Gilden Industries.... Business Plan

1 GOLDEN INDUSTRIES
2 GOLDEN INDUSTRIES
GOLDEN INDUSTRIES (Business Plan)
SUBMITTED BY:
ASAM SHAHZAD
(G1F03BBIT0018)
SAJID MAHMOOD
(G1F03BBIT0021)
( B B A – I T V I I)
SUBMITTED TO:
SIR. SOHAIL ISLAM
3 GOLDEN INDUSTRIES
Table of contents
Page #
GENERAL FIRM’S DESCRIPTION 1
1. History of golden industries 1
2. Activity of the business 2
3. Starting date of operations 2
4. General structure of the firm 2
4.1 Management Information System 3
4.2 Sales and Marketing 3
4.3 Research and development 4
4.4 Human Resource Management 4
4.5 Production Department 5
5. Stage at business life cycle 6
6. Vision and mission statement 6
7. Key products of the firm 7
8. Markets 7
9. Types of customers 8
MARKETING PLAN 9
Situation analysis 9
1. Business definition and scope 9
1.1 Mission statement 9
1.2 Product definition 9
1.3 Product Categories 10
2. External environment – remote environment 13
2.1 Political factors 13
2.2 Social and cultural factors 14
2.3 Economical factors 14
2.4 Technological factors 15
4 GOLDEN INDUSTRIES
3. External environment – near environment: 17

3.1 Market Review 17
3.1.1 Markets 17
3.1.2 Our Customers 17
3.1.3 Customers Want 18
3.1.4 User Benefits of Product 18
3.1.5 Services available for Customers 18
3.2 Competitive review 20
3.3 Distribution channels and buyers (intermediary customers) 21
3.4 End user customers 22
3.4.1 Key Customer satisfaction Elements 23
3.4.2 Trial Use 24
4. Critical success factors 26
4.1 Competitive Profile Matrix for Dell Corporation 26
5. Situation analysis – internal capabilities 28
5.1 Non-marketing capabilities 28
5.1.1 Financial Position 28
5.1.2 Management capabilities 29
5.1.3 Leadership capabilities 30
5.1.4 Human Resource Management (HRM) capabilities 30
5.1.5 Research and Development (R&D) capabilities 31
5.1.6 Operations—production capabilities 31
5.1.7 Inter functional coordination 32
5.2 Marketing capabilities – Management 34
5.2.1 Marketing Intelligence 34
5.2.2 Marketing planning 34
6. Problems and opportunities statement 36
6.1 The business unit’s capabilities in relation
to critical success factors 36
6.2 Opportunities for the business unit to exploit
with existing capabilities 36
5 GOLDEN INDUSTRIES
6.3 Opportunities for the business unit to exploit

with improved capabilities 37
6.4 Threats, which must be addressed 37
Marketing objectives and higher-level marketing strategies 39
1. Marketing objectives 39
2. Product-market strategies 39
Marketing mix strategies 40
1. Marketing mix 40
1.1 Products 40
1.1.1 knives 40
1.1.2 Swards 42
1.1.3 Cutlery sets 43
1.1.4 Product Features 43
1.1.5 Brands 44
1.1.6 Packaging of products 46
1.1.7 Product Support Services 46
1.1.8 Products Showroom 46
1.2 Prices 46
1.3 Place 47
1.4 Promotion 47
2. Marketing mix strategies for segment 48
2.1 Segment description 48
2.2 Products/brands servicing this segment 49
2.3 Proposed marketing mix strategies 49
2.3.1 Product Strategy 49
2.3.2 Pricing Strategy 50
2.3.3 Distribution Strategy 50
2.3.4 Promotional Strategy 50
Implementation plan 51
6 GOLDEN INDUSTRIES
Evaluation and control processes 52

PRODUCTION PLAN 53
1. Machinery 53
2. Production process 53
3. Plant capacity 54
MANAGEMENT PLAN 57
1. Planning 57
1.1 Strategic objectives 57
2. Organizing 58
2.1 Organizational Structure 58
2.2 Salaries of Staff 59
2.3 Communication System 60
3. Leading 60
3.1 Decentralized structure 61
3.2 Participative type of management 61
3.3 Management by walking around 61
3.4 Quality policy statement 61
3.5 Top manager is knowledgeable 62
3.6 Effective communication system 62
4. Controlling 62
4.1 Management By Walking Around (MBWA) 63
4.2 Operational Management 63
4.3 Management Information System (MIS) 63
HUMAN RESOURCE MANAGEMENT 64
1. Human resource development 64
1.1 Training 64
1.2 Bonuses 64
1.3 Leaves 64
1.4 Increment 64
1.5 Promotion 64
1.6 Facilities 65
7 GOLDEN INDUSTRIES
2. HRD working 65
2.1 Show Cause Notices 65
2.2 Warning letters 65
2.3 Suspension letter 65
2.4 Termination letter 65
2.5 Acceptance of resignation letters 65
2.6 Demand for new employees 65
2.7 Completion of personal file of new employee 66
FINANCIAL PLAN 67
RESEARCH AND DEVELOPMENT 69
1. Process followed by R&D 69
2. Tools that are used by R&D 70
3. Trail use of newly designed products 71
4. Benchmarking of products 71
RISK MANAGEMENT 72
1. Risk identification 72
1.1 External Risk Events 72
1.2 Internal Risk Events 73
1.3 Risk Identification Matrix 78
2. Risk assessment 80
2.1 Desirable Risk events 80
2.2 Undesirable Risk events 80
2.3 Outcomes of the risk events 81
2.4 Chance of risk events’ occurrence 83
2.5 Magnitude or Severity of risk Events 86
2.6 Risk assessment matrix 88
3. Risk response development 91
3.1 Risk Response Matrix 91
ANALYSIS
1. SWOT analysis 94
1.1 Strengths 94
8 GOLDEN INDUSTRIES
1.2 Weaknesses 95
1.3 Opportunities 95
1.4 Threats 96
2. Internal factor evaluation matrix (IFE) 98
3. External factor evaluation matrix (EFE) 101
4. Competitive profile matrix (CPM) 104
5. Tows matrix 105
6. Space matrix for GOLDEN INDUSTRIES 108
7. BCG matrix for GOLDEN INDUSTRIES 111
8. Internal-External (IE) Matrix for the GOLDEN INDUSTRIES 112
9. Grand Strategy Matrix for GOLDEN INDUSTRIES 113
10. QSPM for GOLDEN INDUSTRIES 114
9 GOLDEN INDUSTRIES
GENERAL FIRM’S
DESCRIPTION
1 GOLDEN INDUSTRIES
GENERAL FIRM’S DESCRIPTION
1. HISTORY OF GOLDEN INDUSTRIES:

GOLDEN INDUSTRIES (cutlery division) started its working on 15th December 1978
with a kitchen knife. And the price of that kitchen knife at that time was only 2 rupees per
piece and that knife was manufactured in a rented building.
During 1986 the owners of GOLDEN INDUSTRIES were in a position to have their own
factory where they started manufacturing of cutlery products.
In the early 1991 they got membership of GCCI (Gujranwala Chamber Of Commerce
and Industry), EPB (Export Promotion Bureau Pakistan) and cutlery Association of
Pakistan.
At 1993 the CEO of GOLDEN INDUSTRIES, Mr. Haji Muhammad Mushtaq was
awarded as a chairman of All Pakistan cutlery association.
In the year of 1995 they got best exporter award in cutlery field. And in the year of 2000
they got ISO 9001 certification as well.
(Best Trade Award)

2 GOLDEN INDUSTRIES
2. ACTIVITY OF THE BUSINESS:

GOLDEN INDUSTRIES is involved in manufacturer of all kinds of the:
Knifes
Swords
Daggers
Walking Kane
Num chucks
Gift knifes
Ninja’s
Ninja Stars
Throwings
Cutlery sets
3. STARTING DATE OF OPERATIONS:

Year of starting of the firm’s operations was:
Year 1978
Year of establishment of firm was:
Year 1986
4. GENERAL STRUCTURE OF THE FIRM:

As traditionally there is no proper and formalized system of having departments in the
firm due to which all the activities are performed under the observation of the CEO. Thus
the firm feels absence to utilize its actual potential, due to the lack of highly specialized
personals in different departments. But according to our observations and findings the
operations (including formal and informal) of the firm are divided into the following
categories:
Management Information System (MIS)
Sales and Marketing
Research and Development
Human Resource Management
Production
3 GOLDEN INDUSTRIES
4.1 Management Information System:

The GOLDEN INDUSTRIES has a management information system that works on the
following topics:
Local buyers
Local sellers
Account payables
Account receivables
Foreign distributors and their goods records
Foreign buyers
Workers
Invoice record
Products sample record
(MIS department of GOLDEN INDUSTRIES)
4.2 Sales and Marketing:

These responsibilities are carried by the CEO of the GOLDEN INDUSTRIES, who do
the analysis of the market informally by: getting the feedback from the market; visiting
the foreign markets; introducing the samples of the products, participating into the trade
affairs; etc. And he also carries the duty of making sale either by own self or by any of
the trusted distributor or trade agent.
4 GOLDEN INDUSTRIES
(CEO of GOLDEN INDUSTRIES)
4.3 Research and development:

In the R&D department of GOLDEN INDUSTRIES there are two designers who are
associated with the computer/MIS department. As the main market of GOLDEN
INDUSTRIES, where they are exporting their cutlery products is international market
including all Europe and America, so, these two designers continuously on the daily
bases check the design of newly established products of their foreign rivals through the
mean of internet. Because their foreign rivals are closer to their respective culture, and
customers, by which they design the products totally according to their customer’s
requirements, therefore GOLDEN INDUSTRIES checks for new products through their
rivals’ web sites and then makes amendments in the new design by the help of their
production department.
4.4 Human Resource Management:

The activities regarding the human resource management in the GOLDEN INDUSTRIES
are performed informally, because one single person (with checkers) is sitting in the
production hall, who is managing the human resource management in term of:
attendance; discipline; quality of work; required employees; disputes among the
employees, etc. And all the other motivational incentives are being given to the
employees by the CEO Mr. Haji Mushtaq.
5 GOLDEN INDUSTRIES
(Mr. Triq is managing Human Resource of GOLDEN INDUSTRIES)
4.5 Production Department:

Formally the production department of the GOLDEN INDUSTRIES is divided into the
following sections:
Cutting Section
Combining Section
Tempering Section
Grinding Section
Buffering Section
Polishing Section
Sharpening Section
Finishing Section
Packing Section
6 GOLDEN INDUSTRIES
(A bird eye view of Bufferin

5. STAGE AT BUSINESS LIFE CYCLE:
Now a day the firms in the industry are showing trend toward the declining stage, but still
the GOLDEN INDUSTRIES is at the maturity stage of business life cycle.
The stage is:

Maturity
6. VISION AND MISSION STATEMENT:

The aims and purpose of the GOLDEN INDUSTRIES is given below:
6.1 VISION STATEMENT
“To become a linker of great quality for diversified market and
become organizer to establish a good report at global level to
7 GOLDEN INDUSTRIES
raise standard of living at local level by delivering value added

product with the help off inside workers”
6.2 MISSION STATEMENT
“To generate a tough selling lead by offering maximum quality
in enough price, by great utilization of human resource,
resulting more employment opportunities”
7. KEY PRODUCTS OF THE FIRM:
All kinds of Knives that include:
Pocket Knives
Hunting Knives
Fantasy Knives
Kitchen Knives
Butcher Knives
Skinner Knives
Boot Knives
Commando Knives
Paper Cutters
Swards
Num chucks
Walking Kane
Ninja’s
Throwings
Daggers
And Cutlery Set that include:
Variety of spoons
Variety of Kitchen Knives
8. MARKETS:
The GOLDEN INDUSTRIES has targeted the markets of the following two levels:
Local Level, and
8 GOLDEN INDUSTRIES
Global Level.
The Local level markets include the markets in different major cities of the PAKISTAN.
The local level markets are included in the following cities of the PAKISTAN:
Lahore
Sailkot
Rawalpindi
The Global level markets include the markets in the following Areas:
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
9. TYPES OF CUSTOMERS:
The various categories of the customers of GOLDEN INDUSTRIES include:
House Holds
Butchers
Army
Hunters
Hotels
Fishermen
T.V channels (as a Costume Item)
Offices
Individuals
9 GOLDEN INDUSTRIES
MARKETING PLAN
9 GOLDEN INDUSTRIES
M A R K E T I N G P L A N
S I T U A T I O N A N A L Y S I S
1. BUSINESS DEFINITION AND SCOPE:
1.1 Mission statement(s):
“To generate a tough selling lead by offering maximum quality in enough
price, by great utilization of human resource, resulting more employment
opportunities”
1.2 Product definition:

All of the products of GOLDEN INDUSTRIES are the cutlery products that are used by:
No. Used by Purpose
1. House Holds For the purpose of Catering, and for the
purpose of decoration.
2. Boucher For the purpose of making meat.
3. Army Army use the cutlery in war as a weapon.
Army use the cutlery for the purpose of
cutting the papers, and decoration.
Army the purpose of catering in MES
department.
4. Hunters Hunters use the cutlery as a tool of hunting.
5. Hotels For the purpose of Catering, and decoration.
6. Fisher men Fishermen use the cutlery as a tool of catching
and making meat of the fishes.
7. TV channels TV channels use cutlery as a part of costume
item. TV channels can also use the cutlery for
decoration purpose.
8. Offices For the purpose of cutting the papers and
decorating the offices.
9. Individuals Used for security purpose.
1.3 Product Categories:

10 GOLDEN INDUSTRIES
All the product categories of cutlery include:

Knives
Paper Cutters
Swards
Num chucks
Walking Kane
Ninja’s
Throwings
Daggers
Cutlery Sets
Product categories targeted by GOLDEN INDUSTRIES and its products competing

in those categories:
Product category Competing products

Knives Pocket knife, Commando knife, Tempo, Defender, Regular, Puma
(WH, BK, MC), Skinner, Butterfly, SAB knife, Fantasy knife,
Haber boi, Flower knife, Scorpion knife, Kitchen knife, BIG
knife, Hunting knife.
Paper Cutter Simple manual Paper Cutter.
Sword Warier, Long Sharp, Chinese Sword, Master ninja, Sword
(Kalmay wali), King’s Sword, Lord of ring, D sword, Pistol
sword.
Num chucks Rattan Num chucks, Foam Num chucks.
Walking Kane Snake Kane, Horse Kane, Elephant Kane, Simple Kane.
Ninja’s Ninja Sword.
Throwings Star, Ninja, Stick, Punch.
Daggers Battle Ready Daggers, Medieval Daggers, Flame Dagger, Kestrel
Dagger, Arming Dagger, Talon Dagger, Black Shadow Dagger.
Cutlery Sets 15 pcs, 30 pcs, 60 pcs, 70 pcs, 82 pcs
The market – Customers (end users) – for the product categories targeted by
GOLDEN INDUSTRIES:
There are local as well as global markets, which are targeted by the GOLDEN
INDUSTRIES for our all product categories:
Product category Target Market

