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Prepared by:

Name Registration Serial #

Umar Hayat L1S13BBAM2038 29

Mohsin Ashfaq L1S13BBAM2033 26

Usama Sufian L1S13BBAM2032 25

Abeer Aqdas L1S13BBAM2004 19

Atique-ur-Rehman L1S13BBAM2027 24

Nabeel Khan L1S13BBAM2031 23

Company Name Innovative Biscuits Pvt (LTD)

Submitted to Ms. Mariam Saleem

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Acknowledgment

A project is never the work of an individual. It is more over a combination of ideas, suggestions,

review, contribution and work involving many individuals. It cannot be completed without

guidelines.

First of all we would like to express our sincere gratitude to Ms. Farah Hashmi (Marketing

manager) Inovative Biscuits (Pvt) LTD, for giving us the opportunity to make this project and

helped in every way possible & secondly our sincere thanks to Mr. Fahim ud Din (Assistant

Marketing Manager) who helped us in completing this project. We are specially obliged for

giving us time out of their schedules.

We are profoundly grateful to Inovative Biscuits (Pvt) LTD & Ms. Mariam Saleem for giving us

opportunity to understand and learn the working set up of organization. For giving us a tutorial

on how industry works and letting us understand the management system of company closely.

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Table of Contents

Contents Acknowledgment ............................................................................................................................ 2

Table of Contents ............................................................................................................................ 4

Executive Summary ........................................................................................................................ 6

History/ Background of the organization ....................................................................................... 7

Introduction of Organization........................................................................................................... 7

Business Vision ........................................................................................................................... 8

Mission Statement & Goals & Objectives .................................................................................. 8

How Organization is filing itself in globalization......................................................................... 10

CSR (Corporate Social Responsibility) activities ......................................................................... 11

Four functions of management ..................................................................................................... 13

Planning .................................................................................................................................... 13

Organizing..................................................................................................................................... 15

Leading ......................................................................................................................................... 20

Controlling .................................................................................................................................... 22

Porter five forces model ................................................................................................................ 23

Threat of New Entry ................................................................................................................. 23

Buyer Power.............................................................................................................................. 24

Threat of Substitution ............................................................................................................... 25

Supplier Power .......................................................................................................................... 25

Competitive Rivalry .................................................................................................................. 26

PEST analysis ............................................................................................................................... 27

Political Factors to Consider ..................................................................................................... 27

Economic Factors to Consider .................................................................................................. 28

Socio-Cultural Factors to Consider ........................................................................................... 29

Technological Factors to Consider ........................................................................................... 29

SWOT analysis ............................................................................................................................. 32

BCG Matrix .................................................................................................................................. 34

Employee satisfaction survey and its analysis .............................................................................. 37

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Questioner ................................................................................................................................. 38

EMPLOYEE SATISFACTION SURVEY ............................................................................................... 38

Statement ............................................................................................................................. 39

Strongly Agree ......................................................................................................................... 39

Agree ........................................................................................................................................ 39

Neutral ..................................................................................................................................... 39

Disagree .................................................................................................................................... 39

Strongly Disagree .................................................................................................................... 39

Recommendations ......................................................................................................................... 48

Conclusion .................................................................................................................................... 49

Appendices .................................................................................................................................... 50

References ..................................................................................................................................... 51

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Executive Summary This project has been taken with a view to make a study on the managerial funcations of

Inovative Biscuits (Pvt) Ltd. The report emphasizes on the how the pillars of management i.e.

planning, organizing, leading and controlling work in this organization. The report begins with a

brief history and general aspects of the company. After that the report mentions how the

company is filing itself in global market. Since it’s not a multi-national company therefore we

have mentioned the company’s future areas of interest and the company’s reason behind why it

is not working in other geographical markets. Then the report states how this company is

performing its corporate social responsibilities as it is a very major concern of the company

because it believes that being socially responsible is not something out of choice, instead it is

something that they owe to society. Then the pillars are explained in quite detail. After that

internal and external analyses of the company are given. These analyses include Porter Five

Forces, PEST, SWOT, BCG Matrix and employee satisfaction evaluation survey. At the report

gives few recommendations to Inovative Biscuit (Pvt) Ltd to improve few aspects and eradicate

some minor negligence.

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History/ Background of the organization

Innovative has consistently carried forward the banner of happiness for eight years, so that the

brand name has now become synonymous with quality in biscuit and confectionary

manufacturing. With an emphasis on excellence in every area, Innovative select the finest

ingredients, ensure hygienic conditions at every manufacturing stage and strive to deliver its

promises to the consumer. Quality and purity is set not only on its production floor but also in

every promise, principle and way of doing business. Innovative have a strict policy of ensuring

that no artificial flavors and no artificial colors are added in any of its products. For all these

reasons, Innovative enjoy the full trust and confidence of its consumers. Company started with a

few number of employees and day after day success have become mantra of this organization.

