gilden industries....business plan
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GOLDEN INDUSTRIES1
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GOLDEN INDUSTRIES
GOLDEN INDUSTRIES(Business Plan)
SUBMITTED BY:
ASAM SHAHZAD
(G1F03BBIT0018)
SAJID MAHMOOD
(G1F03BBIT0021)
( B B A I T V I I)
SUBMITTED TO:
SIR. SOHAIL ISLAM
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GOLDEN INDUSTRIES
T a b l e o f c o n t e n t s
Page #
GENERAL FIRMS DESCRIPTION 1
1. History of golden industries 1
2. Activity of the business 2
3. Starting date of operations 2
4. General structure of the firm 2
4.1 Management Information System 3
4.2 Sales and Marketing 34.3 Research and development 4
4.4 Human Resource Management 4
4.5 Production Department 5
5. Stage at business life cycle 6
6. Vision and mission statement 6
7. Key products of the firm 7
8. Markets 7
9. Types of customers 8
MARKETING PLAN 9
Situation analysis 9
1. Business definition and scope 9
1.1 Mission statement 9
1.2 Product definition 9
1.3 Product Categories 10
2. External environment remote environment 13
2.1 Political factors 13
2.2 Social and cultural factors 14
2.3 Economical factors 14
2.4 Technological factors 15
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3. External environment near environment: 17
3.1 Market Review 17
3.1.1 Markets 17
3.1.2 Our Customers 17
3.1.3 Customers Want 18
3.1.4 User Benefits of Product 18
3.1.5 Services available for Customers 18
3.2 Competitive review 20
3.3 Distribution channels and buyers (intermediary customers) 21
3.4 End user customers 22
3.4.1 Key Customer satisfaction Elements 23
3.4.2 Trial Use 24
4. Critical success factors 26
4.1 Competitive Profile Matrix for Dell Corporation 26
5. Situation analysis internal capabilities 28
5.1 Non-marketing capabilities 28
5.1.1 Financial Position 28
5.1.2 Management capabilities 29
5.1.3 Leadership capabilities 30
5.1.4 Human Resource Management (HRM) capabilities 30
5.1.5 Research and Development (R&D) capabilities 31
5.1.6 Operationsproduction capabilities 31
5.1.7 Inter functional coordination 32
5.2 Marketing capabilities Management 34
5.2.1 Marketing Intelligence 34
5.2.2 Marketing planning 34
6. Problems and opportunities statement 36
6.1 The business units capabilities in relation
to critical success factors 36
6.2 Opportunities for the business unit to exploit
with existing capabilities 36
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6.3 Opportunities for the business unit to exploit
with improved capabilities 37
6.4 Threats, which must be addressed 37
Marketing objectives and higher-level marketing strategies 39
1. Marketing objectives 39
2. Product-market strategies 39
Marketing mix strategies 40
1. Marketing mix 40
1.1 Products 40
1.1.1 knives 40
1.1.2 Swards 42
1.1.3 Cutlery sets 43
1.1.4 Product Features 43
1.1.5 Brands 44
1.1.6 Packaging of products 46
1.1.7 Product Support Services 46
1.1.8 Products Showroom 46
1.2 Prices 46
1.3 Place 47
1.4 Promotion 47
2. Marketing mix strategies for segment 48
2.1 Segment description 48
2.2 Products/brands servicing this segment 49
2.3 Proposed marketing mix strategies 49
2.3.1 Product Strategy 49
2.3.2 Pricing Strategy 50
2.3.3 Distribution Strategy 50
2.3.4 Promotional Strategy 50
Implementation plan 51
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Evaluation and control processes 52
PRODUCTION PLAN 53
1. Machinery 53
2. Production process 53
3. Plant capacity 54
MANAGEMENT PLAN 57
1. Planning 57
1.1 Strategic objectives 57
2. Organizing 58
2.1 Organizational Structure 58
2.2 Salaries of Staff 59
2.3 Communication System 60
3. Leading 60
3.1 Decentralized structure 61
3.2 Participative type of management 61
3.3 Management by walking around 61
3.4 Quality policy statement 61
3.5 Top manager is knowledgeable 62
3.6 Effective communication system 62
4. Controlling 62
4.1 Management By Walking Around (MBWA) 63
4.2 Operational Management 63
4.3 Management Information System (MIS) 63
HUMAN RESOURCE MANAGEMENT 64
1. Human resource development 64
1.1 Training 64
1.2 Bonuses 64
1.3 Leaves 64
1.4 Increment 64
1.5 Promotion 64
1.6 Facilities 65
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2. HRD working 65
2.1 Show Cause Notices 65
2.2 Warning letters 65
2.3 Suspension letter 65
2.4 Termination letter 65
2.5 Acceptance of resignation letters 65
2.6 Demand for new employees 65
2.7 Completion of personal file of new employee 66
FINANCIAL PLAN 67
RESEARCH AND DEVELOPMENT 69
1. Process followed by R&D 69
2. Tools that are used by R&D 70
3. Trail use of newly designed products 71
4. Benchmarking of products 71
RISK MANAGEMENT 72
1. Risk identification 72
1.1 External Risk Events 72
1.2 Internal Risk Events 73
1.3 Risk Identification Matrix 78
2. Risk assessment 80
2.1 Desirable Risk events 80
2.2 Undesirable Risk events 80
2.3 Outcomes of the risk events 81
2.4 Chance of risk events occurrence 83
2.5 Magnitude or Severity of risk Events 86
2.6 Risk assessment matrix 88
3. Risk response development 91
3.1 Risk Response Matrix 91
ANALYSIS
1. SWOT analysis 94
1.1 Strengths 94
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1.2 Weaknesses 95
1.3 Opportunities 95
1.4 Threats 96
2. Internal factor evaluation matrix (IFE) 98
3. External factor evaluation matrix (EFE) 101
4. Competitive profile matrix (CPM) 104
5. Tows matrix 105
6. Space matrix for GOLDEN INDUSTRIES 108
7. BCG matrix for GOLDEN INDUSTRIES 111
8. Internal-External (IE) Matrix for the GOLDEN INDUSTRIES 112
9. Grand Strategy Matrix for GOLDEN INDUSTRIES 113
10. QSPM for GOLDEN INDUSTRIES 114
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GENERAL FIRMSDESCRIPTION
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GOLDEN INDUSTRIES
G E N E R A L F I R M S D E S C R I P T I O N
1. HISTORY OF GOLDEN INDUSTRIES:
GOLDEN INDUSTRIES (cutlery division) started its working on 15 th December 1978
with a kitchen knife. And the price of that kitchen knife at that time was only 2 rupees per
piece and that knife was manufactured in a rented building.
During 1986 the owners of GOLDEN INDUSTRIES were in a position to have their own
factory where they started manufacturing of cutlery products.
In the early 1991 they got membership of GCCI (Gujranwala Chamber Of Commerce
and Industry), EPB (Export Promotion Bureau Pakistan) and cutlery Association of
Pakistan.
At 1993 the CEO of GOLDEN INDUSTRIES, Mr. Haji Muhammad Mushtaq was
awarded as a chairman of All Pakistan cutlery association.
In the year of 1995 they got best exporter award in cutlery field. And in the year of 2000
they got ISO 9001 certification as well.