For all Product Local Level:
categories. • Lahore
• Sailkot
• Rawalpindi
Global Level:
• UK
• USA
• Germany
• France
• Saudi Arabia
• Canada
• Germany
• Spain
The end users for each product categories include:
Product category Customers (end users)

Knives Individual, Army, Hunters, Households, Hotels, Boucher, TV
channels.
Paper Cutter Offices, Army, and Individuals.
Sword Army, Households, TV Channels, Hotels, Individuals, and
Offices.
Num chucks Household, Army, Hotels, Offices, and Individuals.
Walking Kane Household, Army, Hotels, TV channels, Offices, and Individuals.
Ninja’s Household, Army, Hotels, TV channels, Offices, and Individuals.
Throwings Household, Army, Hotels, TV channels, Offices, and Individuals.
Daggers Household, Army, Hotels, TV channels, Offices, and Individuals.
Cutlery Sets Army (MES), Hotels, Offices, and Households.
2. EXTERNAL ENVIRONMENT – REMOTE

ENVIRONMENT:
2.1 Political factors:
When we talk about the GOLDEN INDUSTRIES we see that the political factors affect
the organization but in critical way. It has a definite effect on their export, and also
having low effect on the local market sales. GOLDEN INDUSTRIES is caring their
business both national and international level. 25% of their production is used in the
home country and they export the remaining 75% to different countries. So, the
government is effecting in a way that it is reducing the rebates on the export of the
cutlery products. For getting the legal benefits in the country they have to give the
expensive gifts to the political leaders. And also for the approval of their rights in front of
government, all the firms in the industry have formed ALL PAKISTAN CUTLERY
ASSOCIATION, which is mainly cared by the GOLDEN INDUSTRY.
Opportunities Rating Threats Rating

On the behalf of Cutlery 5-5 Govt. can bane any product. 2-2
association, GOLDEN End of the rebate on any 3-2
INDUSTRIES can claim for product.
high rebate rates. EPB can reduce rate of 3-3
Relations with politicians 4-3 rebate.
can increase sale of cutlery by Without permission of EPB 2-2
Army. we cannot perform export
Approach to the products, 2-5 activities.
which other manufacturers
have stopped to manufacturer
due to the less rebates.
GOLDEN INDUSTRIES 2-3
can give gifts to the politicians
as a part of their promotion
campaign.
Rating: 5-point scale degree of significance and for likelihood of occurrence: ‘extremely significant’ (5),
‘quite to highly significant’ (4), ‘significant’ (3), ‘reasonably significant’ (2) and ‘not very significant’
(1).
Probability of occurrence: Ranging from ‘high probability of occurrence’ (5) to ‘not likely to occur in this
time horizon’ (1). For example a rating of 5–3 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
2.2 Social and cultural factors:

In some of the previous years, to protect the social and cultural violence, the France
government has bane the import of walking kane, the USA government has bane rebate
on the walking kane, and Pakistani government has bane the “Ram Puri” and “Butterfly”
knives. So, in this way the GOLDEN INDUSTRIES is very careful in future, and making
only those product which can be used in wars, in training of army, in kitchen, and for
security purposes.

Keep them updated about 2-2 Any product bane due to 5-3
the cultural values of other the cultural limitation.
country through their Negative reaction due to 3-4
distributors and whole sellers. the product that is harmful for
Promote the items through 3-5 the society e.g: butterfly knife.
cultural contest.
(1).
2.3 Economical factors:

Due to the entry of Chinese cutlery into the market, it has become possible for the poor
customers to get cutlery items at low prices. China has affected not only the local market
but also the global market of the GOLDEN INDUSTRIES. Due to which GOLDEN
INDUSTRIES is facing huge economic threats, and struggling hard to retain the
customers.

Economy of scale, 3-3 China in local as well as in 5-5
production in bulk quantity. global market.
Outsourcing from china. 5-5 If outsourcing from china, 3-3
Import raw material from 3-2 then local market
cheap price countries. manufacturing heart.
(1).
2.4 Technological factors:

For the manufacturing of the cutlery, GOLDEN INDUSTRIES is using very good and
modern technology, only if we talk in reference to the local competitors. But if we talk
about the manufacturing technology of GOLDEN INDUSTRIES in reference to the
global competitors then we come to know that the GOLDEN INDUSTRIES is lacking
the latest technologies like CAD technology, automation, e-commerce, etc.

Install latest technologies 3-2 GOLDEN INDUSTRIES is 5-2
that are in use in production using very old technology.
process like CAD technology, Labor intensive technology 4-3
and automation. of GOLDEEN INDUSTRIES.
Establish a web based e- 4-3
commerce portal in order to
reduce the cost of whole
sellers and distributors.
If GOLDEN INDUSTRIES 4-2
install the latest technology
then it can currently sale its

old machinery to other cutlery
firms, because many of the
firms of cutlery are not
awarded about the latest
technology.
Downsizing through 3-2
automation.
(1).
3. EXTERNAL ENVIRONMENT – NEAR

ENVIRONMENT:
3.1 Market Review:
3.1.1 Markets:
GOLDEN INDUSTRIES has two targets markets at:
Local Level, and
Global Level.
The Local level markets include the markets in the major cities of the Pakistan, including:
Lahore
Sailkot
Rawalpindi
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
3.1.2 Our Customers:
House Holds
Boucher
Army
Hunters
Hotels
Fisherman
T.V channels (as a Costume Item)
Offices
Individuals
3.1.3 Customers Want:

Durability
Quality of products
Low Price
Lightweight items
Stylish Items in varieties
3.1.4 User Benefits of Product:
Security
Costume component
Easy use e.g. pocket knife
Free leather cover (selected product)
Use anywhere at any time
No legal complications on having our products
Strong grip
Durability
Repairing facility
Non-flexible
Child protected product due to lock
3.1.5 Services available for Customers:
1-month guarantee for repairing
User manual (selected product)
Online as well offline help lines (www.golden-industries.com)
(Web Site preview of GOLDEN INDUSTRIES)
Posting of Newly launched product information to regular user

Free leather cover for safety purpose

Focus on product that has 4-5 Lack of specialized 5-5
high user benefits. ie: Swiss personal in the field of
knife. marketing.
Find markets, which are 4-4 GOLDEN INDUSTRIES is 4-5
not in the reach of the using informal way of
competitors. promotion, instead of
Enter into more local 5-4 promoting the products to
markets. individual customers; it is
promoting the products to the
whole sellers and distributor.
Lack of specialized R&D 3-3
to invent new markets and
customers.
Chinese cutlery. 5-5
(1).
3.2 Competitive review:

As GOLDEN INDUSTRIES is the largest manufacturing firm in the field of cutlery
industry of Wazirabad. In the field of cutlery the other local manufacturers (as well as
exporters) due to which GOLDEN INDUSTRIES is facing competition, are given below:
Sartaj enterprises
Sharp edge
Constant star
Knife tailors
Khalid industries
The above mentioned firms are not only the firms from which the
GOLDENINDUSTRIES is facing the competition; but there are also many other firms in
the industry due to which the GOLDEN INDUSTRIES is facing the competition, but the
intensity of the competition from the other firms are low. Here the beneficial fact is that
the CEO of GOLDEN INDUSTRIES is the CHAIRMAN of the association (All Pakistan
Cutlery Association) to which all the firms belong. So due to this fact the executives of
GOLDEN INDUSTRY become aware about the strategies of the competitors.
But now a day the GOLDEN INDUSTRY is facing a huge competition due to the
Chinese Cutlery that is available in the market at low price. The prices at which the China
is offering its cutlery products are even low than the costs, which are incurred by the
GOLDEN INDUSTRIES. The reason behind this fact is the lack of specialization, and
advancement in all the processes of GOLDEN INDUSTRIES.

Enter into the markets, 4-4 Chinese cutlery. 5-5

which are not in the reach of Copy of product design by 4-4
competitors. the competitors. Competitors
Work in cluster. 3-4 can do this by visiting the
Outsourcing from China. 5-5 showroom of the GOLDEN
As being the Chairman of INDUSTRIES.
the ‘All Pakistan Cutlery
Association’, the CEO of
GOLDEN INDUSTRIES can
promote his suggestion to
Government to stop the entry
of Chinese cutlery into
Pakistan.
(1).
3.3 Distribution channels and buyers (intermediary customers):

There are different channels which are used by the GOLDEN INDUTRIES from the
shipments to buyers, including:
Whole sellers
Retailers
Commission agents
Bulk quantity customers
SZCO whole seller
Budkay.co
Own ware houses
Hilbro whole seller
Knife makers.co
Utility stores of U.S.A and U.A.E

There is still demand of 3-4 Preferences of foreign 4-5
cutlery that is not fulfilled. whole sellers and distributors
Take customers feedback 4-4 are continuously changing
through the intermediaries to from Pakistani exporters to
improve its various business Chinese and Indian exporters.
processes. Local distributors are not 4-4
Provide incentives to 3-5 specialized in their tasks.
competitors’ commission Chinese exporters offer 5-5
agents and whole sellers to more incentives to the
increase its own sale. distributors and whole sellers.
(1).
3.4 End user customers:

All of the products of GOLDEN INDUSTRIES are the cutlery products that are used by:
No. Used by Purpose
department.
6. Fisher men Fisher men use the cutlery as a tool of
catching and making meat of the fishes.
decoration purpose.
Customers are the most valuable asset of the organization. Success or failure of any firm
depends upon the customers.
Three things that effect the organization:
1. Number of customers
2. Frequency of purchase
3. volume of purchase
GOLDEN INDUSTRY has a lot of customer that can be categorized into the following
categories:
Regular customers
Brand loyal customers
Price conscious customers
Quality conscious customers
Availability conscious customers
Promotions conscious customers
3.4.1 Key Customer satisfaction Elements:
Customer satisfaction by the GOLDEN INDUSTRIES is ensured by the following views:
The firm fulfils the commitment with the customers.
The firm delivers the product on time.
Firm doesn’t want to loss the customers.
The firm provides the defects free products to their customers.
The firm provides the product to their customer with the respective number that
ensures a good recording system in the firm.
The firm cares for packaging, cartoons, and for item numbers.
The firm doesn’t accept the order that they cannot fulfill within time.
The firm seeks for qualified supplier.
C.E.O personally checks the products that either the products are attractive or not
attractive for the customers.
3.4.2 Trial Use:

The GOLDEN INDUSTRY, after making the desired product according to the
customers’ requirement, provides trial usage of the products to their customers who are
having long term relations with the GOLDEN INDUSTRY. And after the trial use, if the
products are accepted by the customers then the production is started for those products
otherwise the amendments are made further.
GOLDEN INDUSTRIES 5-5 TVC Tele Brand campaign 5-5
should sale its products also of cutlery products on
through the internet (e- different TV channels.
commerce) Customer preferences are 4-5
Provide brand awareness to 3-4 continuously changing.
the customers through some Continues focus on online 4-5
promotional campaign. buying and selling of cutlery,
Create demand for their 3-3 of foreign buyers and sellers.
product by reaching into more
global and local markets.
Offer customization of 4-4
products through the internet
websites.
(1).
4. CRITICAL SUCCESS FACTORS:

There are different critical successes factors of the GOLDEN INDUSTRIES and also for
its major competitors, which are also include in the CPM.
Product line
Consumer’s convenience
Customer’s satisfaction
User benefits
Competition
Rebate rate
Internet sale
Technology used for production
Market share
Global expansion
Local expansion
Piece attractiveness
4.1 Competitive Profile Matrix for Dell Corporation:
Golden Sartaj Sharp Edge
Industries Enterprises
Critical success factors Weight Rating Score Rating Score Rating Score
1 Product line 0.15 2 0.30 3 0.45 4 0.60
2 Competition 0.10 3 0.30 3 0.30 4 0.40
3 Rebate rates 0.10 3 0.30 2 0.20 2 0.20
4 Consumer convenience 0.08 4 0.32 2 0.16 2 0.16
5 Internet sales 0.10 4 0.40 3 0.30 3 0.30
6 Technology use in 0.12 3 0.36 3 0.36 3 0.36
manufacturing
7 Market share 0.10 4 0.40 2 0.20 3 0.30
8 Global expansion 0.08 3 0.30 3 0.30 4 0.40
9 Local expansion 0.05 3 0.15 3 0.15 2 0.10
10 Price attractiveness 0.12 3 0.45 2 0.20 2 0.30
Total 1.00 3.28 2.62 3.12
The results of CPM are showing the GOLDEN INDUSTRIES is having higher weighted
score then its competitors, so the GOLDEN INDUSTRIES is in good competitive
position.
5. SITUATION ANALYSIS – INTERNAL

CAPABILITIES:
5.1 Non-marketing capabilities:
These are the internal capabilities of the GOLDEN INDUSTRIES other than the
marketing capabilities, and these internal capabilities include the capabilities regarding
the following:
Financial position
Management & leadership
HRM
R&D
Operations—production
Inter functional coordination
5.1.1 Financial Position:
Regarding the finance, the GOLDEN INDUSTRIES did not give us any information.
Because the GOLDEN INDUSTRIES has not prepared any of the financial statements
(including: Income statement; Balance sheet; Statement of cash flow), regarding its
business operations. And during the interview, we came to know two things about
financial matters of the GOLDEN INDUSTRIES.
The first thing is that GOLDEN INDUSTRIES is using computerized payroll system that
is managed by the MIS department.
Secondly, we learn about the sales and ‘total cost and expense’ figures of previous three
years of GOLDEN INDUSTRIES. The sales and ‘cost and expense’ figures are given
below:
Year Sales and ‘total cost and expense’ Net Profit
figures Margin (%)
2004 Sales Rs. 15,000,000 20
(July 01, 2003 to June 30, Cost + Expenses Rs. 12,000,000
2004) Net Profit Rs. 3,000,000
2005 Sales Rs. 13,500,000 11
2005) Net Profit Rs. 1,500,000

In this year the sales and net profit
were negatively affected due to the
wrong LC. And during this year
GOLDEN INDUSTRIES also took
loan of Rs. 1,000,000 from the Soneri
Bank Ltd.
2006 Sales Rs. 14,500,000 19
2006) Net Profit Rs. 2,700,000
For making the comparison of the above mentioned financial data of GOLDEN
INDUSTRIES with the financial data of other cutlery manufacturer, we visit ‘All
Pakistan Cutlery Association’ to take financial data of other cutlery manufacturers. But
they don’t give it to us and one thing they told us was that the GOLDEN INDUSTRIES
is the largest manufacturer and exporter of the cutlery, and its annual sales are more than
the sales of any other cutlery manufacturer.
5.1.2 Management capabilities:
In the planning phase the CEO of GOLDEN INDUSTRIES has well defined his vision,
mission, and goals. The vision and mission statement is given below:
Vision statement
“To become a linker of great quality for diversified market and become
organizer to establish a good report at global level to raise standard of
living at local level by delivering value added product with the help off
inside workers”
Mission statement
opportunities”
As it is cleared by the mission statement that the primary goal of GOLDEN
INDUSTRIES is to maximize its sale. And some of the other goals are:
Customer satisfaction in the form of maximum quality.
Use human intensive machinery.

