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Strategic Management
Ma’am Anum Shahid
“Diversification in ICI Pakistan”
Presented by:
ZARGHAM MUSTAFA (0107)
Muhammad Ali (0118)
M Usman Umer(0035)Presented to :
Contents
Change Management 2
Strategic Management 4
SWOT Analysis33
About ICI Pakistan31
History of Our Company
ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. ICI Pakistan was acquired by Younas Brother Group in December 2012 after its parent shareholder .
AkzoNobel divested its shares from all other ICI owned businesses in Pakistan, except the Paints. Paints are now listed as a separate entity in the stock exchange with the name of AkzoNobel Pakistan Limited.
Remaining business merged to YBG form ICI Pakistan Limited, which now operates under the flag of Younas Brother Group.
Vision & Mission Statements
Vision Statement: As the partner of choice, we aspire to build our local and
international footprint through sustainable growth and by creating value for all our stakeholders.
Mission Statement:
Our values are what define us. They give us standards to measure ourselves by and in our dealings with customers, suppliers, our own people and the wider world. We have embarked upon a journey of aspiration and now, more than before, it is integral that we retain our DNA through adherence to our value system.
Customer Centricity Integrity and Responsibility Innovation Passion for People Delivering Enduring Value
Businesses in Pakistan
Currently the company is operating four different types of businesses
Businesses
Polyester
Soda Ash
Chemicals
Life Sciences
Diversification
Un Related Diversification
Related Diversification
Diversification
Diversification is a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets. This means that a company is developing new markets and new products.
Related & Un-Related Diversification
Related Diversification occurs when the company adds to or expands its existing line of production or markets. In these cases, the company starts manufacturing a new product or penetrates a new market related to its business activity.
Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.
We should assigned to introduce a change in the existing setup of any firm working in Pakistan, so we shall Select ICI Pakistan .In ICI Pakistan we are going to diversify our network ,so we use unrelated diversification in the firm and starting Dairy Foods Products in the Organization. These are several products that initially we are going to start and afterward expanding our dairy products also.
OUR CHANGE IN ICI PAKISTAN
Products:
U4C Milk
Yougurt
Desi Ghee
Cheese
Machinery Machine used for the Yogurt is Elvaria 515TW Frozen
Yogurt Machine. Milk Sterilizer Machine.Machine used for the Pasteurization of Milk is Ruipai
BR0.16-Bt milk sterilizer machine.Cheese & Butter making machineThere are two machines are used for packing purposes.1st is
used for tetra pack packaging and 2nd is used for packaging the cartoons of tetra packs. The name given to these machines are Aseptic Packing Machine.
Research& Development
ManagementMarketing
Accounting & Finance
Production/Operation
Internal Operations
Internal Operations
Internal Operations
Strategic Management in ici Pakistan
1; Management: ICI Pakistan is using almost all Functions Planning,
organizing, leading, staffing &controlling. The Strategic Management Process ICI Pakistan Follows: Forecasting, Establishing Mission, Goals & Strategies They use Job Specializations, Job description, unity of
command &job analysis. They are motivating employees by giving incentives, Job
Enrichment, Needs fulfillment &Creating employee’s morale. Formulating, &Implementing new Strategies to achieves
goals.
Marketing Mix
Promotion
Placement
Product
Price
Marketing
ICI Pakistan use the marketing mix strategy for our product.
Marketing Mix
They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan. Having kicked off simultaneously in 20 cities across Pakistan.
ICI Dairy Pakistan is pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is determined considering the price of major competitors like Nestle, Haleeb, Engro foods etc.
ICI Dairy Pakistan launch was, perhaps one of the most good products is concerned, with TVCs, print ads, radio commercials, By Phone, Internet,& billboards
Distribution Channel
Manufacturer
Distributor
Wholesaler
Retailer
Accounting & Finance
ICI Pakistan can’t uses any capital raising method because the company have suffient amount of profit for the last years so they are utilizing the capital. But the management decided not to pay the dividend to the shareholder because of new project.
ICI Pakistan will offer products at reasonable prices. The initial investment will be Rs. 0.18 billions. Their core focus will be on minimizing the investment cost. The total investment will be Rs. 0.2 billions approximately as it will cover the other costs which may include the certification cost and getting license for running.
Accounting & Finance
Income Statement Revenue PKR 18,925,440Excess milk PKR 3,213,973
Total revenue PKR 22,139,413
Expenses Enrichment PKR 591,420
Flavoring PKR 295,710
Supplies & packaging PKR 10,58,530
Utilities PKR 10,82,840
Other plant cost PKR 96,59,860
Depreciation PKR 2,65,680
Labor PKR 31,39,940
Equipment(depreciation) PKR 19,71,400
Total expense PKR 18,065,380
Net income PKR 40,74,033
Production/Operations The company is using CAD/CAM for designing of the
product that’s help to reduce cost, minimize time, and new range of capabilities.
ICI Dairy Pakistan is using Just-in-time (JIT) inventory system because the nature of the product is perishable, so other inventory system can’t be applied
They want quality in everything they do & the company do not compromise on quality at any cost.
ICI is ISO 9001 certified company that is proof of their continuous efforts towards total quality management.
Research & Development
The company owes Research & Development department for the successful activities for the survival of the firm. Firm pursuing product development or diversification strategy rather related or unrelated needs to have a strong R&D so our company has such type of department.
ICI Pakistan is continuously developing & growing in diversify business because of their efficient and effective R&D and having good experience.
For initiating our Dairy business some questionnaire are filled by from the people.
SWOT Analysis of ICI Pakistan
SWOT Analysis, which is based on review of the business ,identifies and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities. SWOT analysis can help the firm to beat its competitors.
Strengths: The product of ICI are know best quality product in particular
industries. ICI has positive image & reputation in the minds of customers so far
them it’s a strength because its helps in the sale of their products. ICI Pakistan has up to date technology in its production. ICI Pakistan
claim that they quality products with latest technology to the customers
Weaknesses:The prices of the ICI products are too much higher than its
competitors.Mostly people are unaware of this product due to its
promotional weaknesses
Opportunities:ICI has got a lot of resources and skills to expand
their target market.They are planning to introduce new brands in the
market in the coming years with improved quality.
Threats:The competitors of ICI are increasing day by day.
Although ICI captures a main portion of market share but its main competitors like Nestle, Olper’s, Tarang, and Haleeb are offering a competitive environment in the market.
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