(Best Trade Award)
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GOLDEN INDUSTRIES
2. ACTIVITY OF THE BUSINESS:
GOLDEN INDUSTRIES is involved in manufacturer of all kinds of the:
Knifes
Swords
Daggers
Walking Kane
Num chucks
Gift knifes
Ninjas
Ninja Stars
Throwings
Cutlery sets
3. STARTING DATE OF OPERATIONS:
Year of starting of the firms operations was:
Year 1978
Year of establishment of firm was:
Year 1986
4. GENERAL STRUCTURE OF THE FIRM:As traditionally there is no proper and formalized system of having departments in the
firm due to which all the activities are performed under the observation of the CEO. Thus
the firm feels absence to utilize its actual potential, due to the lack of highly specialized
personals in different departments. But according to our observations and findings the
operations (including formal and informal) of the firm are divided into the following
categories:
Management Information System (MIS)Sales and Marketing
Research and Development
Human Resource Management
Production
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4.1 Management Information System:
The GOLDEN INDUSTRIES has a management information system that works on the
following topics:
Local buyersLocal sellers
Account payables
Account receivables
Foreign distributors and their goods records
Foreign buyers
Workers
Invoice record
Products sample record
4.2 Sales and Marketing:
These responsibilities are carried by the CEO of the GOLDEN INDUSTRIES, who do
the analysis of the market informally by: getting the feedback from the market; visiting
the foreign markets; introducing the samples of the products, participating into the trade
affairs; etc. And he also carries the duty of making sale either by own self or by any of
the trusted distributor or trade agent.
(MIS department of GOLDEN INDUSTRIES)
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4.3 Research and development:
In the R&D department of GOLDEN INDUSTRIES there are two designers who are
associated with the computer/MIS department. As the main market of GOLDEN
INDUSTRIES, where they are exporting their cutlery products is international market
including all Europe and America, so, these two designers continuously on the daily
bases check the design of newly established products of their foreign rivals through the
mean of internet. Because their foreign rivals are closer to their respective culture, andcustomers, by which they design the products totally according to their customers
requirements, therefore GOLDEN INDUSTRIES checks for new products through their
rivals web sites and then makes amendments in the new design by the help of their
production department.
4.4 Human Resource Management:
The activities regarding the human resource management in the GOLDEN INDUSTRIES
are performed informally, because one single person (with checkers) is sitting in the production hall, who is managing the human resource management in term of:
attendance; discipline; quality of work; required employees; disputes among the
employees, etc. And all the other motivational incentives are being given to the
employees by the CEO Mr. Haji Mushtaq.
(CEO of GOLDEN INDUSTRIES)
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4.5 Production Department:
Formally the production department of the GOLDEN INDUSTRIES is divided into the
following sections:
Cutting Section
Combining Section
Tempering Section
Grinding Section
Buffering SectionPolishing Section
Sharpening Section
Finishing Section
Packing Section
(Mr. Triq is managing Human Resource of GOLDEN INDUSTRIES)
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5. STAGE AT BUSINESS LIFE CYCLE:
Now a day the firms in the industry are showing trend toward the declining stage, but still
the GOLDEN INDUSTRIES is at the maturity stage of business life cycle.
The stage is:
Maturity
6. VISION AND MISSION STATEMENT:
The aims and purpose of the GOLDEN INDUSTRIES is given below:
6.1 VISION STATEMENT
To become a linker of great quality for diversified market and
become organizer to establish a good report at global level to
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raise standard of living at local level by delivering value added
product with the help off inside workers
6.2 MISSION STATEMENT
To generate a tough selling lead by offering maximum quality
in enough price, by great utilization of human resource,
resulting more employment opportunities
7. KEY PRODUCTS OF THE FIRM:
All kinds of Knives that include:
Pocket Knives
Hunting Knives
Fantasy Knives
Kitchen Knives
Butcher Knives
Skinner Knives
Boot Knives
Commando Knives
Paper Cutters
Swards
Num chucks
Walking Kane
Ninjas
Throwings
Daggers
And Cutlery Set that include:
Variety of spoonsVariety of Kitchen Knives
8. MARKETS:
The GOLDEN INDUSTRIES has targeted the markets of the following two levels:
Local Level, and
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Global Level.
The Local level markets include the markets in different major cities of the PAKISTAN.
The local level markets are included in the following cities of the PAKISTAN:
Lahore
Sailkot
Rawalpindi
The Global level markets include the markets in the following Areas:
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
9. TYPES OF CUSTOMERS:
The various categories of the customers of GOLDEN INDUSTRIES include:
House Holds
Butchers
Army
Hunters
Hotels
Fishermen
T.V channels (as a Costume Item)
Offices
Individuals
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M A R K E T I N G P L A N
S I T U A T I O N A N A L Y S I S
1. BUSINESS DEFINITION AND SCOPE:
1.1 Mission statement(s):
To generate a tough selling lead by offering maximum quality in enough
price, by great utilization of human resource, resulting more employment
opportunities
1.2 Product definition:
All of the products of GOLDEN INDUSTRIES are the cutlery products that are used by:
No. Used by Purpose
1. House Holds For the purpose of Catering, and for the
purpose of decoration.
2. Boucher For the purpose of making meat.
3. Army Army use the cutlery in war as a weapon.
Army use the cutlery for the purpose of
cutting the papers, and decoration.
Army the purpose of catering in MES
department.
4. Hunters Hunters use the cutlery as a tool of hunting.
5. Hotels For the purpose of Catering, and decoration.
6. Fisher men Fishermen use the cutlery as a tool of catching
and making meat of the fishes.
7. TV channels TV channels use cutlery as a part of costume
item. TV channels can also use the cutlery for
decoration purpose.
8. Offices For the purpose of cutting the papers and
decorating the offices.
9. Individuals Used for security purpose.
1.3 Product Categories:
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All the product categories of cutlery include:
Knives
Paper Cutters
Swards
Num chucks
Walking Kane
Ninjas
Throwings
Daggers
Cutlery Sets
Product categories targeted by GOLDEN INDUSTRIES and its products competing
in those categories:
Product category Competing products
Knives Pocket knife, Commando knife, Tempo, Defender, Regular, Puma
(WH, BK, MC), Skinner, Butterfly, SAB knife, Fantasy knife,
Haber boi, Flower knife, Scorpion knife, Kitchen knife, BIG
knife, Hunting knife.
Paper Cutter Simple manual Paper Cutter.
Sword Warier, Long Sharp, Chinese Sword, Master ninja, Sword
(Kalmay wali), Kings Sword, Lord of ring, D sword, Pistol
sword.
Num chucks Rattan Num chucks, Foam Num chucks.
Walking Kane Snake Kane, Horse Kane, Elephant Kane, Simple Kane.
Ninjas Ninja Sword.
Throwings Star, Ninja, Stick, Punch.
Daggers Battle Ready Daggers, Medieval Daggers, Flame Dagger, Kestrel
Dagger, Arming Dagger, Talon Dagger, Black Shadow Dagger.
Cutlery Sets 15 pcs, 30 pcs, 60 pcs, 70 pcs, 82 pcs
The market Customers (end users) for the product categories targeted by
GOLDEN INDUSTRIES:
There are local as well as global markets, which are targeted by the GOLDEN
INDUSTRIES for our all product categories:
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Product category Target Market
For all Product
categories.
Local Level:
Lahore
Sailkot
RawalpindiGlobal Level:
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
The end users for each product categories include:
Product category Customers (end users)
Knives Individual, Army, Hunters, Households, Hotels, Boucher, TV
channels.
Paper Cutter Offices, Army, and Individuals.
Sword Army, Households, TV Channels, Hotels, Individuals, andOffices.
Num chucks Household, Army, Hotels, Offices, and Individuals.
Walking Kane Household, Army, Hotels, TV channels, Offices, and Individuals.
Ninjas Household, Army, Hotels, TV channels, Offices, and Individuals.
Throwings Household, Army, Hotels, TV channels, Offices, and Individuals.
Daggers Household, Army, Hotels, TV channels, Offices, and Individuals.
Cutlery Sets Army (MES), Hotels, Offices, and Households.
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Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat thathas a reasonable likelihood of occurrence.
2.2 Social and cultural factors:
In some of the previous years, to protect the social and cultural violence, the France
government has bane the import of walking kane, the USA government has bane rebate
on the walking kane, and Pakistani government has bane the Ram Puri and Butterfly
knives. So, in this way the GOLDEN INDUSTRIES is very careful in future, and making
only those product which can be used in wars, in training of army, in kitchen, and for
security purposes.
