MARKETING MANAGEMENT-HOW COMPANIES GROW-WORD doc

8/14/2019 MARKETING MANAGEMENT-HOW COMPANIES GROW-WORD doc

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How companies grow?

Habib Group of Companies


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Final Project

Date: 20, dec.09

Topic: How Companies Grow?

Submitted to:

Umair Saeed

Submitted By:

Sidra Anjum

Arusa Sarwar

Farah Munavar

Hissam Mehmood

Haroon AbbasUmair Saeed

Management Sciences

Comsats Institute of Information and Technology


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As we know that: Starting a business takes vision, passion, perseveranceand aplan. Every company passes through these stages.

$ales

MaturityTake off

Success

SurvivalExistence

Like people, organizations go through stages. Takeoff refers to a period of rapid growth typically characterized by

sales Increasing in multiples. Surging customer demand must be balanced with the limitations of the Manufacturing, financial, and human resources.

As the organization has four basic functions that are:

TIME


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1. Operations (property, plant, and equipment)2. Finance (cost controls, borrowing capacity)3. Human Resources (competent middle management)4. Marketing (planning, promotion, sales)

As GROWTH is a STRATEGIC objective."Strategy is the direction and scope of an organization over the long-term: which

achieves advantage for the organization through its configuration of resources

within a challenging environment, to meet the needs of markets and to fulfill

stakeholder expectations."

In order to grow strategically companies need to keep those given points in

mind while designing strategy.

1. Goals: Establish desired short, mid and long-term outcomes inalignment with your company's vision.

2. Market Conditions: Understanding the external and environmentalfactors that create your "playing field".

3. Target Markets: Determining which markets you can cost effectivelyenter and compete in.

4. Market Scope: Knowing what kind of activities and marketing areinvolved in each of your target markets.

5. Advantages: Defining how your product or service performs betterthan the competition in those markets.

6. Resources: Acquiring the required skills, assets, financing,

relationships, technical competence, and tools needed to succeed.

7. Community Impact: Leveraging the value and support of those whoare potential stakeholders in and around your business.

8. Implementation: Establish reasonable deadlines so that yoursystems and leadership have adequate time to align with yourmarketing and sales efforts.

Business Plan: Strategically Planning for Growth

Five Key Elements

Here are five key elements to consider when drafting your business plan forgrowth.

1. Define your goals and priorities. Create a list of long-term goals. Besure to choose goals that are SMART: specific, measurable, achievable,realistic, and timed. These goals will guide you as you work through your


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business plan for growth, and will help focus your efforts on doing what it willtake to achieve these goals.

2. Set up a timeline. A timeline with milestones should be established tomark your progress against reaching your goals. Include details in thetimeline such as customers you hope to acquire, and additional employees

you might need to hire. Elaborate on how these activities will contribute toachieving your goals for growth.

3. Plan for cash. Growth strategies such as geographic or productexpansion can initially generate negative cash flow. Increasing revenuesdoesn't necessarily mean increased profits, because at the outset, the costto achieve growth can be high. Your financial plan, especially your cash flowprojections, will be vital in determining how youll sustain your companysgrowthwithout putting you under.

4. Profile competitors. Have new competitors emerged since youestablished your company? How have your existing competitors changed in

response to your entrance into the market? Be aware of how yourcompetition can affect your goals. Strategies to address competitive forcescan include adjustments in:

Price

Speed

Quality

Niche markets

5. Track your progress and evaluate the results. To track yourprogress, establish company and industry benchmarks against which you

can measure your performance. Conduct a gap analysis which comparesWhere are we today? with Where do we want to be?

How Companies Grow Organically:

On the other hand, companies can also grow organically. To grow abusiness organically common management theories and fads about strategy,superior talent, superior leadership, strong vision, innovation, globalization,outsourcing, off shoring, and unique products or services are not necessary ifyou want to grow an organization organically.

Companies that grow organically have a simple, easy-to-understand strategyand business model. The strategy model can be easily explained to andunderstood by employees at any level. These companies are disciplined andfocused. Big innovations and new business models are not prevalent.

With simplicity comes employee understanding and engagement; employeesknow where the company is headed, how it will get there, and what theirindividual role is in that growth. Employees understand why their job isimportant and how it fits into the big picture. Simplicity is the key.

