not leave for other firms.

● The patents of JUHAYNA Company are a rare resource as identified by the JUHAYNA
Company VRIO Analysis. These patents are not easily available and are not possessed by
competitors. This allows JUHAYNA Company to use them without interference from the
competition.

Imitable:
● The financial resources of JUHAYNA Company are costly to imitate as identified by the
JUHAYNA Company VRIO Analysis. These resources have been acquired by the company
through prolonged profits over the years. New entrants and competitors would require
similar profits for a long period of time to accumulate these amounts of financial
resources.

● The local food products are not that costly to imitate as identified by the VRIO
Analysis of JUHAYNA Company. These can be acquired by competitors as well if they
invest a significant amount in research and development. These also do not require
years long experience. Therefore, the local food products by JUHAYNA Company provide
it with a temporary competitive advantage that competitors can too acquire in the long
run.

● The employees of JUHAYNA Company are also not costly to imitate as identified by
the JUHAYNA Company VRIO Analysis. This is because other firms can also train their
employees to improve their skills. These companies can also hire employees from
JUHAYNA Company by offering better compensation packages, work environment,
benefits, growth opportunities etc. This makes the employees of JUHAYNA Company a

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 resource that provides a temporary competitive advantage. Competition can acquire
these in the future.

● The patents of JUHAYNA Company are very difficult to imitate as identified by the
VRIO Analysis of JUHAYNA Company. This is because it is not legally allowed to imitate a
patented product. Similar resources to be developed and getting a patent for them is
also a costly process.

Organization:
● The financial resources of JUHAYNA Company are organized to capture value as
identified by the VRIO Analysis of JUHAYNA Company. These resources are used
strategically to invest in the right places; making use of opportunities and combatting
threats. Therefore, these resources prove to be a source of sustained competitive
advantage for JUHAYNA Company.

● The Patents of JUHAYNA Company are not well organized as identified by the
JUHAYNA Company VRIO Analysis. This means that the organization is not using these
patents to their full potential. An unused competitive advantage exists that can be
changed into a sustainable competitive advantage if JUHAYNA Company starts selling
patented products before the patents expire. The distribution network of JUHAYNA
Company is organized as identified by the VRIO Analysis of JUHAYNA Company.
JUHAYNA Company uses this network to reach out to its customers by ensuring that
products are available on all of its outlets. Therefore, these resources prove to be a
source of sustained competitive advantage for JUHAYNA Company.

From the VRIO Analysis of JUHAYNA Company, it was identified that the financial
resources and distribution network provide a sustained competitive advantage. The
patents are a source of unused competitive advantage. There exists a temporary
competitive advantage for employees.

There exists a competitive parity for local food products. Lastly, the cost structure of
JUHAYNA Company is a competitive disadvantage. Research and Development is also a
competitive disadvantage.

Activity Description Differentiation

Value Rareness Imitable Organized
Logistics Inventory Size √ √ √ √
Economic Scale √ √ √ √

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Operations Machines √ - - √
Maintenance √ √ √ √
Quality Assurance √ √ √ √
Quality Control √ - - √
Outbound Distribution to Markets √ √ √ √
Logistics Outsourcing √ √ - √
Marketing & Targeting & Positioning √ - - √
Sales Strategies - - - -
Brand Loyalty √ √ √ √
Human Customer Support Services √ - - √
Resources Equal Opportunity √ - √ √
Health, Safety & √ - - √
Environment
Career Path √ - - √
Technology Research & Development √ √ √ √
Process & Product √ √ - √
Procurement Development - - - -
Reliability √ √ √ √
Network of Services √ - - -

4.3 Value chain analysis

Value chain analysis is a means of evaluating each of the activities in a company’s value
chain to understand where opportunities for improvement lie.

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Conducting a value chain analysis prompts you to consider how each step adds or
subtracts value from your final product or service. This, in turn, can help you realize
some form of competitive advantage, such as:

 Cost reduction, by making each activity in the value chain more efficient and,
therefore, less expensive

 Product differentiation, by investing more time and resources into activities like
research and development, design, or marketing that can help your product
stand out.

Juhayna operates an extensive direct distribution and sales network in Egypt which
would be costly and difficult to replicate. In general, the steps of activities from input by
suppliers to the final consumed products is called the value chain. This model above is
the value chain for Juhayna company. It is composed of 2 stages: primary activities
(Marketing, Manufacturing, Sales & Distribution, Customer Relationship Management)
and support activities (Management & administration, Projects, Supply chain, Research
& Development and Quality management).

