Submitted by:Muhammad Mussab AqeelUmam Jamal

• INTRODUCTION

• PRODUCT

• CUSTOMERS

• PROFITABILITY

• RETURN ON INVESTMENT

• MARKET SHARE

• MISSION

• OBJECTIVES

• POLICIES

• STRATEGIES

YEAR NET SALES GROSS PROFIT NET PROFIT/(LOSS)

2012 1.9M 0.23M (0.31M)

2011 1.6M 0.17M 0.007M

2010 2.0M 0.29M 0.135M

2009 1.3M 0.12M (0.137M)

YEAR

RETURN ON

INVESTMENT BEFORE

TAX

RETURN ON

INVESTMENT AFTER

TAX

2012 (2.6%) (1.87%)

2011 0.47% .47%

2010 8.07% 9.28%

2009 (10.85%) (10.62%)

Ghandhara Industries Ltd. (GIL), is the exclusive distributor of ISUZU products in Pakistan, and is part of the Bibojee Group of Companies. GIL is very proud of their performance in one of the world’s most competitive trucks and bus market in terms of over loading & fuel efficiency. Using leading edge engineering and manufacturing technologies, Ghandhara Industries has developed a reputation for reliability, durability and cost efficient Light/Medium/heavy Duty trucks and buses.

To assist the society in fight against pollution hazards by introducing

environment friendly vehicles.

To maximize share of Isuzu in Pakistan.

To be a market & customer oriented organization.

To provide effective & efficient after sales services to the customers.

To enhance performance in all operating areas, ensuring growth of the

Company and optimum return to the stakeholders.

To create conducive operational environments for optimum

productivity, job satisfaction, carrier development and well being of

employees.

The objectives of Ghandhara Industries Limited are as under:

Increase Customer Satisfaction Level

Ensure Financial Profitability

Ensure fuel consumption

Ensure availability of the right product at the right place and time.

Designing the product line in order to capture the maximum share of

the market.

Ensure nationwide availability through nationwide 3S dealer network.

Complete customer satisfaction through best after-sales support.

Setting up and continuous up gradation of business on modern

professional lines.

Maintaining and retaining best available human resource.

PRODUCT POLICY: Continuous liaison with the principals in Japan to ensure provision of technologically advanced vehicles.

SERVICE POLICY: Carefully designed and properly equipped service centers to ensure delivering state-of-the-art service facility to its esteemed clientele.

PRICING POLICY: Continuous product audits and close watch on competition to price the product accordingly and remain competitive as well as acceptable to the customer.

SALES POLICY: Selection of technically qualified and renowned businessmen with strong financial capability to effectively manage the 3S operations.

MAKRETING POLICY: Continuous and well planned promotional campaigns throughout the year to strengthen the brand image and reliability.

HUMAN RESOURCE POLICY: Hiring and retaining the best available human resource with strong emphasis on their continuous development for continued growth and prosperity.

• BOARD OF DIRECTORES

• CODE OF CONDUCT OF BOARD OF DIRECTORS

• TOP MANGEMENT

• CONSITITUES THE TOP MANGEMENT

• NATURAL PHYSICAL ENVIORNMENT

• SOCIETAL ENVIRONMENT

• TASK ENVIRONMENT

• FIVE FORCES OF PORTERS

External Factor: Weight Rating Weighted

Score

Comments

Opportunities

Vertical integration 0.2 3 0.6 Opportunities to produce

Economic development 0.10 4 0.4 Development work

Environmental friendly engine 0.15 5 0.75 Working with many NGO’s

Differentiate the product 0.05 2 0.1 Established according to need

Threats

Fuel prices 0.25 4 1 Fuel prices is increasing

Inflation in the country 0.14 3 0.42 Economy is instable

Rapid changing in technology 0.10 5 0.5 New innovation

High competition 0.01 2 0.02 Low competition

Over All 1 3.79

• CORPORATE STRUCTURE

• CORPORATE CULTURE

• CORPRATE RESORUCES

CORPORATE STRUCTURE

CEO DCEO

Finance

Sales & Marketing

Research & Development

HRM

Production

• MARKETING DEPARTMENT

• FINANCE DEPARTMENT

• HUMAN RESOURCES DEPARTMENT

• LOGISTIC AND OPERATIONS

• RESERCH AND DEVELOPMENT

Internal Factor: Weight Rating Weighted

Score

Comments

Strength

Offer variety of services 0.10 3.0 0.30 Offer verity service to customer

Personal selling 0.2 4.0 0.8 Niche marketing strategy

Low labor cost 0.18 3.5 0.63 Low cost of labor

Cost efficient 0.02 2.0 0.04 Provide cost effective trucks

Weakness

Low market capitalization 0.05 2.5 0.125 Because market is mature

Low cash reserves 0.2 5.0 1.0 Due to high guarantees

Weak R & D 0.05 3.5 0.175 low budgeting

Weak management 0.2 5.0 1.0 Due to in transprancy in hiring

Over All 1 4.07

• TOWS MATRIX

• INDUSTRY EVALUTION

• STRATEGIC GROUPS

• STRATEGIC TYPES

• HYPERCOMPITION

Ghandhara industries is a fragmented industry because it has no clear leadership

in market share in the truck manufacturing industries and it has got many direct

and indirect competitors like Hinopak, Korakaram motors, Master motor

corporation, Biboojee services private limited and Adam motor company etc.

