Input Stage Internal Factor Evaluation Matrix Marketing Essay

Input Stage Internal Factor Evaluation Matrix Marketing EssayKey Strategic Factors Weights Ratings Weighted tons Strengths BrandImage 0.08 4 0.32 GrowingSales 0.03 3 0.24 MarketSh atomic number 18 0.05 3 0.15 Distribution Channel 0.08 4 0.32 ProductQuality 0.07 3 0.21 aptitude 0.08 4 0.32Innovation 0.04 3 0.12CustomerOriented 0.02 3 0.06Qualified Work force 0.01 3 0.03RD 0.05 4 0.20Business with bug pop Interest 0.02 3 0.06Exporting 0.06 4 0.09WeaknessesLocalCompany 0.05 1 0.05Centralized Decisions 0.09 2 0.18No Sales on C carmineit 0.06 2 0.12HighPrice 0.05 2 0.10UncertainEconomic PoliticalConditions 0.03 1 0.03MarketDemand 0.05 2 0.1StrikerTerms AndConditions 0.03 1 0.03Promotion 0.05 2 0.1Total 1 2.83militant PROFILE MATRIX(CPM)Critical Success FactorsWeightRating Score Rating Score Rating ScoreResearch Development 0.08 3 0.24 3 0.24 4 0.32Advertisement 0.09 3 0.24 4 0.36 3 0.27FinancialPosition 0.09 3 0.27 3 0.27 3 0.27MarketSh atomic number 18 0.07 2 0.14 4 0.28 3 0.21ProductQ uality 0.08 3 0.24 3 0.24 3 0.24PriceCompetitiveness 0.11 3 0.33 3 0.24 2 0.22Management 0.10 3 0.30 4 0.40 3 0.30 ball-shapedExpansion 0.08 3 0.24 4 0.32 3 0.24Customer service 0.06 3 0.18 3 0.18 2 0.12Network 0.09 3 0.27 4 0.36 3 0.27ProductionCapacity 0.07 2 0.14 3 0.21 4 0.28Alliances 0.08 3 0.24 4 0.32 3 0.24Total 1.0 2.76 3.51 2.98EFE MATRIX AGRICULTURAL INDUSTRY OF PAKISTANKEY EXTERNAL FACTORS WEIGHT RATING heavyOPPORTUNITIEStax exemption 0.07 2 0.14 susceptibility incentives 0.08 2 0.16water flow system 0.04 1 0.04agricultural loans 0.06 3 0.18surplus return of wheat 0.05 3 0.15surplus production of rice 0.06 2 0.12availability of natural resources 0.07 1 0.07labour incentives 0.09 1 0.09economies of scale 0.01 1 0.01high demand of necessities 0.04 1 0.04THREATSThe transmutation of arable land intonon-agricultural uses 0.10 4 0.40Water logging and common salt 0.09 2 0.18Land erosion scenarios argon the most disastrousof the present day crisis. 0.08 1 0.08Land is fixed 0. 04 3 0.12Increasing macrocosm 0.01 1 0.01Political system 0.03 2 0.06Proposed newborn tax system 0.03 3 0.09feudalism 0.02 1 0.02Instability of economy 0.01 2 0.02Low literacy rate 0.02 2 0.04TOTAL 1.00 2.75REASONSThe IFE MATRIX for AFL is stipulation above. Note that the strength for the fellowship is Research and Development, Pakistan based and having a highest production capacity so got 4 rating. The major weaknesses are Price competitiveness customer service and planning for the future state of the AFL. The organic dull score of2. 76 indicate this walloping draw Production Company is above average in its overall internal strength. notwithstanding its very attached to average limit as well. So it really demand to improve its weaknesses and build its strengthMATCHNG STAGE OF ENGRO FOODS LIMITED raise MATRIXSTRENGTHS WEAKNESSES OF EFLSTRENGTHSOlpers is a distinguish ofEFL. This path that consumers hind end relate their former image of EFL to Olpers.Engro is a well est ablished disfigurement adduce in Fertilizer, ITand infrastructure business.Thebrand is well cognise so customers entrust automatically have abrand association with Olpers and see it as a subsidy quality product.ENGROis world renowned so it hindquarters easily attract foreign investors in backing it against other competitors such as Nestle.EFL can easily afford research and development be for Olpers have in order to introduce new products.It can excessively distribute the brand through better channels because of its long term blood with distributors in the agriculture sector.Engro hasbeen interacting with the farmers for fertilizers and has gained quite a good reputation over the years.It has led to a self-colored bond and long term relationship with the farmers who are willing to supply draw to the company.This is an added advantage and strength for the company because it will neverbe victimize of take out production. The farmers also wont have to smelling elsewhere t o sell their milk.EFL provided, has the third-generationUHTmilk plant in the country. EFLplant is the only plant in Pakistan that usesBactofuge technology to virtually eliminatebacteria and ensure premium quality and hygiene.Other strengths of EFL areWorldwide fame