Introduction of Organization

The company was formed in 2004 and today has expanded its operations massively. The

Innovative brand is now a strong consumers’ franchise, growing the fastest of any brand

nationwide, and spanning an extensive distribution network of 250 distributors and dealers in

Pakistan. Its highly committed and professional management team injects vigor and excellence

in every function of the business through strong experience in Marketing, Sales, Production,

R&D, HR, and Quality Control. Innovative proudly uphold corporate social responsibilities with

a firm commitment to protection of the environment and through productive contributions to

society. Passion for innovation has resulted in the finest brands now under its umbrella. Its range

of brands includes Biscuits and Wafers.

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Business Vision

(Strategic Positioning)

Innovative Biscuits is passionate of becoming the confectionery leader such that consumers

expectations are met and the company is recognized as a symbol of quality both locally and

globally.

Innovative Biscuits have always focused on the needs and wants of its consumers and has always

aimed at providing its consumers better food, a great variety of tastes and healthier pleasure. IB

has focused on affordability of its consumers maintaining the quality standards. This is the

reason why Innovative Biscuits is well known in the market.

Mission Statement & Goals & Objectives

Values

Innovative Biscuits shares strong core values

that ensure the company progress and

sustainability in the market.

Integrity

“Building trust with consumers, communities

and suppliers by fulfilling promises of

quality, complying with regulations & laws

and honoring rules of engagement.”

Personal Ownership

Taking personal responsibility for the outcome by anticipating needs, being resourceful and

following through until the goal is accomplished.

Teamwork

Working across organizational and cultural boundaries to achieve extra ordinary performance

and deliver to consumers

Excellence

Building a culture based on excellence in thought and in execution to better serve consumers.

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Commitment

We critically examine and continuously review all aspects of operations from procurement to

distribution of finished products, identify any shortcomings or space for cost-effective

improvement and will undertake appropriate quality-enhancement measure.

Production Plants

Production Plants are located at 23 KM, Shiekhupura Road, Lahore. The production lines have

been procured from the world best Biscuit Manufacturer Company , United Biscuits UK,

whereas the Baking Unit (Oven) has been imported from Vicar Snooper, UK.

The production Capacity is 66 Tons / Day with the detail according to the category of products

as below:

Biscuits

Plant I 23 Tons / Day

Plant II 18 Tons / Day

Plant III 12 Tons / Day

Wafers

Plant I 2 Tons / Day

Plant II 2 Tons / Day

Plant III 2 Tons / Day

Plant 4 2 Tons / Day

Quality Policies

Innovative set high standards of manufacturing where each product is produced using systematic

production process, high technology and the finest raw and packaging materials, sourced

globally. All the raw materials used during production, production phases and packaging

procedures have to pass strict quality and hygiene controls. Quality and purity is set not only on

production floor but in every promise, principle and way of doing business. Today, they enjoy

the trust and confidence of their customers everywhere.

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Innovative Quality Commitment

The Innovative brand is synonymous with quality. Since Innovative has been in operation, it has

emphasized on quality in every area. It selects the finest ingredients, ensure hygienic conditions

at every manufacturing stage and strive to deliver on its promises to the consumer.

Investment in the latest machinery has also played a crucial role in ensuring enhanced

productivity and efficiency. As part of commitment towards high quality and innovation,

Innovative maintains a state-of-the-art laboratory at the factory. Its role is to keep the company

abreast with the latest developments in quality control and suggest appropriate measures for

increasing shelf life of the products. As a result, Innovative has popularized the use of coated

BOPP wrappings in Pakistan, an effective technique to retain taste and freshness for a longer

duration.

More recently, the latest packaging machinery and state of the art creaming equipment were

imported. These have helped to maintain quality and also contributed towards increasing

efficiency.

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How Organization is filing itself in globalization

Since Inovative is not working in any other country so they are not a multi-national company.

They acquire there production set up from u=United kingdom and for some other ingredients

they visit or connect with other countries but as far as selling of product is concerned that is

limited in Pakistan only.

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CSR (Corporate Social Responsibility)

activities Social Responsibilities

Innovative Biscuits is well aware of the responsibilities to

the society. It has been actively participating in various

activities that govern to the benefit of the society.

Donations

IB has been a part of display activities at Jinnah Hospital and from time to time, it also initiated

free sampling there. Furthermore, it has a commitment with Shauqat Khanam of providing its

product Cocofun to its cancer patients free of charge in addition to the donations.

Awareness Campaigns

Innovative Biscuits in co-operation with the Lahore Traffic Police has initiated many awareness

campaigns some of which includes the importance of Helmet, consequences of mobile usage

during driving, dengue awareness etc.

Environment Responsibility

Sustainability has always been an integral part of IB recipe for success and will always be in the

years to come. Inovative promote and maintain environmentally responsible practices for the

benefit of its customers, consumers, employees and the communities in which they operate.

Inovative strive for continual improvement through the development of specific programs that

address the environmental cost and impact of its activities, products and services. As a

consequence, they are committed to use resources efficiently, minimize waste and measure its

environmental impact.

Inovative not only propagate a cleaner and a greener environment but have taken a number of

measures that have fostered a positive environment around its employees and society from

decades.

Social Welfare Responsibility

Corporations are part of the community to which they provide employment and sell it products.

