Gilden Industries....Business Plan

8/8/2019 Gilden Industries....Business Plan

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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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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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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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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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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



(1).


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.


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



(1).




2.4 Technological factors:

For the manufacturing of the cutlery, GOLDEN INDUSTRIES is using very good and

modern technology, only if we talk in reference to the local competitors. But if we talk

about the manufacturing technology of GOLDEN INDUSTRIES in reference to the

global competitors then we come to know that the GOLDEN INDUSTRIES is lacking

the latest technologies like CAD technology, automation, e-commerce, etc.


Install latest technologies

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



(1).




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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


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


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.


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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(1).


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.


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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



(1).




3.3 Distribution channels and buyers (intermediary customers):

There are different channels which are used by the GOLDEN INDUTRIES from the

shipments to buyers, including:

Whole sellers

Retailers

Commission agents

Bulk quantity customers

SZCO whole seller

Budkay.co

Own ware houses

Hilbro whole seller

Knife makers.co

Utility stores of U.S.A and U.A.E

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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


4-5

4-4

5-5



(1).




3.4 End user customers:

All of the products of GOLDEN INDUSTRIES are the cutlery products that are used by:

No. Used by Purpose








department.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.



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decoration purpose.




Customers are the most valuable asset of the organization. Success or failure of any firm

depends upon the customers.

Three things that effect the organization:

1. Number of customers

2. Frequency of purchase

3. volume of purchase

GOLDEN INDUSTRY has a lot of customer that can be categorized into the following

categories:

Regular customers

Brand loyal customers

Price conscious customers

Quality conscious customers

Availability conscious customers

Promotions conscious customers

3.4.1 Key Customer satisfaction Elements:

Customer satisfaction by the GOLDEN INDUSTRIES is ensured by the following views:

The firm fulfils the commitment with the customers.

The firm delivers the product on time.

Firm 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.


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



(1).




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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


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



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



mean of Internet. Because their foreign rivals are closer to their respective culture, and

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

requirements, therefore GOLDEN INDUSTRIES checks for new products through their



5.1.6 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


using computerized payroll

system that is managed by the

MIS department.


the largest manufacturer and

exporter of the cutlery, and its

annual sales are more than the

sales of any other cutlery

manufacturer.


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.


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.


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.


not fully utilizing its

potential.

CEO has only one

performance measure tool

that is Sales.


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



(1).




5.2 Marketing capabilities Management:

5.2.1 Marketing Intelligence:

As the main market of the GOLDEN INDUSTRIES is the global market, where the CEO

often conducts the visits and finds information about:

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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


only limited to the expansion

of its market intermediaries.

4-4

3-4



(1).




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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


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


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:


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


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








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.



decoration 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



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



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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GOLDEN INDUSTRIES

FINANCIAL PLAN

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GOLDEN INDUSTRIES

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



20

2005

(July 01, 2004 to June 30,

2005)

Sales Rs. 13,500,000



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



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



mean of internet. Because their foreign rivals are closer to their respective culture, and

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

requirements, therefore GOLDEN INDUSTRY checks for new products through their



1. PROCESS FOLLOWED BY R&D:

R&D department takes input of designs by visiting the web site of their foreign

competitors who have established the design by examining the behavior of customers

who are near to them. Then R&D takes help of a section of production department (that is

specially designed for R&D) to make amendments in the designs obtained by the webs.

(The Section of production department that make amendment in newly found designs)

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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

Gilden Industries....Business Plan

Documents

Transcript of Gilden Industries....Business Plan