Saturday, May 18, 2019
We atomic number 18 also thankful to Mr.. Oman kneecap 0 for his help and valuable Insights Into Strategic Management at Claimant Pakistan Limited. Mr.. Patella, a very dedicated individual, is a competent and proactive professional at analyzing the implications of Claimants competitive strategic frame take in on each of the air operations. He provided us with every detail about Clangors corporate strategic activities and how they are aligned with the core competencies of the comp some(prenominal).Without his time and help, it would stick out been impossible for us to prepare this report. Sincerely, Amber Alicia Ham Named Virus Mason Razz Mohammad Moms Useful round the bend students of ABA (HON.) Institute of Business Management, Karachi. Letter of Transmittal Mr.. Abdul Qatar Mollie Institute of Business Management Koran brook Karachi 75190 Pakistan Date 18th April, 2013 Dear Mr.. Mollie Management in Claritin Pakistan Limited as authorized by you.The purpose of this report is to examine how Claritin Pakistan Limited manages its strategic activities at the corporate as well as the line of descent level. The project report is a comprehensive outline of Claimants strategic mission, the competitive strategies it has essential to farm its core competencies, the macro-economic analysis that it brooks for scanning the various environmental threats/pressures, the strengths and opportunities it effectively utilizes and the nervelessnesses and threats it counter- balances.The free radical members were immensely excited to work on this project since in a few months time we bequeath all told be dissolve of the work force and will be concerned with these strategic tasks employed in the organization at the basal level of an individual employee. With much effort and diligence all the work was divided as amongst us. We prepared a questionnaire which contained a list of questions regarding Strategic analysis, development and execution. We then met a represe ntative of Claritin Pakistan Limited, Mr.. Oman Patella 0 who responded to our list of questions diligently.Later different parts of the report were asked to be written by each group member. While working on this report we observed the amount of energy, thought process and effort that goes quarter into making an organization strategically competitive in its persistence We are grateful to you for teaching us the important aspects of Strategic Management, for helping us whenever we requested your assistance and believing in us to masterly this report in the best possible manner by fulfilling our capabilities. Contents 1 Objective To conduct Claimants organizational analysis in the light of the chemic manufacturing.To achieve this objective a broad environmental analysis needs to be conducted in order to recognize the external opportunities and threats along with internal strengths and weaknesses. This would suspend us to improvise their existing strategies and suggest recommen dations. 2 Industry Definition At present at that place are nearly 30 Chemical companies having the total paid-up Capital of RSI. L . 7 billion. around of them have shown remarkable progress in their sales in the recent years such as Fuji Fertilizer, Icily Pakistan, Negro Chemical, Atwood Hercules,Claritin Pakistan, Sitars Chemical Colgate Palmolive, Berger Paints, BOCA Pakistan, Sins Alkalis, Dyne Pakistan, are considered as foodstuff leaders in the field of operations of Chemical Industry in Pakistan. The rapid industrialization resulting in the large increase in chemic substance consuming products has enlarged the demand of all types of chemical substances in the country. Chemical Industry in Pakistan has gradually developed to its present stage and has played a vital part in the development of the country and will continue to do so in future with more foreign investment.The Chemical Industry produces a arioso rove of products such as polyester fiber, sodium carbonate, PVC , Soda Ash, PTA, Pharmaceutical, Paints, Fertilizer, Insecticides, Petrol-Chemical and other Chemicals. Chemical manufacture in Pakistan is widespread. The chemical imports constitute about 17% of the total import bill. Pakistan has made considerable progress in basic inorganic chemicals like Soda Ash, Caustic Soda, Sulfuric Acid and Chlorine and has acquired sufficient proceeds energy of these chemicals to cater for the needs of the local industry, while surplus is being exported. 2 Even then there are some challenges to be countered. The chemical industry of Pakistan is lagging behind due to some challenges. The principal(prenominal) challenge is that it has to rely on its imports and foreign materials. It does non benefit the economy and results in production of expensive products. Secondly lack of industrial infrastructure and technology in Pakistan results in low quality products which do not mark the banner. Moreover the discriminatory approach of international community does not integrate the Pakistan market into the international economy and Pakistani products are not given access to the international market.Moreover the lack of resources and weak trade policies of the ministries also result in the weakening of chemical industry. In order to enhance the chemical industry Pakistan moldiness adopt the policy of self-reliance. Instead of relying on foreign designs and engineering it must improve its own production and ensure risque quality of chemical products. Pakistan must work towards combine approach. It must bring four worlds of a society together which are traders, universities, research and development and production partners.This will bring innovation and must utilize its youth which has rest minds and great ideas to enhance the chemical industry resulting in qualitative and quantitative perfection in the chemical products. Pakistan is capable of producing high technological products all it needs is a little bit of effort in improvement o f administrative capabilities and installment of new-sprung(prenominal) technology and support from government to put things in order. 