Corporations realize that they must give back to society a share of what they have earned from it.

In pursuance of these principles IB seeks to support initiatives that have a lasting impact on

national progress in general and community support in particular.

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Four functions of management

Planning

Four Functions of Management

Following are the four pillars of management.

Planning

Organizing

Leading

Controlling

Planning:

It involves defining the organization’s goal, establishing strategies for achieving goals and

developing plans to integrate and coordinate work activities. It’s concerned with both ends and

means.

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Planning Process:

In Innovative Top uses MBO (Management by objective approach) for planning process.

Various functions come under this section. These functions include marketing research function

which statistically tests the market before pursuing any plan. The research team then shares their

test results and recommendation with the authorized persons. The plan first needs to be approved

and sanctioned by the CEO before it under go and further process. The personnel who will

approve the plan go through its detail that what type of plan it is. For instance: any corporate

social responsibility regarding plan will be sanctioned by the manager corporate affairs, then he

will look after all the details relating the plan from feasibility test to implementation. He will at

most need the approval of his G.M who will then relay the plan to organization. But if the plan is

regarding some amendments in any of the production plants than chairman and CEO are

approached for it as it involves huge costs.

In other words the managers set their goals and pursue them on their own. At AHL the

management teams choose specific goal than a meeting is held in which all of the team’s

members are asked to put their inputs. Then they reach a common decision and from there any

plan goes into further sanction before it gets ready for implementation.

Plans & goals are established considering the factor that plans and goals must be difficult yet

attainable. Market growth is analyzed on 360 degree and flexible plans are establish. Yearly

plans are established which are further divided into serval quarters.

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Management Levels Involved in Planning:

Different managerial levels are involved while making different sorts of plans. At Inovative the

control is very much decentralized. Managers are given a lot of authority; therefore they can

sanction various orders regarding different plans. For instance: Any administrative plan can be

approved by manager or even assistant manager. But any critical issue should be relayed to the

CEO. Similarly CSR issue can be approved by the Manager Corporate Affairs. This shows that

managers are involved while making any plans. The open door policy is implemented at

Inovative. This allows even non-managerial executives to put their inputs in any plan under

consideration. Decisions as critical as marketing a new product or crucial amends in any existing

set up is to be routed to higher hierarchy.

Contemporary Issues in Planning:

The individuals who are involved in planning pick every single detail of the plan with keen eyes.

The feasibility of each plan is check multiple times from each and every angle. The market

research department tries to for see the reaction of market regarding to any plan. For example

before introducing a new product first research is being done and taste tests and customer

acceptance is also analyzed. Moreover any plan relating to internal environment of the

organization inspected by their HR Department. They not only rely on their observations but

they hold personal meeting to resolve the issue

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Organizing To arrange and maintain various functions that are performed in an organization are crucial for

keeping it working proficiently. In the absence of good organizing even the best of the plans can

backfire and it can affect negatively the profits of the company. At Inovative, managers

understand the importance of organizing profoundly and therefore keep a concerned eye on the

daily work routines of their subordinates and colleagues.

Organizational chart:

*Organizational chart is attached in Appendices.

Managerial levels:

Top Managers

Top managers include

Chairman

CEO

General Managers

Middle Managers

Middle managers include

Regional Sales Manager

Zonal Sales Manager

Project Managers

First Line Managers

First line managers include

Sales Officers

Order Bookers

Supervisor

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Organizational structure:

The organizational structure that is implemented at Inovative is Organic because there is a lot of

delegation of power and authority. The working system is decentralized. The span of control is

quite wide as various teams work under the supervision of a single manager. Like every RSM is

responsible for 11 ZSM”s and every ZSM have 50 sales officers. But as company have a hugde

volume of employees so its structure is in between organic and mechanistic.

While performing any task or project personnel’s from various departments are pursued and a

combined team performs according to the needs of the project - cross-department teams. For

particular projects seldom Assistant Managers, Managers, General Managers and Regional

managers also form team together - Cross hierarchical teams. An open door policy is used at

Inovative. This means any worker can enter the office of any managers or higher official

whenever he wants. This enables the free flow of information along both ways of the hierarchy.

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Organizational Design:

The organizational design of any firm include following components.

Work Specialization

Departmentalization

Chain of Command

Span of Control

Centralization or Decentralization

Formalization

Work Specialization:

Another name is division of labor. In work specialization the main task divided into several task

and everyone is performing their specific task. Every task is performing by their specialize

person. Job rotation at is a policy at Inovative. If needed then people from different functional

areas f=help each other in order to achieve a better overall performance.

Departmentalization:

How jobs are group together. Three types of departmentalization are implemented which

includes.

Functional Departmentalization

Process Departmentalization

Customer Departmentalization

Functional Departmentalization:

Functional Departmentalization is where you are making departments on function base. Like HR,

Marketing and supply chain. Each and every functional process in the company is allocated a

separate department for efficient working. For example every procurement process is carried by

procurement department, Human relations by HR department. At the moment around seven

departments are functional and performing their tasks at IB.