Instill a small company soul into a big company body.


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A small company soul is entrepreneurial. Employees have asense of ownership of the customer, are held accountable for results,and share in the rewards of those results. Entrepreneurial employeesare like - well - like entrepreneurs. They are energized and engaged inthe day-to-day business because they feel they have some control over

their destiny, they have autonomy and respect, and they feel rewardedfor their efforts.

1. It Starts by Growing Great Employees:

It can be done by helping our clients to "grow great employees,"by offering needed skills and understanding to managers and leaders,could yield enormous benefit -- both in terms of better business resultsand more enjoyment and satisfaction in the workplace.

1) Helping clients -- organizations and individuals -- clarify andthen move toward their hoped-for future.

Three ways to do that:

The first is through "strengthening leaders," which includes doingone-on-one executive coaching, as well as working with seniorteams to support them in being as effective as possible.

Our second practice area is "clarifying vision and strategy" tohelp client-organizations create an accurate picture of theircurrent state, then visualize the future they want to create for

themselves as an organization, look at what's in their way, andthen craft strategies and tactics for getting there.

In third area -- "building skills and knowledge" To offer learningprograms to support clients in making sure that employees arecapable of creating the kind of organization they visualize.

Focus on finding and developing managers who work according tothese principles -- and then supporting them to hire, train and developstaff to do so, as well.

1. On Building Your Environment:

To create an environment that supports trust, engagement, and growth.For example, let's say an employee comes to you, the manager, with aproblem. You can tell him you respect his point of view, and that you want tocreate an environment that supports trust, engagement, and growth. Lots ofmanagers do this, and it's generally well-intended. And, most of the time, ithas no impact whatsoever. The employee doesn't feel respected and trustedas a result of you telling him that you respect and trust him.


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Contrast this with what happens if, instead, you simply listen carefully:suspend your judgments and advice for the moment, and really seek tounderstand the employee's situation, what she thinks and feels about it, howshe's tried to resolve it. Right then, that employee is going to feel trustedand respected.

Of course, you need to follow listening with clear agreements, gooddelegation, consistent follow-through, etc. But listening well is almost alwaysthe best place to start if you're sincere about wanting to create a positiveenvironment.

2. On Changing Culture:

1. Identifying key behaviors that need to be altered in order to shift theculture;

2. Making sure they're not in conflict with existing core values and beliefsin the culture

3. Making those new behaviors easy, rewarding, and normal.

4. Companies should make more of a distinction between goodperformers and poor performers. In too many companies, if you'redoing a fantastic job, you don't get treated or rewarded that muchdifferently from someone who's doing a lousy job. Especially at juniorlevels: the compensation tends to be exactly the same; and poorperformers tend not to get fired, or even reprimanded, unless they dosomething really egregious. The result is that great performers getdisheartened and stop trying, or go someplace else -- and poor

performers just keep on being poor performers.

5. If companies would teach their managers to set clear parameters ofsuccess and hold people accountable for achieving them, and ifperformance management systems were better set up to truly rewardindividual success, it would be very different. Excellent employeeswould get appreciation, challenge, promotions, money, and autonomy(the things that most people find valuable), and would continue tobenefit the company as they continued to develop and contribute theirskills and talents. Poor performers would be given a clearunderstanding of how they were expected to improve, and, if theycontinued to perform poorly, they would be terminated.

6. Not only would it create much better business results, but it would go along way to creating that environment of trust, engagement, andgrowth you asked about earlier.


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7. Sometimes, people talk as though businesses have to make a choice:that they can either go for great results, or be supportive of the humanbeings that work for them. My strong belief -- as I'm sure you can tellby now -- is that businesses need to do both in order to succeed. Greatbusinesses set the bar high -- envisioning and requiring great results --

and they support their good people by giving them the tools, the skills,the understanding and the trust they need in order to clear that barwith room to spare.

1. Diversify: Small-business, ideas for diversifying your product orservice line:

Sell complementary products or services

Teach adult education or other types of classes

Import or export yours or others' products

Become a paid speaker or columnist

"Diversifying is an excellent growth strategy, as it allows you to havemultiple streams of income that can often fill seasonal voids and, of course,increase sales and profit margins.

