Final Project

Group Members:

Hareem Nadeem L1S15BBAM0070

Muhammad Ammar L1S15BBAM0111

Section: “B”

Submitted to: Atizaz Khurshid

 Shezan
Introduction and History of Shezan:
Shezan was established in 1964. Since then it has continued to provide quality
products to its customers with products and packaging innovations. Shezan is one
of the Pakistan’s best companies in bottle juices. The company is trying their level
best to differentiate themselves from other local companies and trying to win the
competition in juice industry by adopting the modern trends and technologies in
both operational fields as well as in marketing of their products. This project report
covers the broad area of impacts of controllable and uncontrollable variables in
remote environment for the company, like economicboom or slump, segmentation
on the basis of cultural likings and disliking of theconsumers along with the social
set up and their purchase behavior, food laws,taxation, import duties and the
technological advancements. This report also provides the information how these
variables pose threats and offer opportunitiesfor the company and how the
company should neutralize threats and exploits opportunities.An important part of
this project report comprises the market situation in whichShezan is competing.
Market acceptability of its products and the upcoming trends regarding to juices
and drinks are also discussed. Detailed information about competitors like Nestle
which is also the market leader and Haleeb, and how theyare affecting the
company is also provided. An overview of distribution system and criteria of
Shezan in case of juices. A brief description of the company’s marketing;non
marketing and management’s capability is given which tells us about the
company’s internal strengths and weaknesses. Then comes the most important
portion of the company’s operations, which is the strategic management. A
comprehensive detail is provided about the company’sstrategies devised to
maintain and develop the product line (juices), strategies toset and quote the prices,
their distribution patterns and logistics. The image Shezan wants to develop in the
minds of their customer and the extent to which they are succeeded through their
promotional campaigns is explained in this report.
Shezan’s Mission Statement:
Our mission is to provide the highest quality fruit and vegetable related juices and
products to retail and food service customers.
We want to be the recognized industry leader in quality and service, providing
more than expected for our customers, employees and stakeholders.
We will accomplish this by maintaining a tradition of pride in our products, growth
through innovation, integrity in the management of our business, commitment to
Team Management and the Quality Improvement Process.
Shezan’s Vision Statement:
“To be known as leader of quality products in the region”.
Dedication to quality is a way of life at our Company, so much so that it goes far
beyond rhetorical slogans. It is the objective of Shezan International Limited to
produce and provide products and services of the highest quality. In its activities
the Company will pursue goals aimed at the achievement of quality excellence and
succeed as a profitable business. These results will be derived from the dedicated
efforts of each employee in conjunction with supportive participation from
management at all levels of the Company.
To play its role in the economic development of the country and to enhance quality
of life of its people.

Nine Components of Mission Statement:

Customers:
The primary focus of the company is to get the attention of school and college
going students and position shezan as the best quality, trendy and tasty juice in the
market.

Products or Services:
Shezan International offers variety of products. Shezan is one of the giant in the
business and itsportfolio consist several products. It majorly operates in the
Pickles, Sauces, Salad dressingsector, Juices, Ketchups and Jams. The company is
involved in the processing, manufacturing,trading and selling of these items:
Vinegar,Sauces,Jams, Pickles,Ispaghol,
Syrups:Samarkand,Sandal,Pomegranate,Rose,LimeCordial,Plum,Orange,Mango,
Mixed fruits,Strawberry,Apple
Quench:Lemon and lime,Orange
Squashes: Mango,Lemon barley,Pomegrante,Orange,Mango Nectar

Markets:
Shezan has been the best juices company in entire Pakistan and is being run locally
in all the regions of the country. It has targeted all the geographical segmentations
of country, like Karachi , lahore, islamabad, gujranwala, faisalabad etc. It has
targeted upper, middle and lower class and foucses more on its product quality. Till
now it has marked its product all over the country.

Technology:
At Shezan International, the company uses the best technology and continues to
strive towardsacquiring best technology. The company‟s major objective is to have
sustainable technological advantage over their competitors. For this reason they
continually search and research forimprovements in their manufacturing practices
and technologies. They also want their plant to beof international standard so they
can support their claim of being an international firm. Shezanhas excellent
manufacturing facility for juice productions. Their machines are not outdated.
Theyalso have world class packaging system bought from tetra pack. This ensures
their product toremain safe and healthy.