Process Departmentalization:

In Process departmentalization Job are grouped on the basis of product or customer flow.

The whole assembly line is divided into different levels and a supervisor is allocated for the each

level to proctor the working and to make sure the task is done efficiently and effectively. It is the

skill of each department at the production plant that after every 40 seconds a pack of biscuits is

prepared on average..

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Customer Departmentalization:

Basically you are making departments on the bases of customers. Like a company has make

departments on customer bases e.g. whole sale or retailer. At Inovative separate departments are

made to ensure the satisfaction of the customers, Any issue regarding the dealer is resolved by

Placement Department. Two brands that is wafers and biscuits have different customer groups

that is why company have different strategies for both segments.

Chain of Command:

It is basically the line of authority that who is reporting to whom. Inovative has a CEO that

reports to the Chairman.. Then General Managers of different departments work under them.

Broadly viewing, seven General Managers of seven departments work at IB. Under them

different departments works at Regional Manager (Sales & Marketing) Level. Then Zonal

Mangers, Sales officers and order bookers work under Regional Managers in the respective

order.

Span of control:

It is basically how many employees are working under one manager. Span of control in any

company can be narrow or wide. At Inovative, especially in sales and placement departments

managers have a wide span of control. Around hundred workers work under a single manager.

Though these workers are classified in various teams but all these teams are supervised by a

single manager.

Decentralization:

At Inovative there is a very much apparent delegation of power and authority. Even the low level

managers are given free hand while handling their teams and any recommendations are given

very much importance. Even a trainee manager is asked to submit any changes he wants to apply

on the organization in his induction report and every acceptable recommendation is accepted.

This proves the level of decentralization applied in the company.

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Leading Leading is another of the basic function within the management process "Leading is the use of

influence to motivate employees to achieve organizational goals" Managers must be able to

make employees want to participate in achieving an organization's goals.

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Motivational Techniques:

Inovative believes that motivational efforts should not be confined to only employees. Their

motivational efforts encompass up to vendors dealers, market associate, and each & every

individual associated with Inovative. They all are motivated by applying different means for

instance in order to motivate vendors Inovative arrange vendor conference in which vendors are

motivated to implement quality circles and good Performa of any vendor is recognized. They

believe that a quality circle is maintain from grass root points and if a worker of vendor has

perform efficiently even he is given reorganization in these conferences. They consider it to be

their integration with their vendors. Similarly if a dealer offers a new marketing idea he is given

reorganization by the company to level of the person who has initiated the innovative idea.

As far as employees are concerned IB has a firm believes in “Respect, Recognition and Reward”.

They believe if any employee is given appropriate level of respect you can motivate him to no

bounds. They believe that thought the salary packages that they offer the employees is quite

competitive in the market but their competitive edge that keeps their employees loyal to the

company is the respect they offer. It motivates the employees to stay true to their jobs just

because of this even those employees who leave the company in pursuit of better salaries return

to the company after some time.

All the employees are treated equally. Employees are given a full say in every matter that also

leads to their motivation. They also apply training as a source of motivation. Recently their

hasn’t been any trainings but company is planning to conduct training in near future. They also

give recognition in form of medals at family dinners to boost up the employees.

As far as salary and remunerations are concerned Innovative offers the good packages compared

to other companies in the whole local sectors. Motivation is most important therefore they keep

consideration all the aspects of motivation.

Training:

Inovative claims that soon their training will be conducted as they are planned in near future.

They want to have training for each level which ensures that every individual performs all the

tasks necessary before promotion to the next level.

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Controlling Controlling is basically Monitoring, Comparing and correcting work. In an organization

managers responsibility is to monitoring activities to ensure that they are accomplished as

planned

Innovative has set standards in order to analyze the performances of their employees. After six

months employee appraisals are analyzed and rewards are often given on the performance and

efforts too. Like if a employee could not achieve his or her goal but higher officials feel that he

has been putting a lot of effort for the work than he surely gets recognition from the company.

This reward either can be a Ummrah trip or a Haj trip or any financial rewards inform of bonus

as well.

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Porter five forces model

Following are the Porter’s Five Forces:

Force 1: Threat of New Entry?

Force 2: Buyer Power?

Force 3: Threat of Substitution?

Force 4: Supplier Power?

Force 5: Competitive Rivalry?

Threat of New Entry

If a new business can be easily started up in your

sector without substantial investment – then this is a

threat. The Internet has made this a reality in many

sectors, especially publishing!

What’s the threat of new businesses starting in

this sector?

Threat for a new entry is neither very high nor very low. In the field of Biscuits customers

brand loyalty is relatively low as biscuits are low involvement products. Customers easily

switch from one brand to another but the good quality and taste of Innovative helps to

maintain a good brand loyalty of customers. For example Innovative Digestive biscuit has a

very good brand loyalty and customers don’t switch from this brand to any other usually. But

still threat of new entry is there. Anyone can jump into this industry. There are many Non

branded companies in the market which are operating and making it tough to compete.

Bakrie cookies are one good example of it.

How easy is it to start up in this business?

