Case study:

Section: Business Administration Group: 8891

CONTENT

1. HISTORY 2. MISSION, VALUES, VISION, OBJECTIVES 3. PRODUCTS 4. PEST ANALYSIS OF PAMBAC 5. SWOT ANALYSIS 6. FINANCES 7. CORPORATE SOCIAL RESPONSIBILITY 8. REFERENCES

History

SC PAMBAC SA IS The biggest player in the milling and bread industry in Moldavia district founded in 1968. After the privatisation of the company in 1992, many changes took place in development policy of the company. S.C.PAMBAC Sa Bacau is in continual development since its privatisation, manifested in stages, starting with investments in technology and equipment and ending with investments in staff, marketing and management policies. PAMBAC S.A. is one of the most important players on the market of grain, pasta, bread and soil. To the pasta, the company holds leadership with over 26% of market share, to prepackaged flour market, the company has 15% of market share and 3rd nationally, and on the corn flour 10% of market share and 5th place. On the local market, the company holds leadership for bakery products and specialties. In 2007 the company invested approximately EUR 5 million for the development of the capacities of production, logistics, distribution and support of new brands in the portfolio. Pambac company is a joint-stock company with 100% private capital to bind field of activity, manufacturing and marketing of grain mill products and bakery, pastry and sugary products, pasta, as well as the provision of services, export-import operations in their own activities. Pambac is one of the biggest producer in the food industry in Romania. National leader in the pasta market also local leader in the milling and bread market. Short history In 1968 the Milling and Backing enterprise Bacau was established with the main activities being bread and pastry making and the milling of wheat and corn. In 1993 is the first Romanian production line for short pasta In the year 1995 The Milling and Backing Enterprise Bacau becomes a joint stock company and changes its name to Pambac SA and in the 1997 the production line for long pastas, made by Pavan Italy, is put in to operation. It was the first industrial pasta line in Romania, completely automated, utilizing high temperature technology .Also in 1995 the production of short pasta begins on a new technological line (made by Buhler Switzerland) based on turbothermal technologic process with very high temperature, computer controlled, unique in Romania. By the end of 1997, Pambac becomes the leader in the Romanian pasta market with over 54% of the market share. This was a consequently of the increased production capacity and the launch on the market of the best Romanian pastas.

In 1999 The industrial production of complex fabrication improvers begins. This were manufacture based on the companies own registered patents 2001 A new production line is introduced, imported from Italy, technological computerized line with a capacity of 30 tons/day, an absolute novelty on the Romanian bakery market 2003 The entire network of Pambac stores is modernized (25 locations in Bacau), through a modern design concept 2004 Corn mills modernized through upgrades with Buhler technology. The most modern milling center in Romania, Pambac, was inaugurated; it contained: the Pambac corn mill, made by Buhler, Germay, is equipped with latest generation technology world wide, with a capacity of 800 tone/day; the flour treatment and mixing silo, integrally computerized, made by Buhler Germany, with a capacity of 2500 t the high performance, testing and research laboratory the completely automatized packaging lines the finish product warehouse, with a capacity of 1500 t. 2005 The flour brand Grania was launched, produced by Pambac in the new milling centre. 2006 The new pasta brand, Gata is launched 2007 The premium pasta brand, Flavora, is launched 2009 The retail brand Patishop is launched in TO GO system

MISSION, VALUES, VISION, OBJECTIVES

Mission Statement Pambac is a commercial enterprise with a diversified production in milling, pastas, baked products and complecs baking additives. Our goal is to become one of the most successful company in Eastern Europe. We will achieve this by continuously adhering to and respecting the following set of valu Consumers The complete satisfaction of our consumers needs represents the main priority and objective of our entire activity. Products The success of our company depends on the continuous consolidation of the brands in our portfolio. Employees We are fully aware that our success is directly proportional with the quality of our employees and with the care we have for them. Innovation Our permanent concern for innovation and improvement is the base of our increased competitivity on a market in continuous change. Quality The continuous improvement of production technology is the basis for superior quality products and a high level of food safety, according to ever increasing consumer demands. Partners The key to the companies long term success is the building of solid, honest and mutually advantages relationships with clients, suppliers and financiers. Shareholders We consider that our activities are successful only if the long terms shareholders rewords are compatible with those assured by the top company in our field. Growth orientation The continuous increase in size and profitability represents the economic foundation of our success. Social involvement The active involvement in protecting the environment and in supporting the social initiatives of local and national community represents our contribution to the safety and security of future generations.

