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    GOLDEN INDUSTRIES1

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    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

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    GOLDEN INDUSTRIES

    T a b l e o f c o n t e n t s

    Page #

    GENERAL FIRMS 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 34.3 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

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    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 Operationsproduction 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 units capabilities in relation

    to critical success factors 36

    6.2 Opportunities for the business unit to exploit

    with existing capabilities 36

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    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

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    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

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    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

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    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

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    GENERAL FIRMSDESCRIPTION

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    GOLDEN INDUSTRIES

    G E N E R A L F I R M S D E S C R I P T I O N

    1. HISTORY OF GOLDEN INDUSTRIES:

    GOLDEN INDUSTRIES (cutlery division) started its working on 15 th 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)

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    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

    Ninjas

    Ninja Stars

    Throwings

    Cutlery sets

    3. STARTING DATE OF OPERATIONS:

    Year of starting of the firms 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

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    GOLDEN INDUSTRIES

    4.1 Management Information System:

    The GOLDEN INDUSTRIES has a management information system that works on the

    following topics:

    Local buyersLocal sellers

    Account payables

    Account receivables

    Foreign distributors and their goods records

    Foreign buyers

    Workers

    Invoice record

    Products sample record

    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.

    (MIS department of GOLDEN INDUSTRIES)

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    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, andcustomers, by which they design the products totally according to their customers

    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.

    (CEO of GOLDEN INDUSTRIES)

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    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 SectionPolishing Section

    Sharpening Section

    Finishing Section

    Packing Section

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

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    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

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    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

    Ninjas

    Throwings

    Daggers

    And Cutlery Set that include:

    Variety of spoonsVariety of Kitchen Knives

    8. MARKETS:

    The GOLDEN INDUSTRIES has targeted the markets of the following two levels:

    Local Level, and

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    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

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    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:

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    All the product categories of cutlery include:

    Knives

    Paper Cutters

    Swards

    Num chucks

    Walking Kane

    Ninjas

    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), Kings 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.

    Ninjas 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:

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    Product category Target Market

    For all Product

    categories.

    Local Level:

    Lahore

    Sailkot

    RawalpindiGlobal 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, andOffices.

    Num chucks Household, Army, Hotels, Offices, and Individuals.

    Walking Kane Household, Army, Hotels, TV channels, Offices, and Individuals.

    Ninjas 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.

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    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 53 represents an extremely significant opportunity or threat thathas 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.

    Opportunities Rating Threats Rating

    Keep them updated about

    the cultural values of other

    country through their

    distributors and whole sellers.

    Promote the items through

    cultural contest.

    2-2

    3-5

    Any product bane due to

    the cultural limitation.

    Negative reaction due to

    the product that is harmful for

    the society e.g: butterfly knife.

    5-3

    3-4

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

    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

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    INDUSTRIES is facing huge economic threats, and struggling hard to retain the

    customers.

    Opportunities Rating Threats Rating

    Economy of scale,

    production in bulk quantity.

    Outsourcing from china.

    Import raw material from

    cheap price countries.

    3-3

    5-5

    3-2

    China in local as well as in

    global market.

    If outsourcing from china,

    then local market

    manufacturing heart.

    5-5

    3-3

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

    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.

    Opportunities Rating Threats Rating

    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

    sellers and distributors.

    If GOLDEN INDUSTRIES

    install the latest technology

    3-2

    4-3

    4-2

    GOLDEN INDUSTRIES is

    using very old technology.

    Labor intensive technology

    of GOLDEEN INDUSTRIES.

    5-2

    4-3

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    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

    automation.

    3-2

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

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    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

    The Global level markets include the markets in the following Areas:

    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

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    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)

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    Posting of Newly launched product information to regular user

    Free leather cover for safety purpose

    Opportunities Rating Threats Rating

    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.

    4-5

    4-4

    5-4

    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

    whole sellers and distributor.Lack of specialized R&D

    to invent new markets and

    customers.

    Chinese cutlery.

    5-5

    4-5

    3-3

    5-5

    (Web Site preview of GOLDEN INDUSTRIES)

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    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 53 represents an extremely significant opportunity or threat thathas a reasonable likelihood of occurrence.

    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.

    Opportunities Rating Threats Rating

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    Enter into the markets,

    which are not in the reach of

    competitors.

    Work in cluster.

    Outsourcing from China.

    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.

    4-4

    3-4

    5-5

    Chinese cutlery.

    Copy of product design by

    the competitors. Competitors

    can do this by visiting the

    showroom of the GOLDEN

    INDUSTRIES.

    5-5

    4-4

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

    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

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    Opportunities Rating Threats Rating

    There is still demand of

    cutlery that is not fulfilled.

    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.

    3-4

    4-4

    3-5

    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.