Opportunities Rating Threats Rating
Keep them updated about
the cultural values of other
country through their
distributors and whole sellers.
Promote the items through
cultural contest.
2-2
3-5
Any product bane due to
the cultural limitation.
Negative reaction due to
the product that is harmful for
the society e.g: butterfly knife.
5-3
3-4
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
2.3 Economical factors:
Due to the entry of Chinese cutlery into the market, it has become possible for the poor
customers to get cutlery items at low prices. China has affected not only the local market
but also the global market of the GOLDEN INDUSTRIES. Due to which GOLDEN
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INDUSTRIES is facing huge economic threats, and struggling hard to retain the
customers.
Opportunities Rating Threats Rating
Economy of scale,
production in bulk quantity.
Outsourcing from china.
Import raw material from
cheap price countries.
3-3
5-5
3-2
China in local as well as in
global market.
If outsourcing from china,
then local market
manufacturing heart.
5-5
3-3
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
2.4 Technological factors:
For the manufacturing of the cutlery, GOLDEN INDUSTRIES is using very good and
modern technology, only if we talk in reference to the local competitors. But if we talk
about the manufacturing technology of GOLDEN INDUSTRIES in reference to the
global competitors then we come to know that the GOLDEN INDUSTRIES is lacking
the latest technologies like CAD technology, automation, e-commerce, etc.
Opportunities Rating Threats Rating
Install latest technologies
that are in use in production
process like CAD technology,
and automation.
Establish a web based e-
commerce portal in order to
reduce the cost of whole
sellers and distributors.
If GOLDEN INDUSTRIES
install the latest technology
3-2
4-3
4-2
GOLDEN INDUSTRIES is
using very old technology.
Labor intensive technology
of GOLDEEN INDUSTRIES.
5-2
4-3
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then it can currently sale its
old machinery to other cutlery
firms, because many of the
firms of cutlery are not
awarded about the latest
technology.
Downsizing through
automation.
3-2
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
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3. EXTERNAL ENVIRONMENT NEAR
ENVIRONMENT:
3.1 Market Review:
3.1.1 Markets:
GOLDEN INDUSTRIES has two targets markets at:
Local Level, and
Global Level.
The Local level markets include the markets in the major cities of the Pakistan, including:
Lahore
Sailkot
Rawalpindi
The Global level markets include the markets in the following Areas:
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
3.1.2 Our Customers:
House Holds
Boucher
Army
Hunters
Hotels
Fisherman
T.V channels (as a Costume Item)
Offices
Individuals
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3.1.3 Customers Want:
Durability
Quality of products
Low Price
Lightweight items
Stylish Items in varieties
3.1.4 User Benefits of Product:
Security
Costume component
Easy use e.g. pocket knife
Free leather cover (selected product)
Use anywhere at any time
No legal complications on having our products
Strong grip
Durability
Repairing facility
Non-flexible
Child protected product due to lock
3.1.5 Services available for Customers:
1-month guarantee for repairing
User manual (selected product)
Online as well offline help lines (www.golden-industries.com)
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Posting of Newly launched product information to regular user
Free leather cover for safety purpose
Opportunities Rating Threats Rating
Focus on product that has
high user benefits. ie: Swiss
knife.
Find markets, which are
not in the reach of the
competitors.
Enter into more local
markets.
4-5
4-4
5-4
Lack of specialized
personal in the field of
marketing.
GOLDEN INDUSTRIES is
using informal way of
promotion, instead of
promoting the products to
individual customers; it is
promoting the products to the
whole sellers and distributor.Lack of specialized R&D
to invent new markets and
customers.
Chinese cutlery.
5-5
4-5
3-3
5-5
(Web Site preview of GOLDEN INDUSTRIES)
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Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat thathas a reasonable likelihood of occurrence.
3.2 Competitive review:
As GOLDEN INDUSTRIES is the largest manufacturing firm in the field of cutlery
industry of Wazirabad. In the field of cutlery the other local manufacturers (as well as
exporters) due to which GOLDEN INDUSTRIES is facing competition, are given below:
Sartaj enterprises
Sharp edge
Constant star
Knife tailors
Khalid industries
The above mentioned firms are not only the firms from which the
GOLDENINDUSTRIES is facing the competition; but there are also many other firms in
the industry due to which the GOLDEN INDUSTRIES is facing the competition, but the
intensity of the competition from the other firms are low. Here the beneficial fact is that
the CEO of GOLDEN INDUSTRIES is the CHAIRMAN of the association (All Pakistan
Cutlery Association) to which all the firms belong. So due to this fact the executives of
GOLDEN INDUSTRY become aware about the strategies of the competitors.
But now a day the GOLDEN INDUSTRY is facing a huge competition due to the
Chinese Cutlery that is available in the market at low price. The prices at which the China
is offering its cutlery products are even low than the costs, which are incurred by the
GOLDEN INDUSTRIES. The reason behind this fact is the lack of specialization, and
advancement in all the processes of GOLDEN INDUSTRIES.
Opportunities Rating Threats Rating
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Enter into the markets,
which are not in the reach of
competitors.
Work in cluster.
Outsourcing from China.
As being the Chairman of
the All Pakistan Cutlery
Association, the CEO of
GOLDEN INDUSTRIES can
promote his suggestion to
Government to stop the entry
of Chinese cutlery into
Pakistan.
4-4
3-4
5-5
Chinese cutlery.
Copy of product design by
the competitors. Competitors
can do this by visiting the
showroom of the GOLDEN
INDUSTRIES.
5-5
4-4
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
3.3 Distribution channels and buyers (intermediary customers):
There are different channels which are used by the GOLDEN INDUTRIES from the
shipments to buyers, including:
Whole sellers
Retailers
Commission agents
Bulk quantity customers
SZCO whole seller
Budkay.co
Own ware houses
Hilbro whole seller
Knife makers.co
Utility stores of U.S.A and U.A.E
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Opportunities Rating Threats Rating
There is still demand of
cutlery that is not fulfilled.
Take customers feedback
through the intermediaries to
improve its various business
processes.
Provide incentives to
competitors commission
agents and whole sellers to
increase its own sale.
3-4
4-4
3-5
Preferences of foreign
whole sellers and distributors
are continuously changing
from Pakistani exporters to
Chinese and Indian exporters.
Local distributors are not
specialized in their tasks.
Chinese exporters offer
more incentives to the
distributors and whole sellers.
4-5
4-4
5-5
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
3.4 End user customers:
All of the products of GOLDEN INDUSTRIES are the cutlery products that are used by:
No. Used by Purpose
1. House Holds For the purpose of Catering, and for the
purpose of decoration.
2. Boucher For the purpose of making meat.
3. Army Army use the cutlery in war as a weapon.
Army use the cutlery for the purpose of
cutting the papers, and decoration.
Army the purpose of catering in MES
department.4. Hunters Hunters use the cutlery as a tool of hunting.
5. Hotels For the purpose of Catering, and decoration.
6. Fisher men Fisher men use the cutlery as a tool of
catching and making meat of the fishes.
7. TV channels TV channels use cutlery as a part of costume
item. TV channels can also use the cutlery for
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decoration purpose.
8. Offices For the purpose of cutting the papers and
decorating the offices.
9. Individuals Used for security purpose.
Customers are the most valuable asset of the organization. Success or failure of any firm
depends upon the customers.
Three things that effect the organization:
1. Number of customers
2. Frequency of purchase
3. volume of purchase
GOLDEN INDUSTRY has a lot of customer that can be categorized into the following
categories:
Regular customers
Brand loyal customers
Price conscious customers
Quality conscious customers
Availability conscious customers
Promotions conscious customers
3.4.1 Key Customer satisfaction Elements:
Customer satisfaction by the GOLDEN INDUSTRIES is ensured by the following views:
The firm fulfils the commitment with the customers.
The firm delivers the product on time.