Concern For Survival, Growth and Profitability:

Shezan international Limited has gone through ups and down over the period of
analysis(five years ending „11), but there was an overall trend of growth in the
company. The company holds a good reputation in the market which can be
considered as a factor of its rising movementin share price.
We achieved strong profitability growth despite all difficult circumstances and
intense competition. The business portrayed encouraging results with 8.11%
growth in net sales and about 93% growth in profit after taxation.(30 th Sep 2017)

Philosophy:
Business Ethics which include the practice of honesty and integrity are considered
as an essential part in everyday operations of the Company. Since the Company’s
business is to deal with food and juice products, so it is the policy of the Company
to provide not only healthy products to its customers but also ensures clear and
coherent view of its product range in all its advertisement campaigns.
Further, Statement of Ethics and Business Practices is circulated among all
employees of the Company for compliance purposes. It proved very helpful in
maintaining the level of compliance of each employee towards organizational
philosophy.
Along with all these, the Company has developed procedure and system regarding
all key positions to guard against corruption.
Self-concept:
Shezan has the highest production capacity as compared to its competitors. Shezan
is very strong name and can afford to have super production facilities. Shezan is
using cost leadership strategy in which all of the efforts are made to minimize the
costs and to provide the massess with your low cost product. Shezan with this
strategy quite successful in the market and is able to cope up with the competition
quite effectively and efficiently. It’s Distinctive competency is that it manufacture
the best mango juice in entire pakistan that’s what gives the company an
advantage.
Concern for public image:
Safety and Health protection of our employees as well as protection of
environment are the Principal concerns of the Company. We firmly believe that
commitment to safety health and environmental protection (SHE) is an
indispensable part of our main objective of efficiently producing and distributing
quality products. Matters of SHE are integral parts of the business planning
processes and decision making. They are handled with the same sense of
responsibility and just as other operations like quality, productivity and cost-
efficiency. We ensure all technical, organizational and personnel measures for the
prevention of potentially hazardous situations and to manage incidents or
accidents.
We strive to achieve eco-efficiency by optimizing resource utilization, conserve
energy and avoid damage to environment, employees and public.
Concerns for Employees:
Have passionate people with intelligent and firm approach towards business. To
facilitate thesepeople Shezan gives them challenging opportunities, training, and
fun loving environment, necessary resources and facilities. Public recognition of
talent is a priority. To ensure the welfare and rehabilitation of special persons, the
Company has especially stressed upon the induction of Disabled Persons in
accordance with “Employment and Rehabilitation Ordinance, 1981”. The
Company has established a policy regarding the hiring of disable persons with
assigning a special quota in compliance with the said ordinance to ensure the
protection of deserving persons.
Recommended Mission Statement:
We are looking forward to maintain high quality of food related services to our
customers as expected and maintaining high quality in juice.
Targeting our children, old citizens, and youth, to consume our product so that the
company would get a feedback in order to improve its products.
We are stressing towards increasing our technological skills to fasinate our
employees, customers, stakeholders, retailers to get profitable advantages.
Recommended Vission Statement:
“To inhance current services and influence future growth
and development”.
Our company is providing successful services to its retails, customers and
stakeholders. Shezan international limited is planning for the further development
and growth of the company which will be accomplished by the employees of the
company. Company will play a significant role in technological advancement,
innovative work, maintaining quality products, in order to influence the growth and
development.

PEST Analysis:
1: Political Conditions:
The political conditions are not extremely stable in the nation, but rather this does
not directly influence the patterns and spending examples of the clients. There are
no restrictions or obstructions on the development of this industry. So the political
conditions are great for this advertise in light of the fact that nourishment and dairy
items are buyer products and they have to purchase it in any condition.

2: Economical Conditions:
The monetary conditions are not exceptionally good and the economy is
confronting problems, but it isn't specifically impacting purchasing energy of
buyers. In the event that the nation is out of its current issues, it will additionally
help up the development of this industry, as individuals will feel more secure
monetarily and it will additionally build the engaging quality of the market.

3: Social Conditions:
The social examples are changing in the nation, as the world is turning into a
globalvillage, and commonly share and acknowledge designs. Individuals are
ending up more attractivetowards the marked items. It is getting to be form and
youthful ages also as the youngsters are getting more pulled in towards this
industry. Individuals are moving towards marked nourishment/dairy items because
of clean reason.

4: Technological Condition:
Cutting edge innovation is the essential necessity of dairy and sustenance industry.
Thecompanies that are utilizing most recent innovation have some money saving
advantages over thecompanies, which are not utilizing cutting edge innovation.
The way to survival for companies in this industry is utilizing high innovation for
quality and cost purposes.

Conclusion:
Pest analysis shows that the industry has sucessfully managed itsself in dealing
with all tha four conditions that is Politically, Economically, Socially, and
Technologically. As far the industry is concerned they are on the straight path to
mark there success, they are managing it right and hence proved to be the popular
brand amoung the people of pakistan.

