EXTERNAL ANALYSIS

KEY SUCCESS FACTORS OF DAALI EARTHFOODS

There are few key success factors which we identified at smallscale business are given below:

MANUFACTURING-RELATED KSFs

Quality of manufacture
Daali foods main aim is to provide the organic foods to its
customers. Marium was looking for different chakkis to get pure
wheat flour of food to their kids. She was not satisfied with the
quality of food due to the manufacturing process used at different
chakkis. So quality of Daali products was one of the main focuses of
Marium and products have superior quality in terms of nutritional
value.

High utilization of fixed assets

Company formed in 2005 by Marium and Samia with a focus on
providing healthy alternative to food grown using chemicals and
dirty water. Samia already have 14 acres of land and she let it lie
unplanted for few years so that pesticides and insecticides in the
land could drain away. She used her unutilized piece of land for
starting a new business and letting it lie unplanted helped her to get
all pure organic ingredients for their products.

Low cost methods for retaining quality

Company uses alternative low cost methods for purification of air for
improving and retaining the quality of products in storage areas.
They used DHOONI for smoking out verified plants.

DISTRIBUTION-RELATED KSFs

A network of wholesale distributors/dealers

As company is at its initial level, they have only 2 runners and 2rickshaw wala for taking orders and delivering the products to shops
in Karachi, Islamabad, Faisalabad and Lahore

Gaining ample space on retailer shelves

When company expanded their product line and varieties to meet
the demand of people. They placed their products at leading retail
stores in Lahore, like, Jalal Sons (Mini Market), Green Valley and Al
Fatah.

Low distribution costs & Fast delivery

With the help of 2 runners and 2 rickshaw walas company has low
distribution cost associated with delivering the products in market
of 4 major cities and company already captures 10 percent share in
each city despite of having a mall business setup.

MARKETING-RELATED KSFs

Breadth of product line and product selection

THE DEMAND for organic produce has shown a rising trend in recent
times as buying patterns have shifted and there is increased in
consumer awareness. Due to which Daali expanded its product line
to 21 different products ranging to 6 to 7 different categories, which
include wheat, honey, spices, rice etc

OTHER TYPES OF KSFs

Favorable image/reputation with buyers

Due to increased awareness and fulfilling the demand of customers,
Daali earthfoods have created image of providing all pure organic
foods to its customers.

Convenient locations

Organic food has potential of niche markets for high value and
original agricultural products. Daali got the opportunity to place
their products at 3 Famous leading stores of Lahore to target niche
segment.
INTERNAL ANALYSIS
WHERE COMPANY COMING FROM

Strategic Orientation
Corporate Level Strategies
GROWTH
Organic Growth is the rate of a business expansion through a
companys own business activity. Growth is generally measured in
terms of increased revenue, profits or assets. Businesses can choose to
build their in-house competencies, differentiate and innovate in the
product or service line.
Daalis main strategy is to grow in market and wants to capture 30
percent of market share in 4 major cities. Company has great potential
for growth and initially their corporate stance was Grow locally, Eat
Locally. Daali earned almost 60 percent more profits in 2010 and still
business is profitable. Company already differentiated itself by
introducing the concepts of providing organic food for targeting the
niche segment of market.

Porter generic strategies

Focus strategy

Focus strategies are most effective when consumers have distinctive

preferences or requirements and when rival firms are not attempting to
specialize in the same target segment. A low-cost (Type 4) or bestvalue (Type 5) focus strategy can be especially attractive under the
following conditions:
1. When the target market niche is large, profitable, and growing.
2. When industry leaders do not consider the niche to be crucial to their
own success.
3. When industry leaders consider it too costly or difficult to meet the
specialized needs of the target market niche while taking care of their
mainstream customers.
4. When the industry has many different niches and segments, thereby
allowing a focuser to pick a competitively attractive niche suited to its
own resources.
5. When few, if any, other rivals are attempting to specialize in the same
target segment.
Daali adopted best value strategy called focused differentiation, that
offers products or services to a small range of customers at the best
price-value available in the market. Company aims to offer a niche
group of customers products or services that meet their tastes and
requirements better than rivals products do.
A successful focus strategy depends on an industry segment that is of
sufficient size, has good growth potential, and is not crucial to the
success of other major competitors. Organic farming has potential of
niche market for high-value, non-conventional, original and agricultural
products.

Integration Strategies:
Backward Integration
Backward integration is a strategy of seeking ownership or increased
control of a firms suppliers.
This strategy can be especially
appropriate when a firms current suppliers are unreliable, too costly,
or cannot meet the firms needs.
Daali stop taking the services from private chakkis, which were set at
Pind Hairr and their workshop, was based on 2 rooms where filling
and packaging was done. In 2011 Marium herself, handled all the

things from buying of raw material to supplying the products to

different shops in Lahore and Karachi. Marium setup her own workshop
at Pathano Wali Gali near Harbanspura and have teams of rickshaw
wala and runners for delivery and taking orders.

Intensive Strategies:

Market Development
Market development involves introducing present products or services
into new geographic areas. Daali started its operations in Lahore and
then slowly captured the market of Karachi, Islamabad and Faisalabad.
Product Development
Product development is a strategy that seeks increased sales by
improving or modifying present products or services. Daali started with
whole-wheat atta and fiber grain atta, and various grains and honey.
Later on they expanded their product line by offering a total of 21
different products for consumers.