Firm doesnt want to loss the customers.
The firm provides the defects free products to their customers.
The firm provides the product to their customer with the respective number that
ensures a good recording system in the firm.The firm cares for packaging, cartoons, and for item numbers.
The firm doesnt accept the order that they cannot fulfill within time.
The firm seeks for qualified supplier.
C.E.O personally checks the products that either the products are attractive or not
attractive for the customers.
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3.4.2 Trial Use:
The GOLDEN INDUSTRY, after making the desired product according to the
customers requirement, provides trial usage of the products to their customers who are
having long term relations with the GOLDEN INDUSTRY. And after the trial use, if the
products are accepted by the customers then the production is started for those products
otherwise the amendments are made further.
Opportunities Rating Threats Rating
GOLDEN INDUSTRIES
should sale its products also
through the internet (e-
commerce)
Provide brand awareness tothe customers through some
promotional campaign.
Create demand for their
product by reaching into more
global and local markets.
Offer customization of
products through the internet
websites.
5-5
3-4
3-3
4-4
TVC Tele Brand campaign
of cutlery products on
different TV channels.
Customer preferences are
continuously changing.Continues focus on online
buying and selling of cutlery,
of foreign buyers and sellers.
5-5
4-5
4-5
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
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4. CRITICAL SUCCESS FACTORS:
There are different critical successes factors of the GOLDEN INDUSTRIES and also for
its major competitors, which are also include in the CPM.
Product line
Consumers convenience
Customers satisfaction
User benefits
Competition
Rebate rate
Internet sale
Technology used for production
Market share
Global expansion
Local expansion
Piece attractiveness
4.1 Competitive Profile Matrix for Dell Corporation:
Golden
Industries
Sartaj
Enterprises
Sharp Edge
Critical success factors Weight Rating Score Rating Score Rating Score
1 Product line 0.15 2 0.30 3 0.45 4 0.60
2 Competition 0.10 3 0.30 3 0.30 4 0.40
3 Rebate rates 0.10 3 0.30 2 0.20 2 0.20
4 Consumer convenience 0.08 4 0.32 2 0.16 2 0.16
5 Internet sales 0.10 4 0.40 3 0.30 3 0.30
6 Technology use in
manufacturing
0.12 3 0.36 3 0.36 3 0.36
7 Market share 0.10 4 0.40 2 0.20 3 0.30
8 Global expansion 0.08 3 0.30 3 0.30 4 0.409 Local expansion 0.05 3 0.15 3 0.15 2 0.10
10 Price attractiveness 0.12 3 0.45 2 0.20 2 0.30
Total 1.00 3.28 2.62 3.12
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The results of CPM are showing the GOLDEN INDUSTRIES is having higher weighted
score then its competitors, so the GOLDEN INDUSTRIES is in good competitive
position.
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5. SITUATION ANALYSIS INTERNAL
CAPABILITIES:
5.1 Non-marketing capabilities:
These are the internal capabilities of the GOLDEN INDUSTRIES other than the
marketing capabilities, and these internal capabilities include the capabilities regarding
the following:
Financial position
Management & leadership
HRM
R&D
Operationsproduction
Inter functional coordination
5.1.1 Financial Position:
Regarding the finance, the GOLDEN INDUSTRIES did not give us any information.
Because the GOLDEN INDUSTRIES has not prepared any of the financial statements
(including: Income statement; Balance sheet; Statement of cash flow), regarding its
business operations. And during the interview, we came to know two things about
financial matters of the GOLDEN INDUSTRIES.
The first thing is that GOLDEN INDUSTRIES is using computerized payroll system that
is managed by the MIS department.
Secondly, we learn about the sales and total cost and expense figures of previous three
years of GOLDEN INDUSTRIES. The sales and cost and expense figures are given
below:
Year Sales and total cost and expense
figures
Net Profit
Margin (%)
2004
(July 01, 2003 to June 30,
2004)
Sales Rs. 15,000,000
Cost + Expenses Rs. 12,000,000
Net Profit Rs. 3,000,000
20
2005
(July 01, 2004 to June 30,
Sales Rs. 13,500,000
Cost + Expenses Rs. 12,000,000
11
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2005) Net Profit Rs. 1,500,000
In this year the sales and net profit
were negatively affected due to the
wrong LC. And during this year
GOLDEN INDUSTRIES also took
loan of Rs. 1,000,000 from the Soneri
Bank Ltd.
2006
(July 01, 2005 to June 30,
2006)
Sales Rs. 14,500,000
Cost + Expenses Rs. 11,800,000
Net Profit Rs. 2,700,000
19
For making the comparison of the above mentioned financial data of GOLDEN
INDUSTRIES with the financial data of other cutlery manufacturer, we visit All
Pakistan Cutlery Association to take financial data of other cutlery manufacturers. But
they dont give it to us and one thing they told us was that the GOLDEN INDUSTRIES
is the largest manufacturer and exporter of the cutlery, and its annual sales are more than
the sales of any other cutlery manufacturer.
5.1.2 Management capabilities:
In the planning phase the CEO of GOLDEN INDUSTRIES has well defined his vision,
mission, and goals. The vision and mission statement is given below:
Vision statement
To become a linker of great quality for diversified market and become
organizer to establish a good report at global level to raise standard of
living at local level by delivering value added product with the help off
inside workers
Mission statement
To generate a tough selling lead by offering maximum quality in enoughprice, by great utilization of human resource, resulting more employment
opportunities
As it is cleared by the mission statement that the primary goal of GOLDEN
INDUSTRIES is to maximize its sale. And some of the other goals are:
Customer satisfaction in the form of maximum quality.
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In the R&D department of GOLDEN INDUSTRIES there are two designers who are
associated with the computer/MIS department. As the main market of GOLDEN
INDUSTRIES, where they are exporting their cutlery products is international market
including all Europe and America, so, these two designers continuously on the daily
bases check the design of newly established products of their foreign rivals through the
mean of Internet. Because their foreign rivals are closer to their respective culture, and
customers, by which they design the products totally according to their customers
requirements, therefore GOLDEN INDUSTRIES checks for new products through their
rivals web sites and then makes amendments in the new design by the help of their
production department.
5.1.6 Operationsproduction capabilities:
Formally the production department of the GOLDEN INDUSTRIES is divided into the
following sections:
Cutting Section
Combining Section
Tempering Section
Grinding Section
Buffering Section
Polishing Section
Sharpening Section
Finishing Section
Packing Section
For manufacturing of cutlery products, the production department of the GOLDEN
INDUSTRIES has following machines:
Cutting press
Grinding machine
Polishing machine
High or dull polish machine
Buff machine
Cleaner machine
Sharpener
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Dies
Different type of cutters
Stamping machine
Dalai press
GOLDEN INDUSTRIES is having very good machinery relatively to the local
competitors, but relatively to the foreign competitors the GOLDEN INDUSTRIES is not
using very machinery because foreign competitors are using the automated technology
but on the other side the GOLDEN INDUSTRIES is using human intensive machinery
due to which it has to face a huge expense of salaries and wages of employees.
5.1.7 Inter functional coordination:
There is an effective coordination between the functions of the GOLDEN INDUSTRIES.
Whenever the R&D department invents a new product then after the approval of CEO the
product is send to production department, where the product is developed under the
complete observation of HR manager. And here the priorities among producing different
products are set by the sales manager on the bases of customer needs. This is how the
inter functional coordination process in the GOLDEN INDUSTRIES is very good.
(Implication)
Strengths Rating Weaknesses Rating
The first thing is that
GOLDEN INDUSTRIES is
using computerized payroll
system that is managed by the
MIS department.
GOLDEN INDUSTRIES is
the largest manufacturer and
exporter of the cutlery, and its
annual sales are more than the
sales of any other cutlery
manufacturer.