 Support activities:
Management and administration:
While Juhayna is a family-owned business, we adhere to international best practices in
corporate governance. Everyone from the Chairman to lines of business managers to
factory employees are required to operate in a transparent, impartial and accountable
24
manner. We believe that this rigorous, clearly defined approach to management,
structures and policies is the foundation of any successful business. It not only provides
channels for appropriate decision making and accountability, but reassures shareholders
that their investments are in safe hands and customers that the products that they have
come to trust from Juhayna are manufactured in a world class operation that is
committed to providing the market with safe and healthy products.

Projects:
A project management office (PMO) is a group, department that defines and maintains
the standards of project management for a company. The PMO retains the
documentation and metrics for executing projects and is tasked with ensuring projects
are delivered on time and within budget.

The primary goal of a PMO is to achieve benefits from standardizing and

following project management processes, policies and methods. PMOs are sometimes
external to a company. Whether internal or outsourced, PMOs should embody the
organization's culture and strategy to be most effective.

Supply chain:
The decision to transition to vertical integration across Juhayna's value chain continues
to prove effective as their operations expand and as their suppliers and traders continue
to growing number.

Their supply chain functions are heavily inspected by internal and independent auditing
bodies to ensure that they are aligned with regulatory standards, as well as continuously
upgraded when needed.

Juhayna's future lies in a willingness to constantly grow, experiment, and innovate. As

they began to vertically integrate their supply chain, they began to identify more
opportunities for integration that can transform the concept of supply chain
management. As such, they began to implement some crucial upgrades throughout this
reporting cycle, which resulted in operational and cost efficiencies, as well as stronger
digital integration across their facilities

 Procurement:
‒ Use of management system standards over the past 5 years has enabled a reduction in
the time and manpower required for processing orders by 50 %.
 Inbound logistics:

25
‒ The use of management system standards over the past 5 years has enabled
reductions in
‒ Downtime by 2%.
‒ Manpower for testing incoming raw materials by 50%.
‒ The risk of using defective materials by 25%.
 Total savings as the contribution from the use of standards: 5,08% of sales revenue for
the period 2008-2012 (0.08% for procurement and 5% for inbound logistics).

Research & development and Quality Management:

Juhayna’s Research & Development department is one of the company’s major assets
and one of the most significant differentiating factors between us and our competitors.
From cost saving production measures to quality control and development of human
capital, utilizing this asset to its full potential is a major part of our strategy going
forward as we continue to innovate and uphold quality standards as well as become
more efficient by maximizing cost-saving measures.

Nutritional Standards:
All of Juhayna's products are tailored to meet the nutritional requirements of their
target markets. Such customization is achieved through their joint efforts with
healthcare practitioners and nutritional experts who provide them with the insight that
they need to create the healthiest and freshest products in the market. They take their
commitment to improve the lives of their consumers by creating healthy foods and
beverages very seriously. Accordingly, the nutritional value for all of their products is
one of the key aspects that they consider, alongside taste and quality, when developing
a new product or line. To this effect, they have a highly skilled R&D team that is
constantly working to find new ways in which they can fully deliver on their goal of
raising the quality of life for their consumers by maximizing the nutritional efficiency of
their products

Taste:
All of Juhayna's products are made from the highest of quality ingredients that undergo
thorough sanitation process in order to ensure the delivery of safe and tasty products.
One of the factors that has enabled them to see continued growth and success over the
years is their commitment to innovation and their unceasing desire to continuously
enhance the quality and flavor of their products. This has also been achieved through
their dedicated research and development team.

Regulatory Affairs:

26
The scale and scope of their operations have given them a wealth of knowledge that is
well respected across the industry. Accordingly, their R&D department functions as a
key lobbyist and policy influence for the industry. They are firmly committed to
remaining informed and updated on local and international industry standards and
regulations so that they are able to establish a trusted foundation upon which to base
their strategic decisions as a company.

Innovation Center:
At the heart of their R&D initiatives is the establishment of their excellent innovation
center; a two-story, state-of-the-art facility that is the first and largest of its kind in the
MENA region. The innovation center has enabled them to localize their research
methods by conducting in-house industrial and lab trials, and focus groups that can be
corroborated with research they collect from abroad. The innovation center serves as a
secure data storage warehouse equipped with a consumer insight room, and a "Juhayna
Technical Academy" training school. Its creation is a major milestone in their strategic
vision to establish a trusted R&D facility that helps them formulate, improve, and refine
their manufacturing processes. Their innovation center has undoubtedly raised industry
standards and ushered in a new era of R&D activities that will raise the benchmark and
have a positive impact on food manufacturing in the region.