To produce more employment opportunities for the workers.
To organize or implement his planning, the CEO has not hired specialized personals for
managing HR, MIS, R&D, TQM, Sales and Marketing, and Finance. There for the
organization is no fully utilizing its potential.
And in the controlling phase, the key person who has to control and face the resulting
effects from different activities is the CEO Mr. Haji Mushtaq. And often stay out side the
Pakistan and he has only concern with the sales generated by the organization. So, he has
only one performance measure tool that is “Sales”.
And the remaining two factors of leadership and staffing are given below separately.
5.1.3 Leadership capabilities:
In the golden industries there is no formal quality council but the top management has set
some certain parameters that fully ensure the role of top manager as a leader who is
leading all the employees and the workers of the organization.
Let’s discuss some elements of leadership in GOLDEN INDUSTRIES:
The structure of the GOLDEN INDUSTRIES is decentralized.
There is participatory type of management in the GOLDEN INDUSTRIES.
The organization is following the concept of management by walking around.
There are well-defined quality policy statement in the form of mission and vision
of the organization.
Top manager as being the leader is well knowledgeable with all type of
organizational activities and with external environment of the industry of the cutlery.
There is effective communication system in the organization.
5.1.4 Human Resource Management (HRM) capabilities:
The activities regarding the human resource management in the GOLDEN INDUSTRIES
are performed informally, because one single person (with checkers) is sitting in the
production hall, who is managing the human resource management in term of:
attendance; discipline; quality of work; required employees; disputes among the
employees, etc. And the CEO Mr. Haji Mushtaq gives all the other motivational
incentives to the employees.
5.1.5 Research and Development (R&D) capabilities:
In the R&D department of GOLDEN INDUSTRIES there are two designers who are
associated with the computer/MIS department. As the main market of GOLDEN
INDUSTRIES, where they are exporting their cutlery products is international market
mean of Internet. Because their foreign rivals are closer to their respective culture, and
customers, by which they design the products totally according to their customers’
requirements, therefore GOLDEN INDUSTRIES checks for new products through their
5.1.6 Operations—production capabilities:
Formally the production department of the GOLDEN INDUSTRIES is divided into the
following sections:
Cutting Section
Combining Section
Tempering Section
Grinding Section
Buffering Section
Polishing Section
Sharpening Section
Finishing Section
Packing Section
For manufacturing of cutlery products, the production department of the GOLDEN
INDUSTRIES has following machines:
Cutting press
Grinding machine
Polishing machine
High or dull polish machine
Buff machine
Cleaner machine
Sharpener
Dies
Different type of cutters
Stamping machine
Dalai press
GOLDEN INDUSTRIES is having very good machinery relatively to the local
competitors, but relatively to the foreign competitors the GOLDEN INDUSTRIES is not
using very machinery because foreign competitors are using the automated technology
but on the other side the GOLDEN INDUSTRIES is using human intensive machinery
due to which it has to face a huge expense of salaries and wages of employees.
5.1.7 Inter functional coordination:
There is an effective coordination between the functions of the GOLDEN INDUSTRIES.
Whenever the R&D department invents a new product then after the approval of CEO the
product is send to production department, where the product is developed under the
complete observation of HR manager. And here the priorities among producing different
products are set by the sales manager on the bases of customer needs. This is how the
inter functional coordination process in the GOLDEN INDUSTRIES is very good.
(Implication)
Strengths Rating Weaknesses Rating
The first thing is that 4-4 GOLDEN INDUSTRIES 5-4
GOLDEN INDUSTRIES is has not prepared any of the
using computerized payroll financial statements
system that is managed by the (including: Income statement;
MIS department. Balance sheet; Statement of
GOLDEN INDUSTRIES is 5-5 cash flow), regarding its
the largest manufacturer and business operations.
exporter of the cutlery, and its Continuous fall in net 4-4
annual sales are more than the profit margin.
sales of any other cutlery GOLDEN INDUSTRIES is 4-4
manufacturer. using human intensive
GOLDEN INDUSTRIES is 3-4 machinery instead of using
providing customers with automated machinery.
satisfaction in the form of To organize or implement 4-3

maximum quality. planning, the CEO of
In the GOLDEN 3-3 GOLDEN INDUSTRIES has
INDUSTRIES top not hired specialized
management has set some personals for managing HR,
certain parameters that fully MIS, R&D, TQM, Sales and
ensure the role of top Marketing, and Finance.
manager as a leader in the GOLDEN INDUSTRIES is 3-4
organization. not fully utilizing its
GOLDEN INDUSTRIES 2-3 potential.
designs the products totally CEO has only one 3-3
according to their customers’ performance measure tool
requirements. that is “Sales”.
GOLDEN INDUSTRIES is 4-4 GOLDEN INDUSTRIES is 4-4
having very good machinery using human intensive
relatively to the local machinery due to which it has
competitors. to face a huge expense of
There is an effective 4-5 salaries and wages of
coordination between the employees.
functions of the GOLDEN
INDUSTRIES.
(1).
5.2 Marketing capabilities – Management:

5.2.1 Marketing Intelligence:
As the main market of the GOLDEN INDUSTRIES is the global market, where the CEO
often conducts the visits and finds information about:
Customer preferences
Customer response
Technological changes
Cultural changes
Distributors’ and retailers’ preferences
Competitor’s strategies
Changes in the market, and etc.
And within Pakistan the CEO of GOLDEN INDUSTRIES is chairman of ‘All Pakistan
Cutlery Association’, due to which he gets a lot of information about the competitors’
strategies.
5.2.2 Marketing planning:
The executives of GOLDEN INDUSTRIES are not doing very well marketing planning.
Because they have not planned any thing about the market. And their planning is only
limited to the expansion of their market intermediaries, so that their sales revenue can be
increased. And for this purpose they provide incentives to the intermediaries and some
time they also arrange dinners, and lunch for their market intermediaries.
Strengths Rating Weaknesses Rating
There is strong marketing 3-4 The executives of 4-4
intelligence position of GOLDEN INDUSTRIES are
GOLDEN INDUSTRIES. not doing very well marketing
planning. Because they have
not planned any thing about
the market.
Marketing planning of 3-4
GOLDEN INDUSTRIES is
only limited to the expansion
of its market intermediaries.
(1).
6. PROBLEMS AND OPPORTUNITIES STATEMENT:

6.1 The business unit’s capabilities in relation to critical success
factors:
CSF Our capabilities
Product line Offer diversified product range
Consumer’s convenience Offer a number of user benefits
Customer’s satisfaction Offer a number of services available for
customers
Competition Strong competitive position
Rebate rate Receive more than an average
Internet sale Offering only e-catalog
Technology used for production Human intensive technology
Market share Higher than all other rivals
Global expansion Better than all other competitors but still limited
Local expansion Limited local market expansion
6.2 Opportunities for the business unit to exploit with existing

capabilities:
Following are the opportunities for the business unit to exploit with existing capabilities:
On the behalf of Cutlery association, GOLDEN INDUSTRIES can claim for high
rebate rates.
Relations with politicians can increase sale of cutlery by Army.
GOLDEN INDUSTRIES can give gifts to the politicians as a part of their
promotion campaign.
Economy of scale, production in bulk quantity.
Focus on product that has high user benefits. ie: Swiss knife.
As being the Chairman of the ‘All Pakistan Cutlery Association’, the CEO of
GOLDEN INDUSTRIES can promote his suggestion to Government to stop the entry
of Chinese cutlery into Pakistan.
Provide incentives to competitors’ commission agents and whole sellers to
increase its own sale.
Provide brand awareness to the customers through some promotional campaign.
6.3 Opportunities for the business unit to exploit with improved

capabilities:
Following are the Opportunities for the business unit to exploit with improved
capabilities:
Approach to the products, which other manufacturers have stopped to
manufacturer due to the less rebates.
Keep them updated about the cultural values of other governments through their
distributors and whole sellers.
Promote the items through cultural contest.
Outsourcing from china.
Install latest technologies that are in use in production process like CAD
technology, and automation.
Establish a web based e-commerce portal in order to reduce the cost of whole
Downsizing through automation.
Find markets, which are not in the reach of the competitors.
Work in cluster.
Create demand for their product by reaching into more global and local markets.
Offer customization of products through the Internet websites.
6.4 Threats, which must be addressed:

Govt. can bane any product.
End of the rebate on any product.
EPB can reduce rate of rebate.
Any product bane due to the cultural limitation.
Negative reaction due to the product that is harmful for the society e.g: butterfly
knife.
China in local as well as in global market.
GOLDEN INDUSTRIES is using informal way of promotion, instead of
promoting the products to individual customers; it is promoting the products to the
Copy of product design by the competitors. Competitors can do this by visiting

the showroom of the GOLDEN INDUSTRIES.
Preferences of foreign whole sellers and distributors are continuously changing
from Pakistani exporters to Chinese and Indian exporters.
Local distributors are not specialized in their tasks.
Chinese exporters offer more incentives to the distributors and whole sellers.
TVC Tele Brand campaign of cutlery products on different TV channels.
Customer preferences are continuously changing.
Continues focus on online buying and selling of cutlery, of foreign buyers and
sellers.
MARKETING OBJECTIVES
AND HIGHER LEVEL
MARKETING STRATEGIES
1. MARKETING OBJECTIVES:
2007 (July 1 2006, to June 30,
2007)
Revenue Objectives Rs. 15,000,000
Net profit margin 20 %
2. PRODUCT-MARKET STRATEGIES:
Strategies for year 2007
Existing products in existing Expansion in market
markets (Market penetration) intermediaries.
Existing products in new markets Enter into the markets of those
(Market development) countries to which competitors
have less access, through the links
of existing market intermediaries.
MARKETING MIX
STRATEGIES
1. MARKETING MIX:
1.1 Products:
1.1.1 Knives:
Pocket Knife
Hunting Knife
Fantasy Knife
Kitchen Knife
Boot Knife
Commando Knife
Paper Cutter
1.1.2 Swards:
1.1.3 Cutlery sets:
1.1.4 Product Features:

The products of GOLDEN INDUSTRIES have a number of features that a competitive
company may have not in their products. It gets competitive edge on quality, because
now consumer is rational and he has moved from price conscious products to quality-
oriented products. So, some silent features of the products of GOLDEN INDUSTRIES
are:
Sharp and remain sharp edge
Long life
Free leather cover (to selected products)
Child protected product due to lock
Less elasticity among components of products
Molded handle for strong grip
Strong grip on blade for opening and closing (Nail, is added on products to open
them)
Easy to open and easy to close
No danger to open or close because of grinded thari.
1.1.5 Brands:
Brands of Knives:
 Pocket knife
 Commando knife
 Tempo
 Defender
 Regular
 Puma (WH, BK, MC)
 Skinner
 Butterfly
 SAB knife
 Fantasy knife
 Haber boi
 Flower knife
 Scorpion knife
 Kitchen knife
 BIG knife
 Hunting knife
 Paper cutter
Brands of Swords:
 Warier
 Long Sharp
 Chinese Sword
 Master ninja
 Sword (Kalmay wali)
 King’s Sword
 Lord of ring
 D sword
 Pistol sword
Brands of Num chucks:

 Rattan Num chucks
 Foam Num chucks
Brands of Walking Kane:
 Snake Kane
 Horse Kane
 Elephant Kane
 Simple Kane
Brands of Ninja’s:
 Ninja Sword
Brands of Throwings:
 Star
 Ninja
 Stick
 Punch
Brands of Daggers:
 Battle Ready Daggers
 Medieval Daggers
 Flame Dagger
 Kestrel Dagger
 Arming Dagger
 Talon Dagger
 Black Shadow Dagger
Brands of Cutlery Sets:
 15 pcs
 30 pcs
 60 pcs
 70 pcs
 82 pcs
1.1.6 Packaging of products:
The contract of tacking the packing material has been made with the Awan Packagers
Sialkot, and the Naeem enterprises Gujranwala.
1.1.7 Product Support Services:
User manual
Free leather cover for safety purpose
1.1.8 Products Showroom:
In the GOLDEN INDUSTRIES, there exists a showroom displaying a huge collection of
the cutlery products. Any local and foreign customer can visit this showroom for the
purchase decision of the cutlery products.
1.2 Prices:
The prices of the cutlery products of GOLDEN INDUSTRIES are given below in the
table:
No. Product Name Minimum Price Maximum Price Average Price
limit limit (Rs.)
(Rs.) (Rs.)
1 Pocket Knives 15 40 25
2 Hunting Knives 35 175 80
3 Fantasy Knives 30 150 50
4 Kitchen Knives 15 40 25
6 Commando Knives 35 125 70
8 Paper Cutter 15 35 25
9 Boot Knives 20 60 35
10 Swards 350 2000 700
11 Cutlery Sets 700 5000 1000
1.3 Place:
The GOLDEN INDUSTRIES has targeted the markets of the following two levels:
Local Level, and
Global Level.
The Local level markets include the markets in different major cities of the PAKISTAN.
The local level markets are included in the following cities of the PAKISTAN:
Lahore
Sailkot
Rawalpindi
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
1.4 Promotion:
GOLDEN INDUSTRIES is using following tools of promotion:
Internet
Personal Selling
Contribution in special social events i.e.: Sports etc.