ofEngro.Efficient milk army system.keeping high quality standards.Integrated distribution and storehouse facilities.Successful related diversification.Genericbrand name ofOlpersLarge grocery store share ofEngro innovative and chemicals.HavingGood reputation in the merchandiseby strongbrand name i.e. Engroindustrial strengths for EFL areWorldwide fame ofEngro.Efficient milk collection system.Keeping high quality standards.Integrated distribution and ware housing facilities.Genericbrand name ofOlpers large market share ofEngro innovative and chemicals.HavingGood reputation in the market by strong brand name i.e. Engro bullockyRDWEAKNESSESOlwell ad which isbased onWestern life style,EFLbrand management showed a man who put off his clothesremain just in his undergarments, or half nude lady in a cat walk or men admiring the figures of a lady in mixgender wellness club. In this ad they are creating associations with the brand through the stripes, which is a highlight of Olwell packaging. Half naked people have been shown with tattoos of the same stripes in order to show that they are loyal consumers of Olwell.Also, the talent, situations and locations connects well with the ad to give Olwell a premium positioning. The brilliant marketing people at EFL failed to analyze is that the market they are targeted the ad on, is Pakistan, where practicing Muslims reside, who have strong religious beliefs. When making the ad, the brand managers were foc utilize on, making an ad that should give the brand the most premium look and facial expression amongst the target consumers but on the other hand they were least bothered about the ethics, religious beliefs and cultural determine.The company has not owned the color red like Nestle has a greenMilkpakHaleebhas ablue carton etc. This may create problems because when a consumer enters a grocery shop, then he/she might have problems in recalling the brand because there is no color association attached to Olpers .The company may ingest to find a satisfactory color in which to focus its upcoming marketing strategies.EFLis not having its own dairy farms it largely collects loose milk from farmers gwalas through its 40milk collection centers, which sometimes is of low quality and impure because they add vegetable oil to milk to get higher prices.EFLis dependent uponTetraPak for the packaging of its entire dairy products. TetraPak is the only option available to Olpers for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, TetraPak can charge them higher and it could annex the production be.EFLs34out of40 milk-collection centers are located inPunjab, where as its only milk processing facility is s ituated near Sukkur(Sindh). It increases the milk collectiondistribution cost and also increases the chances of milk getting spoiled because of change magnitude traveling time.It hasbeen more than a year now, whenEFLlaunched its first dairy product,OlpersMilk on March20,2006. ButEFLsbrand portfolio still consists ofjust3products i.e. OlpersMilk, OlwellMilk andOlpersCream. Whereas its competitors like Nestle andHaleeb Foods have a much diversified line of dairy products.Industrial strengths of EFL areUnable to compete in price sensitive segment ofUHTmilk market.Under-utilization of the capacity.Unable to fulfill the demand of local powder milk market.Not yet ISOcertified.THREATSOur agricultural land is facing many threats and some of the major threats areThe conversion of arable land into non-agricultural usesWater logging and salinityLand erosion scenarios are the most disastrous of the present day crisis.The total land area of Pakistan is nearly 197 million acres, while the popula tion harvest rate is increasing annually. As our total land area is fixed, which cannot be increased, therefore, with rapidly spread outing population pressure on it, it is also increasing quickly. As a result, our current and potential agricultural land is reducing and shrinking tremendously.It has been estimated that throughout the country, everyday approximately 500 acres (1 acre = 4,840 square yards) of farmland is taken out of agriculture by the expansion of settlements, roads, factories and many other non-agricultural activities. It is also predicted that if this trend continues then after every decade