Strategic ManagementFinal Project PresentationonShield Corporation LimitedPresented to:Dr. Hanif Mohammed

*Presentated by:

Shiraz S. Syed (ID: 1942)KASBITKarachi, Pakistan

Note: Data presented in this presentation were anticipated (educated guess).

*Purpose of the Presentation

Purpose of this presentation is to present the organizations strengths, weaknesses, opportunities, threats and then evaluates how organization is responding to it, using strategic management matrixes.

*Overview Of The OrganizationShield is the leading baby and oral care Product Company in Karachi, Pakistan. We believe Shield has a potential to become world class organization in its baby and oral care category.

*Organizations HistoryShield Corporation Limited came into existent about 30 years ago in 1976. Shield formerly used to known as Transpak Corporation Ltd., it was renamed as Shield Corporation Ltd in July 2003. Shield is a part of Premier Group of companies, which came into existent during 1971 as Premier Distributors. Premier Distributors have one of the largest distribution net works in Pakistan. Now Premier Group consists of following companies;Premier Distributors 1971Premier Agencies 1975Shield Corporation Limited1976Zaman Textiles Mills Limited1985PharmEvo (Pvt.) Ltd1998

*Vision StatementTo become the best personal and house care company and amongst the most trusted names in product categories we decide to be in

*Mission Statement (CW)Shield is a house hold name (8) which provides products from birth to adulthood (1). Shield is the manufacturer of wide variety of dental and baby care products such as toothbrushes, baby feeders, soother, teether, toothpaste and baby toiletries (2). Our main emphasis is to retain position of a market leader in baby care products (3) we will continue to use environmental friendly technology (4) and not compromising on quality at any cost which will increase our profit and growth on long term basis (5). Shield uses world class food grade raw material. To be 100% sure that they are providing best for their consumers (7). Shield believes in a philosophy to have a purpose in all activity performed (6). Shield treats its employees as a business partner and an equal opportunity employer (9).

*External Factor Evaluation (EFE)

*We have provided highest weightage (0.15) on exploring export market. Overall there is a need to export from our region. Shield is responding well in exploring export market. Shield has done very well in meeting local market demand and acquiring technological advancement. Within a span of four years, Shield has launched 36 products in local market. However there are lots of imported products available that Shield need to provide it to local market.

Major threat faced by local market is low cost Chinese products and un-availability of power supply on continuous basis. Shield has responded to it by introducing low cost products, however it still posting threat. Overall we have given 2.52 weighted score, because we believe Shield is above average organization.External Factor Evaluation (EFE) Cont.

*Competitive Profile Matrix (CPM)

*Overall Shield has an edge over their competitors when comparing with any critical success factors mentioned above. Following critical factors are making Shield a leader in baby care products; product quality, customer loyalty and group owned distribution channel. Shield has maintained its product quality and ensured timely availability, which has made them a house hold name from loyal customers for over thirty years.Competitive Profile Matrix (CPM) Cont.

*Internal Factor Evaluation (IFE)

*On one hand, following are the major strengths; using food grade raw materials in producing baby care products, long term planning with respect to meet increasing market demand and well know trusted house hold name. On the other hand, a major weakness is; Shield has no niche market product and high operating cost.Overall Shield is above average organization with the weighted score of 2.80. They are responding well to the internal factors.Internal Factor Evaluation (IFE) Cont.

*SOWT Analysis

Weaknesses -W1. Factory located in Landhi2. No niche market3. Higher employee turnover4. High operating cost5. HR merged with admin

Strengths-S1. Largest baby care in Pakistan2. Well known brand in Pakistan3. Foreign qualified staff4. Long term planning5. Using food grad material

Opportunities-O SO-StrategiesWO-Strategies 1. Export opportunities1. Global expansion of business to cater foreign customer(S2,S3,O1,O2)1. Investment in product development will capture the new segment (W2, O5, O4)2. Cheap labor available3. Local market demand2. Increasing investment in R & D to increase the market share(S3,S4,O4,O5,O3)2. Investment on technological equipment will decrease the payroll (W4, O4) 4.Technology advancement in production machine5. Increasing product portfolio

Threats-TST-Strategies WT Strategies 1. Low cast Chinese product1. Advertisement to create awareness about Shield product verity & higher quality food grad material (S4,S5,T1,T4)1. Investment in local raw material will decrease cost of production (W3,T3) 2. Political instability 3. Costly imported raw material 2. Investment in power generation plant to increase the efficiency of smooth production (S2, T5) 4. Media restriction 5. Un-certainty of power supply

*Boston Consultancy Group (BCG) Cont.

*Baby feeder is considered as Star with high market share and growth rate, toothbrushes and toothpaste are considered as Question Marks with high growth rate but low market share and toiletries are considered as Dog with low market share and growth rate Boston Consultancy Group (BCG) Cont.

*Internal External Matrix (IE)

*Internal External Matrix (IE) Cont.

*Internal External Matrix (IE) Cont.

*We have chosen baby care and dental care to be used in IE matrix. Our baby care division comes in Intensive or Diversification strategy which is hold and maintains strategy. Shield baby care sales and profit are greatest among other organizations product. Dental care division comes under defensive strategy which is harvest or divest. Internal External Matrix (IE) Cont.

*Internal External Matrix (IE) Cont.

*The Strategic Position & Action Evaluation Matrix (SPACE)

*The Strategic Position & Action Evaluation Matrix (SPACE) Cont.

*The Strategic Position & Action Evaluation Matrix (SPACE) Cont.

*The Strategic Position & Action Evaluation Matrix (SPACE) Cont.Our organization is emerging as Competitive, a lower right quadrant of SPACE matrix. Market development, horizontal integration and concentric diversification are the strategies best suitable for Shield

*The Grand Strategy Matrix (GSM)

*The Quantitative Strategy Planning Matrix (QSPM)

*When comparing different strategies we found that strategy 1 is best suited for Shield. Strategy 1 score is 6.7 compare to 5.8 and 6.05 for strategy 2 and 3 respectively. It is recommended that Shield should strive hard to export The Quantitative Strategy Planning Matrix (QSPM) Cont.

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