GOLDEN INDUSTRIES is
providing customers with
4-4
5-5
3-4
GOLDEN INDUSTRIES
has not prepared any of the
financial statements
(including: Income statement;
Balance sheet; Statement of
cash flow), regarding its
business operations.
Continuous fall in net
profit margin.
GOLDEN INDUSTRIES is
using human intensive
machinery instead of using
automated machinery.
5-4
4-4
4-4
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satisfaction in the form of
maximum quality.
In the GOLDEN
INDUSTRIES top
management has set some
certain parameters that fully
ensure the role of top
manager as a leader in the
organization.
GOLDEN INDUSTRIES
designs the products totally
according to their customers
requirements.
GOLDEN INDUSTRIES is
having very good machinery
relatively to the local
competitors.
There is an effective
coordination between thefunctions of the GOLDEN
INDUSTRIES.
3-3
2-3
4-4
4-5
To organize or implement
planning, the CEO of
GOLDEN INDUSTRIES has
not hired specialized
personals for managing HR,
MIS, R&D, TQM, Sales and
Marketing, and Finance.
GOLDEN INDUSTRIES is
not fully utilizing its
potential.
CEO has only one
performance measure tool
that is Sales.
GOLDEN INDUSTRIES is
using human intensive
machinery due to which it has
to face a huge expense of
salaries and wages of
employees.
4-3
3-4
3-3
4-4
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
5.2 Marketing capabilities Management:
5.2.1 Marketing Intelligence:
As the main market of the GOLDEN INDUSTRIES is the global market, where the CEO
often conducts the visits and finds information about:
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Customer preferences
Customer response
Technological changes
Cultural changes
Distributors and retailers preferences
Competitors strategies
Changes in the market, and etc.
And within Pakistan the CEO of GOLDEN INDUSTRIES is chairman of All Pakistan
Cutlery Association, due to which he gets a lot of information about the competitors
strategies.
5.2.2 Marketing planning:
The executives of GOLDEN INDUSTRIES are not doing very well marketing planning.
Because they have not planned any thing about the market. And their planning is only
limited to the expansion of their market intermediaries, so that their sales revenue can be
increased. And for this purpose they provide incentives to the intermediaries and some
time they also arrange dinners, and lunch for their market intermediaries.
Strengths Rating Weaknesses Rating
There is strong marketing
intelligence position of
GOLDEN INDUSTRIES.
3-4 The executives of
GOLDEN INDUSTRIES are
not doing very well marketing
planning. Because they have
not planned any thing about
the market.
Marketing planning of
GOLDEN INDUSTRIES is
only limited to the expansion
of its market intermediaries.
4-4
3-4
Rating: 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5),
quite to highly significant (4), significant (3), reasonably significant (2) and not very significant
(1).
Probability of occurrence: Ranging from high probability of occurrence (5) to not likely to occur in this
time horizon (1). For example a rating of 53 represents an extremely significant opportunity or threat that
has a reasonable likelihood of occurrence.
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6. PROBLEMS AND OPPORTUNITIES STATEMENT:
6.1 The business units capabilities in relation to critical success
factors:
CSF Our capabilities
Product line Offer diversified product range
Consumers convenience Offer a number of user benefits
Customers satisfaction Offer a number of services available for
customers
Competition Strong competitive position
Rebate rate Receive more than an average
Internet sale Offering only e-catalog
Technology used for production Human intensive technology
Market share Higher than all other rivalsGlobal expansion Better than all other competitors but still limited
Local expansion Limited local market expansion
6.2 Opportunities for the business unit to exploit with existing
capabilities:
Following are the opportunities for the business unit to exploit with existing capabilities:
On the behalf of Cutlery association, GOLDEN INDUSTRIES can claim for high
rebate rates.
Relations with politicians can increase sale of cutlery by Army.
GOLDEN INDUSTRIES can give gifts to the politicians as a part of their
promotion campaign.
Economy of scale, production in bulk quantity.
Focus on product that has high user benefits. ie: Swiss knife.
As being the Chairman of the All Pakistan Cutlery Association, the CEO of
GOLDEN INDUSTRIES can promote his suggestion to Government to stop the entryof Chinese cutlery into Pakistan.
Provide incentives to competitors commission agents and whole sellers to
increase its own sale.
Provide brand awareness to the customers through some promotional campaign.
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6.3 Opportunities for the business unit to exploit with improved
capabilities:
Following are the Opportunities for the business unit to exploit with improved
capabilities:
Approach to the products, which other manufacturers have stopped to
manufacturer due to the less rebates.
Keep them updated about the cultural values of other governments through their
distributors and whole sellers.
Promote the items through cultural contest.
Outsourcing from china.
Install latest technologies that are in use in production process like CADtechnology, and automation.
Establish a web based e-commerce portal in order to reduce the cost of whole
sellers and distributors.
Downsizing through automation.
Find markets, which are not in the reach of the competitors.
Work in cluster.
Create demand for their product by reaching into more global and local markets.
Offer customization of products through the Internet websites.
6.4 Threats, which must be addressed:
Govt. can bane any product.
End of the rebate on any product.
EPB can reduce rate of rebate.
Any product bane due to the cultural limitation.
Negative reaction due to the product that is harmful for the society e.g: butterfly
knife.
China in local as well as in global market.
GOLDEN INDUSTRIES is using informal way of promotion, instead of
promoting the products to individual customers; it is promoting the products to the
whole sellers and distributor.
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Copy of product design by the competitors. Competitors can do this by visiting
the showroom of the GOLDEN INDUSTRIES.
Preferences of foreign whole sellers and distributors are continuously changing
from Pakistani exporters to Chinese and Indian exporters.
Local distributors are not specialized in their tasks.
Chinese exporters offer more incentives to the distributors and whole sellers.
TVC Tele Brand campaign of cutlery products on different TV channels.
Customer preferences are continuously changing.
Continues focus on online buying and selling of cutlery, of foreign buyers and
sellers.
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M A R K E T I N G O B J E C T I V E S
A N D H I G H E R L E V E L
M A R K E T I N G S T R A T E G I E S
1. MARKETING OBJECTIVES:
2007 (July 1 2006, to June 30,
2007)
Revenue Objectives Rs. 15,000,000
Net profit margin 20 %
2. PRODUCT-MARKET STRATEGIES:Strategies for year 2007
Existing products in existing
markets (Market penetration)
Expansion in market
intermediaries.
Existing products in new markets
(Market development)
Enter into the markets of those
countries to which competitors
have less access, through the links
of existing market intermediaries.
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M A R K E T I N G M I X
S T R A T E G I E S
1. MARKETING MIX:
1.1 Products:
1.1.1 Knives:
Pocket Knife
Hunting Knife
Fantasy Knife
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Kitchen Knife
Boot Knife
Commando Knife
Paper Cutter
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1.1.2 Swards:
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1.1.3 Cutlery sets:
1.1.4 Product Features:
The products of GOLDEN INDUSTRIES have a number of features that a competitive
company may have not in their products. It gets competitive edge on quality, because
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now consumer is rational and he has moved from price conscious products to quality-
oriented products. So, some silent features of the products of GOLDEN INDUSTRIES
are:
Sharp and remain sharp edge
Long life
Free leather cover (to selected products)
Child protected product due to lock
Less elasticity among components of products
1-month guarantee for repairing
Molded handle for strong grip
Strong grip on blade for opening and closing (Nail, is added on products to open
them)
Easy to open and easy to close
No danger to open or close because of grinded thari.