Information Systems:
A partnership with the digital payment platform Fawry was struck in line with their
digitization strategy, and EGP 15 million were invested in developing the Juhayna
Customer E-Payment model—the first of its kind in the industry. In 2019, they
introduced E-Finance's services to their digital payment solutions to facilitate payment
of all governmental fees such as taxes and insurance

 Primary activities:
Marketing:
Juhayna invests greater in advanced quality products and a high degree of customer
service than in competitive advertising and marketing. However, need-primarily based
totally advertising and marketing activities are accomplished through the organization
throughout new product launches with inside the form of sampling in regions across the
stores.

As such, they have introduced a number of new products across several of their core
categories in 2019 and 2020, and they will continue to advocate for developments that

27
penetrate more consumer segments and support their leading position in a continuously
shifting F&B market.

As consumers stopped visiting hypermarkets regularly during the height of COVID-19

due to fears of infection and social distancing rules and consumer buying behaviors
shifted and out-of-home, small SKUs suffered decreases in sales, Juhayna solved these
issues through heavy promotions and offers on the smaller SKUs were applied across all
hypermarkets.

And since consumers began shifting to online shopping and delivery services which
started to grow further during the pandemic, Juhayna had to maintain active presence
on e-commerce platforms that include Souq, Gourmet, and more. And they worked on
finding new selling channels, which led to the launch of our home delivery service.

Manufacturing:
-The use of management system standards, good practice standards and a conformity
standard has:
‒ increased efficiency by 70%
‒ Significantly decreased the energy used in the units,
‒ reduced waste by 2%
‒ reduced non-conforming products in the market by 5%
 Total savings as the contribution from the use of standards: amount to 10% of sales
revenue for the period 2008-2012

Sales & Distribution (Outbound logistics):

TIBA represents Juhayna’s commercial arm and main distribution network and is a
crucial component of our vertical integration strategy. The network possesses one of the
largest distribution fleets in the Egyptian food and beverage industry, boasting 1,000
vehicles capable of transporting both refrigerated and non-refrigerated products
nationwide and reaching 50,000 retail outlets. 2016 will see an addition of 200 vans and
trucks and 15,000 retail outlets – a 20% and 30% increase, respectively – bringing the
totals to 1,200 vehicles and 65,000 outlets. After adding 3 new distribution centers in
2015, we reached a total of 30 centers, projected to increase to 33 by the end of 2016.

Through TIBA, we are able to access information about the habits and needs of
consumers – demographics that allow Juhayna to remain at the summit of the industries
in which it operates. Our core objectives are to continuously maximize the storage
capacity of our trucks and the bounds of our network; the more customers within our
grasp and the more efficiently and inexpensively we can reach them, the better

28
positioned we are to capitalize on market opportunities. Additionally, the company is
placing a renewed emphasis on exports as a source of foreign currency – in the short-
term through concentrates, juice, and milk products and in the medium-term through
exportation of locally produced ArJu products.

 The use of management system standards, Good Manufacturing Practices (GMP) and
Certified Reference Materials standards (CRM) has decreased the number of non-
conforming products in the market by 5%
Total savings as the contribution from the use of standards:
amount to 1.5% of sales revenue for the period 2008-2012.

Customer Relationship Management (CRM):

Juhayna's Customer service is the support that organization offer to customers before
and after. The customer service team is the face of the organization and the frontline
when customers require assistance. Customer service agents help customers pay bills,
review or make changes to accounts, handle returns and answer frequently asked
questions.
Juhayna possessed a wide range of channels to stay connected with customers before
and after: hotline, multiple of branches, social Media's websites, etc.

4.4 The Internal Factor Evaluation (IFE) Matrix

29
 Key Internal Factors Weight Rating Weighted score
Strengths:
1- Biggest Market share. 0.14 4 0.56
2- Strong brand name. 0.08 4 0.32
3- Strong & high experienced management team 0.04 4 0.16
4- Wide variety of business portfolio & products. 0.07 3 0.21
5- Well established distribution matrix. 0.05 3 0.15
6- Well established and financed R&D division. 0.08 4 0.32
7- Reasonable product price, which enables strong 0.06 4 0.24
competition in the market.
8- Concentration on healthy products. 0.04 3 0.12
9- Spread in a large number of countries all over 0.05 3 0.13
the world.
10- Availability of capital for expansion or expenses. 0.09 4 0.36
Weaknesses:
1- Lack of resources for packaging. 0.03 2 0.06
2- Lack of skilled functional & technical workers. 0.04 2 0.08
3- Seasonality of production reduces plant capacity 0.05 1 0.05
utilization increasing capital requirements.
4- Instable prices of fruits which affects the profit margin. 0.03 1 0.03
TOTAL 1 3.01