SWOT ANALYSIS (ACCORDING TO THE PEST

Analysis):
Strengths:
• Conveniently placed factory
• Pure and natural products
• Qualified sales staff
• Strong financial backup
• Good distribution net work
• Effective advertisement campaign
Weakness:
• Due to high rate of taxes our process are higher
 • Tax evaders sell product on much less prices and retailers blackmail for
better profitmargins.
Opportunities:
• Expansion of distribution net work
• Diversification of product
• Addition of new varieties
• Modification according to present requirement
Threats:
• Religious Threat
• Discount offered by competitors
• Low quality food products on cheap prices
• WTO
• Less awareness of health
• Nutritional facts of products with consumer

Objectives:
Objectives are the steps which you take in practical to get or achieve short term as
well as longterm goals. The objectives can be of three categories depending upon
the time frame attached orassociated with that goal, it may be short range, medium
or intermediate range and long range.As it has been so clear by the mission
statement of Shezan international that what are their majorand prime objectives but
let us list them here again to make it quite clear, simple and easy tounderstand.
 To put it‟s all efforts to become industry leader in the industry.
 To keep focused and determined to provide best quality fruits and vegetables
product
 To be committed to provide excellent and quality juices and nectars to their
consumers.
 To keep an eye on the fruitful investments and opportunities in new projects
 To achieve better production facilities
 To manage the operations of the company in effective and efficient way
  To cope up with the technological advancement and keeping up to date
EFE Matrix:
Opportunities Weight Rating Wt. Score
1) Increased demand for low priced 0.15 3 0.6
juices in African countries.

2) Increasing size of juice market in 0.07 3 0.21

Pakistan.
3) Younger demographic largest 0.05 2 0.2
segment of population.
4) Increased investment in food and 0.02 3 0.06
beverage companies on stock
exchange.
5) Falling value of rupees, greater 0.05 2 0.2
quantities demand abroad.
6) Demand for multitude of flavors. 0.03 2 0.06
7) Import Export regulation 0.05 3 0.15
8) Social Program 0.03 2 0.09
9) Distribution network allowing for 0.05 3 0.2
piggy backing of products.
10) Modification of operations to 0.02 2 0.04
keep abreast a new age practices.
Threats:
1) Non Islamic stigma associated with 0.1 3 0.3
ahmedi’s Pakistan.
2) Decreasing power of the brand 0.09 2 0.18
name shezan.
3) Intense competition. 0.04 3 0.12
4) Increasing inflation rate. 0.02 3 0.08
5) Perceived lack of quality. 0.05 2 0.1
6) Increasing nutritional awareness. 0.07 2 0.14
7) Market moving towards 0.03 3 0.09
fragmentation.
8) Waste management. 0.03 1 0.09
9) Rapidly changing technology. 0.02 2 0.04
10) Political instability. 0.03 3 0.09
Total 1.00 3.04
 Results:
The EFE total 3.04 shows that shezan is in good position to handle the external
factor impact on the company.

CPM MATRIX FOR SHEZAN

Competitive Profile Matrix
Shezan Nestle Haleeb Nurpur
Critical Success weight Rating Score Rating Score Rating Score Rating Score
Factors
Advertising 0.2 3 0.6 4 0.8 2 0.4 1 0.2

Product Quality 0.15 4 0.6 3 0.45 2 0.3 2 0.3

Price 0.1 2 0.2 3 0.3 3 0.3 3 0.3

competitiveness
Management 0.1 3 0.3 4 0.4 3 0.3 3 0.3

Financial Position 0.1 4 0.4 4 0.4 3 0.3 2 0.2

Custom Loyalty 0.1 2 0.2 2 0.2 2 0.3 3 0.3

Global expansion 0.15 3 0.42 3 0.45 2 0.3 3 0.45

Market Share 0.1 3 0.3 4 0.4 2 0.2 2 0.2

Total 1 3.05 3.40 2.4 2.25

Space Matrix:
Internal: (-6 worst, -1 best) | external: (6 best, 1 worst)
Internal Strategic External Strategic
Position Position
Competitive (CA) Industry (IS)

Product Quality -1 +5 Suppliers

Market Share -4 +6 Growth Potential

Brand Image -3 +2 Degree of rivalry

Life Cycle -3 +3 Substitutes

Average -2.75 4 Average

Total X Axis Score = 1.25

Financial (FS) Environmental (ES)

ROE -2 +4 Technology

Working Capital -1 +1 Inflation

Inventory -1 +3 Variability
Turnover

Leverage -4 +4 Barriers to entry

Average 2.0 3 Average

Total Y Axis Score = 1.0

Graph of Space Matrix:

Aggressive

Conservative

(1.25, 1)

Defensive Competitive
The suggested strategy based on the SPACE matrix analysis is that of the aggressor
and as such positive, proactive steps should be taken by Shezan to ensure further
growth. It should also be noted that the suggested strategy based on the SPACE
Matrix is in line with the analysis of the I-E Matrix, hence providing further
strength to the overall strategic plan.