approximately a million acre or more of crop land would be taken out of agriculture in our country.Arable land is a basic and major resource for the production of human food. But it seems that the expansion of human population and human activities are reducing the availability of land, suited for food production at an alarming rate.Expanding population demands more food on on e side and devours agricultural land on the other side, which is a matter of great concern for everyone.Out of total land area, 80 million hectares, 21 million hectares is cultivable. Of the total cropped areas 16.2 million hectares (77%) is irrigated and 6.01 million hectares is rain-fed. The annual rainfall in Pakistan varies from less than 100 mm in Sindh to more than 750 mm in the foothills and northern mountains. About 60% of this rainfall occurs during monsoon. In spite of a number of drainage and salinity, menace control schemes world undertaken, the salinity and water logging problems positively persist and each year 40,000 hectares of irrigated land is lost to water logging and salinity. On the one hand, the nation needs more food to fulfill the demands of its increasing population while on the other hand, each year the cultivable commanded area (CCA) is decreasing due to this check menace.Pakistan is quite outstanding country in the world with regard to its well-knit irr igation system which covers from upper parts of the country, down to the mouth of Indus in the south. Irrigated areas (nearly 16.0 million hectares) are generally limited to the Indus plain and river Indus and its tributaries are the main source of irrigation water of this 12.09 million hectares are canal irrigated 3.35 million hectares by tube wells and some other 0.6 million hectares by other sources. Of the total area under irrigated agriculture, about 9.6 million hectares is arid, 3.8 million semi-arid and the remaining area is characterized by sub-humid. No doubt, irrigation system has increased agricultural production but on the other hand has created threats of salinity and water logging.The political system of Pakistan is not stable and the corruption in Pakistan also affects the agriculture sector. Government legal obligations have always been a threat for the running of agriculture industry.Inputs rates are increasing day by day, that means less and expensive seeds, pesti cides and fertilizers.The trend of feudalism has been in our country for a long time, creating a lot of mismanagement in the federal and provincial take aim for the running of economy. Because of this the firms in the agricultural industry of Pakistan has been greatly affected.OPPORTUNITIESThere is an opportunity for the economic growth to benefit more people only if the country risesEnhancing hoidenish productivity alters its system of general education to friend millions of small farmers, those are decided to leave the agricultural industries because of poor productivity.Encourages labour incentives in agricultural industry.Improve economic condition in Pakistan by promoting the farmers and maintaining the system for improving agricultural method actings.Clean energy and Climate Legislation Will HelpPakistani Farmers need energy to grow crops and raise livestock, and to transport products to consumers. Farmers have been hurt by recent spikes in diesel and natural gas prices, an d by jumps in the costs of inputs like fertilizer. As a result, there are serious concerns across the agricultural sector about the impacts of clean energy and climate legislation on production costs.There are more rooms for chemical industry (for more pesticides and fertilizer).There are three divulge factors affecting energy prices that will divine service farmers handle a small increase in both the short and the long term. First, farmers that take advantage of energy and climate bill incentives can quickly see big cost savings from even small improvements in energy efficiency.Farmers can take advantage of the legislations renewable energy incentives to wither dependence on fossil fuel sand their volatile prices.The legislation will help stop speculation in energy markets, which will help stabilize fossil fuel prices. Increased Energy Efficiency Will Save Farmers Money, Energy and climate legislation will help