Starting a business is easy. In 1982 Innovative started its business with 8 workers and owner

of the innovative was 8th

person among them. But now days it’s not easy to startup business

as it involves massive budgets and costs.

What are the rules and regulations?

There are some health and safety measures which every company needs to ensure in order to

perform its activities. For example Pakistan Standard & Quality Commission-PSQC, Hilal

foods and ISO9001 are some of the certificates Innovative currently possess.

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What finance would be needed to start-up?

For starting proper business in this industry is very difficult. One should have a very solid

investment in order to start production. Machinery is required and then raw materials space

to operate factory and many other expanses. At least 1billion rupees are required to start this

business in Pakistan.

Are there barriers to entry which give you greater power?

The biggest hurdle and barrier in this field is customer itself. Market competition is tough

and customers often do unanticipated behaviors. Market share is divided in many companies

and you don’t have much influence. Price competition is also very tough in this filed.

Buyer Power

Where there are fewer buyers, they often control the market but not in this case:

How powerful are the buyers?

Rule is simple “Customer is always right”. In this field of business it’s very difficult to

maintain your customers. A slight change in price can result into losing a lot of customers.

SO buyers have a great influence on the firm. Innovative have a strong distribution network,

More than 250 Distributors buy products from Innovative. They sell it to retailors and then it

reaches to customer.

How many are there?

As discussed in last question more than 250 distributors of innovative are currently working.

Can the buyers get costs down?

No. Buyers of company are distributors and they cannot influence the pricing of the

company. Distributors don’t influence any pricing on Innovative. It’s a request based system

or case to case it varies. If anyone has complaints they are addressed by the company.

Do they have the power to dictate terms?

It’s a request based system for example if any Distributors have any issue he/she can send a

request to company and company will decide what to do. Sometime it depends case to case.

On different situation different decision are made.

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Threat of Substitution

If there are available alternatives then the threat of substitution increases.

How easy is it to find an alternative to this product or service?

It’s too easy to find alternative for biscuits because many brands and products are present in

market at same price and customer can easily switch from one to another. Example of Xtra

biscuits that company launched it at price of 3 rupee and three was an increase in sales of the

product. The company increased the quality of product and changed the price at 4 rupee.

Customers rejected the price change and even later on price was set back at 3 Rupees still

company could not achieve the customers confidence.

Can it be outsourced? Or automated?

Yes the production of biscuits can be easily outsourced but Innovative have five factories in

Pakistan and all the production is done in Pakistan.

Supplier Power

Markets where there are few suppliers means the suppliers retain the power and vice versa

Examine how many suppliers are in the market?

As Pakistan is a agricultural country its produces a lot of wheat and sugar. These two are the

major raw materials used in biscuit industry. Innovative buy all its raw materials from

different suppliers through contracts and deals. Innovative buy material on cash. If credit

payments are made than it’s a credit of maximum 15-30 days.

Are there a few who control prices?

The raw materials of this industry are available in big numbers and people in big number are

selling it that is why no one has monopoly or no one is controlling the prices. It’s the deals

with companies which control the prices.

Or many so prices are lower?

Prices depend upon deals and contracts. Normally prices are charged just like prices of

market. For example Innovative had a contract with one of its suppliers that supplier will

charge a decided price of sugar to Innovative irrespective of what price changes are made in

the markets.

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Do your suppliers hold the power?

Suppliers don’t hold the power because unlimited numbers of suppliers are there in market

with similar products. Innovative have a Standard Operating Procedure SOP which is

considered most important in purchasing. They find those suppliers who meet these criteria

and take costing from at least 3 of therm. One of these suppliers is selected for purchase of

raw materials.

How easy is it to switch, what’s the cost?

It’s very easy to switch from one supplier to another because cost of switching from one to

other is not very much. The maximum cost can be losing a supplier and you don’t need to

worry about that if unlimited suppliers are out in the market. Whoever the supplier is,

Company follows SOP and purchase all types of materials.

Competitive Rivalry

Markets where there are few competitors are attractive but can be short-lived. These are

highly competitive markets with many companies chasing the same work reduce your power

in the market.

What’s the level of competition in this sector?

Level of competition is extremely tough. Consumers are extremely price sensitive in this

filed. Easy alternatives are available for consumers which makes the competition more

difficult. As they say “Increasing price in the industry of Biscuits is a Crime”

What’s the competitor situation? Many competitors and you’re all in a commodity

situation or a few?

LU, Peak freenz and Mayfair are the market leaders currently. Innovative is at 4th

position in

market. Innovative is almost size of Mayfair. From 2009 Innovative has launched new

products and now these products are established and company is trying to do maximum

market penetration. In market Non branded biscuits have their own share and branded

biscuits have its own share.

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PEST analysis

Political Factors to Consider

When is the country's next local, state, or national election? How could this change

government or regional policy?

The next Election is possibly in 2018. Innovative don’t have anything to with politics.

Whichever party comes in power its good. But if a party which is sincere about state matters

win elections then its good because biscuit production needs a lot of gas and currently

Pakistan don’t have enough to provide it to industry.