Heres the example of the Habib Group of Industries Under

this context:

History:

Habib group was founded by Seth Ismaeel Habib who had died in1931 and the

business passed to hands of his four sons, Mohammad Ali Habib, Ahmad Habib,

Dawood Habib and Ghulam Ali Habib who shifted to Karachi when Pakistan intoexistence. After nationalization the members of Habib family also split and are now

operating in to two distinct groups headed by Rafiq Habib and children of late

Rashid D Habib but Habib Bank A G Zurich is a joint venture of all the Habibians

The Origin of what is now known as the Habib Group of companies can be traced toHabib Esmail, and his association with the firm of Khoja Mithabani Nathoo, a leadingmetals dealer established in Bombay in 1841. Habib joined the firm at the age of 13for a monthly salary of Rs. 5. Through his hard work and determination he becamepartner at the age of 18 and also became the president of the Copper and BrassMerchants Association.

Habib sent his representative to Europe in 1912 and followed that up byestablishing branch offices in Genoa and Vienna. Simultaneously, he began businessrelationship with Japan and China importing hosiery, yarn, glassware and cutleryand exporting cotton.

He started the firm "Habib & Sons" in 1921 and changed the family name to"Habib". His four sons namely Ahmed Habib, Dawood Habib, Mohammed Ali Habiband Ghulam Ali Habib joined the business. The firm expanded rapidly - bankingremaining a core business.


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This in turn led to the formation in 1941 of Habib Bank Ltd. Bombay, as a publiclimited company. The bank was to become the flagship of the familys industrial andcommercial ventures. Prior to the creation of Pakistan the bank moved its headoffice to Karachi and played a vital role in providing the basic banking and financialneeds of this new country.

A network of branches and training centers were established in former East andWest Pakistan.

When all banks in Pakistan were nationalized in 1974, Habib Bank was one of thelargest commercial banks in South Asia with 875 branches in Pakistan and 44branches overseas, including 20 in the United Kingdom.

As HABIB group of companies are engaged in various businesses and have met theirmaturity level with respect to their growth.

Banking & Finance

Insurance

Textile

Sugar and Alied

Biofuels Terminals and Storage

Processed Foods

Automobiles

Community Development
http://www.habib.com/html/bnkfinance.htmlhttp://www.habib.com/html/insurance.htmlhttp://www.habib.com/html/hsm_textile.phphttp://www.habib.com/html/habib_sugar.phphttp://www.habib.com/html/bo_fuels.phphttp://www.habib.com/html/terminals_storage.phphttp://www.habib.com/html/processed_foods.phphttp://www.habib.com/html/habib_motorcyles.phphttp://www.habib.com/html/communitydevelopment.htmlhttp://www.habib.com/html/insurance.htmlhttp://www.habib.com/html/hsm_textile.phphttp://www.habib.com/html/habib_sugar.phphttp://www.habib.com/html/bo_fuels.phphttp://www.habib.com/html/terminals_storage.phphttp://www.habib.com/html/processed_foods.phphttp://www.habib.com/html/habib_motorcyles.phphttp://www.habib.com/html/communitydevelopment.htmlhttp://www.habib.com/html/bnkfinance.html


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At International level:

Habib Group of companies are working Internationally in following given

businesses.

Banking and Finance:

In Pakistan and internationally, the Habib name is synonymous with excellence inbanking. From the pre-Partition era to the present day, the Habib Group has beenproviding customers with the very best and most extensive banking services,cutting edge technologies, and exemplary client relationship management.

As testament to their excellence, the Habib Group has been recognized by thePakistani government on more than one occasion. During the time of Partition, theHabib Group received a personal invitation by Quaid-e-Azam Mohammad Ali Jinnahto establish the first commercial bank in Pakistan. As the only Muslim bank in pre-

Partition India, Habib Bank Limited had been instrumental in providing financialsupport to the Indian Muslim community. In the newly established Pakistan, HabibBank Limited continued to demonstrate excellence and innovation in the bankingsector. From 1947 till nationalization, Habib Bank Limited registered exceptionalgrowth rates and rapid development. When the un favourable policy ofnationalization was repealed, the Habib Group was awarded the first license toestablish a commercial bank. As a result of this directive, Bank AL Habib wasformed in 1992, and quickly developed into one of the leading banks of thecountry.