CONCLUSION of the IFE

Juhayna has a strong position with a score of 3.01, which is meaning that Juhayna is
internally strong and fit. Nevertheless, Juhayna has better response to exploit its
Strengths with 2.57 weighted score while the Weaknesses have a lower effect with 0.22
weighted score.

30
 Match
ing
Stage

5. SWOT analysis

31
 SWOT analysis is a technique for assessing four aspects of your business: Strengths,
Weaknesses, Opportunities and Threats. SWOT Analysis is a tool that can help you to
analyze what your company does best now, and to devise a successful strategy for the
future. A SWOT analysis examines both internal and external factors.

Strengths
1- Juhayna has a market-based team of 2012
employees.
2- The Technical Academy of Juhayna conducted
10529 hours of training in2020.
3- Juhayna's milk producing plant '' Al Masriya''
shifted from manual to automated packaging.
4- Juhayna increased pasteurization capacity
from 60 to 83 tons\hour.
5- Juhayna replaced the 5000 pack\hour capacity
1.5-liter line with an 8000 pack\hour line.
6- Juhayna increased processing capacity from 68
tons\hour to 99 tons\hour.
7- They raised the capacity of the two existing
200 ml filters- now up to 48k packs\hour from
40k\hour.
8- They launched an uninterruptable power
supply (UPS) project to protect production
from electricity cuts.
9- They upgraded the water treatment station to
enhance performance.
10- Juhayna's plant of juices ''Al Dawleya'' is now
one of the largest industrial complexes in
Egypt and the MENA region.
11- 8000 tests are conducted daily across
Juhayna's sites, which include inspections on
incoming raw materials.
12- Juhayna's distribution arm ''TIBA'' holds one of
the largest fleets in Egypt, at 914 vehicles.
13- Internal and independent auditing bodies to
ensure that they are aligned with regulatory
standards heavily inspect their supply chain
functions.
14- Juhayna maintains active presence on e-
commerce platforms (Souq, Gourmet…..)
15- All of juhayna's products are made from the
highest of quality ingredients.
Weaknesses
1- Small SKUs suffered decreases in sales
because of Covid-19.
2- Net profit was negatively affected due to
a number of changes that included the
end of tax exemption periods for some
of their subsidiaries.
3- They had a 1% y-o-y decline in revenues
in 2020 because of Covid-19.
4- Juhayna's stock prices decreased by 31%
due to the onset of Covid-19 and the
resulting equity sell-off for global and
emerging markets.
5- Lack of resources for packaging.
6- Lack of skilled functional & technical
workers.
7- Seasonality of production reduces plant
capacity utilization increasing capital
requirements.
8- Instable prices of fruits, which affects
the profit margin.
9- Dependability on imports in areas of
shortages, such as milk powders.