farmers increase their energy efficiency, reducing their dependence on foreign oil and other fossil fuels.Technology has been advancing rapidly and use of new technology changes such as more efficient farm equipment and farming practice changes such as no-till agriculture.The Pakistan agricultural community is well positioned to benefit from passage of clean climate legislation. Farmers can protect themselves from cost increases through improved on-farm energy management and efficiency and develop new revenue streams through expanded markets for renewable energy. This will help our farmers continue to provide the food we all depend on.SWOT MATRIX FOR ENGRO FOODS.Strengths WeaknessesWorldwide fame of Engro. Unable to compete in price sensitive segment of UHT milk market.Efficient milk collection system. Under-utilization of the capacity.Keeping high quality standards. Unable to fulfill the demand of local powder milk market.Integrated distribution andwarehousing facilities. Not yet ISO certifiedGeneric brand name of OlpersLarge market share of Engroi nnovative and chemicals.Having Good reputation in themarketby strongbrand name i.e.EngroStrong RDOpportunities SO Strategies WO StrategiesImproving Economy Increase production of quality milk tocater the unsatisfied demand(S2,O2,O8)Population growth rate. As per the increase demand of the milk they should fulfill the demand as EFL have the ability to expand.(W3,O8).High urbanization rate. They should go in the product line ofpowdered milk. (S8,O2,O5)High literacy rate. They should makestrong distribution system to cater to avail the full benefit of the growing market.(W3,O2 )Flexible government policies They should increase their exports.for food industry.Have significant growthopportunities .whitethorn merge with other global businessesto eliminate competitors. They should cater the wide range ofunsatisfied demandby improving theirdistribution networks(S4,O8))Having Capable of expandinginto other markets of the world They should adopt emotive marketing strategies for the promotion of their product.(W2,O1)Threats ST Strategies WT StrategiesHigh inflation rate. Invest more on the dairy product lineas there is still a large chunk of themarket which require modernization( S6,T5)Low purchasing power. The co-ordination between different departments of EFL should be improved it will lessen the bureaucratic cost and increase the efficiency of the company.Decrease in GDP growth rate .Introduce new technology forassurance and better productivity (S4,T7)Increasing interest rates lessen investment Engro must get the ISO certification as to beat their competitors( W4,T8).Recessionary period in business cycleCompetition with NestleCompetition with Nestle,Engro Foods and the new entrantsEngro foods is currently facingincrease in SalesTax property MATRIX FOR ENGRO FOODS LIMITEDSPACE hyaloplasm is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake. Strategic Position Action Evaluation matrix or short a SPA CE matrix is a strategical management tool that focuses on strategy formulation especially as related to the competitive position of an organization. SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix mystify, industry analysis, or assessing strategic alternatives (IE matrix). The SPACE matrix calculates the importance of each of these dimensions and places them on a Cartesian graph with X and Y coordinates.The following are a few model technical assumptions By definition, the CA and IS set in the SPACE matrix are plotted on the X axis of rotation.-CA values can range from -1to -6. IS values can take +1to +6?-The FS and ES dimensions of the model are plotted on the Y axis. ES values can be between -1 and -6. FS values range from +1to +6Conservative AggressiveFS65 suggested strategy type4 (3, 2.75)321CS 1 2 3 4 5 6-6 -5 -4 -3 -2 -1 IS-1-2-3-4-5-6-7Defensive ES CompetitiveResultThis particularSPACE matrixtells us that our company should pu rsue an self-assertive strategy.Our company has a strong competitive position it the market with rapid growth. It needs to use its internal strengths to develop a market acumen and market development strategy. This can include product development, integration with other companies, acquisition of competitors, and so on.BCG FOR EFLRelative