The Habib Group continues to demonstrate preeminence in the banking industry.It currently operates 4 major banks, Bank AL Habib, Habibsons Bank, HabibOverseas Bank Limited and Habib African Bank. Together, these banks have anetwork that stretches across three continents. The banks deposits, advances,profits, foreign trade business, investments and shareholders equity have showna tremendous growth over the years.

Insurance:

Habib Insurance Company Limited, one of the pioneer projects of Habib Group wasestablished in 1942 in Bombay, with a paid-up share capital of Rs 2.5 million. Afterpartition, the company moved its head office to Karachi and over the years raisedits capital through the issue of bonus shares.

By maintaining a sound underwriting policy, Habib Insurance Company Limitedearned the reputation of being very profitable and liquid. In 1972, despite lifeinsurance business being nationalized, the company managed to achieve one of thehighest rates of return in the industry. Indeed the company in the form of returns


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has paid back to its shareholders cash dividends and bonus shares in excess of twohundred times of their investment.

By adopting its prudent underwriting policies, Habib Insurance Company Limitedhas achieved to secure amongst the most solvent reserves and capital to netpremiums, gross premiums, and claims ratios in the industry.

Habib Insurance Company Limited continues to maintain its selective approachtowards the business it underwrites, and is now looking ahead to the rapidlychanging industrial and financial environment in Pakistan. New products and newmarkets are being explored, and the company is investing its resources in peopleand ideas to meet these challenges. The company aims to, Inshallah, provide highquality service to all their customers, and to continue giving its shareholders aconsistent return on their investment.

The Karachi Stock Exchange Limited, in 1981 introduced their scheme ofacknowledging the top 25 companies of the stock exchange. Habib InsuranceCompany Limited has been honored by them and has received the award eleventimes, for the years 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1993,

and for 1997.Our general insurance business focuses on Fire, Marine, Motor, Engineering, Medicaland Miscellaneous Insurance. We have technical underwriters who have built up oursix decades of insurance experience and have amongst the best reinsurancearrangements in the world with top companies.

HSM Textiles:

A part of Habib Sugar Mills, HSM Textiles was established in 1979 with the purposeto manufacture and export high quality terry products. At present HSM textilesexports to Europe, the US and Canada.

Habib Sugar Mills Limited:

Habib Sugar Mills Limited was incorporated as a Public Limited Company in1962 with its Head Office in Karachi and its plant located at Nawabshah, 300kilo-meters north east of Karachi.

The original machinery for the sugar division was supplied by M/s. B.M.A. ofGermany and the process was Double Carbonation Double Sulphitation(D.C.D.S). The capacity of the plant at its inception was 1,500 tons of sugar-cane crushing per day. The mill commenced its production in January, 1964and was the second sugar mill in the province of Sindh. Present capacity /capability of the mill is 7000 - 7500 tons of sugar-cane crushing per day. The

capacity has been enhanced by balancing, modernization and replacements(B.M.R) as well as change in manufacturing process from Double CarbonationDouble Sulphitation (D.C.D.S) to Defecation Remelt Carbonation Sulphitation(D.R.C.S.) also under B.M.R. during the last three and a half decades invarious stages of implementation.

In the year 1967-68, a Distillery to produce industrial alcohol from molasseswas added to the plant. The machinery / equipment for the distillery was


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supplied by M/s. Spechim Limited of France. This distillery division has overthe period of time contributed handsomely to the profitability of thecompany, besides boosting its export.

In the year 1978-79, the management decided to diversify into other fields ofmanufacture and established a textile division at Karachi. The produce of the

textile division is mainly exported.

The company also set-up a tank terminal in the Port area of Karachi forpurposes of handling and storage of bulk liquid cargo such as molasses,edible oil and industrial alcohol.

The company has made steady growth over the period of time. As at April2002, the capital base of the company has increased from its inception levelof Rs. 12 million to Rs. 162 million as a result of issuance of bonus and rightshares from time to time.

