business strategy fpm

BUSINESS BUSINESS STRATEGYSTRATEGY

Faruki Pulp Mills

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SWOT ANALYSISSWOT ANALYSIS

Faruki Pulp Mills

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A Journey Towards Professionalism 3

StrengthStrength

Strategic Alliances Resource Owner ( Eucalyptus, Power Plant ) Product Differentiation Suitable / Viable Import Substitute Professional Culture & Approach Ethical Practices Motivated & Dedicated Team


WeaknessWeakness

Loan from Banks No bargaining power in some raw materials Higher Price compared with other competitors


OpportunityOpportunity

High growth rates in expanding education and publication industries

Advantage of cash flow Lack of quality focused competition Industries dependent upon imports for quality

both in finished product form as well as in raw material form

Big Domestic & Huge Export Markets


ThreatThreat

Imports – Competition from abroad International Pulp & Paper Prices Exchange Rate Fluctuation High Turnover of People

PEST ANALYSISPEST ANALYSIS

Faruki Pulp Mills

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Political FactorsPolitical Factors

Prevailing Law & Order condition Taxation Policies Monetary Policies Legislations


Economic FactorsEconomic Factors

High Inflation International Recession Unemployment Energy Crisis Deficit Financing Circular Debts


Socio Cultural FactorsSocio Cultural Factors

Income Distribution Literacy Rate Consumerism Demographics Ethnic Factors


Technological FactorsTechnological Factors

Internet Speed of Technology Transfer Rate of Obsolescence Information Technology

FIVE FORCES FIVE FORCES ANALYSISANALYSIS

Faruki Pulp Mills

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Five Forces AnalysisFive Forces Analysis

Suppliers Power Eucalyptus Plantation on a Commercial Scale Contract Farming

Buyers Power B2B B2C



Threat from New Entrants Capital Intensive Industry High Technological Costs

Threat from Substitutes Synthetic Pulp Other Pulps like wheat Straw, cotton, sugar

cane etc



Threat from Competition Price Competitiveness in domestic market International Pulp Prices

BUSINESS BUSINESS LANDSCAPELANDSCAPE

Faruki Pulp Mills

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DomesticDomestic

An aware updated Customer / Consumer Reduced Buying Power of Consumer Intensive & Extensive Competition Idle Capacities Continuous Pressure on Margins Escalating Raw Material Prices Liquidity Crunch Prevailing in the Market


InternationalInternational

International Paper Pulp Prices Volatile Oil Prices Competitive Pricing Shorter Lead Times Reduction in Inventory Levels Focusing on JIT & VMI Concepts

MISSION MISSION STATEMENT & STATEMENT & OBJECTIVESOBJECTIVES

Faruki Pulp Mills

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Mission StatementMission Statement

“ To Provide our Customers with Product and Services that continually fulfill their expectations. This is achieved by all employees optimizing the quality of each action that takes place in the business of buying, producing, selling and servicing our products – all within a safe work environment that encourages personal development and satisfaction”


Company ObjectivesCompany Objectives To be the leading Player in domestic and

international market of Pulp Suppliers To be the Preferred Choice of Customers To serve Customers with the latest,

modern and Updated Technology To recruit, train and groom Team of

Professionally Dedicated People To have strong and long standing

relationship with Customers and SuppliersA Journey Towards Professionalism 21

Strategic ObjectivesStrategic Objectives To guarantee eucalyptus supply to ensure

long term growth Development of Planted Eucalyptus areas Logistics of Eucalyptus Transportation Skilled, Technically Proficient Labor Force Politically, Socially, Environmentally clean

work atmosphere Full compliance with Government Laws


MARKETING MARKETING OBJECTIVES, OBJECTIVES, FUNCTIONS & FUNCTIONS &

STRATEGYSTRATEGY

Faruki Pulp Mills

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Marketing ObjectivesMarketing Objectives To be the leading Player in the domestic

market of Pulp Suppliers To supply to Selected Internationally

renowned and reputed Companies To be recognized as a Quality Supplier To grow faster than the Market and the

existing base of Customers To have strong and long standing

relationship with CustomerA Journey Towards Professionalism 24

Marketing FunctionsMarketing Functions Achieve Sales Targets Timely Recovery of Payments Maximizing Return on Stakeholders

Investment Optimum Utilization of Capacities Providing Top Class Service to Customers

through Customer Relations Management and Key Account Management


Marketing Functions Marketing Functions (cont.)(cont.)