PRODUCTS
Flour and semolina - Grania, Pambac Pasta - Flavora, Pambac Corn flour - Pambac Bakery products - Pambac Extruded snaks -Pambac Flour, corn flour and semolina Pambac Flour improvers and premixes for bakery Superfort PASTA FLAVORA Flavora - price positioning: premium - slogan: Flavora, pasta di grano duro! Product attributes: - delicious pasta made from Italian durum wheat, superior quality for Italian recipes; - natural product without preservers or colorants; Advantages - superior quality premium pasta at a very good price. Visual Identity: The packaging inspires you to travel with your mind in the old Italian architecture. Amazing buildings, strong colors, balconies full of flowers, all of this suggests that you are not only cooking and eating pasta but you are welcoming into your house a part of the Italian world that is full of life and romance. PASTA PAMBAC Product attributes: - are made by soft wheat flour - very good behavior at cooking - natural product without preservers or colorants; - simple and egg pasta in a very large variety of shapes : long, short and special shapes Advantages in category: - domestic pasta market leader since 2007 - a very good notoriety and image on domestic market - recognized as a trustworthy brand, serious, with a guaranteed constant quality for every package;

FLOUR Grania Grania since April 2005 Grania - 000 flour for sponge cake (national cake) Weight : 1 kg, 2 kg paper bags packaging; Price positioning: up-mainstream Slogan: Never stops rising! ; Product attribute: the best flour in the market, according to national consumers research; source: Synovate Romania Advantages in category: - the most demanded flour during seasonality Romanian flour market - the best quality - the flour with the best dynamics national wide within one year it went to third place in the national flour market Grania 000 flour for cakes Weight: 1 kg - paper packaging; Price positioning: mainstream Slogan: Never stops cooking! Product attributes: the best 000 flour for homemade cakes; Advantages in the category: the well known quality of Grania, at a lower price than Grania 000 for sponge cake; Grania whole wheat flour Weight: 1 kg - paper packaging; Price positioning: up- mainstream Product attributes: the best whole wheat flour Advantages in the category:excellent for home bread maker CORN FLOUR Pambac Weight : 500 g, 1 kg plastic foil packaging; Price positioning: mainstream; Third place on the national corn flour market; Product attributes: fine granularity, degerminated; the best quality; Advantages in category:

 very good quality; the plastic foil packaging allows a very good visibility of the product, visibility very appreciated by consumers; EXTUDED SNACKS Pambac - PUUFUULET Weight: 45 g plastic foil packaging Product attributes: traditional romanian product, appreciated of all category of consumer good taste, salt flavor Advantages in category: Fresh and joyful brand Very good prices Natural ingredients- just corn flour, salt and water

PEST ANALYSIS of Pambac (macro environmental)