1.1.5 Brands:
Brands of Knives:
Pocket knife
Commando knife
Tempo
Defender
Regular
Puma (WH, BK, MC)
Skinner
Butterfly
SAB knife
Fantasy knife
Haber boi
Flower knife
Scorpion knife
Kitchen knife
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BIG knife
Hunting knife
Paper cutter
Brands of Swords: Warier
Long Sharp
Chinese Sword
Master ninja
Sword (Kalmay wali)
Kings Sword
Lord of ring
D sword
Pistol sword
Brands of Num chucks:
Rattan Num chucks
Foam Num chucks
Brands of Walking Kane:
Snake Kane
Horse Kane
Elephant Kane
Simple Kane
Brands of Ninjas:
Ninja Sword
Brands of Throwings:
Star
Ninja
Stick
Punch
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Brands of Daggers:
Battle Ready Daggers
Medieval Daggers
Flame Dagger
Kestrel Dagger
Arming Dagger
Talon Dagger
Black Shadow Dagger
Brands of Cutlery Sets:
15 pcs
30 pcs
60 pcs
70 pcs
82 pcs
1.1.6 Packaging of products:
The contract of tacking the packing material has been made with the Awan Packagers
Sialkot, and the Naeem enterprises Gujranwala.
1.1.7 Product Support Services:
1-month guarantee for repairing
User manual
Free leather cover for safety purpose
1.1.8 Products Showroom:
In the GOLDEN INDUSTRIES, there exists a showroom displaying a huge collection of
the cutlery products. Any local and foreign customer can visit this showroom for the
purchase decision of the cutlery products.
1.2 Prices:
The prices of the cutlery products of GOLDEN INDUSTRIES are given below in the
table:
No. Product Name Minimum Price
limit
Maximum Price
limit
Average Price
(Rs.)
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(Rs.) (Rs.)
1 Pocket Knives 15 40 25
2 Hunting Knives 35 175 80
3 Fantasy Knives 30 150 50
4 Kitchen Knives 15 40 256 Commando Knives 35 125 70
8 Paper Cutter 15 35 25
9 Boot Knives 20 60 35
10 Swards 350 2000 700
11 Cutlery Sets 700 5000 1000
1.3 Place:
The GOLDEN INDUSTRIES has targeted the markets of the following two levels:
Local Level, and
Global Level.
The Local level markets include the markets in different major cities of the PAKISTAN.
The local level markets are included in the following cities of the PAKISTAN:
Lahore
Sailkot
Rawalpindi
The Global level markets include the markets in the following Areas:
UK
USA
Germany
France
Saudi Arabia
Canada
Germany
Spain
1.4 Promotion:
GOLDEN INDUSTRIES is using following tools of promotion:
Internet
Personal Selling
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Contribution in special social events i.e.: Sports etc.
Promotional schemes
Free samples for regular customers
Public Relation
Annual Entertainment program for Retailer, Distributor, Agents, Supplier,
Banker, Cutlery Association members (competitors).
2. MARKETING MIX STRATEGIES FOR SEGMENT:
2.1 Segment description:
No. Segment Description
1. House Holds For the purpose of Catering, and for the
purpose of decoration.
2. Boucher For the purpose of making meat.
3. Army Army use the cutlery in war as a weapon.
Army use the cutlery for the purpose of
cutting the papers, and decoration.
Army the purpose of catering in MES
department.
4. Hunters Hunters use the cutlery as a tool of hunting.
5. Hotels For the purpose of Catering, and decoration.6. Fisher men Fishermen use the cutlery as a tool of catching
and making meat of the fishes.
7. TV channels TV channels use cutlery as a part of costume
item. TV channels can also use the cutlery for
decoration purpose.
8. Offices For the purpose of cutting the papers and
decorating the offices.
9. Individuals Used for security purpose.
2.2 Products/brands servicing this segment:
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No. Segment Product
1. House Holds Knives, Sword, Num chucks, Walking Kane,
Ninjas, Throwings, Daggers, Cutlery Sets.
2. Boucher Knives.
3. Army Knives, Paper Cutter, Sword, Num chucks,
Walking Kane, Ninjas, Throwings, Daggers,
Cutlery Sets.
4. Hunters Knives.
5. Hotels Knives, Sword, Num chucks, Walking Kane,
Ninjas, Throwings, Daggers, Cutlery Sets.
6. Fisher men Knives.
7. TV channels Knives, Sword, Walking Kane, Ninjas,
Throwings, Daggers.
8. Offices Paper Cutter, Sword, Num chucks, Walking
Kane, Ninjas, Throwings, Daggers, Cutlery
Sets.
9. Individuals Knives, Paper Cutter, Num chucks, Walking
Kane, Ninjas, Throwings, Daggers.
2.3 Proposed marketing mix strategies:
These strategies include the following strategies:
Product Strategy
Pricing Strategy
Distribution Strategy
Promotional Strategy
2.3.1 Product Strategy:
Products will be the result of continuous efforts of R&D and products will be coupled
with various benefits and services to the end users.
2.3.2 Pricing Strategy:
The prices of the products will be the substitute of the quality of the products and this
will really generate superior values for the customers.
2.3.3 Distribution Strategy:
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The whole focus in distribution strategy of the organization will be on maximizing the
relations with the intermediaries and will be on entering into the markets to which the
other competitors have less access.
2.3.4 Promotional Strategy:
The products of the GOLDEN INDUSTRIES will be promoted directly by giving
incentives to the whole sellers, distributor (Market Intermediaries), by billboards, and
also by the print ads.
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I M P L E M E N T A T I O N P L A N
All the marketing strategies specially the marketing mix strategies will be coupled with
the organizational strategies and will be communicated to all the members of the
organization in a way that all the members get motivation and carry all the strategies very
seriously because the should have learned that the organizational performance is totally
attached with the achievement of these strategies.
Further more all the employees will be given incentives on better achievement of the
strategies.
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MARKETING PLAN
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3. PLANT CAPACITY:
The machines can be used for no of years just by little bit repairing and by updating
SAAN. Plant capacity for the cutting, grinding, and polishing.
Raw Material
Cutting
Tempering
Combining
Grinding
Polishing
Initial finishing
Packing
Final finishing
Products Products
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4 Kitchen Knives 675 1200
5 Commando Knives 447 750
6 Boot Knives 651 1200
7 Swards 399 600
One month and one year production of one relevant product:
As we have 26 day of operation in one month, so we will get 3.72 days for producing
only one product in one month. Thus we will have the following production rate:
No. Product NameIn one month In six months
Min in piece Max in piece Min in piece Max in piece
1 Pocket Knives 1638 3348 9828 20088
2 Hunting Knives 1763 2790 10578 16740
3 Fantasy Knives 1451 2232 8706 133924 Kitchen Knives 2511 4464 15066 26784
5 Commando Knives 1663 2790 9978 16740
6 Boot Knives 2422 4464 14532 26784
7 Swards 1484 2232 8904 13392
Total 77592 133920
So, GOLDEN INDUSTRIES can produce total number of products from 77592 to
133920 in six months, and from 155184 to 267840 in one year.
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GOLDEN INDUSTRIES
MANAGEMENT PLAN
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GOLDEN INDUSTRIES
M A N A G E M E N T P L A N
In the GOLDEN INDUSTRIES management plan passes through the following stages:
Planning
Organizing
Leading
Controlling
Staffing (HRM)
1. PLANNING:
In the planning phase the CEO of GOLDEN INDUSTRIES has well defined his vision,
mission, and goals. The vision and mission statement is given below:
Vision statement
To become a linker of great quality for diversified market and become
organizer to establish a good report at global level to raise standard of
living at local level by delivering value added product with the help off
inside workers
Mission statement
To generate a tough selling lead by offering maximum quality in enough
price, by great utilization of human resource, resulting more employment
opportunities
As it is understood by the mission statement that the primary goal of GOLDEN
INDUSTRIES is to maximize its sale. And some of the other goals are:
Customer satisfaction in the form of maximum quality.
Use human intensive machinery.
To produce more employment opportunities for the workers.
1.1 Strategic objectives:
The strategic objectives of the GOLDEN INDUSTRIES are given below:
Strategic Objective Explanation
A bigger market share. By increasing the market share, GOLDEN
INDUSTRIES will get increase in its revenue that
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would be the witness of high sale. To some extend
GOLDEN INDUSTRIES is successful in its objective
but to be successful totally GOLEN INDUSTRIES
has to develop new markets around the world.