Who are the most likely contenders for power? What are their views on business policy,

and on other policies that affect your organization?

Taxes have been increased and prices are also increasing. Gas is not available and company

uses LPG gas as an alternative. LPG’s price is 4 times greater than that of natural gas and it’s

a strong issue and currently government has done nothing on this issue.

Depending on the country, how well developed are property rights and the rule of law, and

how widespread are corruption and organized crime? How are these situations likely to

change and how is this likely to affect you?

Economy is highly unstable. Now a day’s fuel crises have a severe damage on almost every

industry. Political situation is also unstable. Sit-ins and terrorism accidents are some factors

which every company cannot take.

Could any pending legislation or taxation changes affect your business, either positively or

negatively?

Yes they certainly do. Biscuit industry is highly price sensitive and customers don’t accept

price changes and companies sales go down. For example recently government increased

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GST tax and price was high and companies’ revenues were damaged because buying power

of customer was decreased.

How does government approach corporate policy, corporate social responsibility,

environmental issues, and customer protection legislation? What impact does this have,

and is it likely to change?

Some governments reduce production quotas in order to maintain the environment.

Companies have restrictions on producing more than a limited amount. But currently

Government is involved in many other strategic issue that it’s not paying much attention

towards environmental issue. Still this has a strong impact on biscuit industry.

What is the likely timescale of proposed legislative changes?

Legislative changes occur after 5 years but as we have seen in history many governments time

period is not completed either because of Marshal law or any other political crises So we

can’t say much about this time frame.

Are there any other political factors that are likely to change?

As the Political situation is unstable and two main parties have maters to settle may be in

coming future political changes can occur.

Economic Factors to Consider

How stable is the current economy? Is it growing, stagnating, or declining?

Economy is highly unstable. It have the potential to grow but issue of circular deficit and

terrorism activates are not letting it flourish.

Are key exchange rates stable, or do they tend to vary significantly?

Usually the exchange rates are same. Once in a six month they changes with marginal

fluctuations.

Are customers' levels of disposable income rising or falling? How is this likely to change

in the next few years?

Customer’s disposable income level is going down. More than 60% of population is below

poverty line. This shows that unemployment is increased and disposable income is decreased.

What is the unemployment rate? Will it be easy to build a skilled workforce? Or will it be

expensive to hire skilled labor?

Employment rate is lower. Many talented and educated people are on the roads looking for

jobs. This will help to make a good work force easily. With little salaries you can higher good

employees,

Do consumers and businesses have easy access to credit? If not, how will this affect your

organization?

All those consumers who have a higher disposable income can afford credit. It’s a massive

number in Pakistan although percentage is 10 to 15 only.

How is globalization affecting the economic environment?

In October 2008 Earth quick made unrepairable damages to whole country. Every year floods

wash away crops of formers and because of poor environmental control pollution has

increased and still increasing day by day.

29

Socio-Cultural Factors to Consider

What is the population's growth rate and age profile? How is this likely to change?

Innovative have a brand for every segment of the market from children’s till old age patients.

Population growth is rate is high, Pakistan have 18 billion people as of the survey done in

2007.

Are generational shifts in attitude likely to affect what you're doing?

Generational shifts are not affecting the business but now day people are becoming health

conscious and they try to consume less calories in order to maintain good health. This is a

positive thing for companies and companies need to focus it in order to have a bright future.

What are your society's levels of health, education, and social mobility? How are these

changing, and what impact does this have?

Society level of health is changing. People are adapting the US trends of having a snack at

lunch time and this is a bright thing for future anticipation. For example the innovative have

Digestive biscuits which have a very bright future.

What employment patterns, job market trends, and attitudes toward work can you observe?

Are these different for different age groups?

Yes these are different. Young graduates are knocking at the companies to prove their skills

but in government departments sonority is given preference so most people are willing to do

job in private institutions.

How do religious beliefs and lifestyle choices affect the population?

Religion of the state is Islam. Minorities also live in different parts of the country. They are

affecting the businesses. For example recently Innovative analyzed that in Sindh belt

Digestive biscuits have a massive sales volume. Study showed that people of that belt are

Hindu and they don’t eat any cookies which have egg in it. Innovative digestive don’t have

egg in it that is why its sales are more in that region.

30

Technological Factors to Consider

Are there any new technologies that you could be using?

All the production machinery is being purchased from UK. For production of one brand Xtra

innovative is using a new technology from few years.

Are there any new technologies on the horizon that could radically affect your work or

your industry?

Innovative have five factories in Pakistan. These factories are equipped with latest

technologies. Emporia plant is one of those technologies which innovative don’t have

currently but looking to purchase it in coming 1 or 2 years.

Do any of your competitors have access to new technologies that could redefine their

products?

Many companies have Emporia plants and they are producing good quality product on same

rates.

In which areas do governments and educational institutions focus their research? Is there

anything you can do to take advantage of this?

Government isn’t helping in any sort of researches currently. Innovative rely on its own

Research and development department. This department anticipates and predicts what

products to focus and what products must be introduced in market.