Political factors are specific to each country and represents the mainly structures of society, social classes and their role in society, political forces and relations between them, These factors may be appropriate, stimulating and limiting factors of market activities. Their role increases during periods of instability, due to the change of forces in the political arena. SC PAMBACS.A.: operates in accordance with the laws of the Romanian state. The economic environment is made up of all the components that make up the economic life of the space in which the enterprise operates. Environmental factors are mirrored directly or indirectly in the market situation; determining the volume and structure of the supply of goods, movement of prices, the level of the competition. A scientific tariff policy must practice a system designed to increase the attractiveness of the prices of products offered by S.C. PAMBAC S.A. and thus follows a high production capacity of the enterprise According to the National Statistics Institute the rate inflation decreases to 3.44%, the lowest level of the inflation since 1990. Compared to the same period last year, the price of food has increased to 1.34 per cent, of non-food goods with 4,31 %and services by 3.96 %. The unemployment rate is another important factor in the variation in demand and consumption of such products, since a return in the productive area of a large number of employees will result in a reduction of taxes and duties and also increase revenues for consumption. All these components affect the business environment and also consumer purchase decision, but because the specifics of S.C. PAMBAC S.A., these influences are not as pronounced as in the case of acquisition of durable products. Given that the demand for bakery products is inelastic according to price change their purchase decision, in the role of the economic component power purchasing is minimal but is not neglected in analyses carried out by S.C. PAMBAC s.a Social environment of business means all factors which affects business socially . Every business works in a society, so societies ' different factors like family , educational institutions and religion affects business . Demographic environment is for S.C. Pambac S.A. one of the important macro elements that marketing managers deals in multiple issues such as population size and structure, which shows the main dimensions of market outlets (absorption of capacity, dynamic structure of supply and demand). Socio-demographic environment of S.C. PAMBAC S.A. is addressed to a large number of consumers of different genders, occupations of the various ethnic or religious affiliations, since the production of goods that consumers had, have and will need. S.C. PAMBAC S.A. addressed in particular to consumers in the municipality of Bacau and those of the localities near the town of Bacau. But also since august 2006 with 9

the help of the company Interbrands the distribution of their product are made in Bucharest and also in 23 counties located in south and south west of the country. Technological environment of the firm is made up of many factors that contributes to the completion of products and services as well as the level of machinery and equipment, the quality of technologies, research and development, licensing and patents registered, their creation-innovation-the invention. This part of the macro environment involves the firm in terms of both customer and supplier. S.C. PAMBAC S.A. has adapted to new market requirements and technological point of view .So for the for their products that they produce, the company uses technological equipment imported from Italy for bakery products and confectionery, pasta , investing about 10 million since 1995 USD to now for upgrading. Also, the company laboratories are properly equipped, both for production and research. In a word, the policy of the investment of the S. C. PAMBAC S.A was always brave and ambitious, the share of reinvested profit being about 60% in each year, and plans for the next five years provide an additional investment amount USD 10-15 millions.

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SWOT ANALYSIS
SWOT Analysis is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decisionmaking process of the organization. Strengths The diversity of the supply; Quality price ratio; Qualified personnel; Favorable image of the company on the market; A good coverage on the local market Quality and safety products Opportunities Governmental policy The rate of market development Unmined potential on the national market Weakness The lack of a policy of marketing and business development The company does not have national recognition.

Threats High competition Natural disasters Seasonality of raw material prices

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The diversity of the supply: the offer of S.C. PAMBAC S.A. is composed of a wide and rich range of products including: grain mill, bakery, pastry and pasta. Through his tender, S.C. PAMBAC S.A. shall cover all market segments. In the context of high competition the company has opted for a strategy of differentiation which starts from the premise that in the market are several categories of consumers, with different preferences that require food more differentiated and more sophisticated. Quality price ratio: is very good . S.C. PAMBAC S.A. do everything they can to keep prices at an acceptable level. The quality was and is one of the main assets of the company since it is tracked all the time, trying to strike a good balance between the two variables. Qualified personnel: the company is under the leadership of a team of managers of the highest professionalism. They form a team of specialists in production and research of higher qualification. Thus, 77 employees have higher education, out of a total of 652 employees (51 with secondary education are skilled workers, 524). Among those with higher education, the company general director is a doctor in economics. Favorable image of the company and its products. SC PAMBACS.A. worked at her image in a competitive environment, as required, and by improving its relationships with customers by upgrading their stores, products and its brand. A good coverage of local market mainly that of the municipality of Bacau, where we can affirm that S.C. PAMBAC S.A. holds first place in terms of production and distribution of agro-food products Quality and safety of products S.C. PAMBAC S.A. is the fundamental principle of the company's policy to meet all the requirements of consumers. This principle has powered and remained firm on the first places among firms with profile milling industrybakery. The company has implemented a quality assurance system in conformity with the requirements of ISO 9001, certified in December 2001 by company TUV CERT. It turns out that all the personnel of the company understand the responsibilities that are need for this certification. These step is followed naturally by documentation and application of the HACCP control system requirements relating to food safety and to its qualities. The consistent position in the field of quality at national level of society, had the best realized that S.C. PAMBAC S.A. was the first company in the romanian food industry who joined to the Program "made in Romania", initiated by the Prime Minister and launched by the Association for the promotion of products and services in Romania. The lack of a policy of marketing and business development . This is one of the biggest obstacles of S.C. PAMBAC S.A. because although it has a marketing it commercially. Also S.C. Pambac S.A. has not established a firm policy of long-term development. The company does not have national recognition. Although S.C. PAMBAC S.A. is a large company, it is very little known nationally.