Many of these companies has got market share but especially Hinopak and Adam

motor are the direct competitors of Ghandhara industries. Hinopak particularly

compete with Ghandhara industries and do not allow the Ghandhara industries to

capture the high market share. Ghandhara industries deal with the truck

manufacturing and they are famous for their reliability. Similarly Hinopak and

Adam motors are also famous for manufacturing trucks and its parts.

Prospector is companies with fairly broad product lines that focus on product

innovation and market opportunities. This sales orientation makes them somewhat

inefficient. They tend to emphasize creativity over efficiency. We are saying

Ghandhara a prospector because in its initial time they only involve in distribution

of the trucks but gradually they started to manufacture the different parts of the

trucks which their competitor do not manufacturing.

Analyzers are corporations that operate in at least two different product-market

areas, one stable and one variable. In the stable areas, efficiency is emphasized. In

the variable areas, innovation is emphasized. Ghandhara industries can also be

include in analyzer because when they have analyzed that their competitors are

manufacturing the cheaper trucks like Hinopak and Adam motors they make their

trucks reliable for which they are famous for.

Ghandhara industry is not in hyper competition because hyper competition results

from the dynamics of strategic maneuvering amongst competitors. It is the

condition of rapid escalation of competition based on price-quality positioning,

competition to protect or invade established product or geographic markets and

competition based on deep pockets (financial capital) and the creation of even

deeper pocketed alliances. Often a characteristic of new markets and industries,

hyper competition occurs when technologies or offerings are so new that standards

and rules are in flux, resulting in competitive advantages and profits resulting from

such competitive advantages cannot be sustained.

Key GHANDHARA HINOPAK HYUNDAI

Success Factor: Weight Rating Score Weight Rating Score Weight Rating Score

Quality/product performance 0.05 3 0.15 0.1 4 0.4 0.09 3 0.27

Reputation/image 0.1 2.5 0.25 0.12 3.5 0.42 0.1 4 0.4

Manufacturing capability 0.08 3.5 0.28 0.1 3.5 0.35 0.11 3.5 0.385

Technological skills 0.15 4 0.6 0.12 3.5 0.42 0.14 3 0.42

Dealer network 0.1 3.5 0.35 0.12 3 0.36 0.13 4 0.52

New product innovation 0.18 4 0.72 0.1 3 0.3 0.1 2 0.2

Financial resources 0.1 3.5 0.35 0.1 4 0.4 0.1 4 0.4

Relative cost 0.14 3.5 0.49 0.12 3.5 0.42 0.1 4 0.4

Customer service 0.1 4 0.4 0.12 3.5 0.42 0.13 2.5 0.325

Over All 1 3.59 1 3.49 1 3.32

• BUSINESS STRATEGY

• COPORATIVE STRATEGY

• FUNCTIONAL STRATEGY

• using Cost Leadership Strategy that helps in

Provides a defense against competitors

Provides a barrier to entry

Generates increased market share

• our recommendation is follow same

• currently focusing on

using concentric (related) diversification

Stability strategies using profit strategies

• Our recommendation

Used a Paused strategy

Work on weak culture and Human Resource management

• Currently focusing on

Marketing strategy

Using R & D

Our recommendation

Market development strategy

Financial strategy

Upgrading the Human resource department

Operational strategy

IMPLEMENTATION

SUGGESTED TO DO

MANGMENT BY OBJECTIVES

EVALUATION AND CONTROL

Employee Health Plans

Employee Insurance

Employee LeaveEmployee

Retirement Income Security Act

education to childern

Paternity BenefitsPension

&Retirement Plans

Wages & Salaries

Workplace Programs

• ANALYSIS OF LIQUIDITY RATIO

• ANALYSIS OF ASSET MANGEMENT RATIO

• ANALYSIS OF PROFITABILTY RATIO

Liquidity ratios:Benchmarks (last three years

average)2010 2011 2012

Current Ratio(1.13+1.08+1.05)/3

=1.0871.13 1.08 1.05

Quick Ratio (0.48+0.66+0.54)/3

=0.560.48 0.66 0.54

Inventory to net

working capital(5.08+5.11+10.69)/3

=6.965.08 5.11 10.69

Asset Management ratios Benchmarks (last three years average) 2010 2011 2012

Inventory Turnover(3.30+2.08+2.14)/3

=2.503.30 2.08 2.14

Debtor turnover ratio(22.2+12.64+12.69)/3

=15.8422.2 12.64 12.69

Creditor turnover ratio(21.26+10.14+11.44)/3

=14.2821.26 10.14 11.44

Total asset turnover ratio(0.74+0.49+0.56)/3

=0.60.74 0.49 0.56

Fixed asset turnover ratio(1.32+1.04+1.25)/3

=1.201.32 1.04 1.25

Profitability

ratios:Benchmarks((last five years average) 2010 2011 2012

Gross Profit

Margin

(14.22+10.68+12.01)/3

=12.30%14.22% 10.68% 12.01%

EBITDA Margin(11.72+5.81+7.09)/3

=8.20%11.72% 5.81% 7.09%

Net Profit Margin(6.5+0.47-1.58)/3

=1.79%6.50% 0.47% (1.58)%

Return on Equity(9.28+0.47-1.87)/3

=2.62%9.28% 0.47% (1.87)%

Earnings per

share

(6.36+0.36-1.46)/3

=1.756.36 0.36 (1.46)