Higher profit margins. Our analysis has proved that the net profit margin of
GOLDEN INDUSTRIES is continuously declining.
But to achieve this objective GOLDEN INDUSTRIS
has to replace the human intensive technology with
the advanced machinery.
Expansion of market
intermediaries.
To some extend GOLDEN INDUSTRIES is
achieving this objective, but to fully achieve this
objective it has to enter into the markets of other
countries.
Increase products quality. The GOLDEN INDUSTRIES is doing it through its
R&D department by which it determines the
customers needs and tries to fulfill these needs.
2. ORGANIZING:
To organize or implement his planning, the CEO has not hired specialized personals for
managing HR, MIS, R&D, TQM, Sales and Marketing, and Finance. There for the
organization is no fully utilizing its potential.
2.1 Organizational Structure:
According to our suggestions the organizational structure of GOLDEN INDUSTRIES
should be as given below:
CEO
R & D
Manager
HR Manager
MIS ManagerSale/Pur./
Marketing
Manager
Production
Manager
Assistant
R & D
Manager
Assistant MIS
ManagerAssistant
Sale/Pur./Marketing
Manager
Checkers
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GOLDEN INDUSTRIES
And the production departments hierarchy is given below:
2.2 Salaries of Staff:
Post Salary (Rs.)
Sale/Purchase/Marketing Manager 7,000
Production Manager 4,000
R & D Manager 4,000
MIS Manager 6,500
HR Manager 8,000
Office Boys 3,000
Checker 3,000For workers:
Post Salary/wages per day
Workers for Cutting Rs. 200 per day
Workers for Combining Rs. 18 per dozen
Workers for Grinding Rs. 18 per dozen
Workers for Polishing Rs. 17 per dozen
ProductionManager
C H E C K E R S
Cutting Combining Grinding Polishing Finishing Packing
Workers Workers Workers Workers Workers Workers
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Workers for finishing Rs. 170 per day
Workers for Packing Rs. 150 per day
2.3 Communication System:
In the GOLDEN INDUSTRIES there is an effective communication system for
communicating the organization goals and objective to the functional managers and
lower staff.
3. LEADING:
In the golden industries there is no formal quality council but the top management has set
some certain parameters that fully ensure the role of top manager as a leader who is
leading all the employees and the workers of the organization.
Lets discuss some elements of leadership briefly before discussing them into the detail:
The structure of the GOLDEN INDUSTRIES is decentralized.
There is participatory type of management in the GOLDEN INDUSTRIES.
The organization is following the concept of management by walking around.
There are well defined quality policy statement in the form of mission and vision
of the organization.
Top manager as being the leader is well knowledgeable with all type of
organizational activities and with external environment of the industry of the cutlery.There is effective communication system in the organization.
So the detail of the above-mentioned point is given below:
3.1 Decentralized structure of the GOLDEN INDUSTRIES:
The structure of the GOLDEN INDUSTRIES is fully decentralized because the top
manager is provided the information by the functional managers who are further
supported by their respective assistant, supervisors, checkers, and work force. The
information may be in the form of what maximum no. of the products should be taken as
the order from the overseas customer, how the quality should be improved etc.
3.2 Participative type of management of the GOLDEN
INDUSTRIES:
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The top manager is fully supported by the functional managers (who are suggested by
their respective lower fellows) in the major management decisions. The top manager is
supported in term of forming the annual objectives, planning human resource, motivating
the employees and managers etc.
3.3 Management by walking around in GOLDEN INDUSTRIES:
The top manager of the golden industries spend his lot of time with the workforce and
discuss many aspects, some relating to the work, some relating to their personal matters,
some relating to the work problems, so by doing all this the top manager is creating the
loyalty among the workers with their organization. So, all this is building the confidence
among the workers to communicate freely without feeling any hesitation. Also the
functional managers are asked to discuss the feed back of their lower fellow. And also the
top manager is involved in the settlement of disputes among the workers.
3.4 Quality policy statement in the GOLDEN INDUSTRIES:
According to the CEO, the GOLDEN INDUSTRIES is following the following mission
and vision statements as a quality policy statement:
Vision statement
To become a linker of great quality for diversified market and become organizer to
establish a good report at global level to raise standard of living at local level by
delivering value added product with the help off inside workers
MISSION STATEMENT
To generate a tough selling lead by offering maximum quality in enough
price, by great utilization of human resource, resulting more employment
opportunities
3.5 Top manager is knowledgeable in GOLDEN INDUSTRIES:
The top manager is well knowledgeable in the GOLDEN INDUSTRIES with all type of
internal activities in the following departments:
Marketing Department
R & D Department
HR Department
Production Department
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Sale/Purchase Department
MIS
Beside this the top manager is well familiar with the external forces of the cutlery
industry because he is also the president of all Pakistan cutlery consortiums.
3.6 Effective communication system in the GOLDEN
INDUSTRIES:
The communication system of the GOLDEN INDUSTRIES is following the two way
communication system or effective communication system, in which the feedback of the
workers is taken by the functional managers (and some time by the top manager directly)
and then is sent to the top manager, also top manager direct the orders through the mean
of functional manager and sometime itself direct and communicate with the workforce.
4. CONTROLLING:
In the controlling phase, the key person who has to control and face the resulting effects
from different activities is the CEO Mr. Haji Mushtaq. And often stay out side the
Pakistan and he less concern about the controlling process in the organization
As controlling is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting and significant deviation. So the controlling
process in the GOLDEN INDUSTRIES can be discussed in the following ways:
4.1 Management By Walking Around (MBWA):
During the timing, which the CEO of GOLDEN INDUSTRIES spends in Pakistan, he
periodically visits the activities of all the employees and workers and some time he also
shows his own involvement in those activities. He does all these things so that employee
can perform their activates as per planning. But it will be more appropriate for the CEO
of GOLDEN INDUSTRIES to stay in Pakistan and show participation in the activities of
lower staff.
4.2 Operational Management:
Operational management says that manager should be in touch with the all the activities
of the organization starting from raw material and ending on finished goods. The CEO of
GOLDEN INDUSTRIES should monitor all the activities so that at the end he has not to
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meet with some errors or defects. And he should focus on the philosophy: Prevention
rather than detection and control.
4.3 Management Information System (MIS):
When ever the CEO of GOLDEN INDUSTRIES stays outside the Pakistan then the MIScould be one of the great sources for the CEO to monitor the activities of the organization
trough the Internet connectivity with the organizational MIS.
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GOLDEN INDUSTRIES
HUMAN RESOURCEMANAGEMENT
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GOLDEN INDUSTRIES
HUMAN RESOURCE MANAGEMENT
As it has been discussed earlier that activities regarding the human resource management
in the GOLDEN INDUSTRIES are performed informally, because one single person
(with checkers) is sitting in the production hall, who is managing the human resource
management in term of: attendance; discipline; quality of work; required employees;
disputes among the employees, etc. And all the other motivational incentives are being
given to the employees by the CEO Mr. Haji Mushtaq.
1. HUMAN RESOURCE DEVELOPMENT:
Development is a long-term process to enhance potential and effectiveness of an
organization. HRD is an integrated & holistic approach to changing work- related
behavior by using a range of learning techniques/strategies discussed below in reference
to the GOLDEN INDUSTRIES:
1.1 Training:
When a new employee is hired in GOLDEN INDUSTRIES, he is provided information
about his job, duties, rules & regulations through HRD. Some information is providing
orally and some information is providing practically. After some months incharges of
department are provided updated information to update the knowledge and skills of
employees.
1.2 Bonuses:
Bonuses are provided at the rate of 50% of salary after six months.
1.3 Leaves:
Ten leaves in casual and sixteen leaves in medical during six months. They are also given
half pay in case of no leave.
1.4 Increment:
Increment is provided after three or six months, it may also extend.