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Governmental policy .Physiological needs are of prime importance for any person, and such agro-food sector is very important to any Government. The Romanian Government attaches importance to this sector by the Ministry of agriculture. The food sector is very important, in particular, production of wheat and bread production by default. Therefore, the Romanian Government should give special attention to this sector. The market is a living organism, in which supply and demand fluctuates. The market is in a continuous development, and S.C. PAMBAC S.A. in the pasta market, products of the milling industry, grissini have a market which is at the beginning of the road with a large potentially. Strong competition at national level S.C. PAMBAC S.A. faced at the national level with strong competition, with companies about the same size. With a policy of appropriate marketing S.C. PAMBAC S.A. could make a considerable share on the national market. Natural disasters: drought, excessive moisture, they can affect to a significant activity of production and price, since because of these calamities, wheat production is reduced, the company is directly dependent on it. Seasonality price of raw materials (wheat).Wheat is the raw material in the wet milling and bakery. So the final price of the products is influenced by the cost of wheat, which in turn is influenced by the seasonality production of wheat.

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FINANCES
Turnover YEAR 181,933,8 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 15 172,392,9 64 195,368,9 25 161,953,9 58 137,330,0 77 112,861,8 36 128,894,4 78 84,442,55 7 58,211,10 1 52,184,98 2 34,440,91 9 22,673,65 9 4 6 8,534,46 8 2 8,341,70 0 1,773,78 31,493,275 30,533,395 9 6,725,86 0 1,410,41 48,182,598 45,278,845 30 5,984,26 7 3,398,08 71,040,083 66,373,409 81 40,226,7 04 4,084,06 78,483,018 74,032,087 93 45,623,3 7 11,400,8 106,531,751 104,319,330 61 43,783,0 8 7,774,46 165,991,485 165,691,796 50 48,563,5 6 6,063,65 167,777,279 145,946,992 77 56,667,4 75 9,327,35 180,111,478 174,033,727 72 55,853,9 9 14,416,0 205,543,500 199,437,774 55 31,944,6 4 9,085,15 234,688,560 231,642,324 Debts 37,524,9 77 8,385,94 213,352,412 209,551,289 Stocks 13,232,7 Revenues 228,914,932 Expenses 226,544,288

YEAR 2010

Profit net/ Loss net 2,018,504

Profit Brut/ Loss brut 2,370,644

Actives imobilizate 43,203,860

Actives circulate 37,144,052

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2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

3,198,483 2,631,477 5,298,877 5,524,987 18,524,467 299,689 1,762,163 3,567,160 3,486,420 2,152,537 640,927

3,801,123 3,046,236 6,105,726 6,077,751 21,830,287 299,689 2,212,421 4,450,931 4,666,674 2,903,752 959,880

46,829,246 52,176,788 54,760,901 55,659,629 54,024,158 54,687,801 29,460,289 8,584,843 6,165,555 5,260,082 5,514,317

28,653,072 45,036,957 38,619,054 27,468,918 34,958,548 18,423,954 22,096,880 8,268,516 7,375,019 5,055,732 3,685,647

Employees

Cash availability

Capita l 41,928,838 41,960,334 39,624,851 36,712,505 32,613,628 42,985,824 25,151,404 11,330,439 10,869,091 7,532,154 5,272,775 4,153,456