market share in industryHigh strength Low1.0 0.5 0.0ENGRO FOODSstars?cash cowsdogsHigh 10Industry SalesGrowth Medium 0RateLow -10INTERNAL EXTERNAL (IE) MATRIX FOR ENGRO FOODS LIMMITEDTheInternal-External (IE)matrixis another strategic management tool used to analyze working conditions and strategic position of a business. The Internal External Matrixor short IE matrixis based on an analysis of internal and external business factors which are combined into one suggestive model. TheIE matrixis a continuation of theEFE matrix andIFE matrix models.Strong =3.00 to 3.99 Average=2.00 to 2.99 Weak =1.00 to 1.99Grow IAnd IIBuild IIIHold IVENGRO FOODSAnd V arrest VIHarvest VIIAnd VIIIHarvest IXHigh=3.0 to 3.99Medium = 2.0 to 2.99Low= 1.0 to 1.991. Score from theEFE matrix=2.75-this score is plotted on the y-axis2. Score from the IFEmatrix=2.83-plotted on the x-axisAs blue lines indicateRESULTThisIE matrix forEngroFoods tells us that our company shouldhold and maintainits position.The company should pursue strategies focused on increasing market sagacity and product development.GRAND STRATEGY MATRIX FOR EFLREPAID MARKET GROWTH RATEQuadrant II Quadrant IENGRO FOODSWeak competitive strong competitivePosition PositionQuadrant III Quadrant IVSlow market growth rateRESULTSThe grand strategicMatrix forEFLis show that it lies in the first quadrant which recommend that for EFLcontinued concentration on the current Market(market penetration and market development)and products(product development)is an appropriate strategy.DECISION STAGEQUANTITATIVE STRATEGIC PLANNING MATRIX OR A QSPMThe Quantitative Strategic Planning Matrix or a QSPM approach attempts to objectively select the best strategy using input from other management techniques and some easy computation. In other words, the QSPM method uses inputs from stage1 analyses, matches them with results from stage2 analyses, and then decides objectively among alternative strategies.Stage 1 strategic management toolsThe first step in the overall strategic management analysis is used to identify key strategic factor. this can be done using, for example, the EFE matrix and IFE matrix.Stage 2 strategic management toolsAfter we identify and analyze key strategic factors as inputs for QSPM, we can formulate the type of the strategy we would like to pursue.this can be done using the stage2 strategic management tools, for example the SWOT analysis(or TOWS ),SPACE matrix analysis, BCG matrix model, or the IE matrix modelStage 3 strategic management toolsThe stage 1 strategic management methods provided us with key strategic factors. Based on their analysis, we formulated possible strategies in stage2. Now, the task is to compare in QSPM alternative strategies and decide which one is the most suitable for our goals.The stage 2 strategic tools provide the needed information for setting up the QuantitativeStrategic Planning Matrix QSPM.The QSPM method allows us to valuate alternative strategies objectively.Conceptually, the QSPM in stage 3 determines the relative attractiveness of various strategies based on the extent to which key external and internal critical advantage factors are capitalized upon or improved.The relative attractiveness of each strategy is computed by determining the cumulative impact of each external and internal critical success factorQSPM of Engro Foods Based on strategies in the (IFE, EFE) and (BCG, SPACE, IE), company executives determined that Engro foods needs to pursue an aggressive strategy aimed at development of new products and further penetration of the market. They also identified that this strategy can be executed in two w ays. One strategy is acquiring a competing company. The other Strategy is to expand internally.(Attractiveness Score1 = not acceptable2 = possibly acceptable3 =probably acceptable4 = most acceptable0 = not relevantDoing some easy calculations in the Quantitative Strategic Planning Matrix QSPM, we came to a conclusion that Expansion internally is a better option. This is given by the Sum Total Attractiveness Score figure.The expansion strategy yields higher score than the acquiring of competing company.The acquisition strategy has a score of 2. 75 in the QSPM shown above whereas the internal expansion strategy has a smaller score of 2. 78