Corporate Intent
Daalis philosophy was that grains, fruits, vegetables, dairy and poultry products exist in
optimal nutritional balance in nature. Company Aims to provide its customers with the
best traditionally processed and locally grown foods. Their corporate stance is Stone
Ground- Stone Ground
Long-term goals
Company already captured the entire market share. Keeping in mind this perspective,
Marium plans to enter in untapped market and goal is to capture 30 percent of market
share within next year.

FUNCTIONAL LEVEL STRATEGIES

Marium herself managing the human resource needed for Daali foods. Both the partners
handled operations of business initially, as Samia provided the land and Marium was
focusing on production and operations. Later on Marium took the whole responsibility
from starting point of raw material to ending point of finished goods.

Marketing and selling department was also under the control of Marium and she started
running company as an entrepreneur by applying micro management strategy (where
manager closely observe and control the work of subordinates and employees). She was
controlling all employees from handling workers, packaging of products, marketing and
selling the products even getting orders from market.

WhatmatterofGROWTHSSHECANOPTTO
EXPANDDAALIEARTHFOODSOPERATIONS?
Daalihaspotentialofgrowthanditprovidescountless
benefitstoorganization.Manysmallfirmsdesiregrowth
becauseitisseengenerallyasasignofsuccess,progress.

WAYSINWHICHORGANIZATIONSACHIEVE
GROWTH
Manyacademicmodelshavebeencreatedthatdepict
possiblegrowthstages/directionsofacompany.Sixofthe
mostcommonlyusedmethodsforcreatingorganizational
growthwithinasmallbusinessarediscussedbelow.
JointVenture/AllianceThisstrategyisparticularly
effectiveforsmallerfirmswithlimitedresources.Such
partnershipscanhelpsmallbusinesssecuretheresources
theyneedtocopewithrapidchangesindemand,supply,
competition,andotherfactors.
StartingfromLahoreDaalicanjointventurewithvarous
companiesthatarefocusingoneatinghealthyfoods.In
todaysworld,awarenesshasincreasedregardingthecalorie
intakeofpeoplethroughsocialmediaorwordofmouthor
trainersandgyms.Keepinginmindtheneedofhealthy
fooddaalicancollaboratewithThe42dayteamchallenge
byprovidingtheallpurefiber,glutenfreewheatproducts
thatcanaidinloosingweightofcustomer.
Dietbydesignisanotherbusiness,whichpurelytargeted
thehealthconsciouspeople.Theymadesweetdishes,
whicharehealthyintermsofusingglutenfreewheatand

sugarfreeproducts.
Theycanalsojointventurewithjalalsonsbyprovidingthe
wheattothemsothattheycanmakebrownbread,bran
ruskandotherhealthyorganicproductsthatcanhelpthe
persontostayhealthy.
NewMarketsSomebusinessesareabletosecure
significantorganizationalgrowthbytappingintonew
markets.Creatingadditionaldemandforafirm'sproductor
service,especiallyinamarketwherecompetitionhasyetto
fullydevelopcanhelpthecompanytokeepitspaceof
growth.placementofDAALIproductsathyperstar,metro
andotherfamousmarketsineachofbigexistingcityretail
storesandexpandingoperationstoRawalpindi,
Gujranwala,Peshawar,Quettaetc.
NewProductDevelopmentDaalishouldintroducesome
oftheirownproductslikeglutenfreebrownbread,Brown
bread,Biscuits,Rusksetc.Asforalltheseextraproduction
isneededforrawmaterialwithanovenandsomeother
ingredients.
Thesenewproductsshouldbeplacedinretailstoreswith
properpackagingthatincludesthetotalofallnutritional
value(specialfocusoncarbohydratesandcalories).

HOWCANMARIUMFINANCEHERCOMPANYAS
SHEISSEEINGTHEPOTENTIALOFGROWTHIN
COMPANY?
Mariumfirstlycanfinancehercompanybyadoptingthe
waysofgrowththatIalreadymentioned.Otherthanthat,
Daalicanaddnewpartnerintermsofgettingfinancesand
expanding the company. The partner will contribute his
partandcompanywillgetfinancestorunhisoperations,
reachingnewmarketsandofferingnewproducts.Daalican
alsogetloanfrombankasthereislowinterestratethese
days and it can also take help from small medium
enterprises bank that promote entrepreneurship business
andthebankalsoprovidefinancialandtechnicalassistance
onsustainablebasis.Theyareofferingwiderangeofloan
facilityrangingfromtermloantoleasing.

SHOULD
SHE
OFFER
FRANCHISE
OWNERSHIP TO
OTHER
ENTREPREUNERS?
She should offer the franchisee ownership, as you should always strive to move beyond
your horizons. Franchise helps to carry your business activities in a new area or region.
As organization goal is growth with expansion so opening of franchise will help to work
in a same way in which Marium wants to do in terms of achieving organizational goals.
Marium should open Daali franchise, entrepreneur will capitalize and it helps to expand
in cities where daali doesnt deliver its products. It helps to enter in those markets as first
mover advantage in Rawalpindi, Peshawar, Quetta and other cities.
By offering franchise to entrepreneurship it helps in providing assistance in
securing finance and sometimes-financial assistance in establishing the
business. So it will be profitable and company will get more outside investments
and main advantage is Daali only need to supply the products there is no special
procedure involved like processes, equipment purchasing, training etc. all is
related to sale of items only, it will be easier for company to make offer of
franchise.