Social capital 22,741,475 21,125,310 16,531,720 12,505,155 12,505,155 3,055,508 3,055,508 1,734,973 1,734,973 1,156,648 1,156,648 1,156,648

YEAR 2010 652 3,350,649 2009 661 4,433,871 2008 708 17,017,765 2007 787 832,241 2006 860 1,412,893 2005 831 5,757,415 2004 827 1,708,745 2003 833 399,350 2002 801 493,294 2001 767 523,568 2000 767 722,304 1999 915 161,538 Source : http://www.mfinante.ro/contribuabili

S.C. Pambac S.A. enjoyed from its founding to the present of financial stability, which is given the good results achieved so far and that SC PAMBAC SA is a strong business . Financial potential of S.C. Pambac S.A. in financial terms has the financial capacity including in its budget expenditure to achieve the objectives that they propose (product diversification, development of investment materials, etc.) Businesses for Pambac 2009 were 8% smaller in volume than those of 2008, while in value terms, the decline was 12%, the balance of 2009 indicating a turnover of 173 million . The year 2009 were for Pambac 8% smaller in volume than those of 2008, while in value terms, the decline was 12%, the balance of 2009 indicating a turnover of 173 million.

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In 2010 the company aims to have the same turnover. As we see in the first table the turnover in 2010 was increased. The increasing of turnover is a consequence of the last years of restructuring, cost efficiency, elimination of the product range or no less profitable

CORPORATE SOCIAL RESPONSIBILITY

Social responsibility is an integral part of the strategy for long-term development for Pambac. Convinced that the development of a corporate strategy in a responsible way is vital to the success of any business, they are oriented to create a balance between economic performance, progress in national and local community and respect towards the environment. Corporate social responsibility of Pambac focuses on four main areas: workplace, the market ,the environment and the community. Each of these areas is divided into elements of interest. Areas of interest are the below: Workplace:-protecting the human rights; -health and safety at the workplace; -equal opportunities and diversity; Market: -quality assurance and product safety; - commitment towards the consumers Environment:- environmental policy; - saving the trees; Community: - value creation in the community; - promoting children's development;

The implication of Pambac starts at the local level.Their mission is : Let us handle the future of the young generation in a sustainable perspective is our way to show us the respect of the community. Our brands are inspired by the values in the social dimension Pambac designed and have children in the foreground. Over the years the company has held numerous projects in Bacau. 16

Categories: a.Social involvement Programs: 1.Pambac appreciates art, support talent! It is one of the important project of Pambac. The company sustains the talented children. Activities: "Christmas Holidays in odor enveloped on Grania buns" On the eve of winter holidays in 2006 Pambac conducted in collaboration with the School of Arts "George Apostu" painting exhibition in Bacau. They awarded 8 children for great works with prize money, materials branded with Grania and flavor cakes. "The Easter Bunny scholarship awards you with Grania By drawing contest launched in February 2008 "The Easter Bunny scholarship awards you Grania" Pambac has proposed to create a competitive framework for secondary school students Bacau, talented at drawing, stimulating their interest in participation and performance by providing cash grants to two. National Exhibition of Art Nave in Spring Between March 26 to April 17, 2010, took place in Bacau, the nineteenth edition of the National Exhibition of Art Naive Spring. 2. Pambac gives a smile Activities: Pambac supports "carousel children's rights" in Hemeius Winter Story of Santa from Pambac at Bacovia Theatre b. Caring for the environment Environment is not only "friendly", but a reality which, in its various forms keep us alive. For that we consider that the responsibility towards the environment is an important criterion for a good business environment. Programs: 1. Environmental policy Environmental policy is an integral part of the system of quality management and food safety system that implemented by the company. 2. We try to help saving the trees Their concerns for future generations cause them to turn their attention to responsible use of resources. In this respect the commitment is to guide the company towards saving and recycling activities.

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REFERENCE
Bogdan, Bcanu (2006), Practici de management strategic, Iai:Polirom Bogdan, Bcanu (2007),Tehnici de analiz n managementul strategi,Iai:Polirom www.mfinante.ro/contribuabili www.pambac.ro Sc Pambac Sa

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