32
 Opportunities
1- A positive GDP growth rate of 3.6% in 2020.
2- Inflation rate declined by 7% from 2019.
3- Budget deficit declined by 1.6% from 2018.
4- Savings rate increased by 3.3% of GDP in 2019.
5- Poverty rate declined by 3.5% in 2020.
6- Stable security and political situation.
7- Effective and strong government.
8- Digital transformation plan of Egypt vision
2030 for different sectors.
9- Egypt benefits from a large pool of cheap
labor, particularly useful for labor intensive
commodities.
10- The government will continue to invest in land
reclamation projects, increasing area available
for agricultural output and so cattle breeding.
11- Efforts towards banking-sector consolidation
should bring down the cost of private sector
credit and fuel small business growth over the
long term.
12- Both global milk consumption and
international dairy trade to continue to grow
over the next decade.
13- There is a phenomenal scope for value
addition with innovations in product
development, packaging and presentation
such as Butter, Yoghurt and Cheese.
14- Introduction of value-added products with
different flavors, Ice creams, flavored milk,
Dairy sweets, etc. are to be undertaken.
15- High birth rates which opens an opportunity
for Infant foods as milk is a basic for nutrition.
16- Egyptians are now more inclined towards
healthier lifestyle.
5.1 TOWS Analysis
33
Threats
1- Unstable economic situation due to
covid-19 that may causes increasing in
raw materials.
2- Unemployment increased by 0.5% in
2020 due to covid-19 pandemic.
3- High illiteracy around 25% of population.
4- Decreased agricultural land because of
urbanization.
5- The Ethiopian dam on the Nile
represents a huge threat to Egypt's main
source of water.
6- Urban construction is taking over on the
already limited land suitable for
agricultural production.
7- With the prices of many agricultural
commodities increasingly volatile, Egypt
will face increasing competition for many
key imports.
8- Poor irrigation and diminishing water
supply.
9- Most countries in the world have huge
long-term potential to increase milk
supply.
10- Global competition will be tougher
“USA, New Zealand, Brazil, Pakistan,
China and Saudi Arabia”.
11- Cost of production on-farm increases to
an uncompetitive level driven by
production (not profit) focus and/or
compliance costs.
 STRENGTHS WEAKNESSES
1- Juhayna has a market- 1- Small SKUs suffered decreases
based team of 2012 employees. in sales because of Covid-19.
Internal Factors 2- The Technical Academy of 2- Net profit was negatively
(IFAS) Juhayna conducted 10529 hours of affected due to a number of
training in2020. changes that included the end
3- Juhayna's milk producing of tax exemption periods for
plant '' Al Masriya'' shifted from
some of their subsidiaries.
manual to automated packaging.
3- They had a 1% y-o-y decline in
4- Juhayna increased
pasteurization capacity from 60 to revenues in 2020 because of
External Factors
(EFAS) 83 tons\hour. Covid-19.
5- Juhayna replaced the 5000 4- Juhayna's stock prices
pack\hour capacity 1.5-liter line decreased by 31% due to the
with an 8000 pack\hour line. onset of Covid-19 and the
6- Juhayna increased resulting equity sell-off for
processing capacity from 68 tons\ global and emerging markets.
hour to 99 tons\hour. 5- Lack of resources for
7- They raised the capacity of packaging.
the two existing 200 ml filters- now 6- Lack of skilled functional &
up to 48k packs\hour from 40k\ technical workers.
hour.
7- Seasonality of production
8- They launched an
reduces plant capacity
uninterruptable power supply
(UPS) project to protect production utilization increasing capital
from electricity cuts. requirements.
9- They upgraded the water 8- Instable prices of fruits, which
treatment station to enhance affects the profit margin.
performance. 9- Dependability on imports in
10- Juhayna's plant of juices ''Al areas of shortages, such as
Dawleya'' is now one of the largest milk powders.
industrial complexes in Egypt and
the MENA region.
11- 8000 tests are conducted
daily across Juhayna's sites, which
include inspections on incoming
raw materials.
12- Juhayna's distribution arm
''TIBA'' holds one of the largest
fleets in Egypt, at 914 vehicles.
13- Internal and independent
auditing bodies to ensure that they
are aligned with regulatory
standards heavily inspect their

34
 supply chain functions.
14- Juhayna maintains active
presence on e-commerce
platforms (Souq, Gourmet…..)
15- All of juhayna's products
are made from the highest of
quality ingredients.
16-Well established and
product mix financed R&D division
17- Reasonable product price
which affects the profit margin
in the market.

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

1- A positive GDP Horizontal integration Strategy Product Development Strategy
growth rate of 3.6% in (S12 O1) (W1-O2)
2020. Juhayna can make use of their huge Since inflation rate is decreasing, Juhayna
2- Inflation rate fleet of distribution in current can take advantage of that and boost
economic growth to obtain ownership their sales through marketing promotions
declined by 7% from 2019.
of competitors that may increase their and offers.
3- Budget deficit
diversity of products and increase
declined by 1.6% from their market share accordingly. (W6O7)
2018. Filtering and seeking of good skilled
4- Savings rate (S16O15) workers Going global makes Juhayna
increased by 3.3% of GDP in Using the Strength of Juhayna R&D to cooperate and integrate the processes to
2019. introduce Value Added Products achieve the economies of scale.
5- Poverty rate Taking advantage of their Market The government aid will support in
declined by 3.5% in 2020. Share and brand name to hunt the stabilizing the prices of supplies and raw
6- Stable security and opportunity of the high birth rate and materials.
political situation. the shortage in the market.
7- Effective and strong
government.
8- Digital
transformation plan of
Egypt vision 2030 for
different sectors.
9- Egypt benefits from
a large pool of cheap labor,
particularly useful for labor
intensive commodities.
10- The government
will continue to invest in
land reclamation projects,