Promotional schemes
Free samples for regular customers
Public Relation
Annual Entertainment program for Retailer, Distributor, Agents, Supplier,
Banker, Cutlery Association members (competitors).
2. MARKETING MIX STRATEGIES FOR SEGMENT:

2.1 Segment description:
No. Segment Description
department.
6. Fisher men Fishermen use the cutlery as a tool of catching
and making meat of the fishes.
decoration purpose.
2.2 Products/brands servicing this segment:

No. Segment Product

1. House Holds Knives, Sword, Num chucks, Walking Kane,
Ninja’s, Throwings, Daggers, Cutlery Sets.
2. Boucher Knives.
3. Army Knives, Paper Cutter, Sword, Num chucks,
Walking Kane, Ninja’s, Throwings, Daggers,
Cutlery Sets.
4. Hunters Knives.
5. Hotels Knives, Sword, Num chucks, Walking Kane,
Ninja’s, Throwings, Daggers, Cutlery Sets.
6. Fisher men Knives.
7. TV channels Knives, Sword, Walking Kane, Ninja’s,
Throwings, Daggers.
8. Offices Paper Cutter, Sword, Num chucks, Walking
Kane, Ninja’s, Throwings, Daggers, Cutlery
Sets.
9. Individuals Knives, Paper Cutter, Num chucks, Walking
Kane, Ninja’s, Throwings, Daggers.
2.3 Proposed marketing mix strategies:

These strategies include the following strategies:
Product Strategy
Pricing Strategy
Distribution Strategy
Promotional Strategy
2.3.1 Product Strategy:
Products will be the result of continuous efforts of R&D and products will be coupled
with various benefits and services to the end users.
2.3.2 Pricing Strategy:

The prices of the products will be the substitute of the quality of the products and this
will really generate superior values for the customers.
2.3.3 Distribution Strategy:
The whole focus in distribution strategy of the organization will be on maximizing the
relations with the intermediaries and will be on entering into the markets to which the
other competitors have less access.
2.3.4 Promotional Strategy:
The products of the GOLDEN INDUSTRIES will be promoted directly by giving
incentives to the whole sellers, distributor (Market Intermediaries), by billboards, and
also by the print ads.
IM P LE M E NTA TIO N P LA N
All the marketing strategies specially the marketing mix strategies will be coupled with
the organizational strategies and will be communicated to all the members of the
organization in a way that all the members get motivation and carry all the strategies very
seriously because the should have learned that the organizational performance is totally
attached with the achievement of these strategies.
Further more all the employees will be given incentives on better achievement of the
strategies.
EVALUATION AND CONTROL

PROCESSESS
The control process will continue from the start to the end stage of the implementation
plan so that there could not be any problem or error at the end of implementation. And
during the controlling stage the top management follows the concept of management by
walking around (MBWA). So that the interest of the employees can be created in
different type of the activities.
And ultimately getting the desired performance from whole organization, all the
employees will be given incentives due to their glorious efforts.
MARKETING PLAN
PRODUCTION PLAN
1. MACHINERY:
For manufacturing of cutlery products, GOLDEN INDUSTRIES have following
machines:
Cutting press
Grinding machine
Polishing machine
High or dull polish machine
Buff machine
Cleaner machine
Sharpener
Diees
Different type of cutters
Stamping machine
Dalai press
2 PRODUCTION PROCESS:
Production process start with making sketch of the product, then this sketched model is
shaped into the diee, and then we cut the blade of model’s shape in the cutting process
where we also cut its sunibi, its lock, its handle. Then comes the stage of tempering
where we make the Mattel hard, then comes the phase of combining, where we combine
handle with the blade and complete the rough structure of a knife, then comes the stage of
grinding where we grind the blade as our requirement as well the handle, then comes the
stage of polishing where we give a new look to knife means polishing the knife, then
comes the stage of initial finishing where we again make high or dull polish of the knife.
After buffing, and cleaning stage there comes the final stage here we make knife sharp,
sharpening and again revise the cleaning process and then it is packed. And now a knife
is ready to be sold and ready to be used.
The above mentioned production process is shown in the below diagram:
Raw Material
Cutting
Tempering
Combining
Grinding
Polishing
Initial finishing
Packing
Products Products
Final finishing
3. PLANT CAPACITY:
The machines can be used for no of years just by little bit repairing and by updating
“SAAN”. Plant capacity for the cutting, grinding, and polishing.
For Cutting
Per day capacity of machine
No. Product Name
Min Capacity (dozen) Max capacity (dozen)
1 Pocket Knives 300 550
2 Hunting Knives 290 500
3 Fantasy Knives 270 450
4 Kitchen Knives 300 550
6 Commando Knives 290 520
8 Boot Knives 260 450
9 Swards 250 420
For grinding:
No. Product Name
10 Swards 133 200
For polishing:
No. Product Name
9 Swards 133 225
One-day production of one relevant product in one day:
If only one product is produced in one day then relevant production rates
of initially produced products is given below:
One day production of one relevant product in one day
No. Product Name
Min in piece Max in piece

7 Swards 399 600
One month and one year production of one relevant product:

As we have 26 day of operation in one month, so we will get 3.72 days for producing
only one product in one month. Thus we will have the following production rate:
In one month In six months

No. Product Name
Min in piece Max in piece Min in piece Max in piece
1 Pocket Knives 1638 3348 9828 20088
2 Hunting Knives 1763 2790 10578 16740
3 Fantasy Knives 1451 2232 8706 13392
4 Kitchen Knives 2511 4464 15066 26784
5 Commando Knives 1663 2790 9978 16740
6 Boot Knives 2422 4464 14532 26784
7 Swards 1484 2232 8904 13392
Total 77592 133920
So, GOLDEN INDUSTRIES can produce total number of products from 77592 to
133920 in six months, and from 155184 to 267840 in one year.
MANAGEMENT PLAN
M AN A G EM EN T P LAN
In the GOLDEN INDUSTRIES management plan passes through the following stages:
Planning
Organizing
Leading
Controlling
Staffing (HRM)
1. PLANNING:
In the planning phase the CEO of GOLDEN INDUSTRIES has well defined his vision,
mission, and goals. The vision and mission statement is given below:
Vision statement
“To become a linker of great quality for diversified market and become
organizer to establish a good report at global level to raise standard of
living at local level by delivering value added product with the help off
inside workers”
Mission statement
opportunities”
As it is understood by the mission statement that the primary goal of GOLDEN
INDUSTRIES is to maximize its sale. And some of the other goals are:
Customer satisfaction in the form of maximum quality.
Use human intensive machinery.
To produce more employment opportunities for the workers.
1.1 Strategic objectives:

The strategic objectives of the GOLDEN INDUSTRIES are given below:
Strategic Objective Explanation
A bigger market share. By increasing the market share, GOLDEN
INDUSTRIES will get increase in its revenue that
would be the witness of high sale. To some extend

GOLDEN INDUSTRIES is successful in its objective
but to be successful totally GOLEN INDUSTRIES
has to develop new markets around the world.
Higher profit margins. Our analysis has proved that the net profit margin of
GOLDEN INDUSTRIES is continuously declining.
But to achieve this objective GOLDEN INDUSTRIS
has to replace the human intensive technology with
the advanced machinery.
Expansion of market To some extend GOLDEN INDUSTRIES is
intermediaries. achieving this objective, but to fully achieve this
objective it has to enter into the markets of other
countries.
Increase products’ quality. The GOLDEN INDUSTRIES is doing it through its
R&D department by which it determines the
customers’ needs and tries to fulfill these needs.
2. ORGANIZING:
To organize or implement his planning, the CEO has not hired specialized personals for
managing HR, MIS, R&D, TQM, Sales and Marketing, and Finance. There for the
organization is no fully utilizing its potential.
2.1 Organizational Structure:

According to our suggestions the organizational structure of GOLDEN INDUSTRIES
should be as given below:
CEO
HR Manager
Production Sale/Pur./ R&D

Manager Manager MIS Manager
Marketing
Manager
Assistant MIS
Assistant Manager
Checkers
Assistant R&D
Sale/Pur./ Manager
Marketing
Manager
And the production department’s hierarchy is given below:
Production
Manager
C H E C K E R S
Cutting Combining Grinding Polishing Finishing Packing
Workers Workers Workers Workers Workers Workers
2.2 Salaries of Staff:

Post Salary (Rs.)
Sale/Purchase/Marketing Manager 7,000
Production Manager 4,000
R & D Manager 4,000
MIS Manager 6,500
HR Manager 8,000
Office Boys 3,000
Checker 3,000
For workers:
Post Salary/wages per day
Workers for Cutting Rs. 200 per day
Workers for Combining Rs. 18 per dozen
Workers for Grinding Rs. 18 per dozen
Workers for Polishing Rs. 17 per dozen
Workers for finishing Rs. 170 per day

Workers for Packing Rs. 150 per day
2.3 Communication System:

In the GOLDEN INDUSTRIES there is an effective communication system for
communicating the organization goals and objective to the functional managers and
lower staff.
3. LEADING:
In the golden industries there is no formal quality council but the top management has set
some certain parameters that fully ensure the role of top manager as a leader who is
leading all the employees and the workers of the organization.
Let’s discuss some elements of leadership briefly before discussing them into the detail:
The structure of the GOLDEN INDUSTRIES is decentralized.
There is participatory type of management in the GOLDEN INDUSTRIES.
The organization is following the concept of management by walking around.
There are well defined quality policy statement in the form of mission and vision
of the organization.
Top manager as being the leader is well knowledgeable with all type of
organizational activities and with external environment of the industry of the cutlery.
There is effective communication system in the organization.
So the detail of the above-mentioned point is given below:
3.1 Decentralized structure of the GOLDEN INDUSTRIES:

The structure of the GOLDEN INDUSTRIES is fully decentralized because the top
manager is provided the information by the functional managers who are further
supported by their respective assistant, supervisors, checkers, and work force. The
information may be in the form of what maximum no. of the products should be taken as
the order from the overseas customer, how the quality should be improved etc.
3.2 Participative type of management of the GOLDEN

INDUSTRIES:
The top manager is fully supported by the functional managers (who are suggested by
their respective lower fellows) in the major management decisions. The top manager is
supported in term of forming the annual objectives, planning human resource, motivating
the employees and managers etc.
3.3 Management by walking around in GOLDEN INDUSTRIES:

The top manager of the golden industries spend his lot of time with the workforce and
discuss many aspects, some relating to the work, some relating to their personal matters,
some relating to the work problems, so by doing all this the top manager is creating the
loyalty among the workers with their organization. So, all this is building the confidence
among the workers to communicate freely without feeling any hesitation. Also the
functional managers are asked to discuss the feed back of their lower fellow. And also the
top manager is involved in the settlement of disputes among the workers.
3.4 Quality policy statement in the GOLDEN INDUSTRIES:

According to the CEO, the GOLDEN INDUSTRIES is following the following mission
and vision statements as a quality policy statement:
Vision statement
“To become a linker of great quality for diversified market and become organizer to
establish a good report at global level to raise standard of living at local level by
delivering value added product with the help off inside workers”
MISSION STATEMENT
opportunities”
3.5 Top manager is knowledgeable in GOLDEN INDUSTRIES:

The top manager is well knowledgeable in the GOLDEN INDUSTRIES with all type of
internal activities in the following departments:
Marketing Department
R & D Department
HR Department
Production Department
Sale/Purchase Department
MIS
Beside this the top manager is well familiar with the external forces of the cutlery
industry because he is also the president of all Pakistan cutlery consortiums.
3.6 Effective communication system in the GOLDEN

INDUSTRIES:
The communication system of the GOLDEN INDUSTRIES is following the two way
communication system or effective communication system, in which the feedback of the
workers is taken by the functional managers (and some time by the top manager directly)
and then is sent to the top manager, also top manager direct the orders through the mean
of functional manager and sometime itself direct and communicate with the workforce.
4. CONTROLLING:
In the controlling phase, the key person who has to control and face the resulting effects
from different activities is the CEO Mr. Haji Mushtaq. And often stay out side the
Pakistan and he less concern about the controlling process in the organization
As controlling is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting and significant deviation. So the controlling
process in the GOLDEN INDUSTRIES can be discussed in the following ways:
4.1 Management By Walking Around (MBWA):

During the timing, which the CEO of GOLDEN INDUSTRIES spends in Pakistan, he
periodically visits the activities of all the employees and workers and some time he also
shows his own involvement in those activities. He does all these things so that employee
can perform their activates as per planning. But it will be more appropriate for the CEO
of GOLDEN INDUSTRIES to stay in Pakistan and show participation in the activities of
lower staff.
4.2 Operational Management:

Operational management says that manager should be in touch with the all the activities
of the organization starting from raw material and ending on finished goods. The CEO of
GOLDEN INDUSTRIES should monitor all the activities so that at the end he has not to
meet with some errors or defects. And he should focus on the philosophy: “Prevention
rather than detection and control”.
4.3 Management Information System (MIS):

When ever the CEO of GOLDEN INDUSTRIES stays outside the Pakistan then the MIS
could be one of the great sources for the CEO to monitor the activities of the organization
trough the Internet connectivity with the organizational MIS.
HUMAN RESOURCE
MANAGEMENT
HUM A N R ES OUR C E M AN A G EM EN T
As it has been discussed earlier that activities regarding the human resource management
in the GOLDEN INDUSTRIES are performed informally, because one single person
(with checkers) is sitting in the production hall, who is managing the human resource
management in term of: attendance; discipline; quality of work; required employees;
disputes among the employees, etc. And all the other motivational incentives are being
given to the employees by the CEO Mr. Haji Mushtaq.
1. HUMAN RESOURCE DEVELOPMENT:

Development is a long-term process to enhance potential and effectiveness of an
organization. HRD is an integrated & holistic approach to changing work- related
behavior by using a range of learning techniques/strategies discussed below in reference
to the GOLDEN INDUSTRIES:
1.1 Training:
When a new employee is hired in GOLDEN INDUSTRIES, he is provided information
about his job, duties, rules & regulations through HRD. Some information is providing
orally and some information is providing practically. After some months incharges of
department are provided updated information to update the knowledge and skills of
employees.
1.2 Bonuses:
Bonuses are provided at the rate of 50% of salary after six months.
1.3 Leaves:
Ten leaves in casual and sixteen leaves in medical during six months. They are also given
half pay in case of no leave.
1.4 Increment:
Increment is provided after three or six months, it may also extend.
1.5 Promotion:
The good employees are promoted after the probation period (six months or one year).
Incharges can also recommend his promotion.
1.6 Facilities:
GOLDEN INDUSTRIES gives the following facilities to motivate the employees or
workers:
Transportation
Lunch
Tea
Medical allowances
2. HRD WORKING:
Issuance of following letters:
2.1 Show Cause Notices:

Show Cause Notices are being issued to those employees who remain absent
continuously three days in a week or remain absent five days in a month.
2.2 Warning letters:

Warning letters are issued if any employee found guilty in any case.
2.3 Suspension letter:

Suspension letters are issued only for three days on the recommendation of concerned
departmental Head. Furthermore Suspension period will not be extended above twenty
eight days.
2.4 Termination letter:

Termination letter are issued if any employee remain absent without any information or
will be issued if last & final warning letter has been issued on the instructions of C.E.O.
2.5 Acceptance of resignation letters:

Resignation letters will accept after getting recommendation of concerned departmental
head.
2.6 Demand for new employees:

Demand will be evaluated by the person who is sitting in the Production Hall, as a human
resource manager.
2.7 Completion of personal file of new employee:

HRD Department will make sure for the completion of personal file of every new
employee. As signature of executive HRD will be required on following documents:
Job Application form
Contract form
New employee orientation form
FINANCIAL PLAN
F I N A N C I A L P L A N
Regarding the finance, the GOLDEN INDUSTRIES did not give us any information.
Because the GOLDEN INDUSTRIES has not prepared any of the financial statements
business operations. And during the interview, we came to know two things about
financial matters of the GOLDEN INDUSTRIES.
The first thing is that GOLDEN INDUSTRIES is using computerized payroll system that
is managed by the MIS department.
Secondly, we learn about the sales and ‘total cost and expense’ figures of previous three
years of GOLDEN INDUSTRIES. The sales and ‘cost and expense’ figures are given
below:
Year Sales and ‘total cost and expense’ Net Profit
figures Margin (%)
2004 Sales Rs. 15,000,000 20
2004) Net Profit Rs. 3,000,000
2005 Sales Rs. 13,500,000 11
2005) Net Profit Rs. 1,500,000
In this year the sales and net profit
were negatively affected due to the
wrong LC. And during this year
GOLDEN INDUSTRIES also took
loan of Rs. 1,000,000 from the Soneri
Bank Ltd.
2006 Sales Rs. 14,500,000 19
2006) Net Profit Rs. 2,700,000
For making the comparison of the above-mentioned financial data of GOLDEN

INDUSTRIES with the financial data of other cutlery manufacturer, we visit ‘All
Pakistan Cutlery Association’ to take financial data of other cutlery manufacturers. But
they don’t give it to us and one thing they told us was that the GOLDEN INDUSTRIES
is the largest manufacturer and exporter of the cutlery, and its annual sales are more than
the sales of any other cutlery manufacturer.
RESEARCH AND
DEVELOPMENT
RESEARCH AND DEVELOPMENT

In the R&D department of GOLDEN INDUSTRY there are two designers who are
associated with the computer/IT department. As the main market of GOLDEN
INDUSTRY, where they are exporting their cutlery products is international market
mean of internet. Because their foreign rivals are closer to their respective culture, and
customers, by which they design the products totally according to their customers’
requirements, therefore GOLDEN INDUSTRY checks for new products through their
1. PROCESS FOLLOWED BY R&D:

R&D department takes input of designs by visiting the web site of their foreign
competitors who have established the design by examining the behavior of customers
who are near to them. Then R&D takes help of a section of production department (that is
specially designed for R&D) to make amendments in the designs obtained by the webs.
(The Section of production department that make amendment in newly found designs)
After the amendments the new products are sent to the C.E.O for final inspection. Who
then introduce the product to the foreign market through foreign shows, web sites, and
through trial use to their customers. And if the products are accepted by the customers
then the order requests are sent to production department for the production of new
products otherwise newly established product is sent to R&D department for further
amendments.
Visit rivals’ website.
R&D Dep. Web Sites of Foreign Rivals.
Take the new designs
Make Take input from
amendments customer
Sec. of Production Dep. Foreign Market
Send products for

inspection
Introduce the new products

C.E.O
Take feedback from market
(R&D Process model of GOLDEN INDUSTRIES)
2. TOOLS THAT ARE USED BY R&D:

These include the tools that are used by the R&D employees to invent and introduce new
designs. So, in the R&D following tools are used:
Internet browsing
Macromedia Fireworks Mx
Online Magazines
Magazines
Printer for printing the images of the new designs
Trade shows
Trial use, etc.
3. TRAIL USE OF NEWLY DESIGNED PRODUCTS:

When a new product is designed by the R&D department then the GOLDEN
INDUSTRY uses ‘trial use’ technique to introduce and take feedback about the newly
found product from the market. The GOLDEN INDUSTRY sends the products for trail
use to only those customers/wholesalers who have a long relation with the firm.
4. BENCHMARKING OF PRODUCTS:
The designs which are taken from the internet are benchmarked, and after that they are
changed and then new products are formed that are further tested and processed.
RISK MANAGEMENT
R I S K M A N A G E M E N T
As the risk management process passes through the following stages:
Risk Identification
Risk Assessment
Risk Response
So, the risk management process in the GOLDEN INDUSTRY can be traced by
following the above mentioned steps in the respective order. And all the above mentioned
steps are explained below with respect to the GOLDEN INDUSTRY.
1. RISK IDENTIFICATION:
This stage of risk identification for GOLDEN INDUSTRY can be categorized into the:
External Risk Events
Internal Risk Events
1.1 External Risk Events:

These include the risks from external environment that are overall affecting the
GOLDEN INDUSTRY and the projects upon which GOLDEN INDUSTRY is working.
The external risks for the GOLDEN INDUSTRY include the following risks:
a) Changes in rules of All Pakistan Cutlery Association: All Pakistan
Cutlery Association is the regulatory body for the Cutlery industry in Pakistan,
and all the firms in the cutlery industry have to follow the rules which are
approved by the association. The outcome or consequence of the rules which are
approved by the association may be the bane of such product that is generating a
huge profit for the cutlery firms, or it may involve the firms to participate
financially in association or in some other matter.
b) Government Regulations: The government can cause the change in the
rate of the rebate and tax and also government can impose the duty upon the
supplies which are imported from other countries.
c) Entrance of new rivals in the industry: Entry of new rivals into the
industry can cause the GOLEDEN INDUSTRY to enjoy low profits and to sign
the projects on the competing prices.
d) Unethical Asses of rivalry Firms: Some time the other competing firms
try to copy the design of products of GOLDEN INDUSTRY by their unethical
means.
e) World Wide Acceptance of Chinese Products: The world wide
acceptance of Chinese products is causing the GOLDEN INDUSTRY to get loss
of their foreign as well as domestic customers and also to enjoy low profits on
their sales of cutlery by offering low and competing prices.
f) Unstable Prices of Raw Material: The unstable prices of raw material
are causing the GOLDEN INDUSTRY to have variation in the quality of cutlery
products.
g) Rains and Storms: Some time rains and storms cause the workers to be
absent from the work and also the finished goods can not be delivered on the time
during the shipment process.
h) Poor Wapda System: Due to the poor system of wapda, the electricity
availability can be stopped at any time by the wapda.
i) Change in Currency rates: The ups and downs in the rates of currency
of the country where they are exporting their products can cause the GOLDEN
INDUSTRY to make changes in the prices of their products which are exported.
j) Lack of secrecy by Chamber of Commerce: The chamber of
commerce can provide information about any member publicly to any one who
needs the information; so, by this any one can unethically use the information and
some time the information is sent to the foreign importers.
k) Change in Cargo prices: Due to the change in the cargo prices there
may be the certain increase in prices of the products and also there may be the less
focus upon the quality.
1.2 Internal Risk Events:

These include the risks that are generated from the internal activities of the GOLDEN
INDUSTRY and these risks affect the firm internally. The internal risks for the GOLDEN
INDUSTRY include the following risks:
a) Improper handling of Press: In the cutting section, improper handling of

Press can cause the Press to strike off (some time belt is also broken) by which
operator of Press is physically damaged.
(Cutting Press)
b) Improper fitting of diee on Press: In the cutting section, if the diees are
not properly fitted on the Press than it can damage the diee.
c) Improper stroke of diee by the Press operator: In the cutting section,
improper stroke of diee by the Press operator can damage the iron plates (by
which blades of knifes are obtained) or improper stroke can damage the piece
which is obtained from the iron sheet.
d) Improper storage of diee in cutting section: The improper storage
of diees in the cutting section can cause the Press operator to waste extra time in
the search of diees and also some time the diees cannot be found due to the
improper storage.
(Diees in cutting Section)

e) High Stroke of Hammer in combining section: In the combining

section some time the high stroke of hammer (to insert the pin into the handle)
can damage the handle of the knife.
(Combining Section)
f) Improper combining of Blade and Handle: In the combining section if

the knife’s blade and handle are not properly combined then the dots and small
scratches appear (on the area where pins are inserted) on the surface of handle.
And sometime this defection in the product creates the element of dissatisfaction
in the customer.
g) Improper stroke of grinding machine: In the grinding section if the
operator makes a high stroke of grinding machine on the blade of the knife then it
may spoil the blade of the knife.
(Grinding Section)
h) Installment of new San on grinding machine: When ever in the

grinding section new San is installed on the grinding machine then there exist
very high chances that the San will be broken and the machine operator will be
badly damaged physically by the broken pieces of the San.
i) Improper use of Mssala in polishing section: Some time the too bad
usage of mssala in the polishing section make the availability of dots or small
scratches (on the area where pins are inserted) on the surface of handle.
(Polishing Section)
j) High stroke in the Finishing section: Some time very high stroke
in the finishing section causes the piece to be burn.
(Finishing Section)
k) Low stroke in the Finishing section: Some time very low stroke in
the finishing section don’t remove the dot or small scratches (on the area where
pins are inserted) on the surface of handle. And it makes the product as non
confirming.
l) Child Labor: In the some areas of production department there are some
child workers, who are operating heavy machines, and if the foreign customers of
GOLDEN INDUSTRY get the knowledge about child labor in the GOLDEN
INDUSTRY, then they can stop purchasing the products from them and same
situation will happen as was happen in the Sialkot industry.
m) Poor electricity system: There exists a very poor electricity system in
the GOLDEN INDUSTRY, any time there me by the short circuit, and the most
important thing is the place of main boards of electricity system, that are very
near or close to the cutting press due to which there exists a very high risk of fire
in the main boards of electricity system.
(Electricity System)
n) Quarrel among the workers: Some time the quarrel among

workers may happen and during that cases the workers can use knifes (which are
placed near to them) as weapons to fight with each other. And this fight some
time may cause the death of some worker.
o) Selection of unskilled workers: Some time the unskilled workers
(who have no idea about how to do work) are also hired by the firm, which are
treated as trainees (shagird) and after spending some period of time they learn
how to work. But on the other hand they cause the firm to bear a lot of loss and
after bearing loss and making unskilled labor as skilled; it may happen that the
skilled labor may leave the firm.
1.3 Risk Identification Matrix:

The following given matrix highlights the risks and provides the relative consequences of
all the risks.
Sr. no. Risk Event Consequence
1.1 External Risk Events
a Changes in rules of All Pakistan Bane product that is generating huge
Cutlery Association profit.
Financial Participation in association.
b Government Regulations Govt. can impose the duty upon the
supplies imported from other countries.
Change in the rates of rebates.
c Entrance of new rivals in the Low profits.
industry Sign the projects on the competing
prices.
d Unethical Asses of rivalry Firms Copy the design of products.
e World Wide Acceptance of Get loss of their foreign as well as
Chinese Products domestic customers.
f Unstable Prices of Raw Material Variation in the quality.
g Rains and Storms Workers’ absence.
Late in delivery of finished goods.
h Poor Wapda System Unavailability of Electricity.
i Change in Currency rates Changes in the prices of their products.
j Lack of secrecy by Chamber of Unethically use the information.
Commerce Access of Foreign importers.
1.2 Internal Risk Events
a Improper handling of Press Strike off the press.
b Improper fitting of diee on Press Damage the diee.
c Improper stroke of diee by the Damage the iron plates.
Press operator Damage the piece.
d Improper storage of diee in cutting Press operator waste extra time in
section searching.
Some time the diees cannot be found.
e High Stroke of Hammer in Damage the handle of the knife.

combining section
f Improper combining of Blade and Dots and small scratches appear.
Handle
g Improper stroke of grinding It may spoil the blade of the knife.
machine
h Installment of new San on grinding Broken of San.
machine Damage of machine operator.
i Improper use of Mssala in Appearance of dots or small scratches.
polishing section
j High stroke in the Finishing Burn of the piece.
section
k Low stroke in the Finishing section Don’t remove the dot or small
scratches.
l Child Labor Foreign customers can stop purchasing
the products.
m Poor electricity system Short circuit.
Fire in the main boards.
n Quarrel among the workers Workers can use knifes.
Death of some worker.
o Selection of unskilled workers A lot of loss.
Skilled labor may leave the firm.
2. RISK ASSESSMENT:
It is the second stage of risk management process and it is further processed with the
following activities:
2.1 Desirable Risk events:

Following are the desirable risk events for the GOLDEN INDUSTRY:
External Risk Events:
 b) Government Regulations
 i) Change in Currency rates
 j) Lack of secrecy by Chamber of Commerce

Internal Risk Events:
 (No desirable risk event)
2.2 Undesirable Risk events:

Following are the undesirable risk events for the GOLDEN INDUSTRY:
External Risk Events:
 a) Changes in rules of All Pakistan Cutlery Association
 c) Entrance of new rivals in the industry
 d) Unethical Asses of rivalry Firms
 e) World Wide Acceptance of Chinese Products
 f) Unstable Prices of Raw Material
 g) Rains and Storms
 h) Poor Wapda System
 k) Change in Cargo prices
Internal Risk Events:
 a) Improper handling of Press
 b) Improper fitting of diee on Press
 c) Improper stroke of diee by the Press operator
 d) Improper storage of diee in cutting section
 e) High Stroke of Hammer in combining section
 f) Improper combining of Blade and Handle
 g) Improper stroke of grinding machine

 h) Installment of new San on grinding machine
 i) Improper use of Mssala in polishing section
 j) High stroke in the Finishing section
 k) Low stroke in the Finishing section
 l) Child Labor
 m) Poor electricity system
 n) Quarrel among the workers
 o) Selection of unskilled workers
2.3 Outcomes of the risk events:

The outcomes for all the risk events are shown below in the table:
Sr. no. Risk Event Consequence Outcomes
a Changes in rules of All Bane product that is Reduction in sale.
Pakistan Cutlery generating huge profit.
Association Financial Participation in
association.
b Government Regulations Govt. can impose the duty Maximized profit by
upon the supplies rebates.
imported from other
countries.
Change in the rates of
rebates.
c Entrance of new rivals in Low profits. Reduction in no. of
the industry Sign the projects on the projects.
competing prices.
d Unethical Asses of rivalry Copy the design of Increase in the
Firms products. competition.
e World Wide Acceptance of Get loss of their foreign as Reduction in no. of
Chinese Products well as domestic projects.

customers.
f Unstable Prices of Raw Variation in the quality. Satisfaction/Un
Material satisfaction to the
customers.
g Rains and Storms Workers’ absence. Delay in the project.
Late in delivery of
finished goods.
h Poor Wapda System Unavailability of Delay in the Project.
Electricity.
i Change in Currency rates Changes in the prices of Minimize/maximize the
their products. profit.
j Lack of secrecy by Unethically use the Order for more project.
Chamber of Commerce information.
Access of Foreign
importers.
a Improper handling of Press Strike off the press. Delay in project.
b Improper fitting of diee on Damage the diee. Delay the project.
Press Faulty input of pieces to
combining department.
c Improper stroke of diee by Damage the iron plates. Shortage of Iron Plates.
the Press operator Damage the piece. Faulty input of pieces to
combining department.
d Improper storage of diee in Press operator waste extra Delay in the project.
cutting section time in searching. Spend money on new
Some time the diees diees.
cannot be found.
e High Stroke of Hammer in Damage the handle of the Wastages.
combining section knife. Non-confirming items.
f Improper combining of Dots and small scratches Non-confirming items.
Blade and Handle appear.
g Improper stroke of It may spoil the blade of Wastages.
grinding machine the knife.
h Installment of new San on Broken of San. Injury of operator.
grinding machine Damage of machine

operator.
i Improper use of Mssala in Appearance of dots or Non-confirming products.
polishing section small scratches.
j High stroke in the Burn of the piece. Loss in the form of
Finishing section Wastages.
k Low stroke in the Finishing Don’t remove the dot or Non-confirming products.
section small scratches.
l Child Labor Foreign customers can Customers will be
stop purchasing the defected.
products.
m Poor electricity system Short circuit. Delay in the project.
n Quarrel among the workers Workers can use knifes. Shortage of Labor.
o Selection of unskilled A lot of loss. Firm suffers financially.
workers Skilled labor may leave
the firm.
2.4 Chance of risk events’ occurrence:

The chance of risk events’ occurrence can be determined by giving the following ratings
to all risk events:
 High (for high chance)
 Medium (for medium chance)
 Low (for low chance)
So, the chance of all the risk events’ occurrence is given below:
Sr. Risk Event Consequence Chance of
no. occurrence
a Changes in rules of All Bane product that is generating Low
Pakistan Cutlery Association huge profit.
Financial Participation in
association.
b Government Regulations Govt. can impose the duty upon Medium
the supplies imported from other

countries.
c Entrance of new rivals in the Low profits. Medium
industry Sign the projects on the
competing prices.
d Unethical Asses of rivalry Copy the design of products. Low
Firms
e World Wide Acceptance of Get loss of their foreign as well High
Chinese Products as domestic customers.
f Unstable Prices of Raw Variation in the quality. Medium
Material
g Rains and Storms Workers’ absence. Medium
Late in delivery of finished
goods.
h Poor Wapda System Unavailability of Electricity. Medium
i Change in Currency rates Changes in the prices of their Medium
products.
j Lack of secrecy by Chamber Unethically use the information. Low
of Commerce Access of Foreign importers.
a Improper handling of Press Strike off the press. Low
b Improper fitting of diee on Damage the diee. Low
Press
c Improper stroke of diee by the Damage the iron plates. Low
d Improper storage of diee in Press operator waste extra time in Medium
cutting section searching.
Some time the diees cannot be
found.
e High Stroke of Hammer in Damage the handle of the knife. Low
combining section
f Improper combining of Blade Dots and small scratches appear. Medium
and Handle
g Improper stroke of grinding It may spoil the blade of the Low
machine knife.
h Installment of new San on Broken of San. Medium

grinding machine Damage of machine operator.
i Improper use of Mssala in Appearance of dots or small Low
polishing section scratches.
j High stroke in the Finishing Burn of the piece. Low
section
k Low stroke in the Finishing Don’t remove the dot or small Low
section scratches.
l Child Labor Foreign customers can stop Low
purchasing the products.
m Poor electricity system Short circuit. Medium
n Quarrel among the workers Workers can use knifes. Medium
o Selection of unskilled workers A lot of loss. Medium
2.5 Magnitude or Severity of risk Events:

The magnitude or severity of risk events can be determined by giving the following
ratings to all risk events:
 High (for high magnitude)
 Medium (for medium magnitude)
 Low (for low magnitude)
So, the magnitude or severity of all the risk events is given below:
Sr. Risk Event Consequence Magnitude

no. /Severity
a Changes in rules of All Bane product that is generating High
Pakistan Cutlery Association huge profit.
Financial Participation in
association.
b Government Regulations Govt. can impose the duty upon Medium
the supplies imported from other
countries.
c Entrance of new rivals in the Low profits. High
industry Sign the projects on the
competing prices.
d Unethical Asses of rivalry Copy the design of products. Medium
Firms
e World Wide Acceptance of Get loss of their foreign as well High
Chinese Products as domestic customers.
f Unstable Prices of Raw Variation in the quality. Low
Material
g Rains and Storms Workers’ absence. Medium
Late in delivery of finished
goods.
h Poor Wapda System Unavailability of Electricity. High
i Change in Currency rates Changes in the prices of their Low
products.
j Lack of secrecy by Chamber Unethically use the information. Low
of Commerce Access of Foreign importers.
a Improper handling of Press Strike off the press. Medium
b Improper fitting of diee on Damage the diee. Low
Press
c Improper stroke of diee by the Damage the iron plates. Medium
d Improper storage of diee in Press operator waste extra time in Low
cutting section searching.
Some time the diees cannot be
found.
e High Stroke of Hammer in Damage the handle of the knife. Low
combining section
f Improper combining of Blade Dots and small scratches appear. Low
and Handle
g Improper stroke of grinding It may spoil the blade of the Medium
machine knife.
h Installment of new San on Broken of San. High
grinding machine Damage of machine operator.

i Improper use of Mssala in Appearance of dots or small Low
polishing section scratches.
j High stroke in the Finishing Burn of the piece. High
section
k Low stroke in the Finishing Don’t remove the dot or small Low
section scratches.
l Child Labor Foreign customers can stop Medium
purchasing the products.
m Poor electricity system Short circuit. High
n Quarrel among the workers Workers can use knifes. High
o Selection of unskilled workers A lot of loss. Medium
2.6 Risk assessment matrix:

The following given risk assessment matrix is determining the nature of each risk event
depending upon the consequence and the outcomes of each risk event:
Sr. Risk Event Consequence Outcomes Undesirable Identifiable Chance of Magnitude

no. Risk events risk events occurrence of risk
External risk events
a Changes in rules of Bane product that is Reduction in sale.  Low High
All Pakistan Cutlery generating huge

Association profit.
Financial
Participation in
association.
b Government Govt. can impose the Maximized profit Medium Medium
Regulations duty upon the by rebates.
 
supplies imported
from other countries.
Change in the rates of
rebates.
c Entrance of new Low profits. Reduction in no. of   Medium High
rivals in the industry Sign the projects on projects.
the competing prices.
d Unethical Asses of Copy the design of Increase in the  Low Medium

rivalry Firms products. competition.

e World Wide Get loss of their Reduction in no. of  High High
Acceptance of foreign as well as projects.

Chinese Products domestic customers.
f Unstable Prices of Variation in the Satisfaction/Un  Medium Low
Raw Material quality. satisfaction to the

customers.
g Rains and Storms Workers’ absence. Delay in the  Medium Medium
Late in delivery of project.

finished goods.
h Poor Wapda System Unavailability of Delay in the  Medium High
Electricity. Project.

i Change in Currency Changes in the prices Minimize/maximiz Medium Low
rates of their products. e the profit.
 
j Lack of secrecy by Unethically use the Order for more Low Low
Chamber of information. project.
 
Commerce Access of Foreign
importers.
Internal risk events
a Improper handling Strike off the press. Delay in project.  Low Medium
of Press

b Improper fitting of Damage the diee. Delay the project.   Low Low
diee on Press Faulty input of
pieces to
combining
department.
c Improper stroke of Damage the iron Shortage of Iron  Low Medium
diee by the Press plates. Plates.

operator Damage the piece. Faulty input of
pieces to
combining
department.
d Improper storage of Press operator waste Delay in the   Medium Low
diee in cutting extra time in project.
section searching. Spend money on
Some time the diees new diees.
cannot be found.
e High Stroke of Damage the handle Wastages.   Low Low
Hammer in of the knife. Non-confirming
combining section items.
f Improper combining Dots and small Non-confirming  Medium Low
of Blade and Handle scratches appear. items.

g Improper stroke of It may spoil the blade Wastages.  Low Medium
grinding machine of the knife.

h Installment of new Broken of San. Injury of operator.   Medium High
San on grinding Damage of machine
machine operator.
i Improper use of Appearance of dots Non-confirming  Low Low
Mssala in polishing or small scratches. products.

section
j High stroke in the Burn of the piece. Loss in the form of   Low High
Finishing section Wastages.
k Low stroke in the Don’t remove the dot Non-confirming   Low Low
Finishing section or small scratches. products.
l Child Labor Foreign customers Customers will be  Low Medium
can stop purchasing defected.

the products.
m Poor electricity Short circuit. Delay in the  Medium High
system Fire in the main project.

boards.
n Quarrel among the Workers can use Shortage of Labor.  Medium High
workers knifes.

Death of some
worker.
o Selection of A lot of loss. Firm suffers   Medium Medium
unskilled workers Skilled labor may financially.
leave the firm.
3 RISK RESPONSE DEVELOPMENT:

It is the final stage of risk management in which we develop response and contingence
plan against a risk event. So, the following given Risk response matrix provides the
response and contingence plan against each risk event:
3.1 Risk Response Matrix:

Sr. Risk Event Response Contingency Plan
no. (Accept, reduce, share,
transfer)
External risk events
a Changes in rules of All Accept the rules made No plan, just accept the
Pakistan Cutlery by the Association. rules.
Association
b Government Regulations Accept the rebates from No plan, just accept the
the government. rebates by govt.
c Entrance of new rivals in Reduce the risk by Have more focus on their
the industry focusing upon more customers’ satisfaction.
marketing efforts.
d Unethical Asses of rivalry Reduce the risk by Don’t let any unknown
Firms ensuring maximum person to visit their show
security. rooms.
e World Wide Acceptance Accept the risk. Focusing upon quality.
of Chinese Products
f Unstable Prices of Raw Share the risk by having Long term contracts with
Material contract with supplier. the suppliers.
g Rains and Storms Accept the risk. No plan.
h Poor Wapda System Accept the risk. No plan.
i Change in Currency rates Accept the risk. No plan
j Lack of secrecy by Reduce the risk by Restrict the chamber to
Chamber of Commerce informing the chamber don’t open personal
to keep our data secrete. information.
Internal risk events
a Improper handling of Accept the risk by Due to improper
Press giving warning to the handling press is struck
operator. by the break of belt, so,
the firm will have extra
belts with it.
b Improper fitting of diee on Reduce by proper There will be proper
Press checking. checking of diees.
c Improper stroke of diee by Reduce by proper Checking after 5-6
the Press operator checking. pieces are produced.
d Improper storage of diee Reduce by instructing Provide proper storage
in cutting section the operator. instructions.
e High Stroke of Hammer Accept the risk by Usage of small hammer.
in combining section giving warning to the

worker.
f Improper combining of Accept the risk by Checker check one piece
Blade and Handle giving warning to the in a dozen.
worker.
g Improper stroke of Accept the risk by Reprocessed the spoiled
grinding machine giving warning to the items.
operator.
h Installment of new San on Reduce by running the Use standard San and
grinding machine san machine in the area Use a hard iron guard on
where no workers are the grinding machine.
near to machines.
i Improper use of Mssala in Accept the risk by Reprocessed the piece.
polishing section giving warning to the
worker.
j High stroke in the Share the risk by having Use spot check.
Finishing section contract with worker.
k Low stroke in the Accept the risk by Reprocessed the piece.
Finishing section giving warning to the
worker.
l Child Labor Reduce by firing the Treat the child labor just
child labor. as a trainee not trained
workers.
m Poor electricity system Reduce by improving Have a separate
the electricity system. electrician.
n Quarrel among the Reduce by firing the Checker daily instruct
workers workers. the workers.
o Selection of unskilled Reduce by following the Follow the HR policy of
workers rules of HR of All All Pakistan Cutlery
Pakistan Cutlery Association. (as shown
Association. below)
(HR Policy by All Pakistan Cutlery Association)

ANALYSIS
A N A L Y S I S
1. SWOT ANALYSIS:
1.1 Strengths:
The first thing is that GOLDEN INDUSTRIES is using computerized payroll
system that is managed by the MIS department.
GOLDEN INDUSTRIES is the largest manufacturer and exporter of the cutlery,
and its annual sales are more than the sales of any other cutlery manufacturer.
GOLDEN INDUSTRIES is providing customers with satisfaction in the form of
maximum quality.
In the GOLDEN INDUSTRIES top management has set some certain parameters
that fully ensure the role of top manager as a leader in the organization.
GOLDEN INDUSTRIES is having very good machinery relatively to the local
competitors.
There is strong marketing intelligence position of GOLDEN INDUSTRIES.
GOLDEN INDUSTRIES has got best trade award 1995.
(Best Trade Award)
GOLDEN INDUSTRY is dealing into a diversified product line.

