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Strategic Management

Ma’am Anum Shahid

“Diversification in ICI Pakistan”

Presented by:

ZARGHAM MUSTAFA (0107)

Muhammad Ali (0118)

M Usman Umer(0035)Presented to :

Contents

Change Management 2

Strategic Management 4

SWOT Analysis33

About ICI Pakistan31

History of Our Company

ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. ICI Pakistan was acquired by Younas Brother Group in December 2012 after its parent shareholder .

AkzoNobel divested its shares from all other ICI owned businesses in Pakistan, except the Paints. Paints are now listed as a separate entity in the stock exchange with the name of AkzoNobel Pakistan Limited.

Remaining business merged to YBG form ICI Pakistan Limited, which now operates under the flag of Younas Brother Group.

Vision & Mission Statements

Vision Statement: As the partner of choice, we aspire to build our local and

international footprint through sustainable growth and by creating value for all our stakeholders.

Mission Statement:

Our values are what define us. They give us standards to measure ourselves by and in our dealings with customers, suppliers, our own people and the wider world. We have embarked upon a journey of aspiration and now, more than before, it is integral that we retain our DNA through adherence to our value system.

Customer Centricity Integrity and Responsibility Innovation Passion for People Delivering Enduring Value

Businesses in Pakistan

Currently the company is operating four different types of businesses

Businesses

Polyester

Soda Ash

Chemicals

Life Sciences

Diversification

Un Related Diversification

Related Diversification

Diversification

Diversification is a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets. This means that a company is developing new markets and new products.

Related & Un-Related Diversification

Related Diversification occurs when the company adds to or expands its existing line of production or markets. In these cases, the company starts manufacturing a new product or penetrates a new market related to its business activity.

Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.

We should assigned to introduce a change in the existing setup of any firm working in Pakistan, so we shall Select ICI Pakistan .In ICI Pakistan we are going to diversify our network ,so we use unrelated diversification in the firm and starting Dairy Foods Products in the Organization. These are several products that initially we are going to start and afterward expanding our dairy products also.

OUR CHANGE IN ICI PAKISTAN

Products:

U4C Milk

Yougurt

Desi Ghee

Cheese

Machinery Machine used for the Yogurt is Elvaria 515TW Frozen

Yogurt Machine. Milk Sterilizer Machine.Machine used for the Pasteurization of Milk is Ruipai

BR0.16-Bt milk sterilizer machine.Cheese & Butter making machineThere are two machines are used for packing purposes.1st is

used for tetra pack packaging and 2nd is used for packaging the cartoons of tetra packs. The name given to these machines are Aseptic Packing Machine.

Research& Development

ManagementMarketing

Accounting & Finance

Production/Operation

Internal Operations

Internal Operations

Internal Operations

Strategic Management in ici Pakistan

1; Management: ICI Pakistan is using almost all Functions Planning,

organizing, leading, staffing &controlling. The Strategic Management Process ICI Pakistan Follows: Forecasting, Establishing Mission, Goals & Strategies They use Job Specializations, Job description, unity of

command &job analysis. They are motivating employees by giving incentives, Job

Enrichment, Needs fulfillment &Creating employee’s morale. Formulating, &Implementing new Strategies to achieves

goals.

Marketing Mix

Promotion

Placement

Product

Price

Marketing

ICI Pakistan use the marketing mix strategy for our product.

Marketing Mix

They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan. Having kicked off simultaneously in 20 cities across Pakistan.

ICI Dairy Pakistan is pursuing the competitive pricing strategy for its products. In competitive pricing the price of the product is determined considering the price of major competitors like Nestle, Haleeb, Engro foods etc.

ICI Dairy Pakistan launch was, perhaps one of the most good products is concerned, with TVCs, print ads, radio commercials, By Phone, Internet,& billboards

Distribution Channel

Manufacturer

Distributor

Wholesaler

Retailer

Accounting & Finance

ICI Pakistan can’t uses any capital raising method because the company have suffient amount of profit for the last years so they are utilizing the capital. But the management decided not to pay the dividend to the shareholder because of new project.

ICI Pakistan will offer products at reasonable prices. The initial investment will be Rs. 0.18 billions. Their core focus will be on minimizing the investment cost. The total investment will be Rs. 0.2 billions approximately as it will cover the other costs which may include the certification cost and getting license for running.

Accounting & Finance

Income Statement  Revenue PKR 18,925,440Excess milk PKR 3,213,973

 Total revenue PKR 22,139,413

 Expenses  Enrichment PKR 591,420

 Flavoring PKR 295,710

 Supplies & packaging PKR 10,58,530

 Utilities PKR 10,82,840

 Other plant cost PKR 96,59,860

 Depreciation PKR 2,65,680

 Labor PKR 31,39,940

 Equipment(depreciation) PKR 19,71,400

 Total expense PKR 18,065,380

 Net income PKR 40,74,033

 

Production/Operations The company is using CAD/CAM for designing of the

product that’s help to reduce cost, minimize time, and new range of capabilities.

ICI Dairy Pakistan is using Just-in-time (JIT) inventory system because the nature of the product is perishable, so other inventory system can’t be applied

They want quality in everything they do & the company do not compromise on quality at any cost.

ICI is ISO 9001 certified company that is proof of their continuous efforts towards total quality management.

Research & Development

The company owes Research & Development department for the successful activities for the survival of the firm. Firm pursuing product development or diversification strategy rather related or unrelated needs to have a strong R&D so our company has such type of department.

ICI Pakistan is continuously developing & growing in diversify business because of their efficient and effective R&D and having good experience.

For initiating our Dairy business some questionnaire are filled by from the people.

SWOT Analysis of ICI Pakistan

SWOT Analysis, which is based on review of the business ,identifies and evaluates the internal strengths and weakness of the companies well as its external threats and opportunities. SWOT analysis can help the firm to beat its competitors.

Strengths: The product of ICI are know best quality product in particular

industries. ICI has positive image & reputation in the minds of customers so far

them it’s a strength because its helps in the sale of their products. ICI Pakistan has up to date technology in its production. ICI Pakistan

claim that they quality products with latest technology to the customers

Weaknesses:The prices of the ICI products are too much higher than its

competitors.Mostly people are unaware of this product due to its

promotional weaknesses

Opportunities:ICI has got a lot of resources and skills to expand

their target market.They are planning to introduce new brands in the

market in the coming years with improved quality.

Threats:The competitors of ICI are increasing day by day.

Although ICI captures a main portion of market share but its main competitors like Nestle, Olper’s, Tarang, and Haleeb are offering a competitive environment in the market.

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