35
increasing area available for
agricultural output and so
cattle breeding.
11- Efforts towards
banking-sector
consolidation should bring
down the cost of private
sector credit and fuel small
business growth over the
long term.
12- Both global milk
consumption and
international dairy trade to
continue to grow over the
next decade.
13- There is a
phenomenal scope for
value addition with
innovations in product
development, packaging
and presentation such as
Butter, Yoghurt and Cheese.
14- Introduction of
value-added products with
different flavors, Ice
creams, flavored milk, Dairy
sweets, etc. are to be
undertaken.
15- High birth rates
which opens an opportunity
for Infant foods as milk is a
basic for nutrition.
16- Egyptians are now
more inclined towards
healthier lifestyle.
THREATS ST STRATEGIES WT STRATEGIES
1- Unstable economic Hold and Sustain Strategy Retrenchment Strategy
situation due to covid-19 (S10 T1) (W3 T1)
that may causes increasing During current times of certainty Juhayna should pursue a cost reduction
in raw materials. because of the international strategy to overcome the negative results
consequences resulted from the of corona pandemic.
2- Unemployment
global pandemic; Juhayna should (W4T4)
increased by 0.5% in 2020
make use of its strength as one of the To secure resources of supplies and raw
due to covid-19 pandemic. biggest companies of F&B in MEA to materials.
3- High illiteracy

36
around 25% of population. sustain its current strategy till the It is so important; the research and
4- Decreased crisis is over. development functions are of very high
agricultural land because of importance.
urbanization. (S17T10) Cooperation and integration of processes
Exporting will be done carefully with suppliers of packages and know-how
5- The Ethiopian dam
choosing the target markets to access transfer for future further expansion.
on the Nile represents a
easily and smoothly.
huge threat to Egypt's main The availability of capital will
source of water. facilitate the access to any market and
6- Urban construction operations will function successfully in
is taking over on the already all alike markets.
limited land suitable for
agricultural production.
7- With the prices of
many agricultural
commodities increasingly
volatile, Egypt will face
increasing competition for
many key imports.
8- Poor irrigation and
diminishing water supply.
9- Most countries in
the world have huge long-
term potential to increase
milk supply.
10- Global competition
will be tougher “USA, New
Zealand, Brazil, Pakistan,
China and Saudi Arabia”.
11- Cost of production
on-farm increases to an
uncompetitive level driven
by production (not profit)
focus and/or compliance
costs.

5.2 SPACE Matrix

Internal Strategic Position External Strategic Position
Financial Strength(FS) Environmental Stability (ES)

37
 Leverage = 0.66 Technological changes = -0.5
Liquidity Quick Ratio = 1.05 Rate on inflation = -1
Liquidity Current Ratio = 1.54 Demand variability = -2
Leverage (debt\Total Assets) = 0.38 Price range of competing products = -3
Barriers to entry = -2
Total Axis Y score = -1.0925
Competitive Advantage (CA) Industry Strength (IS)
Market share = -2 Growth potential = 3
Product quality = -2 Profit potential = 4
Product life cycle = -3 Financial stability = 3
Customer loyalty = -1 Technological know-how = 3
Competition's capacity utilization = -1 Resource utilization = 2
Technological know-how = -3 Ease of entry into market = 2
Control over suppliers & distributors = -2 Productivity, capacity utilization = 1
Total Axis X score = 1
Y= -2+ 0.9075 = -1.0925 X= -2+3 = 1

CA = -2 IS = 3 ES = -2 FS = 0.9075

From above results, we can see that the company lies within the 4 th quadrant with a
good financial strength that achieved major competitive advantages in a growing and
stable industry which means that competitive strategies are the most appropriate for
Juhayna. They have to do backward, forward and horizontal integration and accordingly

38
a product development, market development and market penetration strategies will
perfectly match the company in order to take advantages of available opportunities in
the market.

5.3 BCG MATRIX

(Boston Consulting Group)

39
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses
graphical representations of a company’s products and services to help the company
decide what it should keep, sell, or invest more in.

Cooking Cream
Whipping cream
Sour cream
Pure juices Foam milk
MIX Milk Greek Yogurt
Bekhero Milk Alternatives

Plain milk
Classic Juice
Plain Yoghurt
Rayeb
Cheese
Zabado
Bekhero Juice
Mix Yogurt

 Strategic business units with high market growth rate and high relative market
share are called stars. Businesses should invest in their stars and can implement
vertical integration, market penetration, product development, market
development, and horizontal integration strategies.
 Strategic business units with high market growth rate and low relative market
share are called question marks. These strategic business units require close
considerations whether the business should continue with them or divest.