How infrastructure changes affected work patterns have (for example, levels of remote

working)?

More labor decreases your efficiency, Innovative believe to do maximum work through

machines. Packing is done by labor force. With all these machinery cuts down cost of labor

and increase the efficiency as well.

Are there any other technological factors that you should consider?

Innovative is willing to acquire Emporia plant as soon as possible so that production

technologies can be update with the current time./

31

Factors High Medium Low

Political

Environmental

Social

Technological

Economic

Legal

32

SWOT analysis A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to

evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a

business venture.

Strengths: characteristics of the business or project that give it an advantage over others.

Weaknesses: characteristics that place the business or project at a disadvantage relative to

others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project

SWOT Analysis

Strengths

Weaknesses

Threats

Opportunities

33

Strengths

Company has a well-established network of distributors and more than 3 plants are

operated every day it’s a huge strength as it’s not easy to start this business because one

should have a huge capital in order to start this project.

Inovative has two categories of products biscuits and wafers and its 4th

in market as a

leader. First three are LU, Peak freenz & Mayfair.

Inovative is carrying forward a lot of CSR programs which enable them to be among the

society members and it shows their commitment towards society.

Weakness

Inovative is only working in Pakistan. They need to capture some more countries as well

because now a days business in nothing but global

They have few dog products like X-tra. They need to either erase them from their product

card and if not then they should pay attention on it and ny brining some changes they can

achieve better outcome from now.

Biscuits are prepared with use of natural gas in ovens as our country is facing shortage of

natural gas hence it’s a obstacle for Inovative. This leads to increase in cost of production

as the LPG gas is four time expensive than natural gas.

Opportunities

The have the opportunity to increase their market

share by coming up with creative marketing ideas &

strategies.

Biscuit industry has seen rapid growth from last

three years as people started to go more towards

snacks instead of proper meals this provides a

greater opportunity for company.

Inovative Digestive biscuit has been accepted by consumers on a large scale as people are

health conscious. No other company is producing such product in Pakistan and this is a

competitive edge for Inovative

Market share is relatively lower than other competitors but as the biscuit is a low loyalty

product it provides a free space for all companies to achieve more market share by

providing better marketing promotions and sales.

34

Threats

Customer it-self is a threat for the companies in this industry Because customer is not

loyal to products and they easily switch the product.

Biscuit being a low involvement product makes it tough for company to mantian its

customers for longer periods of times.

There are no barriers to entry and anyone can enter the market. It’s a threat but anyone

who will go on to investing a huge capital must have a proper sigh of the field.

35

BCG Matrix The growth–share matrix, BCG-matrix, Boston matrix, Boston Consulting Group analysis, and

portfolio diagram) is a chart that was created by Bruce D. Henderson for the Boston Consulting

Group in 1970 to help corporations to analyze their business units, that is, their product lines.

This helps the company allocate resources and is used as an analytical tool in brand marketing,

product management, strategic management, and portfolio analysis.

36

Cash cow

Cash cow is where company has high market share in a slow-growing industry. These units

typically generate cash in excess of the amount of cash needed to maintain the business. They are

regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to

own as many as possible. They are to be "milked" continuously with as little investment as

possible, since such investment would be wasted in an industry with low growth. Innovative

have 2 cash cows. One is Peanut and other one is Goodies. Both these products have high market

share and a constant market growth. These products are going towards maturity level.

Dogs

Dogs, more charitably called pets, are units with low market share in a mature, slow-growing

industry. These units typically "break even", generating barely enough cash to maintain the

business's market share. Though owning a break-even unit provides the social benefit of

providing jobs and possible synergies that assist other business units, from an accounting point

of view such a unit is worthless, not generating cash for the company. They depress a profitable

company's return on assets ratio, used by many investors to judge how well a company is being

managed. Dogs, it is thought, should be sold off. Xtra and Choc’n chip are tow dog products of

innovative. Company is not investing on these brands or looing to invest on these brands but

whatever they produce it is being sold.

Question Marks

Question marks (also known as problem children) are business operating in a high market

growth, but having a low market share. They are a starting point for most businesses. Question

marks have a potential to gain market share and become stars, and eventually cash cows when

market growth slows. If question marks do not succeed in becoming a market leader, then after

perhaps years of cash consumption, they will degenerate into dogs when market growth declines.

Question marks must be analyzed carefully in order to determine whether they are worth the

investment required to grow market share. Innovative don’t have any question mark product

because in biscuit industry cycle works very quickly in few weeks product shifts from question

mark to star just like example of Jumbo Junior.

37

Stars

Stars are units with a high market share in a fast-growing industry. They are graduated question

marks with a market or niche leading trajectory. The hope is that stars become next cash cows.

Stars require high funding to fight competitions and maintain a growth rate. When industry

growth slows, if they remain a niche leader or are amongst market leaders it’s have been able to

maintain their category leadership stars become cash cows, else they become dogs due to low

relative market share. Innovative have 4 star products. Digestive, Zeera, Jumbo junior and

Frisky. These products have good market share and market growth as well. Innovative is

investing more and more in these brands to attain more market share and convert them into cash

cows.

