Strategic Management by Sir Mansoor Soomro

Presented By:
FATIMA-TUZ-ZEHRA (16017)
SYED ZAKI HAIDER
SUGAND RAMESH

(15092)
(14327)

SYED QASIM RAZA (15281)

IRFAN UMER

(15357)

Shan Foods Vision & Mission

VISION: A global food brand offering

premium quality innovative products,
which delight our consumers.

MISSION: Shan, a responsible corporate

citizen, adhering to its core values,
trusted globally for providing great
tasting consistent quality food products.
We are determined to reach every
kitchen by diversifying into growing food
categories through innovative, healthy &
safe products for the ultimate delight of
our
consumers.
We
will
enhance
shareholders value through sustainable
growth, develop strategic relationship
with our business partners and ensure
safe
work
environment
for
our
employees.

Strategy Planning in Shan Foods

There is no specific Strategic Management /

Strategic Planning department in Shan Foods.

The main strategic decisions at Shan Foods is

done by heads of departments

Owner ( Mr Muhammad Sikander Sultan)

Chief Executive Officer ( Mr Faisal Mubeen
Ganatra)
Chief Financial Officer
Head of Marketing Department
Head of Supply Chain

Business Cycle

Shan Foods is in the growth / expansion stage.

Turnaround At shan Foods?

Shan Foods acquired Raani Foods, a Manchester based Food Company

that produces Indian Food delights in 2011.

This transaction was based on a strategy to transform Shan Foods into

transnational global fast moving consumer goods.

This acquisition was successful According to Mr Mubeen Faisal Ganatra

that it was the biggest achievement for Shan foods to acquire an
international brand.

CPM
S.No

Key
Factor

CPM
Success Weight

Shan Foods

National Foods

Mehran Spices

RATING

W.SCORE

RATING

W.SCORE

RATING

W.SCO
RE

Brand

0.15

0.3

0.45

22

0.3

Distribution

0.15

0.6

0.3

0.3

Quality

0.1

0.3

0.3

0.2

Taste

0.15

0.4

0.4

0.3

Financial Position

0.05

0.3

0.3

0.1

Technology

0.1

0.2

0.4

0.1

Diversification

0.15

0.6

0.3

0.15

Global Expansion

0.1

0.3

0.3

Price

0.05

0.15

0.3

0.05

3.2
TOTAL

2.9

1.5

EXTERNAL FACTOR EVALUATION

INTERNAL FACTOR EVALUATION

IFE MATRIX
Key Internal Factors

Weight

Rating

Weighted Score

Comments

0.1

0.4

Common brand loyalty is high

Market Leader with

55% share

0.05

0.2

Leading spice
Pakistan

R&D and Product

Development

0.05

0.15

Brings new products on consumer

preferences

Strong Distribution
Network

0.2

0.15

In
Karachi
restaurants

International
Business

0.05

0.15

Acquisition of Raani Foods

Diverse Portfolio

0.1

0.3

Dealing
with
Lentils etc

Use
of
Technology

0.02

0.06

Using Sortex Machine for cleaning

spices

0.05

0.15

Used Aluminum foil for Packaging

0.1

0.2

Weak Supply in different areas of

Punjab

0.24

A weak online presence can result

in lost opportunities forShan food

0.6

Weak promotions

STRENGTHS
Country's
brand

major

latest

Unique Packaging

manufacturing

and

Pickles,

in

different

Spices,

WEAKNESS
Weak distribution at
Punjab
Weak
Presence

Online 0.08

Marketing
Communications

0.2

Total

2.6

Shan Foods Strategy Choice

MARKET PENETRATION:
Market penetration is one strategy that is being applied to the
organization that is the organization is penetrating the food industry
with their huge marketing campaign to further penetrate the existing
market.

PRODUCT DEVELOPMENT:
The intensive strategy that company is applying is improving present
product or developing new ones. For this purpose Shan foods
consistently working by getting customers feedback, market demand,
doing Research & development, market surveys and market research

TOWS MATRIX

OPPORTUNITITIES
1. Growth potential in central and
northern regions
2. Fast Lifestyle (less available time for
cooking)
3. Quality Raw Materials Available in the
country.
4.
untapped Asian Communities Living
Aboard

STRENGTHS
1. Innovation & R&D
2. Commitment and Timeline
3. Quality and Taste Management
4.
Enriching employee thinking capacity.
5. Implementation of IBS through in house IT
infrastructure
6. Strategic relations with suppliers and
farmer

WEAKNESSES
1. limited expansion due to complete equity
financing
2. Weak distribution in Punjab side.
3. Limited approach towards marketing
communication.
4. Tough Credit Policy

S-O STRATEGIES
W-O STRATEGIES
1. Penetrate into central and northern 1. Market expansion with flexible credit policy
regions. (S1,S3,O1)
(W1,W4,O1)
2. Strategic alliance with supplier and 2.
Increase market share in central and no
farmers (S2, S6, O3)
3. Expand operations in south American and
eastern European countries (S1,S3,O5)

THREATS
S-T STRATEGIES
W-T STRATEGIES
1. High Domestic Inflation Rates
1. Expand operations in foreign countries (S1, 1. Unrelated diversification (W1,W2,T1,T2)
2. Emerging National and International
S2, T1, T2)
2. Improve marketing and communication
Competition
2. Related Diversification (S4, S6, T2,).
(W3,T2,T3)
3. Private/ Local Brands
4. Low Price Competition From Loose/
Open Spices

I-E MATRIX

QSPM

QSPM

Key Internal Factors

Opportunities
Growth potential in central and northern
regions
Fast Lifestyle (less available time for
cooking)
Quality Raw Materials Available in the
country.
Untapped Asian Communities Living Aboard
Threats
High Domestic Inflation Rates
Emerging National and International
Competition
Private/ Local Brands
Low Price Competition From Loose/ Open
Spices

Strengths
Innovation & R&D
Commitment and Timeline
Quality and Taste Management
Enriching employee thinking capacity.
Implementation of IBS through in house IT
infrastructure
strategic relations with suppliers and farmer
Weaknesses
Limited expansion due to complete equity

Weak distribution in Punjab side.

Limited approach towards marketing
communication.
Tough Credit Policy
Sum Total Attractiveness Score

STRATEGIC ALTERNATIVES
Penetrate
Related
into central
Diversification
and northern
(ready to eat
regions
meals)
AS
TAS
AS
TAS
2
0.4
2
0.4

Weight

0.2
0.1

0.3

0.3

0.15

0.6

0.45

0.1

0.1

0.15
0.1

2
3

0.3

0.3
0.3

3
1

0.45
0.1

0.1
0.1

2
1

0.2
0.1

1
1

0.1
0.1

0.15
0.05
0.1
0.05
0.1

4
3
4
3
3

0.6
0.15
0.4
0.15
0.3

2
3
3
3
2

0.2
0.15
0.3
0.15
0.2

0.15

0.3

0.1

0.45

0.3

0.3

0.15
0.08

4
2

0.6
0.16

2
1

0.3
0.08

0.21
5.82

0.07
4.05

0.07
1

Key Financial Ratios

Rating

8/10

Recommendations

Be open about your clientele and products.

Shan foods is very much focusing on B2C business, they should also
focus on B2B business to increase the market size and revenues. E.g,
like walls ice cream has its B2C and B2B business in hotel industry.

Shan foods can also diversify and invest in growing business like frozen
food items

Thanks to Mr. Faisal Mubeen Ganatra

CHIEF FINANCIAL OFFICER