3 Company Background and breeding 3. History Claritin was formed in 1995 as a spin off from the chemical company Sanded, which was itself realized in Basel in 1886. Through their direct lineage, Claritin have massed knowledge and experience of chemistry and industry spanning about 150 years. Claritin expanded through the incorporation of the specialty chemicals line of merchandise of Hoochs (Germany) in 1997, and the acquisitions of BIT Pl (I-J) in 2000 and Sabas victor batches division in 2006.In 2008, it acquired the conduct U. S. Colorado suppliers Rite Systems and Ricoh Colors. The latest acquisition, the highly-innovative specialty chemicals company Sd-Chemic (Germany), was correct on 21 April 2011. Additives Catalysis & Energy Emulsions, Detergents & Intermediates Functional Materials Industrial & Consumer Specialties Leather Services Masturbates Oil & minelaying Services of specialty chemicals and application solutions for consumer care and industrial markets.Textile dyes include disperse, reactive, direct, acid and sulfur dyes. The cloth business encompasses special chemicals for pretreatment, dyeing, printing and finishing of textile. Optical brightener and chemicals for special treatment are also the part of the range. Moreover, textile region also include water based application of the emulsion for the paint and the construction industry. newspaper publisher business supplies paper dyes, optical brightener and process and pulping chemicals.Leather region produces chemicals for finishing and complete range of wet-end chemicals. The Consumer Care ingredient includes the Personal Care business which, among others, develops and produces specialty ingredients for skin and hair care, wet wipes and selected pharmaceutical applications. They provision all relevant information and advice for safer use, handling, labeling, storage, and disposal of our products as a part of Claimants commitment to sustainability and product stewardship to best abut customer needs.Industrial & Home Care business helps customers gain a competitive good with its product range for household cleaning fluids, disinfectants, industrial and hospital cleaning solutions Claritin, as a world leader in the field of specialty chemicals, is fully committed to sustainable operation and development in all business activities. It develops and offer products and applications that allow for use of the product during its whole life cycle helping to avoid pretend to employees, customers, the public and environment.Claritin has signed the orbicular Responsible Care Charter as our commitment to Sustainability. It is the chemical industry voluntary initiative to continuously improve health, safety and environmental performance, and to communicate with all stakeholders through the issue chain. This enables Claritin to make a str ong contribution to Sustainable Development through the Responsible emailprotected ethic and the Global Product Strategy targets which promote the safer use of chemical products and enhance product stewardship throughout the whole supply chain.Their comprehensive product stewardship approach includes cooperation and partnership with Claimants suppliers Claritin is aware that the energy issue is one of he fall upon challenges of todays and future society and industry. Claritin highlights energy efficiency and savings as the most cost-effective and fastest manner to reduce CO and other emissions and increase security of supply. 3. 3 Mission Statement Our mission intelligibly expresses what is important to us and what we stand for as a brand and as a company. We build leading positions in the businesses we are active in and we adopt functional excellence as part of our culture.We take value through appreciating the needs of our customers by providing competitive and innovative ou r environment our shareholders by acting sustainable by achieving above-average returns 4 Porters Five Forces 4. 1 Bargaining Power of Suppliers The bargaining queen of suppliers is low. Claritin is a chemical manu positionuring firm they make chemicals used in different sectors like textiles, oil & gas, mining, dyeing etc. Claritin does not have a particular supplier for its raw materials the Company buys raw material from different suppliers.The prep department is responsible for planning of the units of raw material to be procured based on the market forecast. The procurance then takes prices from approved suppliers and then laces an order to the supplier who gives the lowest deal on the purchase. The bargaining power of suppliers is low as there are many suppliers in the market and they cannot charge a high price otherwise they would lose business to their competitors. Yes (+) moderate No (-) 1 . My inputs (materials, labor, supplies, services, etc. Are standard rather than unique or differentiated. 2. I can switch between suppliers quickly and cheaply. 3. My suppliers would find it challenging to enter my business or my customers would find it difficult to perform my function in-house. 4. I can reserve inputs readily. 5. I have many potential suppliers. 7. My cost of purchases has no significant influence on my general costs 4. 2 Bargaining Power of Buyers The bargaining power of buyers is high in the chemicals industry as the buyers have many choices from where they can purchase their products from.Claimants consumer markets include automobiles, candles, cosmetics, detergents, latex, stationery, as well as finishers for aluminum and leather. Claimants buyers are aware of the need for information and Claritin helps its customers through the technical service centre. But this does not undermine the fact that other local chemical industries are also major players in the market so quasi(prenominal) products are available, and buyers do not really s et about a switching cost when changing where to purchase from. To what extent are your customers locked into you?No effect 1) Are there a large number of buyers congenator to the number of firms in the business? 2) Do you have a large number of customers, each with comparatively small purchases? 3) Does the customer face any significant costs in switching suppliers? 4) Does the buyer need a lot of important information? 5) Is the buyer aware of the need for additional information? 7) Your customers are not highly sensitive to price. ) Your product is unique to some degree or has accepted stigmatisation? 9) Your customers businesses are profitable. 0) You provide incentives to the decision makers. 4. 3 Rivalry among the Competitors Threat of competitors is high. 1 . The industry is growing rapidly. (Not so rapidly due to Energy constraints) 2. The industry is not cyclical with intermittent overcapacity. 3. The fixed costs of the business are relatively low portion of total costs. 5 . The competitors are diversified rather than specialized. 6. It would not be hard to get out of this business because there are no specialized kills and facilities or semipermanent contract commitments etc. 7.My customers would incur significant costs in switching to a competitor. 8. My product is convoluted and requires a detailed understanding on the part of my customer. 9. My competitors are all of approximately the same sizing as I am. 4. 4 Threats of Substitutes Threat of substitutes is high. 1 . Substitutes have performance limitations that do not in all offset their lowest price. Or, their performance is not Justified by their higher price. 2. The customer will incur costs in switching to a substitute. 4. Your customer is not likely to substitute. . 5 Threats of New Entrants The threats of new entrants are high. 1 . Do large firms have a cost or performance advantage in your segment of the industry? 2. Are there any proprietary product differences in your industry? 3. Are there any established brand identities in your industry? 4. Do your customers incur any significant costs in switching suppliers? 5. Is a lot of capital needed to enter your industry? 6. Is serviceable used equipment expensive? 7. Does the newcomer to your industry face difficulty in accessing distribution bring?