40
  Strategic business units with low market growth rate but with high relative
market share are called cash cows. The business should invest in these to
maintain their relative market share.
 Lastly, the strategic business units with low market growth rate and low relative
market share are called dogs. The business should divest these strategic business
units.

Stars:

As per the BCG matrix, mentioned products have the highest relative market share and
high market growth, so company should follow product development strategy to keep
its position as a market leader.

Question Marks:

As per the BCG matrix, mentioned products have low relative market share while there
is high market growth, so company should follow market penetration strategy to
increase its share in the market.

Cash Cows:

As per the BCG matrix, mentioned products have high relative market share and low
market growth, so company should follow a diversification strategy to keep its market
share and profits.

Dogs:

As per the BCG matrix, mentioned products have the lowest relative market share and
low market growth, so company should follow retrenchment strategy and focus on
other products.

Decision stage 41
6. Quantitative Strategic planning matrix (QSPM)

42
 Quantitative Strategic planning matrix (QSPM) is a strategic tool to evaluate the
strategic options and determine the relative attractiveness of the available strategies
and to determine the feasibility of the selected strategies and prioritize them according
to the most applicable ones.

Alternative 1: Horizontal integration

Alternative 2: product development
O Weight Horizontal Product Development
Key Factors
Integration
AS TAS AS TAS
Opportunities
1 A positive GDP growth rate of 3.6% in 2020. 0.11 4 0.44 3 0.33
2 Inflation rate declined by 7% from 2019. 0.08 3 0.24 4 0.32
3 Budget deficit declined by 1.6% from 2018. 0.06 4 0.24 3 0.18
4 Savings rate increased by 3.3% of GDP in 2019. 0.08 3 0.24 4 0.32
5 Poverty rate declined by 3.5% in 2020. 0.1 3 0.3 4 0.4
6 Stable security and political situation. 0.04 4 0.16 3 0.12
7 Effective and strong government. 0.07 4 0.28 3 0.21
8 Digital transformation plan of Egypt vision 2030 for 0.1 4 0.4 3 0.3
different sectors.
T Threats
9 Unstable economic situation due to covid-19 that 0.1 1 0.1 2 0.2
may causes increasing in raw materials.
10 Unemployment increased by 0.5% in 2020 due to 0.05 3 0.15 2 0.1
covid-19 pandemic.
11 High illiteracy around 25% of population. 0.05 2 0.1 3 0.15
12 Decreased agricultural land because of 0.09 3 0.27 4 0.36
urbanization.
13 The Ethiopian dam on the Nile represents a huge 0.07 3 0.21 4 0.28
threat to Egypt's main source of water.
Total 1 3.13 3.27
S Strengths
1 Juhayna has a market-based team of 2012 0.03 4 0.12 3 0.09
employees.
2 The Technical Academy of Juhayna conducted 0.03 4 0.12 3 0.09
10529 hours of training in2020.
3 Juhayna's milk producing plant '' Al Masriya'' 0.05 3 0.15 4 0.2
shifted from manual to automated packaging.
4 Juhayna increased pasteurization capacity from 60 0.03 3 0.9 4 0.12
to 83 tons\hour.
5 Juhayna replaced the 5000 pack\hour capacity 1.5- 0.04 3 0.12 4 0.16