    4-5

    4-4

    5-5

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

    3.4 End user customers:

    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 Fisher men 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

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    decoration purpose.

    8. Offices For the purpose of cutting the papers and

    decorating the offices.

    9. Individuals Used for security 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 doesnt 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 doesnt 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.

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    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.

    Opportunities Rating Threats Rating

    GOLDEN INDUSTRIES

    should sale its products also

    through the internet (e-

    commerce)

    Provide brand awareness tothe customers through some

    promotional campaign.

    Create demand for their

    product by reaching into more

    global and local markets.

    Offer customization of

    products through the internet

    websites.

    5-5

    3-4

    3-3

    4-4

    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.

    5-5

    4-5

    4-5

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

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    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

    Consumers convenience

    Customers 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

    Industries

    Sartaj

    Enterprises

    Sharp Edge

    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

    manufacturing

    0.12 3 0.36 3 0.36 3 0.36

    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 0.409 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

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    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.

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    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

    Operationsproduction

    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

    figures

    Net Profit

    Margin (%)

    2004

    (July 01, 2003 to June 30,

    2004)

    Sales Rs. 15,000,000

    Cost + Expenses Rs. 12,000,000

    Net Profit Rs. 3,000,000

    20

    2005

    (July 01, 2004 to June 30,

    Sales Rs. 13,500,000

    Cost + Expenses Rs. 12,000,000

    11

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    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

    (July 01, 2005 to June 30,

    2006)

    Sales Rs. 14,500,000

    Cost + Expenses Rs. 11,800,000

    Net Profit Rs. 2,700,000

    19

    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 dont 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

    To generate a tough selling lead by offering maximum quality in enoughprice, by great utilization of human resource, resulting more employment

    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.

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    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 customers

    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.

    5.1.6 Operationsproduction 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

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    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

    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

    4-4

    5-5

    3-4

    GOLDEN INDUSTRIES

    has not prepared any of the

    financial statements

    (including: Income statement;

    Balance sheet; Statement of

    cash flow), regarding its

    business operations.

    Continuous fall in net

    profit margin.

    GOLDEN INDUSTRIES is

    using human intensive

    machinery instead of using

    automated machinery.

    5-4

    4-4

    4-4

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    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

    designs the products totally

    according to their customers

    requirements.

    GOLDEN INDUSTRIES is

    having very good machinery

    relatively to the local

    competitors.

    There is an effective

    coordination between thefunctions of the GOLDEN

    INDUSTRIES.

    3-3

    2-3

    4-4

    4-5

    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.

    GOLDEN INDUSTRIES is

    not fully utilizing its

    potential.

    CEO has only one

    performance measure tool

    that is Sales.

    GOLDEN INDUSTRIES is

    using human intensive

    machinery due to which it has

    to face a huge expense of

    salaries and wages of

    employees.

    4-3

    3-4

    3-3

    4-4

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

    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:

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    Customer preferences

    Customer response

    Technological changes

    Cultural changes

    Distributors and retailers preferences

    Competitors 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

    intelligence position of

    GOLDEN INDUSTRIES.

    3-4 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.

    4-4

    3-4

    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 53 represents an extremely significant opportunity or threat that

    has a reasonable likelihood of occurrence.

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    6. PROBLEMS AND OPPORTUNITIES STATEMENT:

    6.1 The business units capabilities in relation to critical success

    factors:

    CSF Our capabilities

    Product line Offer diversified product range

    Consumers convenience Offer a number of user benefits

    Customers 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 rivalsGlobal 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 entryof 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.

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    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 CADtechnology, and automation.

    Establish a web based e-commerce portal in order to reduce the cost of whole

    sellers and distributors.

    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

    whole sellers and distributor.

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    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.

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    M A R K E T I N G O B J E C T I V E S

    A N D H I G H E R L E V E L

    M A R K E T I N G S T R A T E G I E S

    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

    markets (Market penetration)

    Expansion in market

    intermediaries.

    Existing products in new markets

    (Market development)

    Enter into the markets of those

    countries to which competitors

    have less access, through the links

    of existing market intermediaries.

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    M A R K E T I N G M I X

    S T R A T E G I E S

    1. MARKETING MIX:

    1.1 Products:

    1.1.1 Knives:

    Pocket Knife

    Hunting Knife

    Fantasy Knife

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    Kitchen Knife

    Boot Knife

    Commando Knife

    Paper Cutter

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    1.1.2 Swards:

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    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

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    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

    1-month guarantee for repairing

    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

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    BIG knife

    Hunting knife

    Paper cutter

    Brands of Swords: Warier

    Long Sharp

    Chinese Sword

    Master ninja

    Sword (Kalmay wali)

    Kings 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 Ninjas:

    Ninja Sword

    Brands of Throwings:

    Star

    Ninja

    Stick

    Punch

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    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:

    1-month guarantee for repairing

    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

    limit

    Maximum Price

    limit

    Average Price

    (Rs.)