1.5 Promotion:
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The good employees are promoted after the probation period (six months or one year).
Incharges can also recommend his promotion.
1.6 Facilities:
GOLDEN INDUSTRIES gives the following facilities to motivate the employees orworkers:
Transportation
Lunch
Tea
Medical allowances
2. HRD WORKING:
Issuance of following letters:
2.1 Show Cause Notices:
Show Cause Notices are being issued to those employees who remain absent
continuously three days in a week or remain absent five days in a month.
2.2 Warning letters:
Warning letters are issued if any employee found guilty in any case.
2.3 Suspension letter:
Suspension letters are issued only for three days on the recommendation of concerned
departmental Head. Furthermore Suspension period will not be extended above twenty
eight days.
2.4 Termination letter:
Termination letter are issued if any employee remain absent without any information or
will be issued if last & final warning letter has been issued on the instructions of C.E.O.
2.5 Acceptance of resignation letters:Resignation letters will accept after getting recommendation of concerned departmental
head.
2.6 Demand for new employees:
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Demand will be evaluated by the person who is sitting in the Production Hall, as a human
resource manager.
2.7 Completion of personal file of new employee:
HRD Department will make sure for the completion of personal file of every newemployee. As signature of executive HRD will be required on following documents:
Job Application form
Contract form
New employee orientation form
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GOLDEN INDUSTRIES
FINANCIAL PLAN
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GOLDEN INDUSTRIES
F I N A N C I A L P L A N
Regarding the finance, the GOLDEN INDUSTRIES did not give us any information.
Because the GOLDEN INDUSTRIES has not prepared any of the financial statements
(including: Income statement; Balance sheet; Statement of cash flow), regarding its
business operations. And during the interview, we came to know two things about
financial matters of the GOLDEN INDUSTRIES.
The first thing is that GOLDEN INDUSTRIES is using computerized payroll system that
is managed by the MIS department.
Secondly, we learn about the sales and total cost and expense figures of previous three
years of GOLDEN INDUSTRIES. The sales and cost and expense figures are given
below:
Year Sales and total cost and expense
figures
Net Profit
Margin (%)
2004
(July 01, 2003 to June 30,
2004)
Sales Rs. 15,000,000
Cost + Expenses Rs. 12,000,000
Net Profit Rs. 3,000,000
20
2005
(July 01, 2004 to June 30,
2005)
Sales Rs. 13,500,000
Cost + Expenses Rs. 12,000,000
Net Profit Rs. 1,500,000
In this year the sales and net profit
were negatively affected due to the
wrong LC. And during this year
GOLDEN INDUSTRIES also took
loan of Rs. 1,000,000 from the Soneri
Bank Ltd.
11
2006
(July 01, 2005 to June 30,
2006)
Sales Rs. 14,500,000
Cost + Expenses Rs. 11,800,000
Net Profit Rs. 2,700,000
19
For making the comparison of the above-mentioned financial data of GOLDEN
INDUSTRIES with the financial data of other cutlery manufacturer, we visit All
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Pakistan Cutlery Association to take financial data of other cutlery manufacturers. But
they dont give it to us and one thing they told us was that the GOLDEN INDUSTRIES
is the largest manufacturer and exporter of the cutlery, and its annual sales are more than
the sales of any other cutlery manufacturer.
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GOLDEN INDUSTRIES
RESEARCH ANDDEVELOPMENT
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GOLDEN INDUSTRIES
RESEARCH AND DEVELOPMENT
In the R&D department of GOLDEN INDUSTRY there are two designers who are
associated with the computer/IT department. As the main market of GOLDEN
INDUSTRY, where they are exporting their cutlery products is international market
including all Europe and America, so, these two designers continuously on the daily
bases check the design of newly established products of their foreign rivals through the
mean of internet. Because their foreign rivals are closer to their respective culture, and
customers, by which they design the products totally according to their customers
requirements, therefore GOLDEN INDUSTRY checks for new products through their
rivals web sites and then makes amendments in the new design by the help of their
production department.
1. PROCESS FOLLOWED BY R&D:
R&D department takes input of designs by visiting the web site of their foreign
competitors who have established the design by examining the behavior of customers
who are near to them. Then R&D takes help of a section of production department (that is
specially designed for R&D) to make amendments in the designs obtained by the webs.
(The Section of production department that make amendment in newly found designs)
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3. TRAIL USE OF NEWLY DESIGNED PRODUCTS:
When a new product is designed by the R&D department then the GOLDEN
INDUSTRY uses trial use technique to introduce and take feedback about the newly
found product from the market. The GOLDEN INDUSTRY sends the products for trail
use to only those customers/wholesalers who have a long relation with the firm.
4. BENCHMARKING OF PRODUCTS:
The designs which are taken from the internet are benchmarked, and after that they are
changed and then new products are formed that are further tested and processed.
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GOLDEN INDUSTRIES
RISK MANAGEMENT
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GOLDEN INDUSTRIES
R I S K M A N A G E M E N T
As the risk management process passes through the following stages:
Risk Identification
Risk Assessment
Risk Response
So, the risk management process in the GOLDEN INDUSTRY can be traced by
following the above mentioned steps in the respective order. And all the above mentioned
steps are explained below with respect to the GOLDEN INDUSTRY.
1. RISK IDENTIFICATION:
This stage of risk identification for GOLDEN INDUSTRY can be categorized into the:
External Risk Events
Internal Risk Events
1.1 External Risk Events:
These include the risks from external environment that are overall affecting the
GOLDEN INDUSTRY and the projects upon which GOLDEN INDUSTRY is working.
The external risks for the GOLDEN INDUSTRY include the following risks:
a) Changes in rules of All Pakistan Cutlery Association: All Pakistan
Cutlery Association is the regulatory body for the Cutlery industry in Pakistan,
and all the firms in the cutlery industry have to follow the rules which are
approved by the association. The outcome or consequence of the rules which are
approved by the association may be the bane of such product that is generating a
huge profit for the cutlery firms, or it may involve the firms to participate
financially in association or in some other matter.
b) Government Regulations: The government can cause the change in the
rate of the rebate and tax and also government can impose the duty upon the
supplies which are imported from other countries.
c) Entrance of new rivals in the industry: Entry of new rivals into the
industry can cause the GOLEDEN INDUSTRY to enjoy low profits and to sign
the projects on the competing prices.
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d) Unethical Asses of rivalry Firms: Some time the other competing firms
try to copy the design of products of GOLDEN INDUSTRY by their unethical
means.
e) World Wide Acceptance of Chinese Products: The world wide
acceptance of Chinese products is causing the GOLDEN INDUSTRY to get loss
of their foreign as well as domestic customers and also to enjoy low profits on
their sales of cutlery by offering low and competing prices.
f) Unstable Prices of Raw Material: The unstable prices of raw material
are causing the GOLDEN INDUSTRY to have variation in the quality of cutlery
products.
g) Rains and Storms: Some time rains and storms cause the workers to be
absent from the work and also the finished goods can not be delivered on the time
during the shipment process.
h) Poor Wapda System: Due to the poor system of wapda, the electricity
availability can be stopped at any time by the wapda.
i) Change in Currency rates: The ups and downs in the rates of currency
of the country where they are exporting their products can cause the GOLDEN
INDUSTRY to make changes in the prices of their products which are exported.
j) Lack of secrecy by Chamber of Commerce: The chamber of
commerce can provide information about any member publicly to any one who
needs the information; so, by this any one can unethically use the information and
some time the information is sent to the foreign importers.
k) Change in Cargo prices: Due to the change in the cargo prices there
may be the certain increase in prices of the products and also there may be the less
focus upon the quality.
1.2 Internal Risk Events:
These include the risks that are generated from the internal activities of the GOLDEN
INDUSTRY and these risks affect the firm internally. The internal risks for the GOLDEN
INDUSTRY include the following risks:
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a) Improper handling of Press: In the cutting section, improper handling of