Company has cash cows which is good because these products generate a lot of cash flows.

Innovative should focus on its market penetration so that it can gain more market share. Potential

is there in this field.

38

Employee satisfaction survey and its analysis Innovative is increasing rapidly and with this fast growing ratio we observed that their majority

employees are doing their job good and they are happy and they think company is satisfying their

needs. They want to do good for company and they found that Innovative is good company for

work. The only thing they suggested is that they think that some changes should be done with

time to time. For instance working environment of the organizations can be changed. Making

their work fun will enhance the effectiveness and efficiency eventually.

Questioner

EMPLOYEE SATISFACTION

SURVEY

Gathering information on employee satisfaction, this survey focuses on how employees feel

about their job Description, position within the company, relationships with colleagues and

superiors, advancement opportunities & overall satisfactions.

This survey asks questions about your experience working for The Company. It starts and ends

with some questions about your satisfaction with various aspects of work and contains other

questions about how you think and feel about The Company. Thank you for sharing your

opinions. February 10, 2015.

What is your gender?

o Male

o Female

How many years have you been with The Company?

o Less than a year

o 1 - 3 years

o 4 - 6 years

o More than six years

What is your age?

o 18 - 29

o 30 - 39

o 40 - 55

o 55+ years

39

Statement Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Overall, how satisfied are you working for The

Company?

To what extent do you agree with the following

statement: I would recommend this company as

a good place to work?

There is good communication from employees to

managers in the Company?

There is good communication from managers to

employees in the Company?

Overall, how satisfied are you working in your

department?

My job gives me the opportunity to learn.

The amount of work expected of me is

reasonable.

I have the tools and resources I need to do my

job

Your base pay? Your bonus?

Other benefits offered by the Company?

People in my department communicate

sufficiently

With one another??

Additional Comment (Optional)

40

Overall, how satisfied are you working for The Company?

3

5

0 0

0

Nomber of Respondents

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

41

To what extent do you agree with the following statement: I would recommend this

company as a good place to wo

0

1

2

3

4

5

6

7

Strongly Agree Agree Neutral Disagree Strongly Disagree

Respondents

42

There is good communication from employees to managers in the Company?

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Strongly Agree Agree Neutral Disagree StronglyDisagree

Respondetns

43

There is good communication from managers to employees in the Company?

No. of employees

0

1

2

3

4

5

StronglyAgree

AgreeNeutral

DisagreeStronglyDisagree

No. of employees

44

There is good communication from managers to employees in the Company?

Overall, how satisfied are you working in your department?

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Strongly Agree Agree Neutral Disagree StronglyDisagree

4

5

0 0 0

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

45

My job gives me the opportunity to learn.

The amount of work expected of me is reasonable.

3

4

1

0 0

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

StronglyAgree Agree Neutral Disagree Strongly Disagree

46

I have the tools and resources I need to do my job

Your base pay? Your bonus?

2

4

3

0 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

1

3 5

0 0

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

47

Other benefits offered by the Company?

People in my department communicate sufficiently with one another??

2 2

4

1

0

1

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

2

5

2

0 0

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

48

Recommendations

Launch different products for health conscious people and advertise them as a healthy

brand. Like they have a digestive biscuit currently.

Launch wafers & digestive Biscuits into other developing economies like African

countries and Gulf countries since it suits the taste of people in Gulf countries.

Tie-up with different brands so that it's available as a substitute.

Reposition the brand like as a healthy brand in urban areas.

Launch new flavors of pre exciting biscuits in order to attract the customers.

Employees should be given more training sessions so that they can enjoy working with

the firm and enhance their efficiency and effectiveness as well.

Digestive biscuits has a bright future company should focus on its growth and market

penetration.

49

Conclusion All these project activities reflect that Inovative Biscuits is a great organization. It has a

handsome share in market. The competition in this industry is very tough because brand loyalty

is very poor. That is people switch to other products in no time so Inovative have to make sure

that their product stays in the mind of their consumers & up till now Inovative has been very

successful in doing it so. Future is green for Inovative as they have established healthy biscuits

and people are keen about their health and it’s a good sing for the company. Using market

penetration strategies will enable this company to cover more market share.

50

Appendices

51

References Following are the references:

1. http://innovativebiscuits.com/

2. www.mindtools.com

3. Book – Management 11th

Edition – Stephen Robbins & Mary Coulter

4. Interview of Marketing Manager – Farah Hashmi # 0321-6767024, 03228400900

5. Interview of Assistant marketing manager Faheem ud Din # 0331-4876533,

03216766036

6. Recordings are also available upon request of both the interviews

7. 2 visits of Head office of Inovative Biscuits Pvt & Ltd. 153-M Quaid-e-Azam Industrial

Area

8. BERMAN, J. R. (1990). MARKETING 4TH EDITION. SINGAPORE: MACMILLAN PUBLISHING

COMPANY.

9. J.HART, M. J. (2010). THE MARKETING BOOK. NEW DEHLI: ELSEVIER.

10. Proof of Visit as a Picture is attached as well.