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    (Rs.) (Rs.)

    1 Pocket Knives 15 40 25

    2 Hunting Knives 35 175 80

    3 Fantasy Knives 30 150 50

    4 Kitchen Knives 15 40 256 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

    The Global level markets include the markets in the following Areas:

    UK

    USA

    Germany

    France

    Saudi Arabia

    Canada

    Germany

    Spain

    1.4 Promotion:

    GOLDEN INDUSTRIES is using following tools of promotion:

    Internet

    Personal Selling

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    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

    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.

    2.2 Products/brands servicing this segment:

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    No. Segment Product

    1. House Holds Knives, Sword, Num chucks, Walking Kane,

    Ninjas, Throwings, Daggers, Cutlery Sets.

    2. Boucher Knives.

    3. Army Knives, Paper Cutter, Sword, Num chucks,

    Walking Kane, Ninjas, Throwings, Daggers,

    Cutlery Sets.

    4. Hunters Knives.

    5. Hotels Knives, Sword, Num chucks, Walking Kane,

    Ninjas, Throwings, Daggers, Cutlery Sets.

    6. Fisher men Knives.

    7. TV channels Knives, Sword, Walking Kane, Ninjas,

    Throwings, Daggers.

    8. Offices Paper Cutter, Sword, Num chucks, Walking

    Kane, Ninjas, Throwings, Daggers, Cutlery

    Sets.

    9. Individuals Knives, Paper Cutter, Num chucks, Walking

    Kane, Ninjas, 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:

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    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.

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    I M P L E M E N T A T I O N P L A 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.

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    MARKETING PLAN

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    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.

    Raw Material

    Cutting

    Tempering

    Combining

    Grinding

    Polishing

    Initial finishing

    Packing

    Final finishing

    Products Products

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    4 Kitchen Knives 675 1200

    5 Commando Knives 447 750

    6 Boot Knives 651 1200

    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:

    No. Product NameIn one month In six months

    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 133924 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.

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    MANAGEMENT PLAN

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    M A N A G E M E N T P L A N

    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

    To generate a tough selling lead by offering maximum quality in enough

    price, by great utilization of human resource, resulting more employment

    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

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    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

    intermediaries.

    To some extend GOLDEN INDUSTRIES is

    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

    R & D

    Manager

    HR Manager

    MIS ManagerSale/Pur./

    Marketing

    Manager

    Production

    Manager

    Assistant

    R & D

    Manager

    Assistant MIS

    ManagerAssistant

    Sale/Pur./Marketing

    Manager

    Checkers

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    And the production departments hierarchy is given below:

    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 3,000For 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

    ProductionManager

    C H E C K E R S

    Cutting Combining Grinding Polishing Finishing Packing

    Workers Workers Workers Workers Workers Workers

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    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.

    Lets 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:

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    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

    To generate a tough selling lead by offering maximum quality in enough

    price, by great utilization of human resource, resulting more employment

    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

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    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

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    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 MIScould be one of the great sources for the CEO to monitor the activities of the organization

    trough the Internet connectivity with the organizational MIS.

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    HUMAN RESOURCEMANAGEMENT

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    HUMAN RESOURCE MANAGEMENT

    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:

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    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 orworkers:

    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:

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    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 newemployee. As signature of executive HRD will be required on following documents:

    Job Application form

    Contract form

    New employee orientation form

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    FINANCIAL PLAN

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    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

    (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

    figures

    Net Profit

    Margin (%)

    2004

    (July 01, 2003 to June 30,

    2004)

    Sales Rs. 15,000,000

    Cost + Expenses Rs. 12,000,000

    Net Profit Rs. 3,000,000

    20

    2005

    (July 01, 2004 to June 30,

    2005)

    Sales Rs. 13,500,000

    Cost + Expenses Rs. 12,000,000

    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.

    11

    2006

    (July 01, 2005 to June 30,

    2006)

    Sales Rs. 14,500,000

    Cost + Expenses Rs. 11,800,000

    Net Profit Rs. 2,700,000

    19

    For making the comparison of the above-mentioned financial data of GOLDEN

    INDUSTRIES with the financial data of other cutlery manufacturer, we visit All

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    Pakistan Cutlery Association to take financial data of other cutlery manufacturers. But

    they dont 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.

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    RESEARCH ANDDEVELOPMENT

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    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

    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 customers

    requirements, therefore GOLDEN INDUSTRY checks for new products through their

    rivals web sites and then makes amendments in the new design by the help of their

    production department.

    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)

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    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.

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    RISK MANAGEMENT

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    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.

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    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:

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    a) Improper handling of Press: In the cutting section, improper handling of