GOLDEN INDUSTRIES is comparatively providing more user benefits of its
products to the customers.
GOLDEN INDUSTRIES is having an organized showroom containing a huge

collection of cutlery.
1.2 Weaknesses:
GOLDEN INDUSTRIES has not prepared any of the financial statements
business operations.
Continuous fall in net profit margin.
To organize or implement planning, the CEO of GOLDEN INDUSTRIES has not
hired specialized personals for managing HR, MIS, R&D, TQM, Sales and
Marketing, and Finance.
CEO has only one performance measure tool that is “Sales”.
The executives of GOLDEN INDUSTRIES are not doing very well marketing
planning. Because they have not planned any thing about the market.
Marketing planning of GOLDEN INDUSTRIES is only limited to the expansion
of its market intermediaries.
Lack of specialized personal in the field of marketing.
GOLDEN INDUSTRIES is using informal way of promotion, instead of
promoting the products to individual customers; it is promoting the products to the
In GOLDEN INDUSTRIES there is improper storage of diees.
GOLDEN INDUSTRIES is lacking the desired computer and database
technology.
CEO, Mr. Haji Mushtaq spends most of his time out side the Pakistan.
The executive personals of GOLDEN INDUSTRIES have no awareness about the
latest marketing tools.
1.3 Opportunities:
On the behalf of Cutlery association, GOLDEN INDUSTRIES can claim for high
rebate rates.
Relations with politicians can increase sale of cutlery by Army.
Approach to the products, which other manufacturers have stopped to

manufacturer due to the less rebates.
GOLDEN INDUSTRIES can give gifts to the politicians as a part of their
promotion campaign.
Promote the items through cultural contest.
Outsourcing from china.
Install latest technologies that are in use in production process like CAD
technology, and automation.
Establish a web based e-commerce portal in order to reduce the cost of whole
Downsizing through automation.
Focus on product that has high user benefits. ie: Swiss knife.
Find markets, which are not in the reach of the competitors.
Enter into more local markets.
Work in cluster.
As being the Chairman of the ‘All Pakistan Cutlery Association’, the CEO of
GOLDEN INDUSTRIES can promote his suggestion to Government to stop the entry
Take customers feedback through the intermediaries to improve its various
business processes.
Provide incentives to competitors’ commission agents and whole sellers to
increase its own sale.
Provide brand awareness to the customers through some promotional campaign.
Offer customization of products through the internet websites.
1.4 Threats:
Govt. can bane any product.
End of the rebate on any product.
EPB can reduce rate of rebate.
Any product bane due to the cultural limitation.
Negative reaction due to the product that is harmful for the society e.g: butterfly
knife.
China in local as well as in global market.

Copy of product design by the competitors. Competitors can do this by visiting
the showroom of the GOLDEN INDUSTRIES.
Preferences of foreign whole sellers and distributors are continuously changing
from Pakistani exporters to Chinese and Indian exporters.
Chinese exporters offer more incentives to the distributors and whole sellers.
TVC Tele Brand campaign of cutlery products on different TV channels.
Customer preferences are continuously changing.
Increasing number of exporter of cutlery from not only Pakistan but also from
India and China.
2. INTERNAL FACTOR EVALUATION MATRIX (IFE):

Key internal factors Weight Rating Weighted
Score
Strengths
1 The first thing is that GOLDEN INDUSTRIES is 0.05 3 0.15
using computerized payroll system that is managed by
the MIS department.
2 GOLDEN INDUSTRIES is the largest manufacturer 0.06 4 0.24
and exporter of the cutlery, and its annual sales are
more than the sales of any other cutlery manufacturer.
3 GOLDEN INDUSTRIES is providing customers with 0.04 3 0.12
satisfaction in the form of maximum quality.
4 In the GOLDEN INDUSTRIES top management has 0.03 3 0.09
set some certain parameters that fully ensure the role
of top manager as a leader in the organization.
5 GOLDEN INDUSTRIES is having very good 0.04 3 0.12
machinery relatively to the local competitors.
6 There is strong marketing intelligence position of 0.04 4 0.16
GOLDEN INDUSTRIES.
7 GOLDEN INDUSTRIES has got best trade award 0.05 4 0.20
1995.
8 GOLDEN INDUSTRY is dealing into a diversified 0.03 3 0.09
product line.
9 GOLDEN INDUSTRIES is comparatively providing 0.08 3 0.24
more user benefits of its products to the customers.
1 GOLDEN INDUSTRIES is having an organized 0.08 4 0.32
0 showroom containing a huge collection of cutlery.
Weaknesses
1 GOLDEN INDUSTRIES has not prepared any of the 0.05 2 0.10
financial statements (including: Income statement;
Balance sheet; Statement of cash flow), regarding its
business operations.
2 Continuous fall in net profit margin. 0.03 2 0.06
3 To organize or implement planning, the CEO of 0.03 1 0.03
GOLDEN INDUSTRIES has not hired specialized
personals for managing HR, MIS, R&D, TQM, Sales

and Marketing, and Finance.
4 CEO has only one performance measure tool that is 0.04 2 0.08
“Sales”.
5 The executives of GOLDEN INDUSTRIES are not 0.05 1 0.05
doing very well marketing planning. Because they
have not planned any thing about the market.
6 Marketing planning of GOLDEN INDUSTRIES is 0.04 2 0.08
only limited to the expansion of its market
intermediaries.
7 Lack of specialized personal in the field of marketing. 0.05 2 0.10
8 GOLDEN INDUSTRIES is using informal way of 0.06 2 0.12
promotion, instead of promoting the products to
individual customers; it is promoting the products to
the whole sellers and distributor.
9 In GOLDEN INDUSTRIES there is improper storage 0.03 1 0.03
of diees.
1 GOLDEN INDUSTRIES is lacking the desired 0.02 2 0.04
0 computer and database technology.
1 CEO, Mr. Haji Mushtaq spends most of his time out 0.05 2 0.10
1 side the Pakistan.
1 The executive personals of GOLDEN INDUSTRIES 0.05 2 0.10
2 have no awareness about the latest marketing tools.
Total 1.00 2.62
Here:
4 = the response is superior, 3 = response is above average, 2 = response is below
average, 1 = response is poor
According to the internal factor evaluation matrix the total weighted score of GOLDEN
INDUSTRIES is 2.62, which indicates that company is near to the average in utilizing its
internal strengths.
3. EXTERNAL FACTOR EVALUATION MATRIX (EFE):

Key external factors Weight Rating Weighted
Score
Opportunities
1 On the behalf of Cutlery association, GOLDEN 0.02 2 0.04
INDUSTRIES can claim for high rebate rates.
2 Relations with politicians can increase sale of cutlery by 0.03 2 0.06
Army.
3 Approach to the products, which other manufacturers 0.03 3 0.09
have stopped to manufacturer due to the less rebates.
4 GOLDEN INDUSTRIES can give gifts to the 0.02 1 0.02
politicians as a part of their promotion campaign.
5 Promote the items through cultural contest. 0.04 3 0.12
6 Outsourcing from china. 0.05 4 0.20
7 Install latest technologies that are in use in production 0.01 2 0.02
process like CAD technology, and automation.
8 Establish a web based e-commerce portal in order to 0.02 4 0.08
reduce the cost of whole sellers and distributors.
9 Downsizing through automation. 0.02 2 0.04
10 Focus on product that has high user benefits. ie: Swiss 0.02 1 0.02
knife.
11 Find markets, which are not in the reach of the 0.03 3 0.09
competitors.
12 Enter into more local markets. 0.03 2 0.06
13 Work in cluster. 0.02 4 0.08
14 As being the Chairman of the ‘All Pakistan Cutlery 0.04 3 0.12
Association’, the CEO of GOLDEN INDUSTRIES can
promote his suggestion to Government to stop the entry
15 Take customers feedback through the intermediaries to 0.03 2 0.06
improve its various business processes.
16 Provide incentives to competitors’ commission agents 0.05 2 0.10
and whole sellers to increase its own sale.
17 Provide brand awareness to the customers through some 0.02 3 0.06
promotional campaign.
18 Offer customization of products through the internet 0.03 4 0.12
websites.
Threats
1 Govt. can bane any product. 0.03 1 0.03
2 End of the rebate on any product. 0.02 2 0.04
3 EPB can reduce rate of rebate. 0.04 2 0.08
4 Any product bane due to the cultural limitation. 0.05 3 0.15
5 Negative reaction due to the product that is harmful for 0.05 2 0.18
the society e.g: butterfly knife.
6 China in local as well as in global market. 0.09 4 0.36
7 Copy of product design by the competitors. Competitors 0.03 3 0.09
can do this by visiting the showroom of the GOLDEN
INDUSTRIES.
8 Preferences of foreign whole sellers and distributors are 0.04 4 0.16
continuously changing from Pakistani exporters to
Chinese and Indian exporters.
9 Chinese exporters offer more incentives to the 0.03 2 0.06
10 TVC Tele Brand campaign of cutlery products on 0.06 4 0.24
different TV channels.
11 Customer preferences are continuously changing. 0.03 3 0.09
12 Increasing number of exporter of cutlery from not only 0.02 1 0.02
Pakistan but also from India and China.
Total 1.00 2.88
4 = the response is superior
3 = response is above average
2 = response is below average
1 = response is poor
According to the external evaluation matrix the total weighted score of GOLDEN
INDUSTRIES is 2.88, which indicating that the GOLDEN INDUSTRIES is on the
average in availing the opportunities to reduce the threats.

4. COMPETITIVE PROFILE MATRIX (CPM):

Golden Ind. Sartaj Sharp Edge
Enterprises
Weight Rating Score Rating Score Rating Score
Critical success factors
1 Product line 0.15 2 0.30 3 0.45 4 0.60
2 Competitive 0.10 3 0.30 3 0.30 4 0.40
responsiveness
3 Rebates 0.10 3 0.30 2 0.20 2 0.20
4 Consumer convenience 0.08 4 0.32 2 0.16 2 0.16
5 Internet sales 0.10 4 0.40 3 0.30 3 0.30
6 Technology use in 0.12 3 0.36 3 0.36 3 0.36
manufacturing
7 Market share 0.10 4 0.40 2 0.20 3 0.30
8 Global expansion 0.08 3 0.30 3 0.30 4 0.40
9 Local expansion 0.05 3 0.15 3 0.15 2 0.10
10 Price attractiveness 0.12 3 0.45 2 0.20 2 0.30
1.00 3.28 2.62 3.12
Total
The results of CPM are showing the GOLDEN INDUSTRIES is having higher weighted
than its competitor, so the GOLDEN INDUSTRIES is in good competitive position.
5. TOWS MATRIX:
Strengths (S) Weaknesses (W)
1. The first thing is that 1. GOLDEN INDUSTRIES has
GOLDEN INDUSTRIES is using not prepared any of the
computerized payroll system that financial statements (including:
is managed by the MIS Income statement; Balance
department. sheet; Statement of cash flow),
2. GOLDEN INDUSTRIES is the regarding its business
largest manufacturer and exporter operations.
of the cutlery, and its annual sales 2. Continuous fall in net profit
are more than the sales of any margin.
other cutlery manufacturer. 3. To organize or implement
3. GOLDEN INDUSTRIES is planning, the CEO of GOLDEN
providing customers with INDUSTRIES has not hired
satisfaction in the form of specialized personals for
maximum quality. managing HR, MIS, R&D,
4. In the GOLDEN TQM, Sales and Marketing, and
INDUSTRIES top management Finance.
has set some certain parameters 4. CEO has only one
that fully ensure the role of top performance measure tool that
manager as a leader in the is “Sales”.
organization. 5. The executives of GOLDEN
5. GOLDEN INDUSTRIES is INDUSTRIES are not doing
having very good machinery very well marketing planning.
relatively to the local competitors. Because they have not planned
6. There is strong marketing any thing about the market.
intelligence position of GOLDEN 6. Marketing planning of
INDUSTRIES. GOLDEN INDUSTRIES is
7. GOLDEN INDUSTRIES has only limited to the expansion of
got best trade award 1995. its market intermediaries.
8. GOLDEN INDUSTRY is 7. Lack of specialized personal
dealing into a diversified product in the field of marketing.
line. 8. GOLDEN INDUSTRIES is
9. GOLDEN INDUSTRIES is using informal way of
comparatively providing more promotion, instead of
user benefits of its products to the promoting the products to
customers. individual customers; it is
10. GOLDEN INDUSTRIES is promoting the products to the
having an organized showroom whole sellers and distributor.
containing a huge collection of 9. In GOLDEN INDUSTRIES
cutlery. there is improper storage of
diees.
10. GOLDEN INDUSTRIES is
lacking the desired computer
and database technology.
11. CEO, Mr. Haji Mushtaq
spends most of his time out side
the Pakistan.
12. The executive personals of
GOLDEN INDUSTRIES have

no awareness about the latest
marketing tools.
Opportunities (O) SO-strategies WO-strategies
1. On the behalf of Cutlery 1. Launch the e-commerce web 1. Develop online MIS (as a
association, GOLDEN portal so that the sale of part of online web portal) so
INDUSTRIES can claim for high GOLDEN INDUSTRIES can that the whole organization
rebate rates. be increased and it can deliver can communicate with the
2. Relations with politicians can
superior values to customers. CEO when he is staying
increase sale of cutlery by Army.
3. Approach to the products,
(S3, S9, O8) outside the Pakistan. (W11,
which other manufacturers have 2. Develop the new markets to O8)
stopped to manufacturer due to which the competitors have 2. Launch promotional
the less rebates. less access. (S2, S7, O11) campaign that directly targets
4. GOLDEN INDUSTRIES can the customers. (W8, O5)
give gifts to the politicians as a
part of their promotion
campaign.
5. Promote the items through
cultural contest.
6. Outsourcing from china.
7. Install latest technologies that
are in use in production process
like CAD technology, and
automation.
8. Establish a web based e-
commerce portal in order to
reduce the cost of whole sellers
and distributors.
9. Downsizing through
automation.
10. Focus on product that has
high user benefits. ie: Swiss
knife.
11. Find markets, which are not
in the reach of the competitors.
12. Enter into more local
markets.
13.Work in cluster.
14. As being the Chairman of the
‘All Pakistan Cutlery
Association’, the CEO of
GOLDEN INDUSTRIES can
promote his suggestion to
Government to stop the entry of
Chinese cutlery into Pakistan.
15. Take customers feedback
through the intermediaries to
improve its various business
processes.
16. Provide incentives to

competitors’ commission agents
and whole sellers to increase its
own sale.
17. Provide brand awareness to
the customers through some
promotional campaign.
18. Offer customization of
products through the internet
websites.
Threats (T) ST-strategies WT-strategies
1. Govt. can bane any product. 1. Launch showrooms outside 1. Outsource the Chinese
2. End of the rebate on any the Pakistan (that are publicly cutlery and mark own label
product. open for all), so that GOLDEN on it, so that GOLDEN
3. EPB can reduce rate of rebate. INDUSTRIES can get INDUSTRIES can compete
4. Any product bane due to the customers’ preferences toward the rivals in the markets.
cultural limitation.
it. (S10, T8, T10, T11) (W2, T6)
5. Negative reaction due to the
product that is harmful for the 2. Hire the specialized
society e.g: butterfly knife. marketing personal who take
6. China in local as well as in care all the marketing issues.
global market. (W7, T4, T5, T8, T10, T11)
7. Copy of product design by the
competitors. Competitors can do
this by visiting the showroom of
the GOLDEN INDUSTRIES.
8. Preferences of foreign whole
sellers and distributors are
continuously changing from
Pakistani exporters to Chinese
and Indian exporters.
9. Chinese exporters offer more
incentives to the distributors and
whole sellers.
10. TVC Tele Brand campaigns
of cutlery products on different
TV channels.
11. Customer preferences are
continuously changing.
12. Increasing number of
exporter of cutlery from not only
Pakistan but also from India and
China.
6. SPACE MATRIX FOR GOLDEN INDUSTRIES:

Internal Strategic Position Rating
Financial Strength
Liquidity 2
Risk involved in business 3
Working capital 3
Cash flow 3
Ease to exit from the market 3
Average +2.80
Competitive Advantage
Market share -1
Service quality -2
Customer loyalty -1
Technology know-how -2
Competition’s capacity utilization -2
Average -1.60
External Strategic Position Rating

Environmental Stability
Rate of inflation -4
Demand of variability -1
Barriers to enter into market -4
Competitive pressure -3
Price elasticity of demand -3
Average -3.00
Industry strength
Growth potential 4
Profit potential 3
Financial stability 3
Technological know-how 3
Resource utilization 5
Capital intensity 5
Ease to enter into market 5
Capacity utilization 4
Average +4.00
Y-axis
Financial strength +2.80 (+1 worst to + 6 best) Y-axis: 2.80 + (-3.00)
= -0.2
Environmental stability -3.00 (-1 best to –6 worst)

X-axis
Industry strength +4.00 (+1 worst to +6 best) X-axis: 4.00 + (-1.60)
= +2.4
Competitive advantage -1.60 (-1 best to -6 worst)
FS
Conservative 6 Aggressive
5
4
3
2
1
CA IS
-6 -5 -4 -3 -2 - 1 2 3 4 5
-1 6
1
-2 (-0.2, 2.4)
-3
-4
-5
Defensive -6 Competitive
ES
The directional vector of GOLDEN INDUSTRIES is located in competitive position it

means that the GOLDEN INDUSTRIES is in position to use the strategies of backward,
forward and horizontal integration; market penetration; market development; product
development; and joint venture.
7. BCG MATRIX FOR GOLDEN INDUSTRIES:
Relative market share position

High Medium Low
1.0 .50 0.0
High +20
Industry sales growth rate
Medium 0
GOLDEN INDUSTREIS: GOLDEN INDUSTREIS:
Knives Num chucks
Paper Cutters Walking Kane
Swards Ninja’s
Throwings
Daggers
Cutlery Sets
Low -20
As the industry sales are declining day by day and there is no industry sales growth, thus
here one thing is clear that no firm in the industry can fall in ‘star’ or ‘question mark’,
because industry sales growth rate is in the inverse direction. And also it is recommended
by ‘All Pakistan Cutlery Association’ that GOLDEN INDUSTRIES is the only largest
rival in the industries and it is only the one who is generating huge revenue by the sale of
his all products. So majority of products will be categorized into the ‘cash cows’ and
some of the products will be categorized into the ‘dog’.
8. INTERNAL-EXTERNAL (IE) MATRIX:
The IFE total weighted score

Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
4.0 3.0 2.0 1.0
4.0
I II III
IV V VI
(GOLDEN
INDUSTRIES)
VII VIII IX
High
3.0 to 4.0
The EFE 3.0

total
weighted Medium
scores 2.0 to 2.99
2.0
Low
1.0 to 1.99
1.0
The IFE Total weighted Score of the GOLDEN INDUSTRIES is 2.62 where as the EFE
weighted score is 2.88. So it is better for GOLDEN INDUSTTRIES to follow Hold and
Maintain strategies because it lies in the fifth cell.
9. GRAND STRATEGY MATRIX:
Rapid market growth
Quadrant II Quadrant I
Weak Strong
Competitive Competitive
Position Quadrant III Position
Quadrant IV
GOLDEN
INDUSTRIES
Slow market growth
As the golden industries are in good competitive position and also the market growth of
the cutlery is slow, on the grand strategy matrix the GOLDEN INDUSTRIES is located
in the quadrant IV. So, golden industries should go for concentric diversification,
horizontal diversification, conglomerate diversification, or joint ventures.

10. QSPM FOR GOLDEN INDUSTRIES:

Strategic Alternatives
Launch the Develop
e- the new
commerce markets.
web portal.
Key Factors Weight AS TAS AS TAS
Opportunities
1. On the behalf of Cutlery association, GOLDEN 0.02 - - - -
INDUSTRIES can claim for high rebate rates.
2. Relations with politicians can increase sale of 0.03 - - - -
cutlery by Army.
3. Approach to the products, which other 0.03 2 0.06 2 0.06
manufacturers have stopped to manufacturer due to
the less rebates.
4. GOLDEN INDUSTRIES can give gifts to the 0.02 - - - -
politicians as a part of their promotion campaign.
5. Promote the items through cultural contest. 0.04 3 0.12 4 0.16
6. Outsourcing from china. 0.05 4 0.20 2 0.10
7. Install latest technologies that are in use in 0.01 3 0.03 2 0.02
production process like CAD technology, and
automation.
8. Establish a web based e-commerce portal in order 0.02 4 0.08 1 0.02
to reduce the cost of whole sellers and distributors.
9. Downsizing through automation. 0.02 2 0.04 2 0.04
10.Focus on product that has high user benefits. ie: 0.02 3 0.06 3 0.06
Swiss knife.
11. Find markets, which are not in the reach of the 0.03 4 0.12 3 0.09
competitors.
12. Enter into more local markets. 0.03 4 0.12 3 0.09
13. Work in cluster. 0.02 - - - -
14. As being the Chairman of the ‘All Pakistan 0.04 - - - -
Cutlery Association’, the CEO of GOLDEN
INDUSTRIES can promote his suggestion to
Government to stop the entry of Chinese cutlery into
Pakistan.
15. Take customers feedback through the 0.03 4 0.12 3 0.09
intermediaries to improve its various business
processes.
16. Provide incentives to competitors’ commission 0.05 4 0.20 3 0.15
agents and whole sellers to increase its own sale.
17. Provide brand awareness to the customers 0.02 4 0.08 3 0.06

through some promotional campaign.
18. Offer customization of products through the 0.03 4 0.12 2 0.06
internet websites.
Threats
1. Govt. can bane any product. 0.03 - - - -
2. End of the rebate on any product. 0.02 - - - -
3. EPB can reduce rate of rebate. 0.04 - - - -
4. Any product bane due to the cultural limitation. 0.05 - - - -
5. Negative reaction due to the product that is 0.05 - - - -
harmful for the society e.g: butterfly knife.
6. China in local as well as in global market. 0.09 4 0.36 3 0.27
7. Copy of product design by the competitors. 0.03 2 0.06 4 0.12
Competitors can do this by visiting the showroom of
the GOLDEN INDUSTRIES.
8. Preferences of foreign whole sellers and 0.04 4 0.16 2 0.08
distributors are continuously changing from
Pakistani exporters to Chinese and Indian exporters.
9. Chinese exporters offer more incentives to the 0.03 4 0.12 2 0.06
10. TVC Tele Brand campaign of cutlery products 0.06 2 0.12 3 0.18
on different TV channels.
11. Customer preferences are continuously 0.03 4 0.12 1 0.03
changing.
12. Increasing number of exporter of cutlery from 0.02 1 0.02 3 0.06
not only Pakistan but also from India and China.
Sub Total 2.31 1.80
Strengths
1. The first thing is that GOLDEN INDUSTRIES is 0.05 - - - -
using computerized payroll system that is managed
by the MIS department.
2. GOLDEN INDUSTRIES is the largest 0.06 2 0.12 2 0.12
manufacturer and exporter of the cutlery, and its
annual sales are more than the sales of any other
cutlery manufacturer.
3. GOLDEN INDUSTRIES is providing customers 0.04 4 0.16 2 0.08
with satisfaction in the form of maximum quality.
4. In the GOLDEN INDUSTRIES top management 0.03 - - - -
has set some certain parameters that fully ensure the
role of top manager as a leader in the organization.
5. GOLDEN INDUSTRIES is having very good 0.04 - - - -
machinery relatively to the local competitors.
6. There is strong marketing intelligence position of 0.04 3 0.12 4 0.16

GOLDEN INDUSTRIES.
7. GOLDEN INDUSTRIES has got best trade award 0.05 - - - -
1995.
8. GOLDEN INDUSTRY is dealing into a 0.03 3 0.09 2 0.06
diversified product line.
9. GOLDEN INDUSTRIES is comparatively 0.08 4 0.32 2 0.16
providing more user benefits of its products to the
customers.
10. GOLDEN INDUSTRIES is having an organized 0.08 2 0.16 3 0.24
showroom containing a huge collection of cutlery.
Weaknesses
1. GOLDEN INDUSTRIES has not prepared any of 0.05 - - - -
the financial statements (including: Income
statement; Balance sheet; Statement of cash flow),
regarding its business operations.
2. Continuous fall in net profit margin. 0.03 3 0.09 3 0.09
3. To organize or implement planning, the CEO of 0.03 - - - -
GOLDEN INDUSTRIES has not hired specialized
personals for managing HR, MIS, R&D, TQM,
Sales and Marketing, and Finance.
4. CEO has only one performance measure tool that 0.04 - - - -
is “Sales”.
5. The executives of GOLDEN INDUSTRIES are 0.05 3 0.15 2 0.10
not doing very well marketing planning. Because
they have not planned any thing about the market.
6. Marketing planning of GOLDEN INDUSTRIES 0.04 4 0.16 2 0.08
is only limited to the expansion of its market
intermediaries.
7. Lack of specialized personal in the field of 0.05 - - - -
marketing.
8. GOLDEN INDUSTRIES is using informal way of 0.06 4 0.24 2 0.12
promotion, instead of promoting the products to
individual customers; it is promoting the products to
the whole sellers and distributor.
9. In GOLDEN INDUSTRIES there is improper 0.03 - - - -
storage of diees.
10. GOLDEN INDUSTRIES is lacking the desired 0.02 3 0.06 2 0.04
computer and database technology.
11. CEO, Mr. Haji Mushtaq spends most of his time 0.05 2 0.10 2 0.10
out side the Pakistan.
12. The executive personals of GOLDEN 0.05 - - - -
INDUSTRIES have no awareness about the latest
marketing tools.
Sub Total 1.77 1.35
Sum Total Attractiveness Score 4.08 3.15
The sum of the strategy “Launch the e-commerce web portal” is 4.08 that is higher than
the sum 3.15, of the strategy “Develop the new markets”. Therefore GOLDEN
INDUSTRIES has to make strategic actions related to “Launch the e-commerce web
portal”.

Gilden Industries.... Business Plan

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gilden Industries.... Business Plan

Uploaded by

Copyright:

Available Formats

1 GOLDEN INDUSTRIES

GOLDEN INDUSTRIES (Business Plan)

3. External environment – near environment: 17

6.3 Opportunities for the business unit to exploit

Evaluation and control processes 52

GENERAL FIRM’S DESCRIPTION

1. HISTORY OF GOLDEN INDUSTRIES:

(Best Trade Award)

2. ACTIVITY OF THE BUSINESS:

3. STARTING DATE OF OPERATIONS:

4. GENERAL STRUCTURE OF THE FIRM:

4.1 Management Information System:

(MIS department of GOLDEN INDUSTRIES)

4.2 Sales and Marketing:

(CEO of GOLDEN INDUSTRIES)

4.3 Research and development:

4.4 Human Resource Management:

(Mr. Triq is managing Human Resource of GOLDEN INDUSTRIES)

4.5 Production Department:

(A bird eye view of Bufferin

The stage is:

6. VISION AND MISSION STATEMENT:

raise standard of living at local level by delivering value added

1.2 Product definition:

1.3 Product Categories:

All the product categories of cutlery include:

Product categories targeted by GOLDEN INDUSTRIES and its products competing

Product category Competing products

Product category Target Market

The end users for each product categories include:

Product category Customers (end users)

2. EXTERNAL ENVIRONMENT – REMOTE

Opportunities Rating Threats Rating

2.2 Social and cultural factors:

Opportunities Rating Threats Rating

2.3 Economical factors:

Opportunities Rating Threats Rating

2.4 Technological factors:

Opportunities Rating Threats Rating

then it can currently sale its

3. EXTERNAL ENVIRONMENT – NEAR

3.1.3 Customers Want:

(Web Site preview of GOLDEN INDUSTRIES)

Posting of Newly launched product information to regular user

Opportunities Rating Threats Rating

3.2 Competitive review:

Opportunities Rating Threats Rating

Enter into the markets, 4-4 Chinese cutlery. 5-5

3.3 Distribution channels and buyers (intermediary customers):

Opportunities Rating Threats Rating

3.4 End user customers:

3.4.2 Trial Use:

4. CRITICAL SUCCESS FACTORS:

4.1 Competitive Profile Matrix for Dell Corporation:

Golden Sartaj Sharp Edge

score then its competitors, so the GOLDEN INDUSTRIES is in good competitive

5. SITUATION ANALYSIS – INTERNAL

2005) Net Profit Rs. 1,500,000

Use human intensive machinery.

satisfaction in the form of To organize or implement 4-3

5.2 Marketing capabilities – Management:

6. PROBLEMS AND OPPORTUNITIES STATEMENT:

6.2 Opportunities for the business unit to exploit with existing