43
 liter line with an 8000 pack\hour line
6 Juhayna increased processing capacity from 68 0.04 3 0.12 4 0.16
tons\hour to 99 tons\hour.
7 They raised the capacity of the two existing 200 ml 0.04 3 0.12 4 0.16
filters- now up to 48k packs\hour from 40k\hour.
8 They launched an uninterruptable power supply 0.04 3 0.12 4 0.16
(UPS) project to protect production from electricity
cuts.
9 They upgraded the water treatment station to 0.04 3 0.12 4 0.16
enhance performance.
10 Juhayna's plant of juices ''Al Dawleya'' is now one 0.05 4 0.2 3 0.15
of the largest industrial complexes in Egypt and the
MENA region.
11 8000 tests are conducted daily across Juhayna's 0.05 3 0.15 4 0.2
sites, which include inspections on incoming raw
materials.
12 Juhayna's distribution arm ''TIBA'' holds one of the 0.05 4 0.2 3 0.15
largest fleets in Egypt, at 914 vehicles.
13 Internal and independent auditing bodies to ensure 0.04 4 0.16 3 0.12
that they are aligned with regulatory standards
heavily inspect their supply chain functions.
14 Juhayna maintains active presence on e-commerce 0.05 3 0.15 4 0.2
platforms (Souq, Gourmet…..)
15 All of juhayna's products are made from the 0.05 3 0.15 4 0.4
highest of quality ingredients.
W Weaknesses
16 Small SKUs suffered decreases in sales because of 0.06 1 0.06 3 0.18
Covid-19.
17 Net profit was negatively affected due to a number 0.06 1 0.06 2 0.12
of changes that included the end of tax exemption
periods for some of their subsidiaries.
19 They had a 1% y-o-y decline in revenues in 2020 0.06 1 0.06 2 0.12
because of Covid-19.
20 Juhayna's stock prices decreased by 31% due to the 0.06 1 0.06 2 0.12
onset of Covid-19 and the resulting equity sell-off
for global and emerging markets.
21 Lack of resources for packaging. 0.02 3 0.06 4 0.08
22 Lack of skilled functional & technical workers. 0.02 2 0.04 3 0.06
23 Seasonality of production reduces plant capacity 0.03 4 0.12 3 0.09
utilization increasing capital requirements.
24 Instable prices of fruits, which affects the profit 0.03 3 0.09 4 0.12
margin
25 Dependability on imports in areas of shortages, 0.03 4 0.12 3 0.09

44
such as milk powders.
Total 1 2.76 3.3

Based on the previous analysis supported by the results from QSPM, the Product
Development Strategy is the most suitable strategy for the development and of Juhayna
and that can be achieved through working on the company's weaknesses to take
advantage of available opportunities.

Recommended Strategies:
In light of the above analysis, the strategies that would be most suitable for the
company are:
1-Horizontal Integration Strategy:
Since Juhayna already is a market leader in multiple products and they have

many strengths in the market and also there are many opportunities they could

take advantage of, then they could follow an integration strategy and as they

already applied forward and backward strategies before then they could

consider taking over competitors in order to maximize their profits and reach

new segments so a horizontal strategy would be the best

2-Product Development Strategy:

Since many companies were affected by the recent crisis of covid-19, Juhayna

suffered from low sales in some segments accompanied by losses and decreasing

revenues but since the market offers many opportunities even during these hard

times then Juhayna can follow an intensive strategy to overcome its weaknesses

and take advantage of current opportunities thus, a product development

strategy could be the best option if they can utilize the strengths they have to

turn these weaknesses into strengths

Strategy Implementation

Strategic Objectives:

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1-Increase revenues by 20% within the coming 3 years.

2-Increase marketing budget by 30% within the coming 3 years.

3-Increase sales by 30% within the coming 3 years.

4-Identify the least selling brand or SKUs for the last 5 years and take a decision for

Renovation or stopping its production based on the strategic plan and recommendations

of marketing, sales and finance teams maximum within the coming 3 years.

5-Increase expenditure on R&D activities by 25% within the coming 3 years.

6-Launch the online training academy to be available for all employees within the coming

3 years

References:

Cabinet annual report Egypt, 2020

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Alnashar, Elashmawy, Youssef, Egypt Economic Monitor, World Bank, 2020

Abdelwahab, an overview of the Egyptian legal system and legal research, 2006

https://www.cbe.org.eg/en/Pages/default.aspx

http://www.juhayna.com/en/

Juhayna's sustainability report 2019-2020

 www.techtarget.com

5. Strategic Choices AL 
EXTERNAL ↓
STRENGTHS
WEAKNESSES
OPPORTUNITES
OS STRATEGIES
Using the Strength of Juhayna R&
D to
introduce Value Added Products
Taking
advantage of their Market Share
and brand
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name to hunt the opportunity of the
high
birth rate and the shortage in the
market.
WO STRATEGIES
Filtering and seeking of good
skilled workers Going
global makes Juhayna cooperate
and integrate the
processes to achieve the economies
of scale The
government aid will support in
stabilizing the prices
of supplies and raw materials.
THREATS
TS STRATEGIES
Exporting will be done carefully
choosing the
48
target markets to access e
asily and
smoothly The availability of capital
will
facilitate the access to any market
and
operations will function
successfully in all
alike markets.
WT STRATEGIES
To secure resources of supplies and
raw materials
It is so important, the research and
development
functions are of very high
importance Cooperation
and integration of processes with
suppliers of
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packages and know-how transfer
for future further
expansion.

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