The company's performance during the past forty years has beensatisfactory as is established by the trend of efficyiency, growth in earningsand financial stability. Hand-in-hand with the prosperity of the company, theshareholders have been correspondingly rewarded by a consistent policy ofthe Board of Directors towards payment of stock and cash dividends.

The company was awarded Trophy and Certificate of Merit by the KarachiStock Exchange (Guarantee) Limited in 1980, 1981, 1982, 1983, 1986 and1990. Further the selection committee of International Gold Mercury Awardselected Habib Sugar Mills Limited for awarding their International Award in1982. The company was also conferred the award for the highest sucroserecovery throughout Pakistan by the Pakistan Society of Sugar Technologistsin their 25th Annual Convention held in 1990.

The company has kept up its activities relating to improved production andquality of its products in response to the needs of the farmers in particularand the nation in general. The company's policy falls in line with thefollowing directives of the Government:-

Duration of the crushing period be reduced as far as possible in theinterest of farmers.

Extract maximum sucrose contents by crushing the availablequantities of sugar-cane in more conducive climatic conditions.

Continue to improve the quality standards of its products.

Increase overall efficiency in operations so as to control wastage andoptimize capacity utilization.

The satisfactory performance and the growth in turnover and profitability ofthe company is due to hard work and excellent efforts put in by the workers,staff members and full co-operation received from our sugar-cane farmers.


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Pollution Free Environment at Nawabshah The company continues to attach great importance to a pollution freeenvironment and have installed fly ash removal system and slop treatmentplant in its sugar and distillery divisions respectively, involving a capitaloutlay of approximately Rs. 60 million.

The fly ash removal system installed in the boilers of the mills hascompletely eliminated the spread of black soot particles. Similarly, the sloptreatment plant has fully eradicated the unpleasant smell from the distillery.By the Grace of Allah, successful operation of these projects have ensured apollution free environment for the citizens of Nawabshah.

A team of Sindh Environment Protection Agency (SEPA) visited the mills atNawabshah in 1995 and lauded the efforts of the management in ensuring apollution free environment.

Bio Fuels:

In the year 1967 a Distillery unit was added to produce industrial alcohol fromsugarcane molasses, having a capacity of 65,000 liters/day, mainly for exports.Messrs Spechim Limited, France, supplied the machinery and equipment for theDistillery. The division has over the years contributed handsomely to theprofitability of the company, besides boosting its exports. The current capacity is135,000 litres a day.

Habib Foods Ltd.

Habib Food Products and the TAZA brand was established in 2004, and hassubsequently evolved into a multidimensional, multi-product business withsales in over 3 continents.

Every step in the production of our foods, from procurement, tomanufacturing, to distribution, is subject to rigorous quality control tests. TAZA products are made from the very freshest of herbs, meats andvegetables, and are cooked exclusively in state-of-the-art facilities.

Habib Motorcycles (Pvt.) Limited:

Habib Motorcycles (Pvt.) Limited is the latest venture of the Habib Group of

Companies within the engineering sector.

WatchTVC-1 [WMV1.40Mb]WatchTVC-2 [WMV5.40Mb]WatchTVC-3 [WMV9.10Mb]

The Group has collaborated with leading international automobile manufacturers todevelop the HB 70 motorcycle for the Pakistani market. The HB 70 has beendesigned to give the rider a winning combination of power, efficiency, aestheticsand value for money.
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The HB 70 motorcycle has been assembled with superior machinery from qualityconscious vendors and has been approved by the Engineering Development Board(EDB) as well as the Pakistan Standard for Quality Control (PSQCA).

Habib motorcycles are backed with a company warranty of 6 months, or 6,000 km,depending on what comes first. Habib Motorcycles has also established anextensive country-wide sales and after-sales network to better serve customers.Specialized warranty 'Satellite' workshops that are fitted with ultra-modern toolsand equipment and manned by thoroughly trained technicians have been set up ataccessible locations all over the country. Furthermore, the company offerspreferred customers special service right at their door step, saving them the hassleof workshop visits.

Habib Motorcycles (Pvt.) Limited serves to provide 100% customer satisfactionthrough the provision of high quality, performance-oriented products, supplementedwith thorough professional service.

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