TOWS Matrix:
Strengths (S) Weaknesses (W)
IFS/ 1. Financially strong 1. Lack of innovation
2. Global operations 2. Product quality awareness
EFAS
3. Huge distribution network 3. Vendor relationship
4. Brand name 4. Positioning

5. R&D 5. No online business

Opportunities (O) SO Strategies WO Strategies

1. Demand increase in Africa 1. Increase supply to 1. Look for newer
Africa(S2,O1) markets(W1,O1)
2. Increasing market size 2. Buy farms to increase 2. Reestablish vendor-firm
backward integration(S1,O4) agreements (W3,O2)

3. Large younger demographic 3. Create more availability 3. Establish consistent strategy

in the market (S3,O3
4. Lot of untapped market 4. Leverage brand name to
cater to market (S4,O2)
5. Falling Rupee value 5. Increase operations
overseas(S1,O5)
for supply chain (W5,O4)
4. Reposition juice to new target
segments (W4,O3)
5. Establish 5 year planning
cooperating foreign
exports(W5,O5)

Threats (T) ST Strategies WT Strategies

1. Decreasing brand value 1. Establish a new corporate 1. Utilize foreign expertise in
image (S5,T1) innovation (W1,T5)
2. Non-Islamic stigma 2. Incorporate patriotic 2. Develop healthy juice
themes(S1,T2) alternatives (W4,T3)
 3. Nutritional awareness 3. Understand consumer 3. Focus on brand
nutrition preferences (S5,T3 building(W2,T1)
4. Increasing competition 4. Cover a wide area of 4. Benchmark with industry
region(S3,T4) leaders (W5,T4)
5. Perceived quality 5. Use brand equity 5. Partner with local „Islamic‟
as quality assurance (S4,T5)
spokespersons (W5,T2)

Strategy Map:

Needs to capitalize on its

strong financial muscle to
diversify in its juices.

By investing in product
development as per
customers demand.

Needs to reposition and Needs to further expand its

develop, its juice market to distribution network to sustain
become more competitive in competitive advantage.
the market.

Working on technology
implementation in there
organization in order to
improve their product.
 Justifications:
(1)
EFE show that Shezan is placed in the first quadrant, meaning that it is in a strong
position to avail the external opportunities using its strengths and to minimize
weaknesses and threats using a combination of strategies listed in the SFAS.EFE
matrix shows that Shezan is in a position to “grow and build”; It is recommended
that Shezan consider backward integration, which would result in maximum
utilization of the current position of the company and allow it to grow through
concentric (linked) diversification in a way as to capitalize upon the current
opportunities in the market through its strengths.

(2)
As shown above in the CPM Matrix that, nestle is using differentiation focus
strategy as it focuses on its research and development to identify new niches in
the market and to enter in them. Nestle selects a segment do research and
develop strategy to enter that market through differentiated product. Nestle achieve
competitive advantage by dedicating itself to these segments exclusively. The
essence of focus is the exploitation of a particular market niche that is different
from the rest of the industry. Nestle might expect narrow focus itself (“being
different”) is simply not sufficient for above average performance. Nestle focuses
differentiation strategy to improve competitive position. But there are some
disadvantages if this strategy is not properly used. As if we select the niche with
too much rivals it will be easier forth competition to imitate it easily in a shorter
span of time as if nestle launches some new product Shezan immediately follows it
and hence nestle loses its competitive advantage. Shezan uses the research and
development of nestle and captures its share from the market. But it shows that
Shezan is following the Nestle. This is a weakness in itself because it shows that
Shezan has the potential to become market leader but they do not try to do so. The
strategy of Shezan gives advantage as there are number of suppliers in the market
that supply material to the industry. But Shezan gets its raw material from its on
farms to get the advantage over its competitors and to reduce the suppliers
bargaining power (Backward integration). Shezan provides the same product as its
competitors are providing, as bargaining power of buyer is low and many
substitutes are available in the market with slight differentiation which do not
makes difference so Shezan captures the market share of the competitors. Shezan
competes its competitors like nestle and Haleeb is discussed in the above
paragraph.

(3)
The suggested strategy based on the SPACE matrix analysis is that of the aggressor
and as such positive, proactive steps should be taken by Shezan to ensure further
growth. It should also be noted that the suggested strategy based on the SPACE
Matrix is in line with the analysis of the I-E Matrix, hence providing further
strength to the overall strategic plan.

(4)
It is understood that these factors relate primarily to marketing, supply chain and
positioning(also a subset of the marketing function), hence the major focus of the
plan would be changes within the marketing and supply function, along with a
repositioned Shezan Juice line; however since in today’s business world and within
Shezan‟s structure, most functional departments are interrelated and need to
present a consistent front to attain strategic advantage and hence the proposed
strategic plan brings about changes in other functional areas as well in accordance
with the new strategy.