Gathering / Updating Market and Competition Data

Business Development and identification of new Markets and Opportunities

Preparing feasibilities for Expansion Sales Forecasting & Budgeting Gathering and Communicating Customer

Feedbacks for future improvement and direction


Marketing StrategiesMarketing Strategies Diversification of Customer Base both

Nationally and Internationally Selection of Customers on long term

Business and Relationship Basis Targeting High End Market and Products

for attaining Higher Profitability Prioritizing Customers giving Maximum

Returns and Margins and appreciating Quality and Services


Marketing Strategies Marketing Strategies (cont.)(cont.) Targeting Growth Oriented Companies and

Customers MENA(Middle East North Africa) Region

Customers to be Targeted for Export Business

Avoiding doing 100% business with any party so as to maintain control over business both in terms of Customers insolvency and indifferent attitude on account of business share and control


Marketing Strategies Marketing Strategies (cont.)(cont.)

The most fruitful business opportunity area would be to increase product usage within the existing product market, where assets and competencies are in place and only need to be leveraged. However in today’s business scenario, wisdom would be to focus on international market to avoid recession and liquidity crunch.



A second opportunity route, market development would involve expanding the market either geographically or by targeting new market segments

A key consideration of a market strategy is to achieve synergy by leveraging current assets and competencies



Export marketing would be another opportunity expanding with existing products to new markets outside country. Export marketing can help to escape a growth deadlock in existing local markets and unlock new customer segments in less price-sensitive markets


Sales Growth StrategiesSales Growth Strategies Market Penetration: selling more of the

same products in existing markets, either by way of increasing market share or product usage.

Market Development: selling more of the same products to markets locally or abroad. When aiming for new markets, focus is on untapped segments in existing markets, or on new markets.


Sales Growth Strategies Sales Growth Strategies (cont.)(cont.)

Product Development: selling new products to existing markets. This entails developing new products or refining / upgrading existing products.

Product Diversification – selling new products to new markets, by setting up a new business or taking stake in an existing business


Sales Growth Stratagies Sales Growth Stratagies (cont.)(cont.) Differentiation: Expanding sales by

distinguishing one’s offer clearly from competing substitutes, e.g., branding product to give it some special features that make it unique in the eyes of the customers.

Focus: Expanding sales by (re) positioning one’s offer in a particular market segment thought of as highly attractive, e.g., entering a high potential export market with existing product.


Sales Growth Strategies Sales Growth Strategies (cont.)(cont.)

Cost Advantage: Expanding sales by undercutting prices of competitors. The option requires to have a cost advantage.

Competitive Advantage – Expanding Sales through efforts and products which gives the organisation advantage over its rivals similar to product diversification


STRATEGY STRATEGY EVALUATIONEVALUATION

Faruki Pulp Mills

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STRATEGY EVALUATIONSTRATEGY EVALUATION

After SPOTTING TRENDS externally, REVIEW the organization internally (the policy , the tactics, the action plan) then APPLY TACTICS. EVALUATE which things, which strategies or which tactics give the GREATEST YIELD and discard wasteful tactics that are not giving the greatest yield.


STRATEGY EVALUATIONSTRATEGY EVALUATION


CONTINGENCY PLANCONTINGENCY PLAN

Presence / Availability/ Development of Businesses (Alternate Businesses) in case first choice businesses fail to materialize or do not provide desired results

Excellent Relationship to be maintained with Alternate Businesses

Alternate Businesses should exist in both Local and International Markets


CONTINGENCY PLANCONTINGENCY PLAN

Quality and Specifications of Pulp to be mutually pre agreed with the Alternate Businesses

Small Quantities of Pulp to be supplied on regular quarterly basis to Alternate Businesses to keep abreast with happenings and staying in close contact


business strategy fpm

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